UPDATE: San Francisco Small Business Commission Votes Unanimously to Oppose Job Killing Healthy San Francisco Amendment

NEXT HEARING: Thursday, July 14, at 10:00 am at City Hall

On June 13, the San Francisco Small Business Commission unanimously opposed Supervisor David Campos's efforts to redefine qualifying healthcare expenditures under Healthy San Francisco. The proposed amendment would eliminate the ability to use a revertible Health Reimbursement Account (HRA) as a means of compliance under the law. 29% of businesses covered by Healthy SF use some form of reimbursement account to comply with the law.

The Commission found that the amendment would have a $50 million annual impact on the local economy, disproportionately impacting local small businesses, stating "these businesses, often low margin, high labor operations, may be forced to cut staff, reduce hiring, or may be pressured to close their doors." With an average impact of $60,000 annual cost per business, the measure will directly translate into hours and jobs lost.

While strongly rejecting Supervisor Campos's measure, the Commission unanimously supported measures to require that employees receive periodic notices and statements of their reimbursement account benefits and that the City improve its data collection efforts to determine if there is a pattern of denying or withholding benefits from employees.

The next hearing at the Board of Supervisors will most likely be heard at the Government Audit and Oversight Committee (Campos, Farrell, Chiu) on July 14 at 10:00 AM.

Currently there are 7 Supervisors listed as supporting Supervisor Campos's legislation: Supervisors Campos, Avalos, Mar, Mirkarimi, Cohen, Chiu, and Kim. It is essential that we let them know the damage this measure will cause to our local businesses.

For any questions contact Rob Black, 415-781-5348 x 1, rob@ggra.org.

Please take a moment and write the Board of Supervisors to urge them to support the unanimous recommendations of the Small Business Commission.

Copy and Past the email addresses below:

Eric.mar@sfgov.org; mark.farrell@sfgov.org; david.chiu@sfgov.org; Carmen.chu@sfgov.org; ross.mirkarimi@sfgov.org; jane.kim@sfgov.org; sean.elsbernd@sfgov.org; scott.weiner@sfgov.org; david.campos@sgov.org; mahlia.cohen@sfgov.org; john.avalos@sfgov.org;

Please tell your story how this measure will impact your business or for a sample letter to the Board, you can copy and paste the following into the body of your email:

Dear Supervisors:

On June 13, the San Francisco Small Business Commission unanimously opposed Supervisor David Campos's efforts to redefine qualifying healthcare expenditures under Healthy San Francisco because it will have an immediate $50 million annual impact on the local economy, disproportionately impact local small businesses and will put thousands of people out of work.

As an alternative please support the Commissions recommendations to implement a strong periodic notice requirement so that all employees know how to access their health care benefits as well as improved data collection so that patterns of abuse can be detected.

In a time of continued high unemployment and economic uncertainty, please do not add an additional $50 million a year cost to local small businesses. Supervisor Campos's amendment will reduce work hours, kill jobs and close businesses.

Sincerely, YOUR NAME

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Board of Supervisor's Attempts to Eliminate the Use of Health Reimbursement Accounts as a means of compliance with Healthy San Francisco

Huge Potential Financial Impact on Local Small Businesses

Hearing on June 9, at 10:00 am at City Hall On Tuesday May 3, 2011, Supervisor David Campos introduced an amendment to the Health Care Security Ordinance that would effectively eliminate the use of Health Reimbursement Arrangements (HRA) or Flexible Spending Accounts (FSA), where unspent money reverts back to the employer, as a means of compliance with Healthy SF.

Campos's legislation would change the definition of "health care expenditure" to exclude the money put into Health Reimbursement Arrangements (HRA), if the unspent portion of the HRA ever reverts back to the employer. Employers that use HRAs in San Francisco would see huge cost impacts if the legislation goes forward, adding an additional 10 to 15% to their labor costs.

The proposed ordinance currently has 7 sponsors: Supervisors Campos, Avalos, Mar, Mirkarimi, Cohen, Chiu, and Kim and will most likely be heard at the Government Audit and Oversight Committee (Campos, Farrell, Chiu) on June 23 at 10:00 AM. The first public hearing on the item will be at the Small Business Commission on June 13, at 5:30 PM, City Hall Room 400.

Please attend the Small Business Commission and provide your input:

Small Business Commission June 13, at 5:30 City Hall Room 400

For more information please contact Rob Black at rob@ggra.org, or 415-781-5348.