'Charge for Harm' Fee Deserves San Francisco Small Business Support

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“Charge for Harm” Alcohol Mitigation Fee Deserves
San Francisco Small Business Support

San Francisco, California (July 12, 2010) --- San Francisco small businesses affected by alcohol over-consumption are being encouraged to support a proposed new fee on alcohol to help mitigate alcohol-related costs. The “Charge for Harm” ordinance, introduced June 22 by Supervisor John Avalos, is co-sponsored by Supervisors Maxwell and Mirkarimi. A Small Business Commission hearing at 5:30 p.m. at San Francisco City Hall is expected to be lively on Monday, July 12, while the Board of Supervisors will take up the matter later this month.

The proposed ordinance is supported by a “nexus study” commissioned by the San Francisco City Comptroller’s Office. The study found $17.7 million in direct city and county unreimbursed expenses for alcohol-related problems addressed by community behavioral health services, fire department emergency medical transport, San Francisco General Hospital, and the Sheriff’s department.

“All San Francisco residents and small businesses unfairly bear the burden of government costs for alcohol-related problems,” said Michele Simon, JD, MPH, research and policy director for the alcohol industry watchdog, Marin Institute. “This relatively small fee will ensure alcohol wholesalers and importers—not bars, restaurants, or retailers—will pay their fair share to mitigate the tremendous economic costs of alcohol harm in San Francisco.”

The new fee-generated revenue may only be spent on direct agency, health and administrative costs for the harm alcohol consumption causes in the city. Alcohol-related harm is most often reflected in county treatment, prevention, and ambulance services, and hospitalization for alcohol-related illness such as cirrhosis of the liver and various forms of cancer. Over $11 million will be recovered for treatment costs for residents, many of who work in small businesses. The San Francisco Fire Department will recover $4 million in emergency transport of inebriates and persons injured from alcohol use. Because the fee will only recover costs paid from the city’s general fund, it will place costs directly on the wholesaling businesses that profit from alcohol, shifting costs from taxpaying residents and businesses.

The alcohol mitigation fee will not be allowed to exceed the costs as outlined in the nexus study, and will be imposed primarily on regional wholesalers and the portion of local brews consumed locally. Most beer is produced by foreign corporations who could easily bear some of the fee.

“Small business in San Francisco should not let Big Alcohol scare them into opposition,” said Bruce Lee Livingston, executive director of Marin Institute. “We ask small businesses to be supportive, as the policy will charge alcohol wholesalers for harm instead of taxpayers and all taxpaying small businesses.” Livingston added, “We’ve all been paying for the emergency, detox and treatment costs of alcohol, but this smart fee shifts the costs to the Big Beer corporations and their wholesalers.”

For the latest news and resources, please visit our San Francisco Charge for Harm page. For additional information on Charge for Harm programs, visit MarinInstitute.org