Notice of Intent to Circulate Petition Notice is hereby given by the persons whose names appear hereon of their intention to circulate the petition within the City and County of San Francisco for the purpose of prohibiting restaurants and bars within the City from using misleading pricing to hide the true cost of items. It would require restaurants and bars to include all surcharges and fees (except taxes, gratuities, and service fees in place of gratuities) in listed prices. The names of the proponents are as follows: Nicholas Currault, David Rayson. The city attorney has prepared the following title and summary of the chief purpose and points of the proposed measure: PROHIBITION ON SEPARATE CHARGES IN CUSTOMER BILLS BY FOOD BUSINESSES The Way It Is Now City law does not require restaurants, bars, or other businesses that prepare and serve food (food businesses) to include in their prices all of the fees or charges that they require customers to pay. Some food businesses instead show their mandatory fees and charges as separate items on the customer bill. The City has an Office of Economic and Workforce Development that supports San Francisco's businesses and workers. State law generally prohibits businesses from advertising, displaying, or offering a price for a good or service that does not include the businesses' mandatory fees or charges other than sales taxes. This state law does not apply to charges for individual food or beverage items sold directly to consumers by certain food businesses so long as the charges are clearly displayed. The Proposal The proposed measure would change City law to prohibit any food business from advertising, displaying, or offering a price for a good or service that excludes the business's mandatory fees or charges. The proposed measure would not require the posted price to include government fees or taxes, such as sales taxes, or delivery fees that are clearly disclosed during the ordering process. Also, the proposed measure would not require the posted price to include service charges that meet all four of these requirements: are clearly disclosed by the food business to the customer before ordering; take the place of a tip by the customer; are completely distributed by the food business to its employees who performed services for the customers who paid the charges; and do not total more than 20% of the final bill. But if the food business is covered by a valid collective bargaining agreement that expressly provides for service charges to be distributed to employees who performed services for the customers, then the posted price does not need to include service charges if they are clearly disclosed before ordering. The proposed measure would allow the Director of the Office of Economic and Workforce Development to issue citations for any violation of this law and to impose penalties on food businesses of up to $1,000 per violation.