Commerce Commission Bill

[mtlundquist]

Commerce Commission Bill

1. This Act establishes a Commerce Commission (CC) in accordance with NL 5-12, the Citizen Involvement Act.

2. The CC will be chaired by MT Lundquist. The CC is charged with gathering input with the aim of revitalising the shopping areas of our sims and making the CDS a vibrant centre of commerce in Second Life with a reputation for innovation and quality.

3. The CC will
a) consider how to empower a public servant (or group of citizens) to promote commerce in the CDS —

Supporting the existing shop owners (by having the CDS launch promotional events and do some advertising);
Attracting new content creators willing to open a shop in the CDS; sponsoring events to attract customers;
Financing a promotional campaign grid-wide to let the SL residents know that the CDS is a shopping destination for high quality products (and services).

b) consider how non-functioning or empty offices and shops in commercial areas can be prevented from continually occupying space where new commercial initiatives could prosper instead (Pursuant of the existing NFS covenant zone P rule (2) ).

4. The CC Chair will seek input via forum discussions and at least two inworld meetings (preferably at times convenient for CDS residents in different RL time zones).

5. The CC will run from 11 February to the end of March.

6. The CC Chair will summarise the results of the Commission into a report to the RA and prepare any proposals for legislation (if needed) to enact the recommendations by 15 April.

7. The RA will consider the recommendations of the CC, including any proposals for legislation, by the end of April.

8. For purpose of keeping the CDS code of law organized and cleaned up: After the RA has considered the Commission's work or at the end of the RA's term, this act can be considered a finished historical event and marked appropriately.

[mtlundquist]

The Commerce Commission Bill was passed by the RA on Sunday 17th February 2008. We are looking for comment to inform the discussion. Please let me know or comment on the forums if you have ideas. Altenatively do attend the meetings. We will post the dates here.

thanks MT

[mtlundquist]

Date of first meeting Saturday 16th February 2008 at the Library (NFS) at 10 SLT.

see you there....MT

[mtlundquist]

Meeting of the Commerce Commission
First meeting 16th February 2008

Present

Samantha Fuller
Sonja Strom
ThePrincess Parisi
Patroklus Murakami
Satir DeCuir
Sudane Erato
Delia Lake
Naftali Torok
Symo Kurka
Bromo Ivory
MT Lundquist (chair)

Agenda

Brain storming session to consider the two issues described below.

a) consider how to empower a public servant (or group of citizens) to promote commerce in the CDS — Supporting the existing shop owners (by having the CDS launch promotional events and do some advertising); Attracting new content creators willing to open a shop in the CDS; sponsoring events to attract customers; Financing a promotional campaign grid-wide to let the SL residents know that the CDS is a shopping destination for high quality products (and services).

b) consider how non-functioning or empty offices and shops in commercial areas can be prevented from continually occupying space where new commercial initiatives could prosper instead (Pursuant of the existing NFS covenant zone P rule (2) ).

Item a) suggestions discussed

Open Life Grid discussed briefly and tabled (Samantha Fuller to provide a note for next meeting).

logos for CDS commerce
adverts for trade
land ad options
weekly social event shop promotion/events
teaching manuals for traders
shops are too small
direct tp to assist trade
on consignment goods
commercial rental of cds shop space
Chamber of commerce/CDS Traders' Association
consideration of a real world Chamber of commerce aims
The Chamber 1) supports the business community and advocates for its members by creating a strong local economy; 2) promotes the community; 3) provides networking opportunities; 4) represents the interests of business with government; and 5) supports business-friendly ballot measures and evaluates candidates for public office.

Item b) suggestions discussed

covenant change
compusory buyback
incentives to promote trade
mall manager for trade in CDS
rentals of shops
themed items only to be sold
medieval theme in NFS
tax discussed but no support for
beautification tax on empty shops
issues with empty shops
walk round next meeting

Actions

MT Lundquist to post the discussed items on the forum
Next meeting to include a walk round of trading areas in CDS to see the extent of any issues.
All to consider items discussed and post any thoughts\ potential solutions
Open Life Grid discussed briefly and tabled (Samantha Fuller to provide a note for next meeting)

Next meeting

To view sites
To consider which of the items discussed are worth pursuing, who, how and when.

Next meeting Saturday 23rd February at 12 pm SLT

[Salzie Sachertorte]

*post withdrawn*

[mtlundquist]

Commerce Commission

Agenda

1) Walk round observations

NFS 13 shops 2 not used 1 for all citizens
CN 23 shops 3 empty 1 museum 1 info centre
issues with empty shops

2) What is commercial activity?

3) Item a) Items for consideration

a) consider how to empower a public servant (or group of citizens) to promote commerce in the CDS — Supporting the existing shop owners (by having the CDS launch promotional events and do some advertising); Attracting new content creators willing to open a shop in the CDS; sponsoring events to attract customers; Financing a promotional campaign grid-wide to let the SL residents know that the CDS is a shopping destination for high quality products (and services).

Open Life Grid discussed briefly and tabled (Samantha Fuller to provide a note for next meeting).

A) Adverts: logos for CDS commerce; adverts for trade; land ad options
B) Promotions: weekly social event shop promotion/events;
C) Education: teaching manuals for traders
D) Chamber of commerce/CDS Traders' Association: consideration of a real world Chamber of commerce aims
The Chamber 1) supports the business community and advocates for its members by creating a strong local economy; 2) promotes the community; 3) provides networking opportunities; 4) represents the interests of business with government; and 5) supports business-friendly ballot measures and evaluates candidates for public office.
E) Other items: shops are too small; direct tp to assist trade; on consignment goods; commercial rental of cds shop space; mall manager for trade in CDS; themed items only to be sold;
medieval theme in NFS

4) Item b) Items for consideration

b) consider how non-functioning or empty offices and shops in commercial areas can be prevented from continually occupying space where new commercial initiatives could prosper instead (Pursuant of the existing NFS covenant zone P rule (2) ).

A) covenant change including: compulsory buyback; rentals of shops where empty; beautification tax on empty shops
B) incentives to promote trade:

[mtlundquist]

Commerce Commission Bill - Recommendations

1. This Act establishes a Commerce Commission (CC) in accordance with NL 5-12, the Citizen Involvement Act.

2. The CC will be chaired by MT Lundquist. The CC is charged with gathering input with the aim of revitalising the shopping areas of our sims and making the CDS a vibrant centre of commerce in Second Life with a reputation for innovation and quality.

3. The CC will
a) consider how to empower a public servant (or group of citizens) to promote commerce in the CDS —

Recommendation

Propose that the RA form a Chamber of Commerce for CDS. That this Chamber be made up of volunteer members from those holding and using for commercial purposes commercial land in CDS. That the leader of the Chamber of Commerce be elected by the members of the Chamber of Commerce every six months. That the Chamber of Commerce:

1) supports the business community and advocates for its members by creating a strong local economy. Supporting the existing shop owners (by having the CDS launch promotional events and do some advertising;
2) promotes the community. Attracting new content creators willing to open a shop in the CDS; sponsoring events to attract customers; weekly social event shop promotion/events
3) provides networking opportunities. Financing a promotional campaign grid-wide to let the SL residents know that the CDS is a shopping destination for high quality products (and services).
4) represents the interests of business with government;
5) supports business-friendly ballot measures and evaluates candidates for public office.

b) consider how non-functioning or empty offices and shops in commercial areas can be prevented from continually occupying space where new commercial initiatives could prosper instead (Pursuant of the existing NFS covenant zone P rule (2) ).

It was noted that as at 23rd February 2008:

in NFS there are 13 commercial lots with 2 not used and 1 provided for all citizens
in CN there are 24 commercial lots with 3 empty, 1 museum, 1 info centre, 1 embassy

Recommendation

It was felt important that a definition of commercial activity be established before judging whether land is in commercial use. The following definition is suggested for adoption by the RA.
Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer. It comprises the trading of something of economic such as goods, services, information or money between two or more entities.

That commerce, as defined, must occur on the commercial lots on a weekly basis and be demonstratable on request to the Chamber of Commerce. That this be a level of traffic (as shown in 'about land') of a minumim of 3 (no campers).

That if commercial activity as defined does not occur to the satisfaction of the Chamber of Commerce thatthe following remedies can be applied

That the commercial lot owner is to raise the traffic to the required level within a three week period;
If the commercial criteria are not satisfied within the three week period the Chamber of Commerce can require the commercial lot owner to sell back the lot to the CDS government for market rate;
The Chamber of Commerce is then required to sell the commercial lot to another commercial trader.

misc recommendations

That renting commercial lots to another for subsequent trade be considered trade so long as the tenant satisfies the commercial use rules. For avoidance of doubt the tenant is not made a citizen of CDS merely as a result of being a tenant.
That the Chamber of Commerce be allowed to rule on the appropriateness of trade i.e. if they receive complaints about the type of commercial activity. For instance it might be considered inappropriate for full nudity skin shops to operate in CDS.
That logos for CDS commerce be developed.
Direct tp to assist trade (recognised this now exists in CN but not yet in NFS)
More actively recruit more offerings from local creators
Add a set of LMs or product sample pictures and perhaps a MAP of all known CDS shops.
Take that same shopping-in-CDS content and put it on a CDS wbe site page.

4. The CC Chair will seek input via forum discussions and at least two inworld meetings (preferably at times convenient for CDS residents in different RL time zones).

5. The CC will run from 11 February to the end of March.

6. The CC Chair will summarise the results of the Commission into a report to the RA and prepare any proposals for legislation (if needed) to enact the recommendations by 15 April.

7. The RA will consider the recommendations of the CC, including any proposals for legislation, by the end of April.

8. For purpose of keeping the CDS code of law organized and cleaned up: After the RA has considered the Commission's work or at the end of the RA's term, this act can be considered a finished historical event and marked appropriately.

[mtlundquist]

The recommendation of the Commerce Commission has been submitted to the RA and is posted above.

Please note that the questions asked by the bill are those addressed first. This includes the question of what to do with unused lots. Refer please to the original bill to see the questions asked. The recommendations I suspect (from the RA meeting comments last Sunday) will be considered contraversial. However, the recommendations expressed show the considered thoughts of those who attended the meetings and contributed at the time. Obviously not all views can be recommended, but for instance there was a strong majority that considered land traffic a measure that should be used in a commercial evaluation of land use.

All I would ask of those who now wish to participate in the final stages of the commissions recommendations, is that they address the questions posed by the RA bill. Where you see problems with any recommendation you think about and propose something else (better perhaps) that addresses the issue(s).

The final set of recommendations were 'good' ideas thrown up while considering the questions posed by the RA.

Thanks to all those who contributed

MT

[Arria Perreault]

Recommendation

Propose that the RA form a Chamber of Commerce for CDS. That this Chamber be made up of volunteer members from those holding and using for commercial purposes commercial land in CDS. That the leader of the Chamber of Commerce be elected by the members of the Chamber of Commerce every six months.
....

That the commercial lot owner is to raise the traffic to the required level within a three week period;
If the commercial criteria are not satisfied within the three week period the Chamber of Commerce can require the commercial lot owner to sell back the lot to the CDS government for market rate;
The Chamber of Commerce is then required to sell the commercial lot to another commercial trader.

I am very surprised to read these recommandations. An official branch set by the RA would make surveys about commercial plots, not to get taxes (as usual in the RL), but to see if the commerce is prosperous. The only indicator taken in account will be the traffic. Let me make some remarks:

- It seems like a planified economy. We all know the story: there is only one indicator to reach. If it was decided to produce one million nails, the nails will be very small. If we decided to produce 10 tonnes of nails, the nails will be very big. And nobody cares if the nails are sold to any satisfied client.
- it is clear that the indicator of traffic is not sufficient to evaluate the commercial activities. Malls are also place to walk (in RL and in SL), to meet people, like in any ancient forum or agora. People who are walking maybe buy maybe don't. The commercial activities can only be measured by a complex set of indicators, whose turnover is a part. You must also see if commerce are sustainable: the fees can be higher than the turnover. Do this Chamber of Commerce will accept deficits ?
- the traffic is a particularly bad indicator. It can be influenced by different ways: keywords, distributed LM everywhere in SL, distribution of freebies, sales or any event.
- three weeks to be successful seem a bit arbitrary. Don't forget that the merchant takes the risk alone. Until he/she is successfull, it can take more time: the product need time to be developp, advertised. The merchant need time to convaince the client. The only kind of commerce that we can get are already successful products from famous designers. It will kill creativity.
- a question: can the CDS (via the Chamber of Commerce) takes a plot that it has sold to someone who is also a citizen ?
- an other question: who gives money to the Chamber of Commerce for its activities?
- final remark: the people who worked in this commission did probably not read "The long tail" .... SL is clearly a world with a long tail.

[Beathan]

Arria --

Excellent points. While MT did a great job organizing the Commerce Commission and receive the comments leading to his report from people attending inworld meetings he held, the RA will not simply rubber stamp his report. As we saw from the report of the election commission last term (or two terms ago -- I forget), views expressed by the people who take the time to attend inworld meetings are not necessarily reflective of the views of CDS citizens as a whole. Further, such proposals don't always reflect the best policy.

The RA is going to scrutinize and debate MT's report. I myself am going to extend some of the criticism I raised when the RA received the initial oral report last session. However, as a starting point for debate, MT's report is a job very well done.

Beathan

[Danton Sideways]

I stated at the last RA meeting that I perceive certain aspects of this bill to be totalitarian. The wording was a bit strong, because I wanted to put emphasis into my one-line comment. Let me now explain in more detail what I mean.

In real life, if one buys a property in a commercial zone, what does this engender? Is there any requirement that one must demonstrate a certain level of traffic or turnover, or even that one is in fact running a business? I think not. The purpose of commercial zoning is to set aside a place for business activity, since business is often prohibited in residential areas. But one does find residences mixed into commercial areas. One also finds the storefront offices of non-profit associations, and various other non-commercial activities. And even in the case of regular businesses, unless you break some law, you get to do what you want with your own commercial property.

So what is behind this drive to over-regulate and over-police the commercial plots in CDS? I perceive this as an authoritarian attempt to control resident activities to an unreasonable extent. More, I perceive a latent desire on the part of certain residents to be able to drive out other residents on various pretexts.

I notice moreover that this legislation is proposed by a party that is effectively trying to drive certain residents out of CDS. Having been lead by constant attacks to give up his seat on the RA, Patroklus has apparently decided to turn his time and attention elsewhere in Second Life, which is a loss for CDS. I myself feel under strong pressure, from the hostility pouring towards me from certain RA members, and am in fact tempted to leave this poisoned atmosphere of CDS, to go settle in a more harmonious region. But as I am a rather stubborn old fart, the idea that I am be chased away only reinforces my determination to stay, and to make life equally difficult for those who are trying to make life difficult for me.

[Danton Sideways]

* I am be cheeseburger

[Sonja Strom]

* I am be cheeseburger

What do you mean? Is this a reference to something?

[Beathan]

Commerce Commission Bill - Recommendations

Counterproposal --

Propose that the RA form a Chamber of Commerce for CDS. That this Chamber be made up of three citizens appointed for a term by the Chancellor. Members shall include at least one person holding and using for commercial purposes commercial land in CDS and at least one person who owns residential property but no commercial property. That the leader of the Chamber of Commerce be elected by the members of the Chamber of Commerce at the start of each term.

That the Chamber of Commerce:

1) Supports the business community and advocates for its members by creating a strong local economy that benefits both commercial and noncommercial activities in the CDS.
2) Supports the existing shop owners by coordinating with other governmental and non-governmental organizations, such as SL groups, the CDS event coordinators, and the CDS advertising team (if any – see private development act) to launch promotional events and advertise CDS businesses.
3) Promotes the community by attracting new content creators willing to open a shop in the CDS; by sponsoring events to attract customers; by holding weekly shop promotion/events; and by funding rebate or discount options from revenues from the surcharge on commercial land.
4) Provides networking opportunities by financing a promotional campaign grid-wide to let the SL residents know that the CDS is a shopping destination for high quality products (and services).
5) Represents the interests of business with government.

----------------

b) consider how non-functioning or empty offices and shops in commercial areas can be prevented from continually occupying space where new commercial initiatives could prosper instead (Pursuant of the existing NFS covenant zone P rule (2) ).

It was noted that as at 23rd February 2008:

in NFS there are 13 commercial lots with 2 not used and 1 provided for all citizens
in CN there are 24 commercial lots with 3 empty, 1 museum, 1 info centre, 1 embassy

Counter-Recommendation

The CDS favors commercial use in commercial areas and on commercial lots. This commercial use is difficult to police or verify. Further, commercial land owners should have the right to use their land for nonconforming, but nondisruptive, uses without facing forfeiture of their land with the attendant possible loss of citizenship.

Therefore, the RA recognizes that commerce, as defined, is the preferred use on commercial lots. While difficult to verify, one accessible indicator of use is level of traffic. Thus, commercial “rents” paid to the CDS should have a surcharge of 100% beyond the otherwise applicable rent, but this surcharge should be reduced based on traffic, with the level of traffic set each term by the Chamber of Commerce (or Chancellor, if there is no Chamber of Commerce). (For instance, if the regular rent on a parcel is L$1000/month and the level of traffic set is 10 per week; then the rent shall be L$2000/month (no traffic); L$1500/month (5 visits per week); or L$1000 (10 or more visits per week).

misc recommendations

Counterproposal --

That the Chamber of Commerce be allowed to rule on the appropriateness of trade i.e. if they receive complaints about the type of commercial activity. For instance it might be considered inappropriate for full nudity skin shops to operate in CDS.

That logos for CDS commerce be developed.

Direct tp to assist trade (recognised this now exists in CN but not yet in NFS).

More actively recruit more offerings from local creators.

Add a set of LMs or product sample pictures and perhaps a MAP of all known CDS shops.

Take that same shopping-in-CDS content and put it on a CDS web site page.

Advertise on the mainland, and obtain land on the mainland (or solicit donated land on the mainland) for this purpose.

[Gwyneth Llewelyn]

Thanks for the report, MT. I might not like the conclusions, but I recognise the effort put into it.

As a rule of thumb, I'm totally opposed to having the Government seize citizens' private property, no matter how well intended. This goes totally against the right to property which is part of the UDHR and thus cannot be violated by any bill or Constitutional amendment.

Legislating "eminent domain" might be a different thing, ie. a way that the Government recognises that certain areas, while private property, might be put to better use for the whole of the CDS. This basically means that we would have to estimate the value of plots and have the Government provide due compensation for citizens evicted from their properties. More important than that: citizens cannot get their citizenship revoked except when committing too serious crimes against the Constitution — which, as you know, only happened once, and under extreme conditions — and it was subject to appeal after 6 months. Throwing citizens out just because they don't sell enough is, frankly, plain silly. They would at least get from the Government another plot and remain citizens. Even so, I'm afraid that creating a Gulag of Failed Merchants is a sad way to help failed merchants.

Beathan's suggestion of forcing merchants to pay "fines" if they don't sell enough is more reasonable. Still, I don't totally agree with the concept. Successful merchants should get compensations — besides their obvious increase in income! — but just because someone is not able to "fulfill a quota", it's unfair to penalise them further and make their margins even smaller, to the point that they have no choice but to close shop and leave. However, the spirit of Beathan's suggestions might be preserved, with more positive wording. I don't like the idea of raising the barrier on potential merchants that are in for the long tail and encourage the established merchants (who have shops everywhere) although I understand the point.

At the very least I have to agree that shops should not be left open and empty for long periods (or used for anything but shops). As for making sales, that's up to the merchant really. Someone losing too much money on the commercial quarters will pack and go sooner or later.

Traffic not only is a bad measure (that can be so easily gamed — do we really, really wish camping chairs on the CDS!?), but one that will thankfully be removed in the near future. LL takes ages to get rid of silly ideas they had in the olden days, but this will come — probably more sooner than later. Granted, it's a metric like any other — and all metrics can, ultimately, be "gamed". We can, of course, use it until LL removes it from SL, and address the issue only then.

Beathan, I also don't understand why you wish to place the Chamber of Commerce under the Chancellor. "More Government?" I thought you were for "Smaller Government". Also, this is the sort of thing that should be best left in the hands of the shopowners themselves. I'm fine with having another chartered NGO — having citizens associate freely for a purpose, and get the Government's blessing on their work. It might also solve Arria's question of "how to finance the CC" — they'll extract fees from the merchants in order to pay for advertising, for instance, and not draw funds directly from the CDS' budget, but instead pool it together from membership fees. Obviously as a NGO it would/could get some governmental grants and funding once in a while — but for concrete projects in special occasions, subject to a budget request by the Chancellor to the RA. Under that model, NGOs would request their Chancellor to prepare a package of incentives, funds, grants, and other financial allocation of money that would be part of the Executive's budget to be approved. Making the CC a sub-branch of the Executive sounds too much like "planned economy" to my capitalistic ears I'm for Government supervision and overseeing, not planned economies.