San Francisco County Municipal Code Art. 14 Transportation

Sec. 1401. Title; Tax Rate; Use of Proceeds. Sec. 1402. Definitions. Sec. 1403. Purpose. Sec. 1404. Administration by Authority. Sec. 1405. Contract With State. Sec. 1406. Transactions Tax and Rate of 0.5%. Sec. 1407. Place of Sale. Sec. 1408. Use Tax and Rate of 0.5%. Sec. 1409. Adoption of Provisions of State Law. Sec. 1410. Limitations on Adoption of Provisions of State Law and Collection of Use Taxes. Sec. 1411. Permit Not Required. Sec. 1412. Exemptions, Exclusions, and Credits. Sec. 1413. Authorization and Limitation on Issuance of Bonds. Sec. 1414. Use of Proceeds. Sec. 1415. Appropriations Limit. Sec. 1416. Amendments. Sec. 1417. Penalties. Sec. 1418. Severability. Sec. 1419. Enjoining Collection Forbidden. Sec. 1420. Termination Dates.

SEC. 1401. TITLE; TAX RATE; USE OF PROCEEDS. (a) The tax imposed by this Article 14 shall be known as the “San Francisco County Transportation Authority Tax,” and may be referred to herein as the “Tax.” (b) The Tax is a local retail transactions and use tax of 0.5%, as provided in Sections 1406 and 1408 of this Article 14. (c) The proceeds from the Tax shall be spent solely for the purposes set forth in Section 1414 of this Article 14. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition K, 11/4/2003; Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) Editor's note For the New Transportation Expenditure Plan adopted by Proposition K on November 4, 2003, see Administrative Code Appendix 67. SEC. 1402. DEFINITIONS. For the purposes of this Article 14, “Authority” means the San Francisco County Transportation Authority, and “District” means the City and County of San Francisco. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition K, 11/4/2003; Proposition L,, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1403. PURPOSE. This Article 14 is intended to achieve the following, among other purposes, and directs that the provisions of this Article be interpreted to accomplish these purposes: (a) To incorporate provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and Taxation Code. (b) To impose a transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and Taxation Code and Division 12.5 (commencing with section 131000) of the California Public Utilities

Code and provide a measure therefor that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Tax. (c) To authorize administration of a transactions and use tax in a manner that will, to the highest degree possible consistent with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and Taxation Code, minimize the cost of collecting the Tax and at the same time minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this Article 14. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition K, 11/4/2003; Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1404. ADMINISTRATION BY AUTHORITY. Upon voter approval of the 2022 Transportation Expenditure Plan and the amendments to this Article 14 passed by the voters at the November 8, 2022 election, the Authority shall continue in effect as constituted immediately prior to that voter approval except as otherwise provided by law. The Authority shall have all of the powers set forth in Division 12.5 (commencing with Section 131000) of the California Public Utilities Code, all of the powers set forth in the 2022 Transportation Expenditure Plan, and all powers incidental or necessary to imposing and collecting the Tax and administering the Tax proceeds and the 2022 Transportation Expenditure Plan, and causing and overseeing the delivery of the transportation improvements therein contained. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition K, 11/4/2003; Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1405. CONTRACT WITH STATE. Prior to April 1, 2023, the Authority shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of the Tax, in which case the operative date of the 2022 Transportation Expenditure Plan and the amendments to this Article 14 passed by the voters at the November 8, 2022 election shall be April 1, 2023; provided that, if the Authority has not contracted with the California Department of Tax and Fee Administration prior to April 1, 2023, it shall nevertheless so contract and in such a case the operative date of the 2022 Transportation Expenditure Plan and the amendments to this Article 14 passed by the voters at the November 8, 2022 election shall be the first day of the first calendar quarter following the execution of such a contract. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition K, 11/4/2003;Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1406. TRANSACTIONS TAX AND RATE OF 0.5%. For the privilege of selling tangible personal property at retail, the Tax is hereby imposed upon all retailers in this District at the rate of 0.5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in this District on and after on and after1 April 1, 1990. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition K, 11/4/2003; Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) CODIFICATION NOTE

So in Prop. L, 11/8/2022. SEC. 1407. PLACE OF SALE. For the purposes of this Article 14, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or the retailer’s agent to an out-of-state destination or to a common carrier for delivery to an out- of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023)

SEC. 1408. USE TAX AND RATE OF 0.5%. The Tax is hereby imposed on the storage, use, or other consumption in this District of tangible personal property purchased from any retailer on and after April 1, 1990 for storage, use, or other consumption in this District at the rate of 0.5% of the sales price of the property. The sales price shall include delivery when such charges are subject to state sales or use tax regardless of the place to which delivery is made. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition K, 11/4/2003; Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1409. ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this Article 14 and except insofar as they are inconsistent with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the California Revenue and Taxation Code are hereby adopted and made a part of this Article 14 as though fully set forth herein. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1410. LIMITATIONS ON ADOPTION OF PROVISIONS OF STATE LAW AND COLLECTION OF USE TAXES. (a) In adopting the provisions of Part 1 (commencing with Section 6001) of Division 2 of the California Revenue and Taxation Code, wherever the State of California is named or referred to as the taxing agency, the name of the Authority shall be substituted therefor. The substitution, however, shall not be made: (1) When the word “State” is used as part of the title of the State Controller, the State Treasurer, the State Treasury, or the Constitution of the State of California; (2) When the result of that substitution would require action to be taken by or against the Authority or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Article 14; (3) In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: (A) Provide an exemption from this Tax with respect to certain sales, storage, use, or other consumption of tangible personal property which would not otherwise be exempt from this Tax while such sales, storage, use, or other consumption remains subject to tax by the State under the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code; or (B) Impose this Tax with respect to certain sales, storage, use, or other consumption of tangible personal property which would not be subject to tax by the State under the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code; (4) In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, or 6828 of the California Revenue and Taxation Code. (b) The word “District” shall be substituted for the word “state” in the phrase “retailer engaged in business in this state” in Section 6203 and in the definition of that phrase in Section 6203..1 “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this State or for delivery in the State by the retailer and all persons related to the retailer that exceed $500,000. For purposes of this subsection (b), a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) CODIFICATION NOTE

So in Prop. L, 11/8/2022.

SEC. 1411. PERMIT NOT REQUIRED. If a seller’s permit has been issued to a retailer under California Revenue and Taxation Code Section 6067, an additional transactor’s permit shall not be required by this Article 14. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1412. EXEMPTIONS, EXCLUSIONS, AND CREDITS. (a) There shall be excluded from the measure of the transactions Tax and the use Tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. (b) There are exempted from the computation of the amount of transactions Tax gross receipts when they are from: (1) Sales of tangible personal property other than fuel or petroleum products to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. (2) Sales of property to be used outside the District which is shipped to a point outside the District, pursuant to the contract of sale, by delivery to such point by the retailer or the retailer’s agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this subsection (b)(2), delivery to a point outside the District shall be satisfied: (A) with respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the California Vehicle Code, aircraft licensed in compliance with Section 21411 of the California Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the California Vehicle Code by registration to an out-of-District address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, the buyer’s principal place of residence. (B) with respect to commercial vehicles, by registration to a place of business out-of-District, and a declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. (3) the sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to April 1, 1990. (4) a lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to April 1, 1990. (5) for the purposes of subsections (3) and (4) of this subsection (b), the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract upon notice, whether or not such right is exercised. (c) There are exempted from the use Tax imposed by this Article 14, the storage, use, or other consumption in this District of tangible personal property: (1) the gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. (2) other than fuel or petroleum products, purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the California Revenue and Taxation Code. (3) if the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to April 1, 1990. (4) if the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to April 1, 1990. (5) for the purposes of subsections (3) and (4) of this subsection (c), storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time during which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. (6) Except as provided in subsection (7) of this subsection (c), a retailer engaged in business in the District shall not be required to collect use Tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the District or participates within the District in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the District or through any representative, agent, canvasser, solicitor,

subsidiary, or person in the District under the authority of the retailer. (7) “A retailer engaged in business in the District” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the California Vehicle Code, aircraft licensed in compliance with Section 21411 of the California Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the California Vehicle Code. That retailer shall be required to collect use Tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the District. (d) Any person subject to use Tax under this Article 14 may credit against that Tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 (commencing with Section 7251) and Part 1.7 (commencing with Section 7280) of Division 2 of the California Revenue and Taxation Code with respect to the sale to the person of the property, the storage, use, or other consumption of which is subject to the use Tax. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1413. AUTHORIZATION AND LIMITATION ON ISSUANCE OF BONDS. The Authority is hereby authorized to issue from time to time limited tax bonds pursuant to California Public Utilities Code Sections 131109 et seq. in an aggregate principal amount not to exceed $1,910,000,000. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition K, 11/4/2003; Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1414. USE OF PROCEEDS. (a) The proceeds of the Taxes imposed by this Article 14 prior to the operative date of the amendments to this Article 14 passed by the voters at the November 8, 2022 election shall be used solely for the projects and purposes set forth in the New Transportation Expenditure Plan approved by the voters as part of Proposition K at the November 4, 2003 election and for the administration thereof. (b) The proceeds of the Taxes imposed by this Article 14 on or after the operative date of the amendments to this Article 14 passed by the voters at the November 8, 2022 election shall be used solely for the following purposes: (1) The projects and purposes set forth in the 2022 Transportation Expenditure Plan referenced in subsection (c) of this Section 1414, and any updates or revisions to such Plan expenditures or other expenditures allowed or permitted by Division 12.5 (commencing with Section 131000) of the California Public Utilities Code as those provisions existed on November 8, 2022, and Articles XIIIA and XIIIC of the California Constitution; (2) To pay interest and principal on the bonds authorized and issued under Section 1413 of this Article 14; and (3) To pay the cost of administration of the Tax. (c) The 2022 Transportation Expenditure Plan is in Section 3 of the ordinance containing amendments to this Article 14 passed by the voters at the November 8, 2022 election, and, as part of that ordinance, shall be placed in the Appendix to the Administrative Code containing voter-approved measures. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition K, 11/4/2003; Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1415. APPROPRIATIONS LIMIT. (a) Except as provided in subsection (b) of this Section 1415, for purposes of California Constitution Article XIIIB, the appropriations limit for the Authority for fiscal year 2003-04 and each year thereafter shall be $485,175,000 unless that amount should be amended pursuant to applicable law. (b) Pursuant to California Constitution Article XIIIB and applicable laws, for four years from November 8, 2022, the appropriations limit for the Authority shall be increased by the aggregate sum collected by the levy of the Tax imposed under Article 14 of the Business and Tax Regulations Code. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition K, 11/4/2003; Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023)

SEC. 1416. AMENDMENTS. All amendments to Part 1 (commencing with Section 6001) of Division 2 of the California Revenue and Taxation Code made subsequent to November 7, 1989 that relate to sales and use taxes and that are not inconsistent with Part 1.6 (commencing with Section 7251) (commencing with Section 7280)1 of Division 2 of the California Revenue and Taxation Code and all amendments to Part 1.6 and Part 1.7 of Division 2 of the California Revenue and Taxation Code, shall automatically become a part of this Article 14 ; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this Article 14 . (Added by Ord. 267-89, App. 7/27/89; amended by Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) CODIFICATION NOTE

So in Prop. L, 11/8/2022. SEC. 1417. PENALTIES. Any person violating any of the provisions of this Article 14 shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500 or by imprisonment for a period of not more than six months, or by both such fine and imprisonment. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1418. SEVERABILITY. If any provision of this Article 14 or the application thereof to any person or circumstance is held invalid, the remainder of this Article 14 and the application of such provision to other persons or circumstances shall not be affected thereby. (Added by Ord. 267-89, App. 7/27/89; amended by Proposition LL, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1419. ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against the State or the Authority, or against any officer of the State or the Authority, to prevent or enjoin the collection under this Article 14, or Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and Taxation Code, of any Tax or any amount of Tax required to be collected. (Added by Proposition K, 11/4/2003; amended by Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) SEC. 1420. TERMINATION DATES. (a) The New Transportation Expenditure Plan approved by the voters as part of Proposition K at the November 4, 2003 election and the authority to levy the Tax imposed by this Article 14 prior to the operative date of the amendments to this Article 14 passed by the voters at the November 8, 2022 election shall terminate immediately prior to the operative date of the amendments to this Article 14 passed by the voters at the November 8, 2022 election. (b) The 2022 Transportation Expenditure Plan, referenced in subsection (c) of Section 1414, and the authority to levy the Tax imposed by the amendments to this Article 14 passed by the voters at the November 8, 2022 election shall expire 30 years from the operative date of the amendments to this Article 14 passed by the voters at the November 8, 2022 election, unless earlier terminated as provided in California Public Utilities Code Section 131280, as that section existed on November 8, 2022. (Added by Proposition L, 11/8/2022, Eff. 11/8/2022, Oper. 4/1/2023) ARTICLE 15:

BUSINESS IMPROVEMENT DISTRICTS PROCEDURE CODE

Sec. 1510. Purpose. Sec. 1511. Augmentation and Modification of State Law Requirements Governing Property and Business Improvement Districts. Sec. 1512. Severability. Sec. 1513. City Planning Referral. Sec. 1514. Assessment Limitation. Sec. 1515. Alternative or Additional Procedure for Establishing a Property and Business Improvement District – Requiring Weighted Two-Thirds Vote.

SEC. 1510. PURPOSE. (a) State law provides procedures to form property and business improvement districts and levy assessments. This Article provides authority for the City to augment and modify those state law procedures by authorizing the Board of Supervisors to do any of the following: (1) Reduce the percentage of petitions required from owners in order to initiate formation; (2) Have the district encompass residential property, and to assess residential property; (3) Extend the term of the district to a maximum of 15 years, or such longer term as is authorized by state law; (4) Extend the term of the district to a maximum of 40 years, if all or a portion of the assessments will be pledged or applied to pay any bond, financing lease (including certificates of participation therein), or other similar obligations of the City; (5) Recover through assessments the costs incurred in formation of the district; (6) Disestablish a district upon a supermajority vote of the Board of Supervisors; or, (7) Require a weighted two-thirds (2/3) vote of business owners to be assessed, based on ballots cast, as an alternative or additional procedure for establishing a business improvement district and levying assessments on business owners. In addition, this Article augments and modifies state law by: requiring the Clerk of the Board of Supervisors to notify business owners in English, Cantonese and Spanish when a petition for district formation is received; and setting minimum levels of representation by business owners on the governing body of the owners' association that administers, implements or provides the activities and improvements specified in the management district plan. (b) Under this Article, the Board of Supervisors may establish property and business improvement districts and may finance activities and improvements through assessments apportioned among parcels of real property and/or businesses within such districts. It is the intent of this Article to provide a vehicle for financing activities and improvements that supplement and complement existing services and facilities. The Board of Supervisors may not establish any district or levy any assessment under this Article to replace or supplant existing City services. Nothing in this Article shall be construed as prohibiting the establishment of districts or levying of assessments to finance local capital improvements that are otherwise authorized under the City Charter, any other City ordinance, or state law. (Added as Sec. 1511 by Ord. 157-95, App. 5/12/95; renumbered and amended by Ord. 32-04; File No. 031609, App. 3/5/2004; amended by Ord. 239-12 , File No. 120963, App. 12/7/2012, Eff. 1/6/2013) (Former Sec. 1510 added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04; File No. 031609, App. 3/5/2004) SEC. 1511. AUGMENTATION AND MODIFICATION OF STATE LAW REQUIREMENTS GOVERNING PROPERTY AND BUSINESS IMPROVEMENT DISTRICTS. The Board of Supervisors may elect to use the procedures set forth in California Streets and Highways Code Sections 36600 et seq. or may elect to use those procedures as modified herein by this Article, for the formation of property and business improvement districts and the levy of assessments that will fund activities and improvements that confer benefits on businesses, and/or on residential, commercial, or residential and commercial properties. (a) Notwithstanding Streets and Highways Code Section 36621(a) or any other provision of state law to the contrary, the Board of

Supervisors may initiate proceedings to establish a property and business improvement district upon receipt of a petition signed by property owners, business owners, or a combination of property owners and business owners in the proposed district who will pay at least 30 percent of the assessments proposed to be levied. (1) The amount of assessments attributable to properties and businesses owned by the same owner that is in excess of 25 percent of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by the property owners or business owners who will pay the requisite 30 percent or more of the total amount of assessments proposed to be levied. (2) Notwithstanding Streets and Highways Code Section 36623(b) or any other provision of state law to the contrary, where the Board of Supervisors initiates proceedings pursuant to this subsection (a) to levy assessments on businesses, the Board shall conduct the protest proceeding by ballot rather than by oral or written protests. (b) Notwithstanding Streets and Highways Code Section 36622(h) or any other provision of state law to the contrary, the Board of Supervisors may form a district and levy assessments: (1) For a maximum term of up to 15 years, or such longer term as is authorized by state law; or, (2) For a maximum term of up to 40 years, if all or a portion of the assessments will be pledged or applied to pay any bond, financing lease (including any certificates of participation therein), or other similar obligations of the City. Such assessments may be pledged or applied to pay such obligations commencing when the assessments are levied, or such later date as the Board of Supervisors shall determine. (c) Notwithstanding Streets and Highways Code Section 36632(c) or any other provision of state law to the contrary, the Board of Supervisors may: (1) establish a district pursuant to this Article that encompasses properties zoned for residential use; (2) levy assessments upon such properties; and (3) fund improvements and activities that benefit such properties. (d) Notwithstanding any provision of state law to the contrary, the Board of Supervisors may authorize a district formed pursuant to this Article to recover through assessments the costs incurred in forming the district, including but not limited to: (1) The costs of preparation of the management district plan and engineer's report required by state law; (2) The costs of circulating and submitting the petition to the Board of Supervisors seeking establishment of the district; (3) The costs of printing, advertising and the giving of published, posted or mailed notices; (4) The costs of engineering, consulting, legal or other professional services provided in proceedings under this Article or Streets and Highways Code Sections 36600 et seq.; and (5) Costs of any ballot proceedings required by this Article 15 or other law for approval of a new or increased assessment. In order to recover these costs, the management district plan required pursuant to Streets and Highways Code Section 36622 shall specify the formation costs eligible for recovery through assessments, the schedule for recovery of those costs, and the basis for determining the amount of the additional assessment for recovery of such costs, including the maximum amount of the additional assessment, expressed either as a dollar amount, or as a percentage of the underlying assessment. (e) Notwithstanding Streets and Highways Code Section 36670 or any other provision of state law to the contrary, the Board of Supervisors may, by a supermajority vote of eight or more members, notice a hearing and initiate proceedings to disestablish for any reason a district formed after April 4, 2004. Where the Board of Supervisors seeks to disestablish a district in circumstances not authorized under Streets and Highways Code Section 36670, both the resolution of intention to disestablish the district and any final resolution to disestablish the district shall require a supermajority vote of no fewer than eight members. (f) The Board of Supervisors, however, may not disestablish a district under Section 1511(e) or Streets and Highways Code Section 36670 or any other provision of law, where there are any outstanding bond, financing lease (including any certificates of participation therein), or other similar obligations of the City, payable from or secured by assessments levied within the district. (g) Notwithstanding Streets and Highways Code Section 36640 or any other provision of state law to the contrary: (1) The Board of Supervisors may, in the resolution to establish the district, determine and declare that any bond, financing lease (including any certificates of participation therein), or other similar obligations of the City, shall be issued to finance the estimated costs of some or all of the proposed improvements or activities described in such resolution, pursuant to the City Charter, City ordinances or state law, as the Board may determine; and (2) The amount (including interest) of any City bond, financing lease (including any certificates of participation therein) or other similar obligations, may not exceed the estimated total of (A) revenues to be raised from the assessments over the term of the district, plus (B) such other monies, if any, to be available for such purpose, in each case determined as of the date such obligations are issued or incurred. (h) The management district plan submitted for each proposed district to be funded under this Article shall ensure adequate representation on the governing body of the owners' association, of business owners located within the district who do not own, or have an ownership interest in, commercial property located within the district. Not less than 20 percent of voting members o

ed or incurred. (h) The management district plan submitted for each proposed district to be funded under this Article shall ensure adequate representation on the governing body of the owners' association, of business owners located within the district who do not own, or have an ownership interest in, commercial property located within the district. Not less than 20 percent of voting members of the owners' association shall be such business owners. Where warranted by the circumstances in a proposed district, the Board of Supervisors may

require that the management district plan provide a greater level of business owner representation. This subsection (h) shall not limit the authority of the Board of Supervisors to require the incorporation of any other item or matter into the management district plan under Streets and Highways Code Section 36622(l) or other applicable law. (i) No fewer than 30 days after the Clerk of the Board receives a complete petition seeking formation of a district pursuant to this Article, the Clerk shall mail notice to all businesses located within the proposed district holding a current registration certificate issued by the Tax Collector. The notice shall be in English, Spanish and Cantonese, and shall inform the recipients: (1) That a petition for formation of a property and business improvement district has been received; (2) That if the district is formed, assessments will be levied against property and/or businesses in the district; (3) That formation of the district is subject to the approval of the Board of Supervisors following public hearings and a ballot proceeding by owners of the property, businesses, or both, subject to the assessment; and, (4) How recipients may obtain further information about the petition and proposed district. (Added by Ord. 32-04; File No. 031609, App. 3/5/2004; amended by Ord. 268-06, File No. 061320, App. 10/31/2006; Ord. 239-12 , File No. 120963, App. 12/7/2012, Eff. 1/6/2013) (Former Sec. 1511 added by Ord. 157-95, App. 5/12/95; renumbered as Sec. 1510 and amended by Ord. 32-04) SEC. 1512. SEVERABILITY. If any provision of this Article or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect any other provision or such other application of such provision which can be given effect without such provision or application, and to this end the provisions of this Article are declared to be severable. (Added by Ord. 157-95, App. 5/12/95) SEC. 1513. CITY PLANNING REFERRAL. (a) If a resolution of intent adopted pursuant to this Article proposes to finance acquisition, extension, widening, removal, relocation, vacation, abandonment, sale or change in the use of any public way, transportation route, ground, open space, building, or structure which requires referral to the Planning Department under Section 4.105 of the Charter, or any successor provision, the resolution of intent shall be referred to the department for a report regarding conformity with the Master Plan. (b) If a resolution of intent is referred to the Department of City Planning pursuant to this Section, the department shall make its report to the Board at or before the public hearing on the resolution of intent. (Added as Sec. 1534 by Ord. 157-95, App. 5/12/95; renumbered and amended by Ord. 32-04; File No. 031609, App. 3/5/2004) (Former Sec. 1513 added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04) SEC. 1514. ASSESSMENT LIMITATION. No amount proposed to be assessed upon any lot for the construction of any improvement or the acquisition of any property for public use shall exceed one-half of the assessed value of the lot. The total amount of all assessments levied on lots within the district for the construction or any improvement or the acquisition of any property for public use shall not exceed one-half the assessed value of all lots assessed or proposed to be assessed. Assessment amounts shall satisfy any further limitations imposed by Section 1.20 of the Administrative Code and Part 5 of Division 4 of the California Streets and Highways Code or any preemptive successor statute. (Added as Sec. 1535 by Ord. 157-95, App. 5/12/95; renumbered and amended by Ord. 32-04; File No. 031609, App. 3/5/2004) (Former Sec. 1514 added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04) SEC. 1515. ALTERNATIVE OR ADDITIONAL PROCEDURE FOR ESTABLISHING A PROPERTY AND BUSINESS IMPROVEMENT DISTRICT – REQUIRING WEIGHTED TWO-THIRDS VOTE.

(a) If so provided in the Resolution of Intention and the Resolution to Establish, as an alternative or additional procedure for establishing a business and property improvement district and levying assessments on business owners, the Board of Supervisors may require a weighted two-thirds (2/3) vote of the business owners proposed to be assessed, based on ballots cast. The votes shall be weighted according to each business owner's estimated assessments in relation to the total estimated assessments proposed to be levied on all business owners in the proposed district. The vote shall not be effective unless business owners representing at least 50 percent of the total estimated assessments proposed to be levied on all business owners in the district cast ballots. (b) The Board of Supervisors hereby finds and determines that the business owners proposed to be assessed, with votes allocated as provided in subsection (a), constitute the "electorate" for purposes of Article XIIIC § 2(d) of the California Constitution as and to the extent that provision applies to the levy of assessments on businesses pursuant to this Article. (Added by Ord. 239-12 , File No. 120963, App. 12/7/2012, Eff. 1/6/2013) (Former Sec. 1515 added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04; File No. 031609, App. 3/5/2004) SEC. 1516. (Added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04; File No. 031609, App. 3/5/2004) SEC. 1520. (Added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04; File No. 031609, App. 3/5/2004) SECS. 1530. - 1533. (Added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04; File No. 031609, App. 3/5/2004) SEC. 1534. (Added by Ord. 157-95, App. 5/12/95; renumbered as Sec. 1513 and amended by Ord. 32-04; File No. 031609, App. 3/5/2004) SEC. 1535. (Added by Ord. 157-95, App. 5/12/95; renumbered as Sec. 1514 and amended by Ord. 32-04; File No. 031609, App. 3/5/2004) SECS. 1540. - 1546. (Added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04; File No. 031609, App. 3/5/2004) SECS. 1550. - 1552. (Added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04; File No. 031609, App. 3/5/2004) SECS. 1560. - 1561. (Added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04; File No. 031609, App. 3/5/2004) SECS. 1570. - 1573. (Added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04; File No. 031609, App. 3/5/2004) SECS. 1580. - 1588. (Added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04; File No. 031609, App. 3/5/2004) SECS. 1590. - 1591. (Added by Ord. 157-95, App. 5/12/95; repealed by Ord. 32-04; File No. 031609, App. 3/5/2004)