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All monies collected under the Early Care and Education Commercial Rents Tax Ordinance shall be deposited to the credit of the Babies and Families First Fund, established in Administrative Code Section 10.100-36. The Fund shall be maintained separate and apart from all other City funds and shall be subject to appropriation. Any balance remaining in the Fund at the close of any fiscal year shall be deemed to have been provided for a special purpose within the meaning of Charter Section 9.113(a) and shall be carried forward and accumulated in the Fund for the purposes described in Section 2112(d) of this Article 21.
(Added by Proposition C, 6/5/2018, Eff. 7/20/2018, Oper. 1/1/2019)
Monies in the Babies and Families First Fund shall be used exclusively for the purposes specified in this Section 2112. Subject to the budgetary and fiscal provisions of the Charter, monies in the Fund shall be appropriated on an annual or supplemental basis and used exclusively for the following purposes:
(a) Up to 2% of the proceeds of the Early Care and Education Commercial Rents Tax, distributed in any proportion to the Tax Collector and other City departments, for administration of the Early Care and Education Commercial Rents Tax;
(b) Refunds of any overpayments of the Early Care and Education Commercial Rents Tax imposed by this Article 21;
(c) Fifteen percent of all amounts remaining after application of subsections (a) and (b) to the General Fund, to be expended for any purposes of the City; and
(d) All remaining amounts to funding, including administrative costs, Eligible Programs.
(1) “Eligible Programs” means:
(A) Support for quality early care and education for children under the age of six in San Francisco families at 85% or less of State Median Income (SMI);
(B) Support for quality early care and education for children under the age of four in San Francisco families earning up to 200% of the Area Median Income (AMI);
(C) Investment in comprehensive early care and education services that support the physical, emotional, and cognitive development of children under the age of six; and
(D) Increasing compensation (including but not limited to wages, benefits, and training) of care professionals and staff in order to improve the quality and availability of early care and education for children under the age of six.
(2) Monies in the Fund shall be allocated between the purposes set forth in subsections (d)(1)(A), (d)(1)(B), (d)(1)(C), and (d)(1)(D), as provided by the Board of Supervisors or OECE.
(e) Commencing with a report filed with the Board of Supervisors not later than January 1, 2030, and every ten years thereafter, or as directed by the Board of Supervisors, OECE shall file a “needs assessment” containing recommendations for expenditures from the Fund for the following ten years to support quality early care and education for children under the age of six through the Eligible Programs.
(f) The intent of subsection (d) of this Section 2112 is to provide dedicated revenues to increase funding for quality early care and education for San Francisco children under the age of six. It is not intended to supplant existing funding. Therefore, except as otherwise specified in this Section 2112, revenues in the Fund may only be expended for the purposes specified in Section 2112(d) in years when the Controller certifies that appropriations contained in the adopted budget from other funding sources exceed those in a given year, as measured and adjusted by the Controller pursuant to subsections (g) and (h) of this Section 2112.
(g) Expenditures After Baseline Year. No monies in the Fund shall be expended pursuant to subsection (d) of this Section 2112
in any Fiscal Year in which the amount appropriated for Baseline Programs (not including appropriations from the Fund and exclusive of expenditures funded by private funding, development impact fees, or prior period balances, or funded or mandated by state or federal law) is below the Base Amount. All funds unexpended in accordance with the preceding sentence shall be held in the Fund and may be expended in any future Fiscal Year in which other expenditures from the Fund may be made. The Controller shall adjust the Base Amount for each Fiscal Year after the Baseline Year based on calculations consistent from Fiscal Year to Fiscal Year by the percentage increase or decrease in aggregate City discretionary revenues. In determining aggregate City discretionary revenues, the Controller shall include only revenues received by the City that are unrestricted and may be used at the option of the Mayor and the Board of Supervisors for any lawful City purpose. The method used by the Controller to determine discretionary revenues shall be consistent with the method used by the Controller to determine the Library and Children’s Fund Baseline calculations, as provided in Charter Section 16.108(h). The change in aggregate discretionary revenues shall be adjusted following the end of the Fiscal Year when final revenues are known.
(h) Suspension of Growth in Base Amount. The City may suspend growth in the Base Amount pursuant to subsection (g) of this Section 2112
in Fiscal Year 2018-2019 if the City’s projected budget deficit for that year at the time of the Joint Report or Update to the Five Year Financial Plan as prepared jointly by the Controller, the Mayor’s Budget Director, and the Board of Supervisors’ Budget Analyst under Chapter 3, Section 3.6 of the Administrative Code, exceeds $200 million. For Fiscal Year 2019-2020 and thereafter, the City may suspend growth in the Base Amount pursuant to subsection (g) of this Section 2112
in any year that the City’s projected budget deficit for that year at the time of the Joint Report or Update to the Five Year Financial Plan as prepared jointly by the Controller, the Mayor’s Budget Director, and the Board of Supervisors’ Budget Analyst under Chapter 3, Section 3.6 of the Administrative Code exceeds $200 million adjusted annually by changes in aggregate City discretionary revenues as defined in subsection (g) of this Section 2112
.
(i) Annual Reports. Commencing with a report filed no later than February 15, 2020, covering the Fiscal Year ending on June 30, 2019, the Controller shall file annually with the Board of Supervisors, by February 15 of each year, a report containing the amount of monies collected in and expended from the Fund during the prior Fiscal Year, the status of all Eligible Programs, and such other information as the Controller, in the Controller’s sole discretion, shall deem relevant to the operation of this Article 21.
(j) Administration of Fund. The Fund shall be maintained by the Controller’s Office, which shall record all receipts and expenditures.
(Added by Proposition C, 6/5/2018, Eff. 7/20/2018, Oper. 1/1/2019)
The Board of Supervisors may amend or repeal this Article 21 by ordinance without a vote of the people except as limited by Articles XIII A and XIII C of the California Constitution.
(Added by Proposition C, 6/5/2018, Eff. 7/20/2018, Oper. 1/1/2019)
To the extent that the City’s authorization to impose or to collect any tax imposed under this Article 21 is expanded or limited as a result of changes in state or federal statutes, regulations, or other laws, or judicial interpretations of those laws, no amendment or modification of this Article shall be required to conform the taxes to those changes, and the taxes are hereby imposed in conformity with those changes, and the Tax Collector shall collect them to the full extent of the City’s authorization up to the full amount and rate of the taxes imposed under this Article.
(Added by Proposition C, 6/5/2018, Eff. 7/20/2018, Oper. 1/1/2019)
(a) Except as provided in Section 2115(b), below, if any section, subsection, sentence, clause, phrase, or word of this Article 21, or the application thereof to any person or circumstance, is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Article, including the application of such portions to other persons or circumstances. The People of the City and County of San Francisco hereby declare that, except as provided in Section 2115(b), they would have adopted each section, subsection, sentence, clause, phrase, and word of this Article not declared invalid or unconstitutional without regard to whether any other portion of this Article would be subsequently declared invalid or unconstitutional.
(b) If the imposition of the Early Care and Education Commercial Rents Tax in Section 2104 of this Article 21 is held in its entirety to be facially invalid or unconstitutional in a final court determination, the remainder of this Article 21 shall be void and of no force and effect, and the City Attorney shall cause it to be removed from the Business and Tax Regulations Code, and likewise cause Section 10.100-36 to be removed from the Administrative Code.
(Added by Proposition C, 6/5/2018, Eff. 7/20/2018, Oper. 1/1/2019)
No section, clause, part, or provision of this Article 21 shall be construed as requiring the payment of any tax that would be in violation of the Constitution or laws of the United States or of the Constitution or laws of the State of California.
(Added by Proposition C, 6/5/2018, Eff. 7/20/2018, Oper. 1/1/2019)