93,404 / 48.77% Yes votes ...... 98,127 / 51.23% No votes

See Also: Index of all Measures

The Proposal:
Proposition M is an ordinance that would give the Office of Economic Development new duties and use business registration fees to promote economic development in the City.
The Office of Economic Development would have to prepare and maintain an Economic Development Plan for the City.

The Plan would:

• Analyze existing jobs and identify opportunities to create and keep jobs;
• Analyze the City's taxes and fees to find sources of added revenue;
• Set goals for creating jobs and new sources of taxes and fees;
• Identify areas in the City suited for business and economic development;
• Evaluate the effect of the City's land use policies on economic development;
• Evaluate the effectiveness of San Francisco's business and economic development policies compared to those of other cities; and
• Report on barriers to business development in San Francisco.

This new fund, the San Francisco Development Fund, would be established for the purpose of promoting economic development in San Francisco. The business registration fees that are currently included in the City's budget would no longer be available to fund any other City purpose. The economic development activities required by the Ordinance may ultimately lead to improved economic development planning and thereby an increase in tax revenues to the City.

Meaning of Voting Yes/No

A YES vote of this measure means:

If you vote "Yes," you want the Office of Economic Development to have new duties and use business registration fees to promote economic development.

A NO vote of this measure means:

If you vote "No," you do not want to makes these changes.

How to Evaluate the Propositions

Decide for yourself

The Mayor hereby orders submitted to the qualified electors of the City and County of San Francisco, for the November 5, 2002 election, the following Ordinance amending the San Francisco Administrative Code. This Ordinance, if approved by a majority of such electors at such election, would: (1) require the Office of Economic Development to prepare and annually update an Economic Development Plan, (2) create a San Francisco Economic Development Fund to promote economic and business development and attract and retain jobs within the City, (3) create an Economic Development Committee to administer the fund, and (4) require, as part of the local legislative process, that the Office of Economic Development prepare an analysis of the potential impacts of proposed legislation upon the San Francisco economy and tax revenues prior to enactment by the Board of Supervisors.

Note: Additions are single-underline italics Times New Roman.

Be it ordained by the People of the City and County of San Francisco:

Section 1. The San Francisco Administrative Code is hereby amended by adding Article 93, to read as follows: Article 93 Economic Development Plan

Sec. 93.1. Economic Development Plan. (a) Within six months of the effective date of this Article, and annually thereafter, the Office of Economic Development shall promulgate and present to the Mayor and Board of Supervisors the San Francisco Economic Development Plan pursuant to the provisions of this Article. (b) The plan and annual updates shall include, but are not limited to, the following:

(1) An analysis of employment in the City by industry and job classification;
(2) An analysis of the City's tax revenues broken down by industry type and firm size, including but not limited to the amount of taxes and fees attributable to the payroll expense tax, sales tax, business registration fees, property tax, property transfer tax, utility users tax, and development impact fees;
(3) An analysis of which industries are likely to create significant numbers of jobs in the City in the succeeding three years, together with an assessment of the skills and education typically required to obtain such jobs. The Office of Economic Development shall solicit input from public and private entities in the compilation of data and analyses for this survey of industries likely to create jobs, including but not limited to the Federal Reserve Bank for this district, Chamber of Commerce, Convention and Visitors Bureau, Urban Institute of San Francisco State University, SPUR, San Francisco Labor Council, and Workforce Investment Board;
(4) Proposed goals, based on the research compiled in the plan, for job and revenue generation, describing the industries, wage levels, skills and education required for the jobs the City would like to retain and attract, and the anticipated tax revenue these jobs create. The Office of Economic Development shall solicit the input of the Treasurer and Controller in the formulation of such goals; and

(c) In addition to the requirements set forth in subsection (b), the Office of Economic Development shall include the following in the plan and annual updates required by this Article:

Sec. 93.2. Assistance from Other City Departments. All departments, offices and employees of the City, including but not limited to the Office of the Treasurer/Tax Collector, Controller's Office, Department of Real Estate, San Francisco Redevelopment Agency, Port of San Francisco, Office of Small Business Affairs and Department of City Planning, shall assist the Office of Economic Development in the compilation of data, analyses, and preparation of the plans, surveys and annual updates required by this Article.

Sec. 93.3. Establishment of Economic Development Committee; Approval of Expenditures from Economic Development Fund. (a) There is hereby established the San Francisco Economic Development Committee consisting of the Mayor, President of the Board of Supervisors, Treasurer and Controller, or their designees, and the Director of the Department of City Planning, Director of the Office of Economic Development, and Director of the Office of Community Development. The members of the committee shall not be compensated for their service upon the committee. (b) The committee shall approve all expenditures from the San Francisco Economic Development Fund established under Section 10.100-296 of this code.

Section 2. The San Francisco Administrative Code is hereby amended by adding Section 10.100-296, to read as follows:

Sec. 10.100-296. San Francisco Economic Development Fund. (a) Establishment of Fund. The San Francisco Economic Development Fund is established as a category two fund to receive all monies appropriated therefor, and any other monies transferred into the fund, pursuant to this section and Article 93 of this code. Each year, the Mayor shall propose and the Board of Supervisors shall enact an annual budget for the City that includes an appropriation from the general fund in an amount necessary to establish an unexpended balance on July 1 of not less than one hundred percent (100%) of the anticipated revenue for such year derived from the business registration fees imposed under Article 12 of the Business and Tax Regulations Code. (b) Use of Fund. The fund shall be used solely for the purpose of developing and improving employment and business opportunities in San Francisco and promoting the economic development of San Francisco, as identified in the San Francisco Economic Development Plan promulgated by the Office of Economic Development and approved by the San Francisco Economic Development Committee pursuant to Article 93 of this code, and related administrative costs pursuant to Section 10.194 et seq. of this code.

Section 3. There is hereby appropriated from any lawful source of funds for the San Francisco Economic Development Fund established by this ordinance an amount equal to the City's budgeted business registration fee revenue for the fiscal year 2002 # 2003.