SEC. 3.222. PROHIBITING OFFICERS FROM CONTRACTING WITH THE CITY AND COUNTY.
§ 3.222
City officers are prohibited from entering into contracts or subcontracts worth over $10,000 with the City and County or certain other public entities during their term of office, with exceptions for nonprofit contracts, contracts predating their service, below-market-value agreements, and certain other specified situations.
While serving as a city officer, you cannot sign contracts or bids for contracts worth more than $10,000 with the City and County or related agencies. However, this rule does not apply to contracts with nonprofits, contracts you made before you became an officer, deals where you're selling something at a discount, or settlements of lawsuits. If you own a business, you can still contract with the city unless you directly manage and control that business. The Ethics Commission can grant exceptions in rare cases where the law requires someone from a particular profession or trade to serve.
- Controversial:Conflict-of-interest rules for public officers are a subject where San Francisco residents have differing views on how strict enforcement should be and what level of restriction is appropriate.
- Could be simpler:The definition of 'management and control' in subsection (c)(2) could be more clearly presented—the five-part list mixes objective criteria (officer/director status) with subjective ones ('exercises management or control'), which could be confusing in application.
AI-generated · claude-haiku-4-5 · informational only, not legal advice.
Official text
(a) Definitions. For purposes of this Section, the following definitions shall apply:
(1) Business. The term "business" means any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, or other legal entity or undertaking organized for economic gain.
(2) City and County. The term "City and County" includes any commission, board, department, agency, committee, or other organizational unit of the City and County of San Francisco.
(3) Contract. The term "contract" means any agreement other than a grant or an agreement for employment in exchange for salary and benefits.
(4) Subcontract. The term "subcontract" means a contract to perform any work that a primary contractor has an agreement with the City and County, the San Francisco Redevelopment Agency, the San Francisco Housing Authority, the San Francisco Unified School District, or the San Francisco Community College District to perform.
(b) Prohibition. During his or her term of office, no officer shall enter, submit a bid for, negotiate for, or otherwise attempt to enter, any contract or subcontract with the City and County, the San Francisco Redevelopment Agency, the San Francisco Housing Authority, the San Francisco Unified School District, or the San Francisco Community College District, where the amount of the contract or the subcontract exceeds $10,000.
(c) Exceptions. This Section shall not apply to the following contracts or subcontracts:
(1) A contract or subcontract with a nonprofit organization;
(2) A contract or subcontract with a business with which an officer is affiliated unless the officer exercises management and control over the business. A member exercises management and control if he or she is:
(A) An officer or director of a corporation;
(B) A majority shareholder of a closely held corporation;
(C) A shareholder with more than five percent beneficial interest in a publicly traded corporation;
(D) A general partner or limited partner with more than 20 percent beneficial interest in the partnership; or
(E) A general partner regardless of percentage of beneficial interest and who occupies a position of, or exercises management or control of the business;
(3) A contract or subcontract entered into before a member of a board or commission commenced his or her service;
(4) An agreement to provide property, goods or services to the City and County at substantially below fair market value; or
(5) A settlement agreement resolving a claim or other legal dispute.
(d) Waiver. The Ethics Commission may waive the prohibitions in this section for any officer who, by law, must be appointed to represent any profession, trade, business, union or association.
(e) Limitation. Failure of an officer to comply with this Section shall not be grounds for invalidating any contract with the City and County.
(Added by Proposition E, 11/4/2003; Ord. 244-09, File No. 091013, App. 12/3/2009)