City contractors and their affiliates are prohibited from making political contributions to elected officials who approve their contracts with the City. If your organization submits a proposal to contract with the City, you may be required to issue a notice to your organization’s affiliates notifying them of this rule. Specifically, any person who is seeking to enter into a contract with the City and County of San Francisco (or a state agency on whose board an appointee of a City elective officer serves, the San Francisco Unified School District or the Community College District) that has an anticipated value of $100,000 in a fiscal year and must be approved by an elected official (or the board of a state agency on which an appointee of the officer sits) must inform each of the person’s affiliates of the prohibition in section 1.126(b) by the submission of a proposal for such contract. The notice is sufficient if it:
- is provided in written form,
- is sent by U.S. mail, email, facsimile transmission, or personal delivery; and
- contains language similar to the following [please fill in information in brackets]:
I [name of party] am seeking to enter into a contract with [name of agency, board or commission] that will have a value of $100,000 or more in a fiscal year. Under section 1.126 of the San Francisco Campaign and Government Conduct Code, I am required to advise you that because you [check appropriate box]
– Serve as a director on the board of directors of my company;
– Serve as a principal officer of my company;
– Have an ownership interest of more that 10 percent in my company;
– Are listed as a subcontractor on my bid or contract;
– Are a committee that I sponsor or control,
you are prohibited from making a contribution to the following City elective officers or candidates for such City elective office: [fill in the name of each City elective officer and the title of each City elective office].
This prohibition will last from [date of submission of a proposal] until the termination of negotiations or twelve months have elapsed from the date the contract is approved. I will advise you of the date that negotiations terminate or twelve months after the contract was approved. In the meantime, if you have questions, please contact me at [contact information].
Affiliates of an organization are the organization’s directors, principle officers (including, but not limited to, its chairperson, chief executive officer, chief financial officer, chief operating officer, or any similar position), individuals or entities holding a share of the organization of ten percent or greater, and any subcontractor listed on the organization’s bid for a City contract.
When to Notify Affiliates
The organization must notify its affiliates of the restrictions established by section 1.126 before submitting a proposal in response to a bid, RFP or RFQ.