(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)