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Ordinance#211090Filed
In plain English

The ordinance updates the Local Business Enterprise (LBE) and Non-Discrimination in Contracting rules to increase certification thresholds, adjust penalty amounts, and improve payment processes for subcontractors. It also introduces new programs and reporting requirements to support local businesses and enhance participation in city contracts.

Ordinance amending the Administrative Code to revise the Local Business Enterprise (LBE) and Non-Discrimination in Contracting Ordinance (Chapter 14B) to: 1) increase the LBE certification size thresholds and authorize an automatic increase to the thresholds every five years based on the consumer price index; 2) change the LBE certification size threshold term of calculation from an average of gross annual receipts in the prior three to the prior five years; 3) increase penalties for violations of Chapter 14B from up to 10% to up to 25% of the contract or subcontract amount; 4) require prime contractors to include LBE subcontractors’ approved payment requests in payment applications within 30 days of receipt of an invoice; 5) authorize application of separate LBE subcontract participation requirements for micro, small, and SBA-LBEs; 6) extend the bonding assistance program to certain City-funded construction projects; 7) authorize a pilot Mentor-Protégé expansion program, a pilot micro-LBE set-aside program for certain design-build and construction manager/general contractor projects, and a pilot Neighborhood LBE program; 8) require additional data collection and reporting on the LBE status of all bidders, specifically LBEs certified as both MBE and WBE; and 9) increase the contracting Threshold Amount from $706,000 to $1,000,000 and the Minimum Competitive Amount from $129,000 to $200,000; and make various other changes and clarifications to Chapter 14B.

Introduced: Oct 17, 2021
Final action:
Official record ↗

How it got here

The legislation to amend the Local Business Enterprise (LBE) and Non-Discrimination in Contracting Ordinance was prompted by the need to update outdated thresholds and improve support for small businesses in San Francisco.

1
Legislation IntroducedJuly 2021
Board of Supervisors

The Board of Supervisors introduced an ordinance to amend the Administrative Code regarding the LBE program, aiming to increase certification thresholds and improve accountability.

Referral FYI
2
Referral for CommentSeptember 1, 2021
Small Business Commission

The proposed legislation was referred to the Small Business Commission for review and recommendation, highlighting the need for updates to the LBE program.

Referral SBC
3
Commission SupportSeptember 27, 2021
Small Business Commission

The Small Business Commission reviewed the proposed changes and expressed support, emphasizing the importance of stakeholder engagement in the process.

SBC Response
4
Legislation AmendedOctober 5, 2021
Mayor London Breed

The Mayor's office submitted amendments to the legislation, which included increasing the LBE certification size thresholds and other key changes.

Leg Dig ver3/4
5
Amended in CommitteeOctober 18, 2021
Rules Committee

The Rules Committee amended the legislation and continued it for further consideration, reflecting ongoing discussions about the LBE program.

Action history
6
Filed Pursuant to Rule 3.41July 31, 2023
Clerk of the Board

The legislation was filed with the Clerk of the Board, indicating it is moving forward in the legislative process.

Action history

Reconstructed from attached documents & the official record

Document trail
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Leg Dig ver3/4
Official legislation text
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How they voted

AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE
Rules Committee · Oct 18, 2021Pass
2-0
CONTINUED TO CALL OF THE CHAIR AS AMENDED
Rules Committee · Oct 18, 2021Pass
2-0

Legislative journey

Rules CommitteeOct 17, 2021 – Oct 18, 2021
·DUPLICATED
CONTINUED TO CALL OF THE CHAIR AS AMENDEDPass
AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLEPass
Clerk of the BoardJul 31, 2023
·FILED PURSUANT TO RULE 3.41