This ordinance requires certain nonprofit organizations to disclose their shared resources with specific political groups and increases accounting requirements for City contractors involved in political activities. It also restricts the use of City funds for lobbying and litigation, establishes quiet periods for contract and grant processes, and adds violations related to political activities to the reasons for potential debarment from City contracts.
Ordinance amending the Administrative Code to require some nonprofit grantees to disclose shared resources with 501(c)(4) organizations; increase accounting requirements for City contractors and grantees engaging in political activity; add restrictions on using City funds for lobbying and litigation purposes; institute quiet periods for certain contract and grant procurements; and add illegal engagement in political activity, lobbying, or litigation to a list of offenses that may trigger debarment.
How it got here
This legislation originated from the need to enhance transparency and accountability in the use of City funds by nonprofit grantees and contractors.
Voters enacted Chapter 12G to restrict the use of City funds for political activity, establishing a foundation for future reforms.
The City began requiring nonprofits receiving City funds to submit annual economic statements to provide insight into their governance and operations.
The Board of Supervisors received a proposed ordinance to amend the Administrative Code to enhance compliance measures for City contracts and grants.
The proposed ordinance was assigned under the 30-day rule for further consideration by the Rules Committee.
The ordinance was sponsored by Mayor Breed and Supervisor Stefani, reflecting a collaborative effort to address misuse of City funds.
The ordinance will require City contractors and grantees engaging in political activity to adhere to new accounting standards, effective July 1, 2025.
The ordinance is currently filed and marked as an inactive matter, pending further action.
Reconstructed from attached documents & the official record