New Ordinance Notice

Publisher's Note: This Chapter has been REPEALED by new legislation (Ord. 192-25, approved 10/16/2025, effective 11/16/2025, oper. 1/1/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is operative.

Sec. 12J.1. Findings.

Sec. 12J.2. Definitions.

Sec. 12J.3. Contractual Services, Real and Personal Property Agreements.

Sec. 12J.4. Purchase of Commodities.

Sec. 12J.5. Rules and Regulations.

Sec. 12J.6. Public Records.

Sec. 12J.7. Penalties.

Sec. 12J.8. Implementation Reports.

Sec. 12J.9. Severability.

Sec. 12J.10. Suspension.

(a) Because the quality of life of all people is diminished when peace and justice are not fully present in the world, local communities have the responsibility to take positive steps to support the rule of law and to help end injustices and egregious violations of human rights wherever they may

occur.

(b) The nation of Burma (Myanmar) has institutionalized torture and rape as political instruments, and embarked upon campaigns of forcible relocation, forced labor and slavery, and persecution of ethnic minorities, and other human rights violations, thereby denying the majority of the population the right to participate in the political process, to benefit from the system of justice, or to exercise economic rights.

(c) The military regime of Burma (Myanmar) has implemented a reign of terror preventing political participation by various methods, including (1) ignoring the results of the 1990 elections in which pro-democracy candidates received over 60 percent of the vote and over 80 percent of the seats in the government; (2) forcing the imprisonment, death, or exile of many of these candidates; (3) failing to convene a Constitutional Convention as promised in 1990; (4) imposing martial law barring freedom of the press and gatherings of more than five people and declaring that "martial law means no law at all"; (5) forcibly relocating hundreds of thousands of people, including those in neighborhoods with strong pro-democracy support, ethnic minorities including the Muslim Rohingyas, and indigenous groups in areas rich with extractive resources, to locales in which malaria and other diseases are rampant and where food, water and sewerage are scarce, if available at all; (6) barring all labor and trade union organizing and implementing forcible labor for the purposes of road and tourist site construction, portering of military goods and human mine-sweeping; (7) pressuring the governments of Thailand and Bangladesh to force refugees back to Burma (Myanmar) in exchange for continuing sales of resources such as timber, fishing concessions and natural gas; (8) harming men, women and children of Burma by pillaging villages and townships and by attacking and burning refugee camps; and (9) persecuting Buddhist monks for their support of pro-democratic organizing.

(d) The military regime is currently attempting to enhance its standing in the international community and to increase the flow of foreign money and investment through various means, including the development of massive natural gas fields offshore and the construction of a gas pipeline through areas traditionally held by ethnic minorities, forcing their displacement.

(e) The rightfully elected leadership of Burma, the National Coalition Government of the Union of Burma (NCGUB), winners of the 1990 elections, living in exile, have called upon the world community to impose economic and arms sanctions against the State Law and Order Restoration Council (SLORC). The NCGUB's call for sanctions is supported by Nobel Peace Prize Laureates Oscar Arias Sanchez, the Dalai Lama, Mairead McGuire, Archbishop Desmond Tutu, Betty Williams, Adolpho Perez Esquivel and others, and by the AFL-CIO.

(f) The United Nations and elected representatives of the United States, including President Clinton, the Senate, and the House of Representatives, have repeatedly shown support for the peoples of Burma, urging SLORC to release all political prisoners, to respect the results of the May 1990 elections and to commit to genuine democratic reforms. Section 138 of the U.S. Customs and Trade Act of 1990 instructs the president to impose comprehensive trade sanctions against Burma's military regime. Section 2651 (United States Policy Concerning the Dictatorship in Burma) of the sanctions amendment to the 1996 foreign aid bill, H.R. 1564, has been approved by the Senate and bans all U.S. trade with, investment in and travel to Burma (Myanmar).

(g) The United States Supreme Court has upheld the power of a municipality to make legitimate economic decisions without being subject to the restraints of the Commerce Clause when it participates in the marketplace as opposed to exerting its regulatory powers.

(h) The City and County of San Francisco declares the right to measure the moral character of its business partners in determining with whom it seeks to have business relations or to whom it grants privileges.

(i) The system of oppression by SLORC is illegal and contrary to international laws and covenants. The conduct of the SLORC being morally repugnant to the citizens of San Francisco, the Board of Supervisors does hereby set forth a municipal policy prohibiting contracts for personal services or the construction of public works or improvements with those who do business in Burma (Myanmar), and prohibiting the purchase of any commodities produced in Burma (Myanmar), or provided by those who do business, maintain facilities, or are organized under SLORC's rule.

(Added by Ord. 159-96, App. 4/24/96; amended by Ord. 251-97, App. 6/27/97)

As used in this Chapter, the following words and phrases shall have the meanings indicated herein:

(a) "City" or "City and County" shall mean the City and County of San Francisco, or any department, board, commission or agency thereof.

(b) "Commodities" shall include, but not be limited to, goods, commodities, materials, supplies, vehicles, machinery, and equipment.

(c) "Contract" shall mean an agreement with a nongovernmental entity for commodities, contractual services or contracts for the construction of public works or improvements to be purchased at the expense of the City and County or to be paid out of moneys deposited in the treasury or out of trust moneys under the control of or collected by the City and County.

(d) "Contracting officer" shall mean that officer or employee of the City authorized under the Charter, the Administrative Code or the Municipal Code, to enter into a contract on behalf of the City.

(e) "Contractual services," for purposes of Section 12J.3, shall mean investment counseling, underwriting, acting as a trustee or escrow agent, providing any consulting advice or assistance under a professional or personal service contract, and services provided pursuant to any contract subject to Charter Section 10.104(15). "Contractual services" shall not include purchase orders, blanket purchase orders or other agreements of the City for the purchase of a commodity under Section 12J.4.

(f) "The government of Burma (Myanmar)" or "Burma (Myanmar)" shall mean any public or quasi-public entity sanctioned by the State Law and Order Restoration Council ("SLORC") operating within Burma, including, but not limited to, municipal, provincial, or other governing bodies operating as proxy of SLORC, including all departments and agencies of such bodies, public utilities, public facilities, or any national corporation in which the public sector of Burma (Myanmar) has a financial interest or operational responsibilities.

(g) "Prohibited person or entity" shall mean any private person or entity designated by the Investor Responsibility Research Center ("IRRC") as having investments or employees in Burma, or any private person or entity that licenses any person or entity organized under the laws of Burma (Myanmar) to produce and market its products. The Purchaser (1) shall develop a list of prohibited persons or entities pursuant to the terms of this paragraph, and (2) shall have the authority to delete from such list any person or entity designated by the IRRC as having investments or employees in Burma if any such entity demonstrates to the Purchaser's satisfaction that such designation is erroneous.

(h) "Purchaser" shall mean the Purchaser of the City and County or any authorized representative of that official.

(Added by Ord. 159-96, App. 4/24/96; amended by Ord. 251-97, App. 6/27/97)

(a) Prohibited Transactions. The City shall not enter into, amend, modify or renew any agreement for (i) contractual services, (ii) public works or improvements, or (iii) any lease, permit, license or other agreement for the use or sale of the City's real or personal property, with any prohibited person or entity.

(b) Contract Condition. Each contract for services or for the use or sale of the City real or personal property shall include as a material condition to that agreement the following paragraph:

Contractor is not the government of Burma (Myanmar), a person or business entity organized under the laws of Burma (Myanmar) or a "prohibited person or entity" as defined in Section 12J.2(g) of the San Francisco Administrative Code. The City reserves the right to terminate this contract for default if the contractor violates the terms of this clause.

(c) A person or entity shall not be a prohibited person or entity under Subsection (a) above so long as such person or entity is only performing contractual services necessary to complete a specific project in Burma (Myanmar) initiated prior to May 1, 1996, so long as the scope of the services is not increased by any modification of an existing project contract after May 1, 1996, and provided that the term, or remaining term of the services contract is not greater than five years from May 1, 1996.

(d) Nonapplicability; Findings; Alternate Selection.

(1) Section 12J.3 shall not apply to bid packages advertised and made available to the public or any competitive and sealed bids received by the City or to contracts for contractual services entered into prior to May 1, 1996.

(2) The provisions of Section 12J.3 shall not apply to contracts for $10,000 or less; to leases, permits, licenses or other agreements for the use of the City's real or personal property entered into prior to May 1, 1996, or having a monthly rental payment of $100 or less or having a duration of 30 days or less in any calendar year, whether by single or cumulative instrument; to any transaction allowing access to or use of City real property upon purchase of an admission ticket; or to permits for the use of City streets for temporary periods of construction of improvements on abutting private real property; to leases, permits, licenses or other agreements that renew existing easements or rights-of-way over real property owned by the City between the City and a party holding the easement or right-of-way as of May 1, 1996, provided that the agreements do not permit the building of new facilities on City land or a change in the character of its use.

(3) Section 12J.3 shall not apply to any amendment, modification or renewal of a contract entered into prior to May 1, 1996 where necessary for the timely completion of a project and not involving an increase in the total moneys to be paid by the City under that contract.

(4) The provisions of Section 12J.3 shall not apply where the contracting officer finds that:

(A) No person or entity doing business in the City which is not a prohibited person or entity under Section 12J.2(g) is capable of performing the desired function(s); or

(B) The City will incur a financial loss which in the opinion of the contracting officer would violate his or her fiduciary duties. For purposes of this Section, prima facie evidence of a breach of fiduciary duty shall mean a financial loss of 10 percent of a contract's value or $10,000, whichever is less; or

(C) The inclusion or application of such provisions will violate or be inconsistent with the terms or conditions of a grant, subvention or contract with an agency of the State of California or the United States or the instructions of an authorized representative of any such agency with respect to any such grant, subvention or contract; or

(D) The inclusion or application of such provisions will violate or be inconsistent with the laws, rules or regulations of the State of California or the United States of America.

(Added by Ord. 159-96, App. 4/24/96; amended by Ord. 251-97, App. 6/27/97)

(a) Prohibited Transactions.

(1) The City shall not purchase any commodity from the government of Burma (Myanmar), or a prohibited person or entity.

(2) The City shall not purchase any commodity made in Burma (Myanmar). A commodity shall be considered made in Burma (Myanmar) if it is manufactured, produced or grown in Burma (Myanmar), or if further work or material manufactured, produced or grown in Burma (Myanmar) is added to a commodity which effects a substantial transformation of that commodity. Interpretation of this Section shall be consistent with statutes and regulations of the United States regarding markings of commodities by country of origin pursuant to 19 CFR 134.

(3) Performing contractual services necessary to complete a specific project in Burma (Myanmar) initiated prior to May 1, 1996, shall not be deemed doing business in Burma (Myanmar), so long as the scope of the services is not increased by any modification of any existing project contract after May 1, 1996, and provided that the term, or remaining term of the services contract is not greater than five years from May 1, 1996.

(b) Contract Condition. Each contract for the supply of a commodity to the City shall include as a material condition to that agreement the following paragraph in the contract:

Seller is not the government of Burma (Myanmar), a person or business entity organized under the laws of Burma (Myanmar) or a "prohibited person or entity" as defined in Section 12J.2(g) of the San Francisco Administrative Code. The item(s) sold in this contract (purchase order) to the City and County of San Francisco is (are) not made in Burma (Myanmar) as defined in Section 12J.4(a) of the San Francisco Administrative Code. The City reserves the right to terminate this contract for default if the contractor furnishes items made in Burma (Myanmar).

(c) Exceptions. This Section shall not apply to:

(1) Any binding contractual obligation for purchase of commodities entered into prior to May 1, 1996;

(2) The purchase of any commodity for which Burma (Myanmar) is the only source; or any commodity made outside Burma (Myanmar) which cannot be obtained except through a prohibited person or entity;

(3) Any contract for the purchase of commodities for $10,000 or less;

(4) Where the contracting officer finds that no person or entity doing business in the City that is not a prohibited person or entity is capable of providing the desired commodity;

(5) Any contract, purchase order or blanket purchase order wherein the City will incur a financial loss which in the opinion of the contracting officer would violate his or her fiduciary duties. For purposes of this Section, prima facie evidence of a breach of fiduciary duty shall mean a financial loss of 10 percent of a contract's value or $10,000, whichever is less; or

(6) Where the inclusion or application of such provisions will violate or be inconsistent with the terms or conditions of a grant, subvention or contract with an agency of the State of California or the United States or the instructions of an authorized representative of any such agency with respect to any such grant, subvention or contract.

(Added by Ord. 159-96, App. 4/24/96; amended by Ord. 251-97, App. 6/27/97)

(a) The Purchaser or department head of a department, board or commission authorized to sell or lease City-owned property, whichever is appropriate, may promulgate any rules and regulations necessary or appropriate to carry out the purposes and requirements of this ordinance. Each City department, board and commission shall cooperate with, and provide in writing to the Purchaser, all information necessary for the Purchaser to promulgate such rules and regulations.

(b) All contracts and other similar written agreements shall incorporate this Chapter by reference whenever applicable and shall provide that the failure of any bidder or contractor to comply with any of its requirements shall be deemed a material breach of contract.

(Added by Ord. 159-96, App. 4/24/96)

All reports prepared pursuant to the requirements of this ordinance shall be made available for public inspection except those prepared for purposes of litigation.

(Added by Ord. 159-96, App. 4/24/96)

(a) Whenever a person or entity being considered for a contract or under contract with the City makes representations regarding its involvement in Burma (Myanmar) that are found by the City after an investigation by the contracting officer and the City Attorney to be false, the City shall have the authority to impose such sanctions or take such other actions as are designed to ensure compliance with the provisions of this Chapter which shall include, but are not limited to:

(1) Refusal to certify the award of a contract;

(2) Order the suspension of a contract;

(3) Order the withholding of funds;

(4) Disqualification of a bidder or contractor from eligibility for providing commodities or services to the City for a period not to exceed five years, with a right to review and reconsideration by the contracting City department after two years upon a showing of corrective action indicating violations are not likely to reoccur.

(b) All contracts to which this ordinance applies shall provide that in the event any bidder or contractor fails to comply in good faith with any of the provisions of this Chapter the bidder or contractor shall be liable for liquidated damages for each violation in an amount equal to the bidder's or contractor's net profit on the contract, or 10 percent of the total amount of the contract or $1,000 whichever is greatest. All contracts shall also contain a provision whereby the bidder or contractor acknowledges and agrees that the liquidated damages assessed shall be payable to the City upon demand and may be set off against any moneys due to the bidder or contractor from any City contract.

(Added by Ord. 159-96, App. 4/24/96; amended by Ord. 251-97, App. 6/27/97)

The Purchaser shall provide a written report on the implementation of this ordinance to the Board of Supervisors as follows:

(1) At the first Board of Supervisors meeting held one year after this Chapter has been in effect; and

(2) Annually thereafter.

Each City department, board and commission shall provide in writing all information requested by the Purchaser as necessary to prepare such reports.

(Added by Ord. 159-96, App. 4/24/96; amended by Ord. 251-97, App. 6/27/97)

If any section, subsection, clause, phrase or portion of this Chapter is for any reason held invalid or unconstitutional by any court or federal or State agency of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions thereof.

(Added by Ord. 159-96, App. 4/24/96)

The provisions of Chapter 12J, prohibiting the City from doing business with Burma, are hereby suspended. Until enactment of legislation withdrawing this suspension, the provisions of Chapter 12J shall have no force or effect and no City officer or employee shall enforce or implement the provisions of Chapter 12J.

(Added by Ord. 287-00, File No. 001355, App. 12/22/2000)

Editor’s Notes: