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SEC. 3.222. PROHIBITING MEMBERS OF BOARDS AND COMMISSIONS FROM CONTRACTING WITH THE CITY AND <br />COUNTY. <br />(a) Definitions. For purposes of this Section, the following definitions shall apply: <br />(1) Board or Commission. The term "board or commission" means an appointed board or commission created by Charter or <br />ordinance of the City and County, but does not include advisory boards or commissions. <br />(2) Business. The term "business" means any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, <br />organization, or other legal entity or undertaking organized for economic gain. <br />(3) City and County. The term "City and County" includes any commission, board, department, agency, committee, or other <br />organizational unit of the City and County of San Francisco. <br />(4) Contract. The term "contract" means any agreement to which the City and County is a party, other than a grant funded in whole <br />or in part by the City and County or an agreement for employment with the City and County in exchange for salary and benefits. <br />(5) Subcontract. The term "subcontract" means a contract to perform any work that a primary contractor has an agreement with the <br />City and County to perform. <br />(b) Prohibition. No member of a board or commission of the City and County shall, during his or her term of office, contract or <br />subcontract with the City and County, the San Francisco Redevelopment Agency, the San Francisco Housing Authority, the San <br />Francisco Unified School District, or the San Francisco Community College District, where the amount of the contract or the <br />subcontract exceeds $10,000. <br />(c) Exceptions. This Section shall not apply to the following contracts or subcontracts: <br />(1) A contract or subcontract with a nonprofit organization; <br />(2) A contract or subcontract with a business with which a member of a board or commission is affiliated unless the member <br />exercises management and control over the business. A member exercises management and control if he or she is: <br />(A) An officer or director of a corporation; <br />(B) A majority shareholder of a closely held corporation; <br />(C) A shareholder with more than five percent beneficial interest in a publicly traded corporation; <br />(D) A general partner or limited partner with more than 20 percent beneficial interest in the partnership; or <br />(E) A general partner regardless of percentage of beneficial interest and who occupies a position of, or exercises management or <br />control of the business; <br />(3) A contract or subcontract with the City and County entered into before a member of a board or commission commenced his or <br />her service; or <br />(4) An agreement to provide property, goods or services to the City and County at substantially below fair market value. <br />(d) Limitation. Failure of a member of a board or commission to comply with this Section shall not be grounds for invalidating any <br />contract with the City and County. <br />(Added by Proposition E, 11/4/2003)