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San Francisco Board debates repeal of 12x legislation affecting small businesses

April 17, 2023 | San Francisco County, California


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San Francisco Board debates repeal of 12x legislation affecting small businesses
The San Francisco County government meeting held on July 4, 2025, focused on significant discussions regarding local business support and the potential repeal of legislation affecting city contracting with states that have discriminatory laws.

The meeting commenced with Supervisor Mandelmann addressing the need for enhanced support for local and minority-owned businesses. He emphasized that while the current legislation, known as 12x, aimed to protect these businesses, it may not be the most effective approach. Mandelmann advocated for a more targeted strategy to assist local enterprises without maintaining the existing restrictions of 12x.

Vice Chair Walton expressed concerns about the unintended consequences of repealing 12x, highlighting the lack of comprehensive analysis on how such a repeal might impact small businesses and protected communities. He cautioned against making changes without a clear plan to safeguard these populations, suggesting that the repeal could inadvertently favor larger businesses at the expense of smaller, local ones.

Supervisor Safaie supported the repeal, noting that the original intent of 12x—to influence policies in other states—had not been realized. He pointed out that the legislation had led to increased costs for the city and hindered competitive bidding processes. Safaie and other supervisors expressed a commitment to continue working with local business communities to ensure their needs are met moving forward.

Public comments during the meeting echoed these sentiments, with one speaker agreeing that while the discriminatory laws in other states are concerning, 12x was not effectively addressing these issues and was instead creating financial burdens for the city.

Following the discussions, a motion to recommend the repeal of 12x to the full board was passed with a 2 to 1 vote, with Supervisor Walton dissenting. The meeting then transitioned to the next agenda item, which involved appointing a member to the African American Reparations Advisory Committee, indicating ongoing efforts to address social equity issues within the county.

In summary, the meeting highlighted a critical evaluation of existing policies affecting local businesses and the need for strategic planning to support vulnerable populations in San Francisco. The board's decision to move forward with the repeal of 12x reflects a shift towards more effective governance in the face of budget challenges and social justice commitments.

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