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Supervisors approve amendment to lift construction contracts from —12X— ban in 7-4 first-reading vote
Summary
The board voted on an ordinance to remove construction contracts from the city—s 12X prohibition on contracting with companies headquartered in states the city considers to have discriminatory laws; the measure passed on first reading 7-4 after a sustained debate about impacts on local small businesses and the city—s values.
The San Francisco Board of Supervisors voted 7-4 on March 14 to pass on first reading an ordinance amending the Administrative Code to remove construction contracts from the city—s Chapter 12X contracting prohibition. Chapter 12X restricts the city from entering into contracts with firms headquartered in states that the city characterizes as permitting discrimination or restrictive laws.
Supervisor Ahsha Safaie, the measure—s sponsor, argued the change would allow the city to recruit more qualified construction firms and speed the delivery and bidding of pending projects. "We—ve heard from our construction departments about the impacts this has had on recruiting the most qualified firm," Safaie told colleagues, while adding she remained committed to local small-business supports.
Opponents raised concerns that removing construction contracts from the 12X prohibition could undermine opportunities for local subcontractors and lower protections for hiring and benefits. Supervisor Connie Chan and Supervisor Dean Preston both said they were not prepared to approve the change without additional analysis of impacts on local small businesses and the city—s values. Supervisor Shamann Walton said he could not support the item as written and expressed concern it might disadvantage local subs on major projects.
The board vote on the item was recorded as follows: Ronan (Aye); Safaie (Aye); Stephanie (Aye); Walton (No); Chan (No); Dorsey (Aye); Engagdo (Aye); Mandelmann (Aye); Melgar (No); Peskin (Aye); Preston (No). The clerk announced "7 ayes and 4 nos" and noted the ordinance is passed on first reading.
Supervisor Ahsha Safaie said she expects continued work with the local business enterprise community and signaled a willingness to participate in a working group; Supervisor Mandelmann said he intends to pursue a broader repeal of 12X.
The ordinance will return for additional readings as required by the city—s legislative process. Supporters said the change is intended to reduce project delays and attract competitive bids; opponents asked for stronger guarantees that the city—s social policies and local hire goals will not be eroded.
Ending: The measure now moves to the next step in the legislative process; supervisors and stakeholders signaled follow-up discussions about small-business protections and monitoring of contracting outcomes.
