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Supervisor Mandelman seeks repeal of Chapter 12X; cites costs and unintended consequences
Summary
Supervisor Rafael Mandelman introduced an ordinance to repeal Chapter 12X (the city’s state-boycott provisions), arguing the policy raises contracting costs, imposes administrative burdens and hurts city programs; the measure drew debate and invitations to craft alternatives.
Supervisor Rafael Mandelman introduced an ordinance on Feb. 28 to repeal Chapter 12X of San Francisco’s Administrative Code, the city policy that restricts contracting and city-funded travel to companies headquartered in states with laws the board deems discriminatory.
Mandelman said his office’s review — drawing on a Budget and Legislative Analyst report and a later city-administrator review — found the policy raised contracting costs and administrative burdens without producing a coalition of other cities to amplify San Francisco’s stated policy goals. “I believe repealing 12X would increase competition for city contracts and lower costs,” Mandelman said, and he urged colleagues to consider the operational impacts on departments that must implement the law.
Arguments and concerns
Supporters of repeal cited an internal review that found uneven compliance and costly waivers: the BLA report documented hundreds of waivers and significant contract values where departments requested exemptions. Mandelman said his review found waiver processes, administrative time and constrained competition have added cost and complexity to procurement.
Opponents cautioned that the law was originally intended as a political and moral stand against discriminatory laws in other states and asked that the board preserve a mechanism that signals the city’s values. Some supervisors urged a slower, measured approach that would include outreach to local small-business communities and to the LGBTQ and reproductive-rights advocates who originally supported Chapter 12X.
Procedural status and related items
Mandelman’s ordinance was introduced on the agenda. Separately the rules committee continued a related item (Item 28) to enable further community conversations and additional policy options. Supervisor Safaie requested time to consult local businesses and local-business enterprise (LBE) stakeholders before reform is considered; the board agreed to a continuance on the related matter.
Ending
Mandelman said repeal would remove a contracting compliance burden and could save the city money and administrative time, while opponents said repeal could reduce the city’s leverage to protest discriminatory state laws. The board signaled interest in further stakeholder engagement and possible alternative policy approaches rather than immediate wholesale repeal.
