San Francisco – Proposition D Expands ‘Restricted Sources’

The voters of San Francisco passed Proposition D (2024) on March 5, 2024.  When the new law becomes operative on September 15, 2024, the proposition’s amendments will expand what parties are covered as a “restricted source” prohibited from providing public officials with gifts, what is covered as a “gift,” and will place several additional restrictions on the activities of public officials.

In addition to the current parties covered as restricted sources, which include (a) a person doing business with or seeking to do business with the department of the officer or employee, and (B) a person who during the prior 12 months knowingly attempted to influence the officer or employee in any legislative or administrative action, the new definition will now include: (c) persons doing business with the city subject to a contract approved by a recipient board or commission member; (d) persons seeking or having licenses, permits, or other entitlements that a recipient was personally involved in until 12 months after approval or rejection; (e) associated affiliates of such parties, including any board members, principal officers, and persons owning 10% or more of an ownership stake in the party; (f) registered lobbyists, if the recipient is elected or files a Statement of Economic Interest, and (g) permit consultants who have contacted a recipient’s department regarding a permit in the past 12 months.

The Proposition also removes previous state-based exemptions to the definition of “gift.”  Instead, separate exemptions listed in updated regulations set to take effect along with the law will apply.

Please note that while the law becomes “effective” on March 15, 2024, it will not become operative law until September 15, 2024.  You may find the full text of Proposition D (2024) here.