ORDINANCE NUMBER O-__________________ (NEW SERIES)
DATE OF FINAL PASSAGE __________________
AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 1,
DIVISION 1 OF THE SAN DIEGO MUNICIPAL CODE BY
ADDING SECTION 21.0103 REGARDING DISCLOSURE OF
BUSINESS INTERESTS.
WHEREAS, section 225 was added to the City Charter in 1992 by the passage of
Proposition E to require disclosure of certain information by those proposing to do business with
the City; and
WHEREAS, according to the ballot argument in favor of Proposition E, the purpose of
Charter section 225 is to give the Mayor and City Council the right to know the identities and
backgrounds of persons wanting to do business with the City and to prevent anonymous limited
partners from potentially receiving millions of taxpayer dollars; and
WHEREAS, the City Council desires to clarify what information must be provided under
Charter section 225 and the consequences of failing to provide such information to the City;
NOW, THEREFORE,
BE IT ORDAINED, by the Council of the City of San Diego, as follows:
Section 1. That Chapter 2, Article 1, Division 1, of the San Diego Municipal Code
is amended by adding section 21.0103 to read as follows:
§ 21.0103

Mandatory Disclosure of Business Interests
(a)

Terms defined in this section are indicated by italics. For purposes of this
section:
(1)

Directly or indirectly involved means pursuing the proposed
transaction or transfer by communicating or negotiating with City

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 officers or employees, submitting or preparing applications, bids,
proposals, or other documents for purposes of contracting with the
City, or directing or supervising the actions of persons engaged in
such activity.
(2)

Person means every natural person, joint venture, joint stock
company, partnership, association, firm, club, company,
corporation, business trust, organization or other entity.

(3)

Transaction means any right, title, or interest in the City’s real or
personal property, any contract or lease with the City, or any
franchise, right, or privilege pursuant to San Diego Charter
sections 103 or 103.1.

(b)

Prior to entering into a transaction with the City, every person who will be
a party to the transaction shall provide the City with the name, identity,
and the precise nature of the interest of all persons who are directly or
indirectly involved in the transaction.

(c)

Prior to transferring any right, title, or interest in a transaction with the
City, every person who will be a party to the transfer shall provide the
City with the name, identity, and the precise nature of the interest of all
persons who are directly or indirectly involved in the transfer.

(d)

For purposes of this section, the identity of a natural person shall be
established by providing the city and state of residence of the natural
person, or the country of residence if located outside the United States.
The City Manager may require additional information regarding a natural

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 person’s identity if necessary to distinguish between persons with the
same name.
(e)

The precise nature of the interest to be disclosed shall include:
(1)

the percentage of any ownership interest in a person that is a party
to the transaction and any ownership interest in a person that will
receive funds from the transaction,

(2)

the value of any financial interest in the transaction,

(3)

a description of any contingent interest in the transaction,
including the value of the interest should the contingency be
satisfied, and

(4)

a description of any philanthropic, scientific, artistic, or property
interest in the transaction.

(f)

All the information required to be disclosed to the City by this section
shall be provided in writing to the City Manager, include a written
statement confirming that it is a full and complete disclosure of the
required information, and signed by the person who is a party to the
transaction. If more than one person is a party to the transaction with the
City, the persons may jointly submit the information to the City provided
each person signs and confirms it is a full and complete disclosure.

(g)

The City Manager shall provide the information to the City Council for
any transactions submitted to the City Council for approval, before the
City Council or Committee meeting where the transaction will be
considered.

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 (h)

This section does not require disclosure of information protected by the
attorney-client privilege or where disclosure is prohibited by California or
federal law.

(i)

The City Manager may reject a bid or proposal, refuse to enter into a
proposed transaction, or reject the transfer of a transaction, if any person
who will be a party to the transaction or transfer knowingly submits false
information or knowingly omits information required to be disclosed by
this section. A transaction or transfer is voidable by the City Manager if a
party to the transaction or transfer knowingly submitted false information
or knowingly omitted information required to be disclosed by this section.

(j)

If a bid or proposal is rejected by reason of a violation of this section, the
person submitting the bid or proposal may protest the rejection of the bid
or proposal pursuant to section 22.3017 of this Code.

(k)

If a transaction is voided or a transfer of a transaction denied by the City
Manager by reason of a violation of this section, a person who is a party to
the transaction may appeal the decision to a hearing officer pursuant to
Chapter 1, Article 2, Division 4 of this Code by providing written notice
of appeal to the City Manager. Written notice of appeal must be received
by the City within ten days, excluding weekends and City holidays, after
the City mailed notice that the transaction was voided or the transfer of
the transaction was denied.

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 (l)

This section shall be automatically repealed on the date any material
amendment to Charter section 225 is chaptered by the California Secretary
of State.

Section 2. That a full reading of this ordinance is dispensed with prior to its passage,
a written or printed copy having been made available to the City Council and the public prior to
the day of its passage.
Section 3. That this ordinance shall take effect and be in force on the thirtieth day from
and after its final passage.

TCZ:mt
October 13, 2017
Or.Dept:READ
Doc. No.: 1366282

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