(A)
Criteria for LBE Certification. The Director shall certify as an LBE any business that meets all of the following criteria and also meets the criteria set forth in Section 14B.3(B), Section 14B.3(C) or Section 14B.3(D): (1) The business is financially and operationally independent from, and operates at arm's length to, any other business.
(2) The business is continuously in operation.
(3) The business is a for-profit enterprise.
(4) The business performs a Commercially Useful Function.
(5) The business maintains its principal place of business in a fixed office within the geographic boundaries of the City that provides all of the services for which LBE certification is sought, other than work required to be performed at a job site; provided, however, that suppliers are not required to maintain their principal place of business in San Francisco, but are required to maintain a fixed office in San Francisco that meets all of the requirements of this Section other than the principal place of business requirement.
An office is a fixed and established place of business, as determined by the Director, including a qualified home office, where business is conducted on a regular basis of the type for which certification is sought. A residence qualifies as an office only if the residence is situated within the geographic boundaries of the City, and none of the business owners also maintain an office outside the residence in the same or related field, and a business owner claimed the home office as a business deduction on the prior year's income tax return, or for businesses started after the last tax return, would qualify for a deduction on the next tax return. None of the following constitutes an office: a post office box, a temporary location, a movable property, a location that was established to oversee a project such as a construction project office, or a work space provided in exchange for services as opposed to monetary rent.
To establish a principal place of business in San Francisco, a business must demonstrate that the majority of its principals are based in the San Francisco office.
Suppliers must maintain a warehouse in the City that is continuously stocked with inventory consistent with their certification. Truckers must park their registered vehicles and trailers within the City.
(6) The business possesses a current San Francisco Business Tax Registration Certificate.
(7) The business has been located and doing business in San Francisco for at least six (6) months preceding the application for certification.
(8) At least one business owner has valid licenses or other relevant trade or professional certifications or, where licensing is not required, the business owners individually and collectively have relevant training and experience that are appropriate for the type of business for which the business seeks certification.
(9) The business is Owned and Controlled as defined herein by individuals who reside in the United States or its territories.
(10) The business has average gross annual receipts in the prior three (3) fiscal years that satisfy the criteria set forth in Section
14B.3(B), Section
14B.3(C), or Section
14B.3(D).
(11) The business is not Owned or Controlled as defined herein in part or in whole by a full time City employee.
(B)
Criteria for Small-LBE. The Director shall certify as a "Small-LBE" any business that meets the requirements of 14B.3
(A) and has average gross annual receipts in the prior three (3) fiscal years that do not exceed the following limits: (1) public works/construction - $20,000,000; (2) specialty construction contractors - $10,000,000; (3) goods/materials/equipment and general services - $10,000,000; (4) professional services and architect/engineering - $2,500,000; and (5) trucking - $3,500,000. The Director shall determine gross receipts according to recognized accounting methodologies that the Director determines most accurately reflect the actual money that the business received during the relevant period. Any business under common ownership, in whole or in part, with any other business in a related industry meets the requirements of this subparagraph only if the aggregate gross annual receipts of their percentage of ownership added together of all of the businesses under such common ownership do not exceed these limits. All businesses owned by married spouses or domestic partners are considered under common ownership unless the businesses are in unrelated industries and no community property or other jointly owned assets were used to establish or are used to operate either business. (C)
Criteria for Micro-LBE. The Director shall certify as a "Micro-LBE" any business that meets the requirements of 14B.3
(A) and also has average gross annual receipts in the prior three (3) fiscal years that do not exceed the following limits: (1) public works/construction - $10,000,000; (2) specialty construction contractors - $5,000,000; (3) goods/materials/equipment and general services - $5,000,000; (4) professional services and architect/engineering - $1,250,000; and (5) trucking - $1,750,000. The Director shall determine gross receipts according to recognized accounting methodologies that the Director determines most accurately reflect the actual money that the business received during the relevant period. Any business under common ownership, in whole or in part, with any other business in a related industry meets the requirements of this subparagraph only if the aggregate gross annual receipts their percentage of ownership added together of of all of the businesses under such common ownership do not exceed these limits. All businesses owned by married spouses or domestic partners are considered under common ownership unless the businesses are in unrelated industries and no community property or other jointly owned assets were used to establish or are used to operate either business. (D)
Criteria for SBA-LBE. The Director shall certify as a "SBA-LBE" any business that: (1) meets the requirements of 14B.3
(A) and also has average gross annual receipts in the prior three (3) fiscal years that do not exceed the following limits: (1) public works/construction - $33.5 million; (2) specialty construction contractors - $17 million; (3) goods/materials/equipment and general services - $17 million; (4) professional services and architect/engineering - $7 million and (5) trucking - $8.5 million. The Director shall determine gross receipts according to recognized accounting methodologies that the Director determines most accurately reflect the actual money that the business received during the relevant period. Any business under common ownership, in whole or in part, with any other business in a related industry meets the requirements of this subparagraph only if the aggregate gross annual receipts of their percentage of ownership added together of all of the businesses under common ownership do not exceed these limits. All businesses owned by married spouses or domestic partners are considered under common ownership unless the businesses are in unrelated industries and no community property or other jointly owned assets were used to establish or are used to operate either business. (E) For purposes of ensuring nondiscrimination in City contracting and subcontracting, the Director shall further certify all LBEs as MBEs, WBEs and OBEs according to the Ownership and Control of the LBE and shall maintain data on the availability and utilization of MBEs, WBEs, and OBEs in City Contracting.
(1) MBE Certification. The Director shall certify as an MBE any business that is certified as an LBE and is Owned and Controlled by a Person or Persons who is a member of one or more of the following ethnic groups:
(a) African Americans, defined as persons whose ancestry is from any of the Black racial groups of Africa or the Caribbean;
(b) Arab Americans, defined as persons whose ancestry is from an Arabic speaking country that is a current or former member of the League of Arab States;
(c) Asian Americans, defined as persons with Chinese, Japanese, Korean, Pacific Islander, Samoan, Filipino, Asian Indian, and Southeast Asian ancestry;
(d) Iranian Americans, defined as persons whose ancestry is from the country of Iran;
(e) Latino Americans, defined as persons with Mexican, Puerto Rican, Cuban, Central American or South American ancestry. Persons with European Spanish ancestry are not included as Latino Americans; and
(f) Native Americans, defined as any person whose ancestry is from any of the original peoples of North America, and who maintains cultural identification through tribal affiliation or community recognition.
(2) WBE Certification. The Director shall certify as a WBE any business that is certified as an LBE and is Owned and Controlled by one or more women.
(3) OBE Certification. The Director shall certify as an OBE any business that is certified as an LBE and (i) does not demonstrate to the satisfaction of the Director that it is Owned and Controlled by one or more women or one or more minority Persons or (ii) is not certified as an MBE or a WBE.
(Added by Ord. 92-06, File No. 050784, App. 5/11/2006; amended by Ord. 20-10, File No. 091405, App. 2/10/2010; Ord. , File No. 101006, App. 1/7/2011; Ord. , File No. 140999, App. 12/17/2014, Eff. 1/16/2015, Oper. 7/1/2015)
