San Francisco County Municipal Code Art. V Violations of Administrative Code

CHAPTER 6; FALSE CLAIMS; PROCEDURES FOR DEBARMENT; MONETARY PENALTIES

Sec. 6.80. Violations and False Claims; Debarment and Monetary Penalties. Sec. 6.81. Collusion in Contracting. Sec. 6.82. Procedures for Administrative Debarment. Sec. 6.83. Assessment of Monetary Penalties for False Claims: Investigation and Prosecution.

Any Contractor, subcontractor, supplier, consultant or subconsultant who fails to comply with the terms of its contract with the City; or who violates any provision of this Chapter 6; or who fails to abide by any rules and/or regulations adopted pursuant to this Chapter 6; or who submits false claims; or who has violated against any government entity a civil or criminal law relevant to its ability to perform under or comply with the terms and conditions of a contract with the City, may be declared an irresponsible Bidder or an unqualified consultant and debarred according to the procedures set forth in Chapter 28 of this Administrative Code. Additionally, any Contractor, subcontractor, supplier, consultant or subconsultant who submits a false claim to the City may also be subject to monetary penalties, investigation and prosecution as described below. In the event that such a violation of this Chapter 6, including the submission of one or more false claims, comes to the attention of a responsible Department Head or board or commission, the Department Head must investigate the matter. The Department Head must report the findings of any such investigation by letter to the Board of Supervisors within 30 days of the completion of the investigation. The investigation letter to the Board of Supervisors must state the name of the Contractor, subcontractor, supplier, consultant or subconsultant; the nature of the violation; the results of the investigation; and the Department Head's plan for addressing the violation, if any. A hearing shall also be called in the Audit Committee of the Board of Supervisors to report on this investigation. (Added by Ord. 286-99, File No. 991645, App. 11/5/99; amended by Ord. 324-00, File No. 001919, App. 12/28/2000; Ord. 7-02, File No. 011675, App. 1/25/2002; Ord. 8-04, File No. 031503, App. 1/16/2004; Ord. 108-15, File No. 150175, App. 7/2/2015, Eff. 8/1/2015)

If, at the determination of the Mayor, the Department Head who executed the Contract or the board or commission who awarded such Contract, and pursuant to the debarment procedures set forth below, any party or parties to whom a Contract has been awarded has been found to have engaged in collusion with any officer or representative of the City, or any other party or parties, in the submission of any Bid or in preventing of any other being made, or in knowingly receiving preferential treatment by any officer or an employee of the City, then any Contract so awarded, if not completed, may be declared null and void by the Board of Supervisors on the recommendation of the Mayor, Department Head or the board or commission concerned, and no recovery shall be had thereon. The Department Head concerned may then readvertise for Bids for the uncompleted portion of the work. The matter may also be referred to the City Attorney for such action as may be necessary. Any party or parties found to have engaged in such collusion shall not be permitted to participate in or to bid on any future Public Work, Improvement, or purchase to be made by the City. (Added by Ord. 286-99, File No. 991645, App. 11/5/99; amended by Ord. 108-15, File No. 150175, App. 7/2/2015, Eff. 8/1/2015)

Notwithstanding and not exclusive or preclusive of any pending or contemplated legal action, any Contractor, subcontractor, supplier, consultant or subconsultant directly or indirectly subject to the provisions of this Chapter 6 may be determined irresponsible and disqualified from contracting with the City in accordance with the provisions of Chapter 28 of this Administrative Code. (Added by Ord. 286-99, File No. 991645, App. 11/5/99; amended by Ord. 7-02, File No. 011675, App. 1/25/2002; Ord. 8-04, File No. 031503, App. 1/16/2004; Ord. 108-15, File No. 150175, App. 7/2/2015, Eff. 8/1/2015)

PROSECUTION. (a) Notwithstanding and not exclusive or preclusive of any other administrative or legal action taken by the City, a Contractor may be assessed monetary penalties for submitting false claims. The Department Head responsible for the Public Work or Improvement may withhold such penalties from amounts due or retained under the Contract. Notwithstanding and not exclusive or preclusive of any administrative or other legal action, the City Attorney may investigate and prosecute in a civil action any submission of a false claim. (b) The submission of a false claim occurs when a Contractor, subcontractor, supplier, consultant or subconsultant commits any of the following acts enumerated below: (1) Knowingly presents or causes to be presented to an officer or employee of the City a false claim or request for payment or

approval; (2) Knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the City; (3) Conspires to defraud the City by getting a false claim allowed or paid by the City; (4) Knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the City; (5) Is a beneficiary of an inadvertent submission of a false claim to the City, subsequently discovers the falsity of the claim, and fails to disclose the false claim to the City within a reasonable time after discovery of the false claim. (c) In such event, the Contractor, subcontractor, supplier consultant or subconsultant shall be liable to the City for: (1) three times the amount of damages which the City sustains because of the act(s) of that Contractor, subcontractor, supplier, consultant or subconsultant; and (2) the costs, including attorney's fees of a civil action brought to recover any of those penalties or damages. Such Contractor, subcontractor, supplier, consultant or subconsultant may also be liable to the City for a civil penalty of up to $10,000 for each false claim. Liability under this Section 6.83 shall be joint and several for any act committed by two or more persons. (d) For purposes of this Section, "claim" includes any request or demand for money, property or services made to any employee, officer, or agent of the City, or to any Contractor, subcontractor, grantee or other recipient, whether under contract or not, if any portion of the money, property, or services requested or demanded issued from, or was provided by, the City. (e) For purposes of this Section, "knowingly" means that a Contractor, subcontractor, supplier, consultant or subconsultant with respect to information does any of the following: (1) has actual knowledge of the information; (2) acts in deliberate ignorance of the truth or falsity of the information; or (3) acts in reckless disregard of the truth or falsity of the information. Proof of specific intent is not required and reliance on the claim by the City is also not required. (Added by Ord. 286-99, File No. 991645, App. 11/5/99; amended by Ord. 108-15, File No. 150175, App. 7/2/2015, Eff. 8/1/2015)