San Francisco County Municipal Code § 106.2 Withholding

For any Covered Project or Covered Contract under which the City has the ability to withhold funds, it shall be the duty of the officer, board, or commission under whose jurisdiction said Covered Project or Covered Contract is being carried on, constructed, or performed, when certifying to the Controller any payment which may become due under said Contract, to deduct from said payment or payments the total amount of any forfeiture provided for in Section 106.1. In doing so, the Department Head must also notify in writing the Labor Standards Enforcement Officer of the Department Head’s action. The Labor Standards Enforcement Officer may also, upon written notice to the Department Head responsible for the project, certify to the Controller any forfeiture(s) to deduct from any payment as provided for in this Section 106.2. Certification of forfeitures under this Section 106.2 shall be made only upon an investigation and audit by the responsible Department Head or the Labor Standards Enforcement Officer and upon service of written notice to the Contractor that includes identification of the grounds for the forfeiture or forfeitures (“Certification of Forfeiture”). The audit supporting the forfeiture shall be appended to the Certification of Forfeiture, but failure to append such documentation shall not invalidate the Certification of Forfeiture. Service of the Certification of Forfeiture shall be made by United States mail and the date of service shall be the date of mailing. The Controller, in issuing any warrant for any such payment, shall deduct from the amount which would otherwise be due on said payment or payments the amount of said forfeiture or forfeitures as so certified. This Section 106.2 does not provide for the withholding of funds disbursed through a City loan for a Covered Real Estate Project. (Added by Ord. 296-24, File No. 240985, App. 12/19/2024, Eff. 1/19/2025, Oper. 2/19/2025)