Determining Contract Exemptions Based on Pre-Operative Date

How to determine if the 12X Pre- Operative Date Applies to your Contract 1 1

I. Background II. How do you determine if a contract is exempt based on the Pre-Operative Date Exemption? CITY & COUNTY OF SAN FRANCISCO CITY & COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROLLER OFFICE OF THE CONTROLLER SYSTEMS DIVISION SYSTEMS DIVISION SF Procurement Advisory Board Meeting 2

I. Background I. Background All 12X waivers and exemptions are to be documented in ServiceNow. Prior to July 1, 2021, Departments were required to document their requests to waive the requirements of Chapter 12X but were not required to document when a contract was exempt from 12X. Effective July 1, 2021, Departments must also use ServiceNow to document when a contract is deemed exempt from 12X. 12X exemption categories are as follows: Investment Services Underwriting Services Pre 12X Operative Date CITY & COUNTY OF SAN FRANCISCO CITY & COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROLLER OFFICE OF THE CONTROLLER SYSTEMS DIVISION SYSTEMS DIVISION SF Procurement Advisory Board Meeting 3

II. How do you determine if a contract is exempt based on the Pre II. How do you determine if a contract is exempt based on the Pre- - Operative Date Exemption? Operative Date Exemption? 12X defines Contract to not include agreements advertised, solicited, or initiated prior to the Operative Date of this Chapter 12X, including amendments to existing Contracts. Amendments include Novations and Assignments. The Operative Date consists of two dates only: 2/11/2017: For restrictive LGBTQ law states; and 1/1/2020: For restrictive abortion states The Operative Date is NOT the date on which the state was added to either list. It is only one of the two dates above. CITY & COUNTY OF SAN FRANCISCO CITY & COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROLLER OFFICE OF THE CONTROLLER SYSTEMS DIVISION SYSTEMS DIVISION SF Procurement Advisory Board Meeting 4

II. How do you determine if a contract is exempt based on the Pre II. How do you determine if a contract is exempt based on the Pre- - Operative Date Exemption? Operative Date Exemption? If the contract was advertised, solicited, or initiated prior to one of the two Operative Dates (2/11/2017 or 1/1/2020), then the contract is deemed exempt from 12X. And if the contract is deemed exempt 12X: The amendment of the contract is also exempt. Therefore, if the entity to whom it was awarded moved to a banned state post execution, a waiver is not needed. Instead, documentation of an exemption is needed. The novation/assignment of the contract is also exempt. Therefore, if the entity to whom the contract is novated/assigned is in a banned state, a waiver is not needed. Instead, documentation of an exemption is needed. If the contract was advertised, solicited, or initiated after to one of the two Operative Dates (2/11/2017 or 1/1/2020), then the contract is NOT exempt from 12X. And if the contract is not exempt from 12X: The amendment of the contract is also not exempt. Therefore, if the entity to whom it was awarded moved to a banned state post execution, a waiver is needed (not documentation of an exemption); and The novation/assignment of the contract is also not exempt. Therefore, if the entity to whom the contract is novated/assigned is in a banned state, a waiver is needed (not documentation of an exemption). CITY & COUNTY OF SAN FRANCISCO CITY & COUNTY OF SAN FRANCISCO OFFICE OF THE CONTROLLER OFFICE OF THE CONTROLLER SYSTEMS DIVISION SYSTEMS DIVISION SF Procurement Advisory Board Meeting 5