SF supes limit business with firms in states with anti-LGBT laws

San Francisco would no longer enter into contracts with companies based in states that bar civil-rights protections for lesbian, gay, bisexual and transgender people, under legislation passed unanimously by the Board of Supervisors Tuesday.

The legislation is an effort to increase pressure on three states with laws that limit transgender rights: North Carolina, Mississippi and Tennessee. The measure does not affect the city’s existing contracts with companies based in those states, but will likely ban the city from renewing them.

The city attorney still has to make a determination that the laws in those states are discriminatory.

“Today San Francisco took a strong stand against anti-LGBT hate laws in our country,” Supervisor Scott Wiener, who authored the legislation, said in a statement. “I’m proud that our city is stepping out and being a leader in this fight. I hope other jurisdictions follow suit and send a clear message that these laws have no place in our country.”

The company most affected by the legislation is Bank of America. The bank based in North Carolina has an $8 million contract with San Francisco to provide depository and payroll services, among other things. The contract expires Aug. 31, 2018.

The bank did not respond to a request for comment. When the legislation was proposed in April, it told The Chronicle, “We understand the concerns expressed by the city and county of San Francisco, and Bank of America has been very clear in calling for the repeal of North Carolina’s (law) based on concerns about the impact of the legislation on our employees and our customers.” Bank of America was founded in San Francisco and moved to Charlotte, N.C., in 1998 after merging with NationsBank.

A North Carolina law, HB 2, bans people from using restrooms in schools and other public buildings that don’t match their birth sex, even if it matches their gender identity. A Mississippi law, HB1523, allows private businesses and religious groups to deny services to LGBT people if doing so would violate their religious beliefs. A Tennessee law, HB1840, allows therapists to reject LGBT patients.

The North Carolina law has generated the most backlash, including the announcement earlier this month that the National Collegiate Athletic Association and the Atlantic Coast Conference were moving championship games out of the state in opposition.

Mayor Ed Lee has also barred publicly funded city-employee travel to North Carolina, except in emergency situations.

Also on Tuesday, Supervisor Jane Kim introduced a resolution urging the city to explore the possibility of annexing 684 acres in Brisbane scheduled for a massive commercial development because it includes no new housing.

“This is simply not possible,” Kim said. “We need everyone in the region to build more housing.”

Brisbane’s mayor, Clifford Lentz, called the idea of San Francisco annexing Brisbane property “ridiculous.”

“Jane Kim obviously doesn’t know anything about Brisbane’s planning process,” Lentz said.

He defended the proposed development as “one of the most sustainable developments on the planet.” Sustainable because the city’s general plan for the development calls for zero carbon buildings and zero waste, among other goals.

The plan, however, prohibits the land from being used for housing. Lentz said one reason is that the development is being built on formerly contaminated land.

Kim said she believes the real reason behind the housing prohibition is that Brisbane doesn’t want new residents voting in the city. If San Francisco were to annex the property, those residents would not vote in Brisbane local elections, she said.

San Francisco Chamber of Commerce Senior Vice President Jim Lazarus agreed. “Brisbane’s concern is political. They don’t want 4,000 new voting residents.”

Lazarus also supported the idea of annexation, but said it would be almost impossible “unless Brisbane is willing to give it up.”

Which at this point seems very unlikely.

Finally on Tuesday, the Board of Supervisors approved a nearly $5 million settlement with a motorcyclist who was badly injured in 2013 when a fire truck driven by a city firefighter suspected of being drunk slammed into him.

The $4.99 million settlement with Jack Frazier caps an embarrassing episode that ensnared the Fire Department and the Police Department that botched the investigation.

Emily Green is a San Francisco Chronicle staff writer. Email: egreen@sfchronicle.com Twitter: @emilytgreen

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