SAN FRANCISCO (CBS / AP) — San Francisco officials say a restaurant chain has agreed to spend $320,000 to settle a complaint alleging that it collected a surcharge from customers for the city’s health care law but did not use most of the money for its intended purpose.

City Attorney Dennis Herrera said Patxi’s Chicago Pizza agreed to the settlement after an investigation by his office and the Office of Labor Standards Enforcement.

In announcing the agreement Sunday, Herrera says investigators determined that from 2009 to 2011 the chain added a four percent “Healthy San Francisco” surcharge to customers’ bills at its San Francisco locations, but the money was not used for its stated purpose.

Patxi’s chief executive officer, William Freeman, said in a statement that the company took “immediate steps to make things right” once the chain discovered it was not compliance with the law.

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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