BILL NUMBER: AB 20	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 15, 2009
	AMENDED IN SENATE  JUNE 30, 2009
	AMENDED IN SENATE  MAY 26, 2009
	AMENDED IN ASSEMBLY  MARCH 10, 2009

INTRODUCED BY   Assembly Member Solorio
   (Coauthors: Assembly Members Block, Portantino, and Torlakson)
   (Coauthors: Senators DeSaulnier, Romero, and Runner)

                        DECEMBER 1, 2008

   An act to add Chapter 14.27 (commencing with Section 67325) to
Part 40 of Division 5 of Title 3 of the Education Code, relating to
public postsecondary education.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 20, as amended, Solorio. University of California: California
State University: contracts.
   Existing law establishes the University of California (UC) as a
public trust administered by the Regents of the University of
California. Employees of the UC provide instruction to students and
conduct research at each of the 10 campuses of the UC, which are
located in Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside,
San Diego, San Francisco, Santa Barbara, and Santa Cruz. Existing law
establishes the California State University (CSU), under the
administration of the Trustees of the California State University, as
one of the other segments of public postsecondary education in this
state.
   This bill would require the Department of General Services, to
negotiate and establish a model contract with standard contract
provisions with both the regents and the trustees by July 1, 2010.
The trustees would be required to, and the regents would be urged to,
negotiate and establish with the Department of General Services the
model contract applicable to their university by July 1, 2010. The
bill would define the term contract to mean a research, training, or
service agreement between the state and the UC or CSU, or a grant
from the state to the UC or CSU for research, training, or service.
 The 
    The  bill would require that, to the extent feasible,
these standard contract provisions include, but not necessarily be
limited to, provisions relating to specified legal issues. The bill
would require that the standard provisions in a model contract agreed
upon under the bill be used in contracts entered into between the UC
or CSU and the state, unless both contracting parties mutually
determine that a specific standard contract provision is
inappropriate or inadequate for a specific contract.  The

    The bill would authorize the Department of General
Services to use the services of any state agency, defined to include
every state office, officer, department, division, bureau, board, and
commission, in implementing the bill.  The bill would make the
CSU and UC responsible for the Department of General Services'
facilitation and associated support costs required to impl  
ement the bill. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 14.27 (commencing with Section 67325) is added
to Part 40 of Division 5 of Title 3 of the Education Code, to read:
      CHAPTER 14.27.  CONTRACTS


   67325.  For the purposes of this article, "contract" means a
research, training, or service agreement between the state and the
University of California or the California State University, or a
grant from the state to the University of California or the
California State University for research, training, or service.
   67326.  The Legislature finds and declares all of the following:
   (a) The University of California and the California State
University comprise two important parts of the state's public
university system.
   (b) The University of California and the California State
University receive about six billion dollars ($6,000,000,000) from
the State General Fund each year.
   (c) In the 2006-07 fiscal year, state agencies and departments
entered into more than 2,500 contracts or contract amendments with
the University of California and the California State University.
   (d) Many of these contracts contain similar provisions, such as
provisions dealing with issues relating to liability, intellectual
property, the right to undertake additional research, the right to
publish, hiring, personnel, invoicing, and payments.
   (e) The provisions of each contract or contract amendment are
typically negotiated between attorneys representing the state
agencies and departments and attorneys representing the University of
California and the California State University.
   (f) The drafting of many of these contracts takes six months to a
year, and, in many cases, the state is paying for both sides of the
contract negotiations.
   (g) It would be more cost effective and efficient if the state and
the University of California and the California State University
would establish standardized "boilerplate" provisions that would
apply to all contracts between the state and the University of
California or the California State University, allowing for
variations only in unusual situations.
   (h) The federal government has established the Federal
Demonstration Partnership, which provides for uniform contracting
provisions.
   67327.  (a) The Department of General Services, acting for the
state, shall, negotiate and establish a model contract with standard
contract provisions with the Regents of the University of California
and a model contract with standard contract provisions with the
Trustees of the California State University by July 1, 2010. The
trustees shall, and the regents are urged to, negotiate and establish
with the Department of General Services the model contract
applicable to their university by July 1, 2010. The Department of
General Services shall seek the active participation of state
agencies and departments that have contracts with the University of
California or the California State University. The model contract may
be revised in a manner determined by the University of California or
the California State University and the Department of General
Services, in consultation with state agencies and departments that
have contracts with the University of California or the California
State University. To the extent feasible, these standard contract
provisions shall include, but not necessarily be limited to,
provisions relating to all of the following:
   (1) Liability.
   (2) Intellectual property.
   (3) The right to undertake additional research.
   (4) The right to publish.
   (5) Hiring and other personnel-related matters.
   (6) Invoicing.
   (7) Payments.
   (8) Dispute resolution.
   (9) Travel.
   (10) Termination.
   (11) Administrative overhead and indirect costs.
   (b) The standard provisions in a model contract agreed upon
pursuant to subdivision (a) shall be used in contracts entered into
between the University of California or the California State
University and the state, unless both contracting parties mutually
determine that a specified standard contract provision is
inappropriate or inadequate for a specified contract.
   (c) In implementing this section, the Department of General
Services may use the services of any state agency, as that term is
defined in Section 11000 of the Government Code.
   (d) The Department of General Services and the University of
California or the California State University, in consultation with
state agencies and departments that have contracts with the
University of California or the California State University, may
determine those types of contracts for which the use of the model
contract would be inappropriate or inadequate.
   (e) It is not the intent of the Legislature that the model
contract provisions waive the requirements of the law. 
   67328.  The California State University and the University of
California, if the University of California participates in the model
contracting process created pursuant to this chapter, shall be
responsible for the facilitation and associated support costs of the
Department of General Services required to implement the provisions
of this chapter, excluding the Department of General Services' legal
costs.