BILL NUMBER: AB 20	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 10, 2009

INTRODUCED BY   Assembly Member Solorio
    (   Coauthor:   Assembly Member  
Block   ) 

                        DECEMBER 1, 2008

   An act to add Article 6 (commencing with Section 92060) to Chapter
1 of Part 57 of Division 9 of Title 3 of the Education Code,
relating to the University of California.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 20, as amended, Solorio. University of California: contracts.
   Existing law establishes the University of California as a public
trust administered by the Regents of the University of California.
Employees of the university provide instruction to students and
conduct research at each of the 10 campuses of the university, which
are located in Berkeley, Davis, Irvine, Los Angeles, Merced,
Riverside, San Diego, San Francisco, Santa Barbara, and Santa Cruz.
   This bill would urge the regents, and require the Department of
General Services, to establish a model contract with standard
contract provisions  by July 1, 2010 . The bill would define
the term contract to mean a research, training, or service agreement
between the state and the university, or a grant from the state to
the university for research, training, or service. 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 any
and all standard provisions in the model contract agreed upon under
the bill be used in contracts entered into between the university and
the state, unless  either of the   both 
contracting parties  determines   mutually
determine  that a specific standard contract provision is
inappropriate for a specific contract. 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.
   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.  Article 6 (commencing with Section 92060) is added to
Chapter 1 of Part 57 of Division 9 of Title 3 of the Education Code,
to read:

      Article 6.  Contracts


   92060.  For the purposes of this article, "contract" means a
research, training, or service agreement between the state and the
University of California or a grant from the state to the University
of California for research, training, or service.
   92060.5.  The Legislature finds and declares all of the following:

   (a) The University of California is the state's premier public
university.
   (b) The university receives about  $3 billion 
 three billion dollars ($3,000,000,000)  from the state
General Fund each year.
   (c) In the 2006-07 fiscal year, state agencies and departments
entered into a total of 1,266 contracts or contract amendments with
the 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.
   (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 would establish standardized "boilerplate" provisions
that would apply to all contracts between the state and the
university, allowing for variations only in unusual situations.
   (h) The federal government has established the Federal
Demonstration Partnership, which provides for uniform contracting
provisions.
   92061.  (a) The regents are urged to, and the Department of
General Services, acting for the state, shall, establish a model
contract with standard contract provisions  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. The model contract may be revised in a manner
determined by the university and the Department of General Services
 , in consultation with state agencies and departments that have
contracts with the 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) Any and all standard provisions in the model contract agreed
upon pursuant to subdivision (a) shall be used in contracts entered
into between the university and the state, unless  either of
the   both  contracting parties  determines
  mutually determine  that a specified standard
contract provision is inappropriate 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  ,
in consultation with state agencies and departments that have
contracts with the university,  may determine those types of
contracts for which the use of the model contract would be
inappropriate.
   (e) It is not the intent of the Legislature that the model
contract provisions waive the requirements of the law.