BILL ANALYSIS
AB 20
Page 1
Date of Hearing: April 1, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 20 (Solorio) - As Amended: March 10, 2009
Policy Committee: Higher
EducationVote: 7-0
Business and Professions 10-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill urges the University of California (UC) Regents and
requires the Department of General Services (DGS) to establish,
by July 1, 2010, a model contract with standard provisions for
research, training, or services undertaken by the university on
behalf of the state. Specifically, this bill:
1)Specifies that the standard provisions shall address, but are
not limited to:
a) Liability.
b) Intellectual property.
c) The right to undertake additional research.
d) The right to publish.
e) Hiring and other personnel-related matters.
f) Invoicing.
g) Payments.
h) Dispute resolution.
i) Travel
j) Termination
aa) Administrative overhead and indirect costs.
2)Specifies that all standard provisions shall be used in
contracts entered into between the university and the state,
unless both contracting parties mutually determine that a
standard provision is inappropriate for a specific contract.
FISCAL EFFECT
Minor absorbable one-time costs for UC and DGS to develop each
AB 20
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of the standard contract provisions followed by substantial
ongoing savings from approved efficiencies in the contracting
process.
COMMENTS
1)Purpose . According to UC, "The federal government utilizes a
simplified and streamlined approach by issuing grants and
contracts under predetermined and mutually agreeable terms and
conditions, as set forth under the federal policy and
regulations. The UC collaborated with the federal government
to standardize terms and agreements for contracts between both
public entities. This practice resulted in almost all federal
grants and contracts being accepted by UC campuses without
further delay to negotiate standard terms with each federal
agency and campus. In comparison, each State grant and
agreement is negotiated on an individual basis between the
State program and the university campus. This can cause
significant and unnecessary delays when most provisions could
be standardized by the UC and the Department of General
Services.
"In 2006-07, the University of California and 102 State
agencies and programs entered into more than 1,250 new
contracts or amendments for a total of more than $321 million.
Both State agencies and the UC could realize potential savings
and provide faster service by reducing the time it takes to
individually negotiate these agreements."
2)Prior Legislation . This bill is almost identical to AB 3033
(Laird) of 2008, which was one of numerous bills summarily
vetoed by the governor without a stated objection. AB 3033
passed this committee 16-0 and passed the Assembly Floor 75-0.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081