Contracts - Donahoe Higher Education Act - Education - CA

Section § 67325

This section defines a 'contract' for this specific article. It is either an agreement for research, training, or service between the state and universities, or it's a state grant to these universities for similar purposes.

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.

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Section § 67326

This section explains the importance of the University of California and California State University to the state’s public university system, noting they receive a significant amount of funding from the state. In the 2006-07 fiscal year, these universities entered into over 2,500 contracts with state agencies for aspects like liability, intellectual property, and hiring.

Typically, attorneys from both sides negotiate these contracts, which can take six months to a year. To save time and money, the Legislature suggests using standardized contract provisions (boilerplate) for these agreements, similar to the federal government's approach.

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.

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Section § 67327

This law requires the Department of General Services to create standard model contracts for the University of California (UC) and California State University (CSU) systems, which should include terms on liability, intellectual property, research rights, publishing rights, personnel matters, invoicing, payments, dispute resolution, travel, termination, and administrative costs. By July 1, 2010, the UCS and CSU should establish these contracts with the Department. These templates are meant to streamline contracting with state agencies. However, if both parties in a contract agree, they can adjust specific standard provisions if they don’t fit the situation. The goal is not to bypass any existing legal requirements, and the model contracts might be deemed unsuitable for certain contract types.

(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.

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Section § 67328

This law states that both the California State University and the University of California (if it takes part) must cover the costs of helping the Department of General Services carry out a specific contracting process. However, they are not responsible for paying the Department's legal expenses.

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.

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