There are restrictions put in place that prohibit certain current university employees from contracting as individuals with any university department.
In 2002, the Governor of California signed SB 1467 that made significant changes in state contracting law. SB 1467, which became effective on July 1, 2003, adds Article 4 to Chapter 2.5 of Part 2, Sections 10515 through 10524, of the Public Contract Code. It applies standard California state agency conflict of interest and penalty provisions to procurements by the UC system. Before the passage of SB 1467, UC was exempt from those provisions. The language of the statute results in restrictions to the way UC does business with consultants, employees, former employees and independent contractors.
The law primarily impacts the following business practices of Business & Revenue Contracts:
- Hiring university employees to provide services or goods to UC under agreements as contractors.
- Hiring former UC employees as contractors to perform work related to contracts that were planned, negotiated, executed or involving policy created by the employee before the employee's separation from UC.
The statute prohibits current university employees, except those identified below, from contracting as individuals with any university department to provide goods or services as a contractor. In addition, the statute prohibits employees from engaging in any employment, activity or enterprise from which the employee receives compensation, or in which he or she has a financial interest, and which is sponsored or funded, in whole or in part, through a contract with the university. Note: UC employees with teaching or research responsibilities or those who are students, are exempted from this provision of the statute but are still subject to university guidelines for employee-vendors. Please refer to UC Davis Policy & Procedure Manual, Section 350-90.
The statute contains two restrictions on contracting with former employees:
- A former university employee cannot enter into a contract, for two years from the date of separation, to perform work related to contracts that were planned, negotiated, or executed by that employee.
- A former university employee cannot enter into a contract, for one year from the date of separation, to perform work on a contract if he or she was employed by that department in a policymaking position in the same general subject area as that contract.