Official Summary Text
SB 1141, as amended, Wahab.
Public contracts: University of California executives: conflicts of interest: prohibition.
The California Constitution provides that the University of California constitutes a public trust administered by the Regents of the University of California, a corporation in the form of a board, with full powers of organization and government, subject to legislative control only for specified purposes, including, among others, as may be necessary to ensure the security of its funds.
Existing law prohibits officers or employees of the University of California from engaging in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest if that employment, activity, or enterprise is sponsored or funded by a university department or contract, except as provided.
This bill would
prohibit a business entity from bidding on, entering into,
renewing, automatically renewing, extending, or expanding the scope of any contract with the University of California if a University of California executive serves or has served the business entity within the previous year, as specified. The bill would also prohibit a business entity from bidding on, entering into, renewing, automatically renewing, extending, or expanding the scope of any contract with the University of California for at least one year after providing or promising any University of California executive compensation. The bill would declare a contract entered into, renewed, automatically renewed, extended, expanded in scope, or maintained in violation of these prohibitions to be void, a risk to the security of the University of California’s funds, and contrary to public policy.
require a University of California executive, within 60 days of accepting a board of director position with a business entity,
to post on a University of California internet website a written recusal from involvement with any future university contract decisions where the business entity is a party, as provided. The bill would prohibit a University of California executive from making, participating in making, or in any way attempting to influence a contractual decision where the executive is on the board of directors of a business entity that is a party to the contract or receives compensation for consulting or advisory services from a business entity that is a party to the contract.
The bill would authorize the Attorney General to bring a civil action to enforce these provisions and to recover attorney’s fees if the civil action prevails. If a court finds in such a civil action that
a business
entity
an executive
has violated these provisions, the bill would require the court to
enjoin the business entity from bidding on, entering into, renewing, automatically renewing, extending, or expanding the scope of a contract with the University of California for a period of one year from the date of the finding.
void the affected contract.
The bill would define “business entity,”
“compensation,”
“contract,” and “University of California executive” for its purposes.