Public contracts: University of California executives: conflicts of interest: prohibition.

Plain English Breakdown

The bill summary does not provide specific details on enforcement mechanisms or the exact definition of 'executive'.

No Contracts with Recent UC Executives

This law stops businesses from getting contracts with the University of California if their leaders worked at UC within the last year or gave an executive money.

What This Bill Does

• It says that companies cannot bid on, get, renew, automatically renew, extend, or expand the scope of any contract with the University of California (UC) if a UC executive has served the business entity within the previous year.
• If a company gives an UC executive or their family member compensation in the past year, they also can't do business with UC for one year after that.
• Contracts made against these rules are not legal and could hurt UC's money. Anyone who pays taxes in California or the Attorney General can sue to stop this.
• If a company breaks these rules, a judge can make them wait at least one year before they can do business with UC again.

Who It Names or Affects

• Businesses that want contracts with the University of California
• University of California executives and their families

Terms To Know

business entity

A company or organization that does business.

compensation

Money or other benefits given to someone for work.

Limits and Unknowns

• The bill does not specify what happens if a UC executive works at a company but the company doesn't know about it.
• It's unclear how this will be enforced and who exactly is considered an 'executive'.

Official Summary Text

SB 1141, as amended, Wahab.
Public contracts: University of California
Senior Management Group employees:
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, or an immediate family member of the executive,
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. The bill would authorize
a California taxpayer or
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 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
10 years
one year
from the date of the finding. The bill would define “business entity,” “compensation,” “contract,” and “University of California executive” for its purposes.

Current Bill Text

Download Bill PDF