Research Administration Office

University of California

Memo Operating Guidance

No. 90-4

Supplement No. 1 CANCELLED as of 9/2/2008

July 30, 1990

Subject: State of California Department of Health Services Exhibit A(S) (3/90)

The State Department of Health Services has revised Exhibit A(S), Additional Provisions (For State Funded Subvention Aid/Local Assistance Cost Reimbursement Contracts/Grants). The following requirements have been added to these provisions:

Section 10, paragraph (f) requires the University to make facilities readily accessible to mentally or physically handicapped persons. Paragraph (g) mandates that the University keep records sufficient enough so that the awarding agency can determine whether the University has complied with various nondiscrimination regulations.

In Section 16, the definition of "minority business enterprise" has been extended to include a business which is at least 51% women owned.

Section 22 references resolution and disputes procedures set forth in the California Code of Regulations and in the Health and Safety Codes.

Section 27 requires Contractors to provide a thirty day advance notice in case of a change in its legal name.

Section 28 pertains to novation agreement proposals. (A novation agreement is one which substitutes a contractor and its corresponding agreement with a new contractor and a corresponding new agreement.)

These revisions have been reviewed by our office and are in accordance with current University policies.

Refer: Enclosure

Lourdes G. DeMattos

ATSS 8-582-1654

(415) 642-1654

Subject Index: 02, 16

Organization Index: S-140

Willie C. Archie

Contracts & Grants Officer






Exhibit A(S)

1. There is no paragraph 1 in this Exhibit A(S).

2. Travel and Per Diem

Any reimbursement for necessary traveling and per diem shall be at rates not to exceed those amounts paid to the State's represented employees under collective bargaining agreements currently In effect. No travel outside the State of California shall be reimbursed unless prior written authorization Is obtained from the State,

Procurement Requirement

a. Prior authorization In writing by the State will be required before the Contractor will be reimbursed for any purchase order or subcontract exceeding $2,500 for any articles of supplies, equipment, or services or for any fee, or other payment, for consultation of three hundred fifty dollars ($35C)) or more per day. The Contractor must provide in its request for authorization oil particulars necessary for evaluation of the necessity or desirability of incurring such cost, and as to the reasonableness of the price or cost. For purchases of any said articles, supplies, equipment services, or for consultant fees exceeding such minimum amount, three competitive quotations must be submitted with the request, or the absence of bidding must be adequately justified.

b. If other than the lowest bidder or a sole-source provider Is selected, all documents used in contractor selection must be presented in writing to the State for prior approval before awarding any contract, and maintained for possible future audit as specified in paragraph 7 below.

The terms "purchase order" and "subcontract" as used In the above paragraph 3a only, excludes: (a] purchase orders not exceeding $2,500, and (b) subcontracts or purchase orders for public utility services at rates established for uniform applicability to the general public.

4. Standards of Work

The Contractor agrees that the performance Of work and services pursuant to the requirements of this contract shall conform to high professional standards.

5. Furnishing of Properly by the State or Purchase of Property with State or Federal Funds

a. (1) All equipment, material, supplies, or property of any kind purchased from funds advanced or reimbursed or furnished by the State under the terms of this contract and not fully consumed In the performance of the contract shall be the property of the State and shall be subject to the provisions of this paragraph a, as well as paragraphs b, c, and d below.

(2) Inventory and Disposition

(a) Contractor shall, at the request of the State, submit on Inventory of equipment furnished or purchased under the terms of this contract. Such Inventory will be required not more frequently than annually.

(b) At the termination of this contract. the Contractor shall provide a final inventory to the State and shall at that time query the State as to the State's requirements. including the manner and method. In returning said equipment to the State. Final disposition of such equipment shall be at state expense in accordance with Instructions from the State to be issued immediately after receipt of the final Inventory.

(3) Motor Vehicles

(a) If, under the provisions of paragraph (2) above, any part of such property Is motor vehicles, the State Office of Procurement shall purchase said motor vehicles for and on behalf of the Contractor. The provisions of clause 5b below are applicable to this paragraph concerning motor vehicles.

(b) If, under the provisions of paragraphs (2) or (3] above, any port of such property is motor vehicles, the State authorizes the Contractor to use said motor vehicles under the terms and conditions of this contract for purposes of this contract only, and in accordance with the provisions of subparagraphs (c) through (f) below.

(c) It is mutually understood that the Stale of California shall be the legal owner of said vehicles and the Contractor shall be the registered owner.

(d) Upon return of such motor vehicles to the State, Contractor shall deliver to State all necessary documents of title to enable proper transfer of marketable title to the Slate.

(e) Contractor agrees that all operators of motor vehicles listed in said agreement shall hold o valid Slate of California driver's license. In the event 12 or more passengers are to be carried in any one vehicle listed in said agreement, a Class 2 driver's license will also be required.

(f) Contractor shall furnish to the State o certificate of insurance stating that there is liability Insurance presently in effect for the Contractor of not less than $500,000 per occurrence for bodily Injury and property damage liability combined.

The certificate of insurance must Include provisions (I) and (11), stating that:

(I) The Insurer will not cancel the Insured's coverage without 30 days prior written notice to the State.

The State of California, its officers, agents, employees, and servants ore Included as additional insureds, but only insofar as the operations under this contract are concerned.

Contractor agrees that bodily injury liability insurance herein provided for shall be In effect at all times during the term of this contract. In the event said Insurance coverage expires at any time or times during the term of this contract, Contractor agrees to provide at least thirty (30] days prior to said expiration date o new certificate of insurance evidencing Insurance coverage as provided for herein for not less than the remainder of the term of the contract, or for a period of not less than one (1) year. New certificates of Insurance ore subject to the approval of said Department of General Services, and Contractor agrees that no work or services shall be performed prior to the giving of such approval. In the event Contractor falls to keep In effect at all times Insurance coverage as herein provided, State may. In addition to any other remedies It may have, terminate this contract upon the occurrence of such event.

b. If the Slate and of the State's sole option, through its Office of Procurement, purchases any equipment listed in the budget approved for this Contract, the cost of said equipment will be deducted from said contract amount. Contractor shall submit to State a separate list of the equipment specifications. State will pay vendor directly for equipment, and title to said equipment will remain with the State. Said equipment will be delivered to the Contractor's address as stated In said contract unless notified by Contractor in writing.

c. (I) Title to state property shall not be affected by the incorporation or attachment thereof to any property not owned by the Slate, nor shall such state property, or any part thereof, be or become a fixture or lose its identity as personality by reason of affixation to any realty.

(2) State property shall be used only for the performance of this contract.

(3) Unless otherwise provided herein, the State shall not be under any duty or obligation to restore or rehabilitate. or to pay the cost of the restoration or rehabilitation of the Contractor's facility or any portion thereof which Is affected by removal of any state property.

The Contractor shall maintain and administer, in accordance with sound business practice, a program for the utilization, maintenance, repair, protection, and preservation of state property so to assure Its full availability and usefulness for the performance of this contract. The Contractor shall take all reasonable steps to comply with oil appropriate directions and instructions which the State may prescribe as reasonably necessary for the protection of state properly.

For nonexpendable equipment only. Before equipment purchases made by the Contractor are reimbursed by the State. the Contractor must submit paid vendor receipts Identifying the purchase price. description of the Item. serial number, model number, and location where equipment will be used during the term of this agreement. Said paid receipts will be attached to Contractor's Invoices submitted to the State.

6. Income Restrictions

The Contractor agrees that any refunds, rebates, credits. or other amounts (Including any Interest thereon) accruing to or received by the Contractor under this contract shall be paid by the Contractor to the State, to the extent that they are properly allocable to costs for which the Contractor has been reimbursed by the State under this contract.

7. Examination of Accounts, Audit, Records, and Subcontract Language

a. The Contractor shall maintain books. records. documents, and other evidence, accounting procedures, and practices, sufficient to reflect properly all direct and Indirect costs of whatever nature claimed to have been Incurred In the performance of this contract, Including any matching costs and expenses. The foregoing constitutes "records" for the purposes of this clause.

b. The Contractor's facility or office or such part thereof as may be engaged in the performance of this contract and his records shall be subject at all reasonable times to Inspection, audit, and reproduction by the 'State or any of Its duly authorized representatives.

c. The Contractor shall preserve and make available his records (I) for a period of three years from the date of final payment under this contract, and (11) for such longer period, If any, as is required by applicable statute. by any other clause of this contract, or by subparagraphs (1) or (2) below.

(1) If this contract is completely or partially terminated, the records relating to the work terminated shall be preserved and made available for a period of three years from the dote of any resulting final settlement.

(2) If any litigation, claim. negotiation, audit, or other action Involving the records has been started before the expiration of the three-year period, the records shall be retained until completion of the action and resolution of all Issues which arise from it. or until the end of the regular three-year period, whichever Is later.

d. The Contractor further agrees to Include In all his subcontracts hereunder a written agreement with said subcontractor or vendor, the following clause:

"(Name of Vendor or Subcontractor) agrees to maintain and preserve, until three years offer termination of (Contractor's name) agreement or contract with the State of California, and to permit the State or any of its duly authorized representatives. to hove access to and to examine and audit any pertinent books, documents. papers. and records of (name of subcontractor or vendor) related to this (purchase order or subcontract)."

8. Covenant Against Contingent Fees

The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon on agreement or understanding for o commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty. the State shall have the right to annul this contract without liability or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.


The State. through any authorized representatives. has the right at all reasonable times to inspect or otherwise evaluate the work performed or being performed hereunder Including subcontract supported activities and the premises In which it Is being performed. If any inspection or evaluation Is made by the State of the premises of the Contractor or a subcontractor, the Contractor shall provide and shall require his subcontractors to provide all reasonable facilities and assistance for the safety and convenience of the state representatives in the performance of their duties. All Inspections and evaluations shall be performed In such a manner as will not unduly delay the work.

10. Nondiscrimination in Services, Benefits, and Facilities

a. The Contractor will not discriminate in the provision of services because of race. color, creed, national origin, sex, age, or physical or mental handicap as provided by state and federal law.

b. For the purpose of this contract, distinctions on the grounds of race, color, creed, national origin, sex, age, or physical or mental handicap include, but are not limited to, the following: denying a participant any service or benefit to a participant which is different, or Is provided in a different manner or at a different time from that provided to other participants under this contract; subjecting a participant to segregation or separate treatment In any matter related to his receipt of any service; restricting a participant in any way in the enjoyment of any advantage or privilege enjoyed by others receiving any service or benefit; treating a participant differently from others In determining whether he satisfied any admission, enrollment quota, eligibility, membership, or other requirement or condition which Individuals must meet in order to be provided any service or benefit; the assignment of times or places for the provision of services on the basis of the race, color, Creed, or national origin of the participants to be served.

The Contractor will take affirmative action to ensure that Intended beneficiaries are provided services without regard to race. color, creed, national origin, sex, age, or physical or mental handicap.

The Contractor agrees that complaints alleging discrimination In the delivery of services by the Contractor or his or her subcontractor because of race. color, national origin, creed, sex, age. or physical Or mental handicap will be resolved by the State through the Department of Health Services' Affirmative Action Discrimination Complaint Process.

The Contractor shall, subject to the approval of the Department of Health Services. establish procedures under which participants of service are informed of their rights to file a complaint alleging discrimination or a violation of their Civil rights with the Department of Health Services.

The Contractor shall operate the program or activity in such a manner that It Is readily accessible to and usable by mentally or physically handicapped persons pursuant to 45 Code of Federal Regulations, Part 84, Sections 84.21 and 84.22.

g. The Contractor shall keep records, submit required compliance reports, and permit state access to records In order that the State can determine compliance with the nondiscrimination requirements pursuant to 45 Code of Federal Regulations, Part 80, 84, and 90, Sections 80.6, 84.61, and 90.42.

11. Final Invoice---Final Report--Retention of Funds

If a final report is required by this contract, 10 percent of the face amount of the contract or 50 percent of the final Invoice, whichever is the larger amount, but not to exceed $3,000, shall be withheld until after receipt by the State of a report satisfactory to the State.

12. Officials Not to Benefit

13. No member of or delegate to Congress or the State Legislature shall be admitted to any share or part of this contract, or to any benefit that may arise therefrom; but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit.

Rights In Data

Subject Data. As used in this clause, the term "Subject Data" means writings, sound recordings, pictorial reproductions, drawings, designs or graphic representations, procedural manuals, forms, diagrams, workflow charts, equipment descriptions, data flies and data processing or computer programs, and works of any similar nature (whether or not Copyrighted or copyrightable) which are first produced Or developed under this contract. The term does not Include financial reports, cast analyses, and similar Information incidental to contract administration.

Federal Government and State Rights. Subject only to the provisions of c below, the Federal Government and State may use, duplicate, or disclose In any manner and for any purpose whatsoever, and have or permit others to do so, all Subject Data delivered under this contract.

License to Copyrighted Data, In addition to the Federal Government and State rights as provided In b above, with respect to any subject data which may be copyrighted, the Contractor agrees to and does hereby grant to the Federal Government and State a royalty-free, nonexclusive, and Irrevocable license throughout the world to use, duplicate, or dispose of such data In any manner for State or Federal Government purposes and to have or permit others to do so. Provided, however, that such license shall be only to the extent that the Contractor now has, 'or prior to completion or final settlement of this contract may acquire, the right to grant such license without becoming liable to pay compensation to others solely because of such grant.

There is no provision 14 in this Exhibit A(S).

Clean Air and Water

a. (Applicable only if the contract is not with a sole source vendor of products or services, or if it exceeds $5,000.)

The Contractor agrees under penalty of perjury (it, he, she) Is not in violation of any order or resolution which is not subject to review promulgated by the State Air Resources Board or an air pollution district.

The Contractor agrees under penalty of perjury (it. he, she] is not subject to a cease and desist order which is not subject to review Issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions, or Is not finally determined to be in violation of provisions of federal law relating to air or water pollution.

b. (Applicable only If the contract or subcontract exceeds S100,000 or the contract Is not otherwise exempt under 40 CFR 15.5.)

The Contractor agrees as follows:

(1) To comply with all the requirements at Section 114 of the Clean Air Act as amended -(42 U.S.C. 7401 et seq.. as amended by Public Law 95-95] and Section 308 of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq., as amended by Public Law 92-500), respectively, relating to Inspection. monitoring, entry, reports, and information as well as all other requirements specified in Section 114 and Section 308 of the Air Act and the Water Act, respectively, and all regulations and guidelines Issued to implement those Acts before the award of this contract.

(2) That no portion of the work required by this Contract will be performed In a facility listed on the Environmental Protection Agency List of Violating Facilities on the date when this Contract was awarded unless and until the Environmental Protection Agency eliminates the name of such facility or facilities from such listing.

(3) To use his best efforts to comply with clean air standards and clean water standards at the facility in which the contract Is being performed. The terms used In this paragraph have the following meanings:

(a) The term "clean air standards" means any enforceable rules, regulations, guidelines, standards, limitations, orders, controls, or prohibitions or other requirements which are contained in, issued under, or adopted pursuant to the Clean Air Act.

(b) The term "clean water standards" means any enforceable limitation, control, condition, prohibition, standard, or other requirement which is promulgated pursuant to the Clean Water Act or contained In a permit Issued to a discharged by EPA or by the State under an approved program as authorized by Section 402 of the Clean Water Act (33 U.S.C. 1342], or by a local government to ensure compliance with pretreatment regulations as required by Section 307 of the Clean Water Act (33 U.S.C. 1317) and regulations Issued pursuant thereto.

(c) In addition to compliance with clean air and water standards, the term compliance shall also mean compliance' with a schedule or plan ordered Or approved by o court of competent Jurisdiction, the Environmental Protection Agency, or an air or wafer pollution control agency in accordance with the requirements of the Clean Air Act and the Federal Water Pollution Control Act.

As a condition for the award of a contract. the applicant or contractor shall notify the State of the receipt of any communication from the Assistant Administrator for Enforcement. U.S. EPA Indicating that a facility to be utilized for the contract Is under Consideration to be listed on the EPA List of Violating Facilities. Prompt notification shall be required prior to Contract award.

(5) To report violations to the State and to the Assistant Administrator for Enforcement.

(6) To insert the substance of the provisions of paragraph b Into any nonexempt subcontract, including this paragraph b(6), and to take such action as the Federal Government may direct as a means of enforcing such provisions.

16. Utilization of Small Business and Minority and Women Owned Business Enterprises

a. It Is o federal policy to award a fair share of Contracts to small, minority, and women owned business firms. The State Legislature has declared that o fair proportion of the total purchases and contracts or subcontracts for property and services for the State be placed with small minority and women owned business enterprises.

b. A firm 'shall qualify as a small business if it meets the requirements specified In Government

Code, Section 14837.

17. The Contractor hereby agrees to carry out this policy in the awarding of subcontracts to the fullest extent consistent with efficient contract performance. As used In this contract, the term "minority business enterprise" means a business concern (a] which Is at least 51 percent owned by one or more minority group members or women, or In the case of a publicly owned business, at least 51 percent of the stock of which is owned by one or more minority group members or women; and (b] whose management and dally business operations are controlled by one or more such Individuals. A minority group member is a .person who is Black, Asian, Hispanic, Filipino, Polynesian, American Indian, or Alaskan Native. "Control," as used in this clause, means exercising the power to make policy decisions.

Contractors acting In good faith may rely on written representations by their subcontractors regarding their status as minority business enterprises in lieu of an Independent Investigation.


If printing or other reproduction work of more than an Incidental and minor dollar amount is a reimbursable Item In this contract, it shall be printed or produced by the State Printer. The State Printer may, at his sole option, elect to forego said work and delegate the work to the private sector. If the State Printer prints or produces said work, or the State obtains the printing or other work through the Office of State Procurement, the cost will be deducted from said contract amount. This requirement does not apply to normal in-house copying necessary for routine business matters of the Contractor.

18. Prior Approval of Training ,Seminars, Workshops, or Conferences

Contractor shall obtain prior State approval over the location. costs, dates, agenda, Instructors, Instructional materials, and attendees at any reimbursable training seminar, workshop or conference, and over any reimbursable publicity, or educational materials to be made available for distribution. The .Contractor shall acknowledge the support of the State whenever publicizing the work under the contract in any media. This paragraph does not apply to necessary staff meetings to conduct routine business matters.

19. Confidentiality of Information

a. The Contractor and his or her employees, agents, or subcontractors shall protect from unauthorized disclosure names and other Identifying Information concerning persons either receiving services pursuant to this contract or persons whose names or Identifying Information become available or are disclosed to the Contractor, his/her employees. agents, or subcontractors as o result of services performed under this contract, except for statistical information not identifying any such person.

b. The Contractor, his/her employees. agents, or subcontractors shall not use such Identifying Information for any purpose other than carrying out the Contractor's obligations under this contract.

c. The Contractor. his/her employees. agents. or subcontractors shall promptly transmit to the State all requests for disclosure of such Identifying Information not emanating from the client or person.

d. The Contractor shall not disclose, except as otherwise specifically permitted by this contractor authorized by the client, any such Identifying Information to anyone other than the State without prior written authorization from the State.

e. For purposes of this paragraph. Identity shall Include, but not be limited to. name, identifying number, symbol, or other identifying particular assigned to the Individual, such as finger or voice print or a photograph.

20. National Labor Relations Board Certification

21. (Not applicable If Contractor Is a public entity]

Contractor, by signing this agreement. does swear under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been Issued against Contractor within the Immediately preceding two-year period because of the Contractor's failure to comply with an order of a federal court which orders the Contractor to comply with an order of the National Labor Relations Board.

Documents and Written Reports

Any document or written report prepared as a requirement of this agreement shall contain, In a separate section preceding the main body of the document, the number and dollar amounts of all contracts and subcontracts relating to the preparation of such document or report, If the total cost for work by nonemployees of the State exceeds $5,000.

22. Resolution of Direct Service Contract Disputes

a. If Contractor believes there Is a dispute or grievance between the Contractor and the State. the procedures set forth In Chapter 2.1. Sections 20201 through 20205, of Title 22, of the California Code of Regulations, shall be followed.

b. If the Contractor wishes to appeal the decision of the Deputy Director for Public Health or his/her designee. the Contractor shall follow the procedures set forth in Division 25.1 (commencing with Section 38050] of the Health and Safety Code and the regulations adopted thereunder. (Title 1, Subchapter 2.5, commencing with Section 251, California Code of Regulations.]

c. Disputes arising out of an audit or examination of a contract not covered by subdivision (a) of Section 20204, of Chapter 2.1, Title 22, of the California Code of Regulations, and for which no procedures for appeal are provided in statute, regulation, or the contract shall be handled in accordance with the procedures identified in Sections 51016 through 51047. Title 22, California Code of Regulations.

23. Financial and Compliance Audit of Nonprofit Entitles

(Applicable only if Contractor is a private, nonprofit entity)

Definitions within this paragraph are defined in Section 38040 of the Health and Safely Code, which, by this reference, is made a part hereof.

Contractor agrees to have an annual single independent financial and compliance audit. The audit shall Include an evaluation of the accounting and control systems of the Contractor and of the activities by the Contractor to comply with the financial requirements at this contract.

Audits carried out pursuant to this paragraph shall be audits or the Contractor, rather than audits of the funds provided only by this contract.

If Contractor receives less than $25,000 per year from the State, the audit shall be conducted biennially, unless there is evidence of fraud or other violation of state law in connection with this contract.

The cost of such audit may be Included In the funding for this contract up to the proportionate amount this contract represents of the Contractor's total revenue.

The Contractor shall have responsibility for financial and compliance audits of Its own organization and any subcontractors.

The audits shall be made by Independent auditors In compliance with generally accepted auditing standards.

The audit shall be completed by the 15th day of the fifth month following the end of the Contractor's fiscal year. Two copies of the audit report shall be delivered to the State program funding this contract.

Nothing In this paragraph limits the authority of the State to make audits of this contract, provided, however, that if independent audits arranged for by Contractor meet generally accepted auditing standards, the State shall rely on those audits and any additional audit work shall build upon the work already done.

The State, or its authorized designee, including the Auditor-General, is responsible for conducting contract performance audits which are not financial and compliance audits.

Nothing in this contract limits the State's responsibility or authority to enforce State law or regulations, procedures, or reporting requirements arising pursuant thereto.

24. Contract Amendments

This contract may be amended by mutual agreement between the parties and, If required by Government Code, Section 11010.5, or Public Contract Code, Section 10366, the amendment shall be subject to the approval of the Department of General Services, unless otherwise exempted.

It any amendment to this contract has the effect of increasing the monetary amount of the Contract or an agreement by the State to indemnify or save harmless the Contractor. his agents or employees. the amendment shall be approved by the Department of General Services, unless otherwise exempted.

25. Evaluation of Contractors

26. The Contractor's performance under this contract shall be evaluated at the Conclusion of the term of this contract. The evaluation shall Include, but not be limited to:

a. Whether the contracted work or services were completed as specified In the contract and reasons for and amount of any cost overruns.

b. Whether the contracted work or services met the quality standards specified In the contract.

c. Whether the Contractor fulfilled all requirements of the Contract.

d. Factors outside the control of the Contractor which caused difficulties In Contractor performance. Factors outside the control of the Contractor shall not include subcontractor's poor performance.

The evaluation of the Contractor shall not be a public record.

Conflict of Interest--Current and Former State Employees

a. Current State Officers and Employees

(1) Contractor shall not utilize In the performance of this contract any state officer or employee In the state civil service or other appointed state official unless the employment, activity, or enterprise Is required as o condition of the officer or employee's regular state employment. Employee In the state civil service Is defined to be any person legally holding a permanent or Intermittent position In the state civil service.

(2) If any state officer or employee Is utilized or employed In the performance of this contract, Contractor shall first obtain written verification from the State that the employment. activity, or enterprise is required as a condition of the officer's, employee's, or official's regular state employment and shall keep said verification on file for three years after the termination of this con tract.

(3) Contractor may not accept occasional work from any currently employed state officer, employee, or official.

(4) If Contractor accepts volunteer work from any currently employed state officer, employee. or official, Contractor may not reimburse, or otherwise pay or compensate, such person for expenses Incurred, Including, without limitation, travel expenses, per diem, or the like, In connection with volunteer work on behalf of Contractor.

(5) Contractor shall not employ any state officers. employees, or officials who are on paid or unpaid leave of absence from their regular state employment.

(6) Contractor or anyone having a financial Interest in this contract may not become o state officer, employee, or official during the term of this contract. Contractor shall notify each of Its employees, and any other person having a financial Interest In this contract that It Is unlawful under Public Contract Code Section 10410 for such person to become a state officer, employee, or official during the term of this contract unless any relationship with the Contractor giving rise to a financial Interest, as an employee or otherwise, is first terminated.

(7) Occasional or one-time reimbursement of a state employee's travel expenses Is not acceptable.

(Citation: Public Contract Code Section 1041O)

b. Former State Officers and Employees

(1) Contractor shall not utilize In the performance of this Contract any formerly employed person of any state agency or department that was employed under the state civil service, or otherwise appointed to serve In the state government, If that person was engaged In any negotiations, transactions, planning. arrangement, or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency or department. This prohibition shall apply for a two-year period beginning on the date the person left State employment.

(2) Contractor shall not utilize within 12 months from the date of separation of services, a former employee of the contracting state agency or department if that former employee was employed in a policy making position in the same general subject area as the proposed contract within the 12-month period prior to the employee leaving state service.

(Citation: Public Contract Code, Section 10411)

c. Failure to Comply with Subparts [a] or [b]

(1) If Contractor violates any provision of subparts a or b above, such action by Contractor shall render this contract void, unless the violation is technical or nonsubstantive.

(Citation: Public Contract Code, Section 10420]

Contractor Name Change

Contractor shall provide a written notice to the State at least 30 days prior to any changes to the Contractor's current legal name.


If the Contractor proposes any novation agreement, the State shall act upon the proposal within 60 days after receipt of the written proposal. The State may review and consider the proposal, consult and negotiate with the Contractor, and accept or reject all or part of the proposal. Acceptance or rejection may be made orally within the 60-day period, and confirmed In writing within five days.