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Division of Finance and Administration

Conflicts of Interest

Understanding Conflict of Interest regulations is critical for ensuring the appropriateness and legality of a contract.

Standard California state agency conflict of interest and penalty provisions for procurement apply to the University of California, including Article 4 of Chapter 2.5 of Part 2, Sections 10515 through 10524, of the California Public Contract Code.

Statute Primarily Impacts the Following Practices of Business & Revenue Contracts:

  • Hiring current 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 most current university employees* 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 the employee has a financial interest, and which is sponsored or funded, in whole or in part, through a contract with the university.

* UC employees with teaching or research responsibilities, or those who are students, may be exempted from this provision of the statute but are still subject to university guidelines for employee-vendors.

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 policy-making position in the same general subject area as that contract.