SUBJECT:  New Restrictions for Contracting with Independent
                   Contractors/Consultants

A new State law effective July 1, 2003 establishes restrictions for contracting with independent contractors and consultants. Senate Bill (SB 1467), which contains severe penalties for violations, amends Public Contract Code to restrict the following practices:

- Awarding successor contracts or follow-on agreements to entities providing consulting to the University
- Purchasing, leasing or renting goods or services from UC employees
- Contracting with former UC employees as independent contractors

The new law applies existing California governmental conflict of interest and penalty provisions to UC contracting policies. It now requires UCSD Purchasing, Human Resources, Payroll, and Disbursement to enforce strict compliance and deny requests for exceptions, except as allowed by law. The law provides limited exceptions for UC employees with teaching or research responsibilities.

To assure full compliance and avoid penalties, all faculty and staff should be familiar with the new restrictions. Please contact Purchasing or Human Resources in advance of any work planned for independent contractors or for follow-on consultant contracts.

For more information, please refer to:

- New Restrictions for Contracting with Independent Contractors/ Consultants at http://blink.ucsd.edu/go/contractrestrict
- Examples of New Restrictions for Independent Contractors/Consultants at http://blink.ucsd.edu/go/contractrestrict/examples

Questions regarding these new requirements should be directed to Patrick Little, plittle@ucsd.edu in Purchasing or Pat Wong, pwong@ucsd.edu in Human Resources.

                                                Don Larson
                                                Controller/Assistant Vice Chancellor -
                                                Business and Financial Services

                                                Rogers Davis
                                                Assistant Vice Chancellor -
                                                Human Resources