SECTIONS 12500-12502 - California Statutes

PUBLIC CONTRACT CODE

SECTION 12500-12502

12500. This chapter shall be known and may be cited as the Federal
Laboratory Contracting Act.

12501. The Legislature finds and declares all of the following:
(a) Technological advances are an important part of California's
economy and, therefore, it would be wise for state agencies to
contract, in a facile and efficient manner, with federally funded
Department of Energy (DOE) and National Aeronautics and Space
Administration (NASA) research and development centers and NASA field
centers located in California that are often at the forefront of
science and technology.
(b) As the major funding agency and owner of several research and
development centers located in California, DOE allows outside parties
to contract with the centers but requires the centers, when
initiating and finalizing any contracts with outside parties, to
adhere to rigorous policies and procedures specified by federal laws
and regulations. NASA adheres to similar federal laws and regulations
when initiating and finalizing contracts between its research and
development centers or field centers in California and outside
parties. The State of California has its own laws, regulations, and
procedures governing state contracts. The research and development
centers and field centers owned or owned and operated by DOE and NASA
have attempted to contract with state agencies and departments in
California but have had minimal success. Conflicting provisions in
federal and state laws, regulations, and policies, and seemingly
unachievable compromises appear to be the major limiting factors in
the successful negotiation of contracts between the federally funded
centers and California state agencies and departments.

12501.5. (a) The Governor shall designate the Secretary of State
and Consumer Services as the state's representative for purposes of
communicating and negotiating with representatives of the United
States Department of Energy, National Aeronautics and Space
Administration, federally funded DOE and NASA research and
development centers in California, and NASA field centers in
California regarding any issue that may affect a contractual
relationship between the state and these federal entities. The
Secretary of State and Consumer Services may delegate this
responsibility to the Director of the Department of General Services
if the secretary views such delegation as necessary to advance the
successful negotiation of contracts between the state and one or more
of those federal entities.
(b) The Secretary of State and Consumer Services or his or her
designee shall develop policies and procedures to encourage and
enable the contracting process with federally funded DOE and NASA
research and development centers and NASA field centers and shall
develop model contract language that is available for use by any
state agency or department in negotiating a contract with one of
these centers. The Regents of the University of California shall not
be considered a state agency for the purposes of this chapter, and
specifically shall not be covered as prime contractor with the DOE
for management of DOE laboratories.

12502. (a) Notwithstanding any other law, a state agency that
enters into a prime contract with a federally funded DOE or NASA
research and development center or NASA field center, or that enters
into a prime contract with another entity that, in turn, issues a
subcontract to a federally funded DOE or NASA research and
development center or a NASA field center located in California may,
if requested by the contracting party, make contract payments to the
center for contracted services in advance.
(b) Notwithstanding any other law, a state agency that enters into
a prime contract with a federally funded DOE or NASA research and
development center or NASA field center, or that enters into a prime
contract with another entity that, in turn, issues a subcontract to a
federally funded DOE or NASA research and development center or NASA
field center located in the state may not indemnify the center with
respect to products liability, intellectual property, and general
liability claims arising out of the activities to be carried out by
the center pursuant to the contract.
(c) Notwithstanding any other law, a state agency shall not audit
the records of any federally funded DOE or NASA research and
development center or NASA field center, but the state agency may
rely on the services of any cognizant federal audit agency, including
the Defense Contract Audit Agency, the United States Government
Accountability Office, the DOE Office of Inspector General, and the
NASA Office of Inspector General, to satisfy auditing requirements.
(d) For purposes of this chapter:
(1) "Federally funded research and development center" means a
federally funded research and development center as defined in
Subpart 2.1 of Part 2 of Subchapter A of Chapter 1 of Title 48 of the
Code of Federal Regulations.
(2) "NASA field center" means a field center identified as such by
NASA and authorized by Title III of the Space Act of 1958.