The State University of California (CSU), the University of California (UC) and the California Department of General Services (DGS) have signed a Memorandum of Understanding on behalf of public authorities for a standard contract model, including standardized proposal requirements for contracts and scholarships, under The Assembly`s Law 20 (AB20). The California Model Agreement (CMA) provides for standard contractual conditions for use by the authorities of the California BundesstaaTes, which fund research, training or service activities conducted by the UC and CSU campuses. Please note that from April 1, 2019, departments will use the model conditions (UTC-319) in new contracts between their agencies and The Regents of the University of California and The Trustees of California State University. A “new contract” is defined as the allocation of funds that have not previously been budgeted or acquired by a state agency for the work to be done by the university. Under the Desonation Act67327, the standard provisions of the standard contract must be used, unless both parties agree by mutual agreement that a given duration or destination is unsuitable or unsuitable for a given contract. If you have any questions about a particular contract, please contact your OLS lawyer. The UC Office of the President (UCOP) has introduced a series of Indirect Cost Recovery Rates (IDCs) on california state funding, which is gradually increasing from 25% to 40% over 4.5 years. These rates are applied on an MTDC (modified Total Direct Cost) basis (as defined in the collective agreement negotiated by the Confederation for each UC campus). See UCOP Guidance Memo 17-07 (RPAC-17-07) for IDC Recovery Advice for Awards from California State Authorities. On November 2, 2015, the University of California (UC), the California State University System (CSU) and the California Department of General Services (DGS) signed a Memorandum of Understanding on behalf of the public authorities to implement the standard model and standard conditions, including standard content requirements for contract proposals and awards. Law 20 (AB20) of the National Assembly asked the DGS and the CSU to negotiate the agreement. It is therefore commonly referred to as “AB20.” Most U.S. government funds are processed through the Sponsored Projects Office (SPO).