California Code of Regulations
Title 10 - Investment
Chapter 7.7 - Department of Commerce: Competitive Technology Program
Article 5 - Consortia
Section 5451 - Sub-Solicitation Requirements

Universal Citation: 10 CA Code of Regs 5451

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) An applicant shall be eligible to submit an application for a consortium project to fund sub-projects if the applicant is a consortium meeting all the requirements of Section 5450.

(b) The only circumstance under which an applicant shall be authorized to submit an application without identifying the specific projects to be funded is when a sub-solicitation will be used by a consortium project. Such projects require a sub-solicitation when state funds will be awarded to third parties pursuant to an application process to occur after the grant is awarded to the applicant. No funds shall be disbursed or expenses incurred for awards to third parties pursuant to a sub-solicitation until the agency has approved in writing the applicant's compliance with the subsection (c) requirements.

(c) A sub-solicitation shall be approved by the agency upon compliance with all of the following:

(1) the sub-solicitation is approved by the governing board of the consortium;

(2) the sub-solicitation prohibits discrimination by applicants, and requires compliance with state and federal anti-discrimination laws;

(3) the sub-solicitation specifies that upon award of a sub-solicitation grant, the parties shall execute an agreement which includes the requirements contained in the State Administrative Manual covering contracts between the state and contractors. The agreement shall be solely between the applicant and the sub-solicitation grantee, except for any indemnification clauses, which shall benefit the state;

(4) the sub-solicitation must be advertised both within the scientific and business community served by the consortium and to other interested parties;

(5) the sub-solicitation must state that:
(A) costs will be paid on a cost reimbursement basis;

(B) the issue of ownership and use of intellectual property will be resolved in the sub-solicitation grant agreement;

(C) sub-solicitation applicants must list all companies which will participate in the project, and if no companies will participate, must specify why;

(6) the sub-solicitation must include provisions for repayment of the grant to the consortium in the event of material non-compliance with the agreement:

(7) the sub-solicitation subject area is consistent with the consortium's technology agenda as that term is defined in Section 5450(b); and

(8) the process used to select winning sub-solicitation projects must be in writing, include objective criteria based upon a competitive process, and be approved by the consortium governing board;

(9) projects funded pursuant to a sub-solicitation must include a plan for management of the project while it is being funded; and

(10) the governing board of the consortium must establish a time line for regular review of the project, including the type of review to be conducted. This review shall be conducted by either the governing board or its designated representative.

(d) The agency shall be a member of the panel selected by the consortium to review sub-solicitations.

(e) All agreements with sub-solicitation grantees must be reviewed and approved by the department.

1. New section filed 9-8-92 as an emergency; operative 9-8-92 (Register 92, No. 37). A Certificate of Compliance must be transmitted to OAL by 3-8-93 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 3-8-93 as an emergency; operative 3-8-93 (Register 93, No. 11). A Certificate of Compliance must be transmitted to OAL by 9-8-93 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 3-8-93 order transmitted to OAL 9-2-93 with amendments and filed 10-18-93 (Register 93, No. 43).
4. Editorial correction amending HISTORY 1 and 2 (Register 93, No. 43).
5. Change without regulatory effect amending subsections (b), (c) and (d) filed 2-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 6).

Note: Authority cited: Section 15379.9, Government Code. Reference: Sections 15333.5, 15379.1 and 15379.3, Government Code.

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