SB 1141 California Senate · 2025-2026 Regular Session

Public contracts: University of California executives: conflicts of interest: prohibition.

Summary

The California Constitution provides that the University of California constitutes a public trust administered by the Regents of the University of California, a corporation in the form of a board, with full powers of organization and government, subject to legislative control only for specified purposes, including, among others, as may be necessary to ensure the security of its funds. Existing law prohibits officers or employees of the University of California from engaging in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest if that employment, activity, or enterprise is sponsored or funded by a university department or contract, except as provided. This bill would require a University of California executive, within 60 days of accepting a board of director position with a business entity, to post on a University of California internet website a written recusal from involvement with any future university contract decisions where the business entity is a party, as provided. The bill would prohibit a University of California executive from making, participating in making, or in any way attempting to influence a contractual decision where the executive is on the board of directors of a business entity that is a party to the contract or receives compensation for consulting or advisory services from a business entity that is a party to the contract. The bill would authorize the Attorney General to bring a civil action to enforce these provisions and to recover attorney's fees if the civil action prevails. If a court finds in such a civil action that an executive has violated these provisions, the bill would require the court to void the affected contract. The bill would define "business entity," "contract," and "University of California executive" for its purposes.

Issues: ✓ Education

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 18, 2026 Last action May 14, 2026

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What changed between versions

02/18/26 - Introduced → 04/07/26 - Amended Senate · 9 edits · Apr 7, 2026

MAJOR

The Senate amendment significantly narrowed and softened SB 1141, which prohibits business entities from contracting with UC when conflicts of interest exist. Key changes include excluding 501(c)(3) nonprofits from coverage, raising compensation thresholds, reducing the violation penalty from 10 years to 12 months, removing private enforcement rights (only the Attorney General can now sue), adding a volunteer services exception, and delaying the effective date by one year to January 1, 2028. A new legislative findings section was added citing court cases that established general conflict-of-interest laws do not apply to UC.

SCOPE

A new Section 1 with legislative findings was added, citing People v. Lofchie (2014) and Regents of UC v. Aisen (2016) to explain that general conflict-of-interest statutes do not apply to UC due to its constitutional autonomy, justifying the need for this specific legislation.

The definition of 'business entity' now excludes nonprofit organizations organized under Section 501(c)(3) of the Internal Revenue Code, removing them entirely from the bill's coverage.

DEFINITION

The compensation threshold was expanded from a single $500 minimum to three alternative thresholds: $500 or more in value, $100,000 or more in any 12-month period, or $250,000 or more while the recipient is employed by UC. The list of included compensation types also added 'incentive pay.'

The exclusions from 'compensation' were broadened to explicitly cover interest on interest, dividends, distributions, and returns on investment of personal savings or retirement funds, including those held in mutual funds or index funds.

The definition of 'University of California executive' was expanded to include a Chancellor of a UC campus, a Chief Operating Officer of a UC hospital or hospital system, and a President of a UC health system, beyond the previously listed university-level positions.

TIMELINE

The effective date for the 12-month lookback period was delayed from January 1, 2027 to January 1, 2028.

ELIGIBILITY

A new exception was added stating that a business entity may still receive uncompensated volunteer services from a UC executive, and the term 'consultant' in subdivision (b) was changed to 'compensated consultant' to clarify this distinction.

ENFORCEMENT

The penalty for a court finding of violation was reduced dramatically from a 10-year ban on contracting with UC to a 12-month ban.

Private enforcement was eliminated. The original bill allowed any California taxpayer or the Attorney General to bring a civil action; the amended version limits enforcement to the Attorney General only.

04/07/26 - Amended Senate → 04/27/26 - Amended Senate · 10 edits · Apr 27, 2026

MAJOR

The April 27 amendment significantly narrows the scope of SB 1141 while adding new transparency requirements. The definition of covered 'executive' is reduced from the entire Senior Management Group to only campus chancellors, hospital CEOs, and health system presidents. Penalties are sharply reduced (10-year ban becomes contract voiding), enforcement is limited to the Attorney General alone, and a new public recusal posting requirement is added for executives who join corporate boards.

SCOPE

The definition of 'University of California executive' is narrowed from anyone in the Senior Management Group (including Vice Chancellors, COOs, CHROs, General Counsel, and all who report to a Chancellor) to only campus Chancellors, hospital/hospital system CEOs, and health system Presidents.

The list of covered roles at a business entity is narrowed by removing 'advisory board member' and 'member of any committee.' Only compensated consultant, partner, director, governor, trustee, employee, or manager positions are now covered.

New legislative findings are added stating that UC leaders should be held to the same standards of integrity and transparency as state public officials, and citing Article IX Section 9 of the California Constitution as authority for legislative control over UC competitive bidding procedures.

ELIGIBILITY

The compensation threshold is raised by removing the $500 minimum value floor. Only income aggregating $100,000 or more in any 12-month period, or $250,000 or more while employed by UC, now triggers the prohibition.

The prohibition no longer applies when compensation is provided to an immediate family member of a UC executive. Only direct compensation to the executive itself is covered.

REQUIREMENT

A new requirement mandates that a UC executive must post a written recusal on a university website within 60 days of accepting a board of director position with a business entity. The posting must include the executive's name, employment address, date, business entity name, a declaration of recusal from contract decisions, compensation details, and contact information for requesting related contracts under the Public Records Act.

A new prohibition bars a UC executive from making, participating in, or attempting to influence any contractual decision where the executive sits on the board of directors of a business entity that is a party to the contract, or receives consulting/advisory compensation from such an entity.

ENFORCEMENT

Standing to bring civil enforcement actions is limited to the Attorney General only. The previous provision allowing any California taxpayer to sue is removed.

The penalty for a business entity found in violation is reduced from a 10-year injunction barring the entity from contracting with UC to simply voiding the affected contract. The 12-month injunction option appears to have been replaced by contract voiding.

TIMELINE

The effective date for the 12-month lookback period is delayed from January 1, 2027 to January 1, 2028.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 14, 2026

Upper · Passed

May 14 hearing: Held in committee and under submission.

upper

Apr 27, 2026

Upper · Passed

Read second time and amended. Re-referred to Com. on APPR.

upper

Apr 23, 2026

Upper · Passed

From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 3978.) (April 21).

upper

Apr 7, 2026

Upper · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

upper

Mar 26, 2026

Upper · Passed

April 7 hearing postponed by committee.

upper

Mar 25, 2026

Upper · Passed

From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 2. Page 3688.) (March 25). Re-referred to Com. on JUD.

upper

Feb 26, 2026

Committee

Referred to Coms. on ED. and JUD.

upper

Feb 18, 2026

Introduced

Introduced. Read first time. To Com. on RLS. for assignment. To print.

upper

1 primary · 3 co-sponsors