University policy requires that all proposals for funding
 of research, training, and public service projects be
 submitted to the funding agency or organization only by
 specifically authorized individuals and that contracts be
 executed and grants be accepted only by specifically
 authorized people.  The Vice President has been delegated
 responsibility for administering the Division's contract and
 grant program.  This authority has been redelegated to the
 Assistant Vice President--Administration (AVP-A) and the
 Contract and Grant Officer.  This section specifies how the
 program is to be administered within the Division.

 Proposals are considered potential legal and financial
 commitments made by the University of California to a
 funding agency.  The legal corporate name of the University
 is "The Regents of the University of California," and all
 legal documents, such as proposals, contracts, and grants,
 must be in the corporate name.  As such, proposals must be
 reviewed and approved by appropriate Division and University
 staff before a proposal may be submitted on behalf of the
 University of California.  Academic appointees who are
 responsible for conducting research, training, or public
 service projects are referred to as "Principal
 Investigators."

 A. Authority

    1.   Cooperative Extension Specialists are eligible to
         submit proposals for research, training, or public
         service contracts or grants, subject to conditions,
         restrictions, and review procedures that may be
         established by a Chancellor or the Vice President
         after obtaining advice from the appropriate
         committees of the Academic Senate.  Furthermore, a
         Chancellor may restrict the privilege to submit
         proposals, by personnel not members of the Academic
         Senate and not appointees in the Agronomist series,
         to people for whom special justification has been
         established.  Specialists on a campus are subject to
         procedures established by the Chancellor for the
         campus.  Specialists in a Statewide Special Program
         or Project are eligible to submit proposals in
         accordance with the procedures contained in this
         section.
         
    2.   All other Cooperative Extension academic appointees
         are eligible to submit proposals for training or
         training-related research and public service
         contracts or grants in accordance with the
         procedures outlined herein. 

    3.   The AVP-A or the Contract and Grant Officer is the
         authorized official responsible for submitting all
         official University proposals to a funding agency on
         behalf of the University.  (See section V for
         exception on State Marketing Orders.)

    The Principal Investigator should observe the following
    guidelines in preparing and submitting proposals:

    A.   Prepare a detailed description of the project.  If the
         funding agency requires a special format, follow the
         agency guidelines.  Attach a copy of the agency
         guidelines to the proposal.

    B.   Prepare a budget for the funding request that follows
         the format and guidelines given in Appendix I, "Proposal
         Budget Format."  If the agency requires a special
         format, follow the agency format and use the cost
         guidelines given in Appendix I.

         1.   Matching funds, cost sharing, or Division
              contributions are not to be included as a part of
              the official proposal budget unless specifically
              required by the agency.  If required, consult with
              the Regional Director, Assistant Director--Programs,
              or Associate Dean on the source and commitment of
              funds and staff time.  When matching funds are
              required, subsequent documentation will be required
              on their expenditure.

         2.   The Contracts and Grants Officer can assist in
              preparing proposal budget information.

    C.   Complete and attach the "Approval Data Sheet," provided
         as Appendix II.

    D.   Forward the entire proposal package (items A through C
         above) to the appropriate Assistant Director--Programs,
         Regional Director, or Associate Dean for approval. 
         Details on required approvals are given in section VII.

    E.   If the deadline is near, the proposal may be sent to the
         Contracts and Grants Officer at the same time a copy is
         sent to the Assistant Director--Programs, Regional
         Director, or Associate Dean for approval.  This will
         allow the Contracts and Grants Officer to conduct the
         administrative review while the Assistant Director--
         Programs, Regional Director, or Associate Dean is
         reviewing the proposal.

    F.   The proposal and budget should be typed, and the
         original, suitable for copying, forwarded as a part of
         the proposal package.  The proposal package should also
         include all the sponsor guidelines and related
         correspondence.

    A.   Informal proposals or pre-proposals must be approved by
         the appropriate Assistant Director--Programs, Regional
         Director, or Associate Dean (as given in section VII)
         before submitting the proposal to the agency.  A copy of
         the pre-proposal and cover letter should be sent to the
         Assistant Director--Programs, Regional Director, or
         Associate Dean and the Contracts and Grants Officer. 
         The cover letter to the agency should state that the
         proposal is informal and has not been reviewed or
         approved for official submission on behalf of the
         University of California.

    B.   Budgets for pre-proposals should be in accordance with
         the guidelines given in Appendix I.

    C.   If an agency requests a formal proposal after reviewing
         a pre-proposal, the guidelines in section III must be
         followed.  If the agency accepts the pre-proposal as
         sufficient and does not require an additional proposal,
         the guidelines in section III should be followed, and in
         this case, the agency should advise the Assistant
         Director--Programs, Regional Director, or Associate Dean
         and the Contracts and Grants Officer that the agency has
         the proposal and only requires that official approval be
         forwarded to the agency.

    Proposals for projects with marketing order board and
    commissions may be submitted directly to the Division
    Liaison Officer or the board by the Principal Investigator
    after approval by the appropriate Assistant Director--
    Programs, Regional Director, or Associate Dean, as given in
    section VIII.  These proposals do not require peer review,
    and marketing order and commission projects have been
    exempted from University indirect cost charges.

    Proposals for changes in established research and training
    projects do not require peer review or the Approval Data
    Sheet.  Appropriate Assistant Director--Programs, Regional
    Director, or Associate Dean approval is required as given
    in Section VII.  The proposal for change will be forwarded
    to the agency on behalf of the University of California by
    the Contracts and Grants Officer.  Typical proposals for
    change are no-cost extensions of time, extensions of time
    with additional funding, changes in work tasks and reporting
    requirements, and budget modifications where required.

    Proposals for solicitation of funding for research,
    training, and public service projects must be approved by
    the appropriate Division and University staff as given
    below.  In addition, special approvals may be required, as
    given in section VIII, and should be obtained before the
    formal proposal may be approved.

    A.   County Staff (Advisors)

         1.   The Principal Investigator will submit the proposal
              package to the County Director for review and
              signature approval.  If several counties are
              involved in the project, refer to the statement of
              county approval confirmation in Appendix II, Item
              16.

         2.   The County Director will submit the proposal package
              to the Regional Director for review and signature
              approval.

         3.   The Regional Director will then submit the proposal
              package to the Contracts and Grants Officer for
              administrative review on behalf of the University of
              California.

         4.   When all required approvals are obtained (including
              special approvals), the proposal will be forwarded
              to the funding agency by the Contracts and Grants
              Officer on behalf of the University of California. 
              The agency should not receive an advance copy unless
              as covered in section IV.

    B.   Statewide Special Program or Project Specialists

         1.   If the proposed project involves the use of county
              facilities or staff, either wholly or partially, the
              Principal Investigator must obtain the County
              Director's approval.  Refer to the statement of
              county approval confirmation in Appendix II,
              "Approval Data Sheet."

         2.   The Principal Investigator will submit the proposal
              package through the Statewide Special Program or
              Project Director to the Assistant Director--Programs
              for review and signature approval.

         3.   The Assistant Director--Programs will send the
              proposal package to the Contracts and Grants Officer
              for administrative review and approval on behalf of
              the University of California.

         4.   When all required approvals are obtained (including
              special approvals), the proposal will be forwarded
              to the funding agency by the DANR Contracts and
              Grants Officer on behalf of The Regents of the
              University of California.  The agency should not
              receive an advance copy unless as covered in section
              IV.

         5.   Statewide Special Program or Project Specialists who
              have joint appointments with a campus department
              (Associate appointments in the Agricultural
              Experiment Station are not considered official joint
              appointments for these purposes) may process
              proposals and administer subsequent agreements for
              research activities only through their campus
              department and the campus research office.  The
              activity should qualify as an official Agricultural
              Experiment Station project, and the campus indirect
              cost rate for "Sponsored Research" must be used in
              the proposal budget where applicable.  The proposal
              should be sent to the Assistant Director--Programs
              for review and approval before submission to the
              campus research office.

    C.   Berkeley Campus Specialists

         1.   If the proposed project involves the use of county
              facilities or staff, either wholly or partially, the
              Principal Investigator must obtain the County
              Director's approval.  Refer to the statement of
              county approval confirmation in Appendix II,
              "Approval Data Sheet," Item 16.

         2.   The Principal Investigator will submit the proposal
              package through the Department Chair to the
              Associate Dean for review and signature approval.

         3.   The Associate Dean will send the proposal package to
              the DANR Contracts and Grants Officer for
              administrative review and approval on behalf of the
              University of California.

         4.   When all required approvals are obtained (including
              special approvals), the proposal will be forwarded
              to the funding agency by the DANR Contracts and
              Grants Officer on behalf of The Regents of the
              University of California.  The agency should not
              receive an advance copy unless as covered in section
              IV.

         5.   Berkeley campus Specialists who have joint
              appointments with a campus department (Associate
              appointments in the Agricultural Experiment Station
              are not considered official joint appointments for
              these purposes) may process proposals and administer
              subsequent agreements for research activities only
              through their campus department and the campus
              research office.  The activity should qualify as an
              official Agricultural Experiment Station project,
              and the campus indirect cost rate for "Sponsored
              Research" must be used in the proposal budget where
              applicable.

    A.   Special Approvals Required by Division

         Division coordination approvals will be obtained by the
         Principal Investigator if the proposals involve any of
         the areas listed below.  Verbal approvals may be
         indicated on the "Approval Data Sheet" in Appendix II in
         the interest of meeting time requirements.

         1.   County Involvement:  Proposals requiring the use of
              county facilities or staff will be approved by the
              respective County Director of each county involved.

         2.   Publications:  Proposals requiring the use of
              Agriculture and Natural Resources Publications staff
              or production services will be approved by the
              Agriculture and Natural Resources Publications
              Manager.  The cost of printing publications cannot
              be subsidized by Agriculture and Natural Resources
              Publications.  Refer to Section 290 for more
              information on publications.

         3.   Analytical Laboratory:  Proposals requiring the use
              of the Plant, Soil and Water Analytical Laboratory
              must be approved by the analytical laboratory
              manager.

    B.   Special Approvals Required by the University

         Special approvals must be obtained under the
         circumstances listed below.  Approvals will be obtained
         by the person indicated in each item.

         1.   Funding requests of $2,000,000 or more in direct
              costs per year must be approved by The Regents. 
              This approval will require at least two months to
              obtain.  The Contracts and Grants Officer is
              responsible for obtaining this approval after
              receipt of the proposal.

         2.   Use of human subjects in projects requires the
              approval of a University committee.  The Principal
              Investigator should notify the Contracts and Grants
              Officer as soon as possible of the intention to
              include human subjects as part of a project proposal
              and should make arrangements to obtain the required
              approvals.

         3.   Processes involving safety hazards, as listed in
              item 12 of the "Approval Data Sheet" in Appendix II,
              must be approved by the appropriate campus Office of
              Environmental Health and Safety or, for off-campus
              projects, by the Director of Facilities Planning and
              Management.  The Cooperative Extension Statewide
              Pesticide Coordinator may be contacted for
              information on safety procedures for off-campus
              projects.

    A.   After the funding agency receives the official
         University proposal, the Principal Investigator may
         discuss the proposed work with the agency and make
         changes as mutually agreed to.  Substantial changes in
         the work to be performed should be approved by the
         Assistant Director--Programs or Regional Director. 
         Changes to the funding request must be approved by the
         Assistant Director--Programs or Regional Director and
         should be reviewed by the Contracts and Grants Officer.

    B.   Funding agency questions regarding proposed legal and
         financial terms and conditions for a potential agreement
         must be referred to the Contracts and Grants Officer to
         assure compliance with University policies.

    Contract and grant documents that may result from proposals
    are considered legal and financial commitments to be made
    between The Regents of the University of California and the
    funding agency.  The Contracts and Grants Officer is the
    official authorized to review all legal terms and conditions
    and to sign the agreement on behalf of The Regents of the
    University of California.  All contract and grant documents
    received by staff should be forwarded immediately to the
    Contracts and Grants Officer.

    All contracts and grants received on proposals that have not
    been reviewed and approved by the appropriate Division and
    University staff will be subject to the approval procedures
    as provided for in sections VII and VIII.

    Contracts and grants between the University of California
    and a funding agency for Division Principal Investigators
    will be administered in the following manner.

    A.   Training Projects

         All contracts and grants for training projects will be
         administered by the Regional Office for County staff and
         by the Budget and Financial Services Office for
         Statewide Special Programs or Projects staff.

    B.   Research Projects

         1.   County Principal Investigators located in counties
              will have contracts and grants for research projects
              administered by the Regional Office.

         2.   Statewide Special Program and Project Principal
              Investigators and Berkeley campus Specialists will
              have contracts and grants for research projects
              administered by the Budget and Financial Services
              Office.

    C.   Authority to Begin Project Work

         1.   Project work may not begin until the Principal
              Investigator has been notified by the Contracts and
              Grants Officer that the University has received the
              fully executed contract or grant.  If the funding
              agency sends a fully executed contract or grant to a
              staff member, it should be forwarded to the
              Contracts and Grants Officer immediately.

         2.   Commitments such as hiring or expenditures of any
              kind before the Contracts and Grants Officer
              receives a fully executed contract or grant are
              prohibited except as may be otherwise authorized in
              accordance with regulations of the University.

         3.   Project expenses incurred before the official
              starting date of a project, as given in the fully
              executed contract or grant, cannot be honored for
              payment under the contract or grant.

              Contact the DANR Contracts and Grants Office should
              there be expenses of this nature.

    A.   Testing

         University participation in tests and investigations
         shall be limited to activities that lead to the
         extension of knowledge or to increased effectiveness in
         teaching or public service outreach.  Routine tasks of
         a commonplace type will not be undertaken.  University
         laboratories and facilities are not to be used for
         tests, studies, or investigations of a purely commercial
         character, such as the performance efficiencies of
         machines, analysis of soils, water, insecticides,
         fertilizers, feeds, fuels, and other materials,
         statistical calculations, etc., except when it is shown
         conclusively that satisfactory facilities for such
         services do not exist elsewhere.  Those requiring such
         tests or services should apply to business firms or to
         such public agencies as the State of California,
         Department of Food and Agriculture.  Commercial tests or
         investigations involving controversial elements may be
         undertaken only at the direct and unanimous request of
         representatives of all parties to the controversy.  A
         charge shall be made sufficient to cover all expenses,
         both direct and indirect, for all tests and
         investigations made for agencies, organizations, or
         individuals outside the University.

    B.   Publicity of Results

         All research shall be conducted so as to be as generally
         useful as possible.  To this end, the right of
         publication is reserved by the University.  The
         University may publish the material or, in any specific
         case, may authorize the individual to publish it through
         some recognized scientific or professional medium of
         publication.  A report detailing the essential data and
         presenting the final results must, in most cases, be
         filed with a supporting agency and the University. 
         Notebooks and other original records of research are the
         property of the University.

    C.   Use of the Name of the University

         California Education Code Section 92000 et seq. governs
         the use of the name "University of California."  The use
         of the name of the University for advertising purposes
         shall not be allowed.

    D.   Patents

         All rights to research results and inventions are
         retained by the University for projects conducted on
         behalf of the University.

    A.   Form 730-U, "Statement of Economic Interests"

         University policy on disclosure of financial interest in
         private sponsors of research, as required by State law,
         requires that a principal investigator must disclose
         whether or not he or she has a direct or indirect
         financial interest in the sponsor of research that is
         funded in whole or in part (1) through a contract or
         grant with a non-governmental entity or (2) by a gift
         from a non-governmental entity that is earmarked by the
         donor for a specific research project or a specific
         principal investigator.  The Form 730-U, "Statement of
         Economic Interests," must be filed (1) before final
         acceptance of the contract, grant, or gift, (2) when
         funding is renewed, and (3) within 90 days after
         expiration in the case of a contract or grant, or after
         funds have been completely expended in the case of a
         gift.  The statements will be open to public inspection. 
         When disclosure indicates that a financial interest
         exists, a review committee must conduct an independent
         substantive review of the disclosure statement and the
         research project before acceptance of the contract,
         grant, or gift.  County, Statewide Special Program and
         Project Directors, and Regional Directors must
         disqualify themselves from approving a research proposal
         for a project that is funded in whole or in part by a
         non-governmental entity in which they have a financial
         interest.  The Division Contracts and Grants Officer is
         responsible for coordinating this process.  Form 730-U
         and instructions may be found in Appendix III.  

    B.   Conduct of Research

         The following excerpt from a 1964 joint statement of the
         American Council on Education and the American
         Association of University Professors illustrates the
         types of situations that may give rise to conflict of
         interest.  It has been used as a guide for the faculty
         of the University, and it is also applicable to
         Cooperative Extension staff.  Some of these situations
         are also covered under Section 403.
              
         Conflict Situations

         Favoring of Outside Interests:  When a University staff
         member (administrator, faculty member, professional
         staff member, or employee) undertaking or engaging in
         government-sponsored work has a significant financial
         interest in, or a consulting arrangement with, a private
         business concern, it is important to avoid actual or
         apparent conflicts of interest between his/her
         government-sponsored University research obligations and
         his/her outside interests and other obligations. 
         Situations in or from which conflicts of interests may
         arise are the:

         1.   Undertaking of orientation of the staff member's
              University research to serve the research or other
              needs of the private firm without disclosure of such
              undertaking or orientation to the University and to
              the sponsoring agency.

         2.   Transmission to the private firm, for other use or
              personal gain, the government-sponsored work
              products, results, materials, records, or
              information that are not made generally available. 
              (This would not necessarily preclude appropriate
              licensing arrangements for inventions or consulting
              on the basis of government-sponsored research
              results where there is significant additional work
              by the staff member independent of his/her
              government-sponsored research).

         3.   Use for personal gain or other unauthorized use of
              privileged information acquired in connection with
              the staff member's government-sponsored activities. 
              (The term "privileged information" includes but is
              not limited to, medical, personnel, or security
              records of individuals; anticipated material
              requirements or price actions; possible new sites
              for government operations; and knowledge of
              forthcoming programs or of selection of contractors
              or subcontractors in advance of official
              announcements.)

         4.   Negotiation or influence upon the negotiation of
              contracts relating to the staff member's government-
              sponsored research between the University and
              private organizations with which he/she has
              consulting or other significant relationships.

              Additional information on conflict of interest
              situations may be found in Section 403.

    A.   University Contract and Grant Manual

    B.   Business and Finance Bulletin G-39

                          --

January 1991

APPENDIX I.  Proposal Budget -- To Be Added Later

APPENDIX II.  Approval Data Sheet -- To Be Added Later