California Code of Regulations › Title 5 - Education › Division 5 - Board of Trustees of the California State Universities › Chapter 1 - California State University › Subchapter 6 - Auxiliary Organizations › Article 2 - Functions of Auxiliary Organizations and Requirement for Written Agreements › Section 42502 - Contents of Written Agreement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The written agreement required by Section
						42501 shall, among other things, specify
						the following:
(a) The function or
					 functions which the organization is to manage, operate or administer.
(b) The necessity for administration of the
					 functions by the auxiliary organization instead of by the campus under usual state
					 procedures.
(c) Service by any state
					 officer or employee shall not be incompatible, inconsistent, or in conflict with his
					 or her duties as a state officer or employee.
(d) The facilities to be made available to permit
					 the auxiliary organization to perform the functions specified in the written
					 agreement.
(e) The charge or rental to
					 be paid for the facilities used in connection with the performance of its function.
					 The charge or rental specified shall not require involved methods of computation,
					 and should be identified in sufficient time before its incurrence so that the
					 organization may determine to what extent it shall be liable therefor.
(f) Full reimbursement to the State for services
					 performed by state employees under the direction of the organization. Methods of
					 proration where services are performed by state employees for the organization shall
					 be simple and equitable.
(g) A simple
					 but equitable method of determining in advance to what extent the organization shall
					 be liable for indirect costs.
(h) The
					 responsibility for maintenance and payment of operating expenses.
(i) Proposed expenditures for public relations or
					 other purposes which would serve to augment state appropriations for operation of
					 the campus. With respect to expenditures for public relations or other purposes
					 which would serve to augment state appropriations for operation of the campus, the
					 auxiliary organization may expend funds in such amount and for such purposes as are
					 approved by the governing body of the auxiliary organization. The President shall
					 file with the Chancellor, a statement of such policy on accumulation and use of
					 public relations funds for all auxiliary organizations. The statement will include
					 the policy and procedure on solicitation of funds, source of funds, amounts, and
					 purpose for which the funds will be used, allowable expenditures, and procedures of
					 control.
(j) The disposition to be made
					 of net earnings derived from the operation of facilities owned or leased by the
					 auxiliary organization and provisions for reserves.
(k) The disposition to be made of net assets on
					 dissolution of the auxiliary organization or cessation of the operations under the
					 agreement.
(l) The covenant of the
					 auxiliary organization to maintain its organization and to operate in accordance
					 with the regulations contained in this Subchapter 6, and Board
					 resolutions.
(m) The operations of
					 auxiliary organizations shall be integrated with campus operations and so supervised
					 as to comply with objectives stated in Section
					 42401.
1. Renumbered
						from #T5 42501 and amendment filed 4-1-69; effective thirtieth day thereafter
						(Register 69, No. 14).
2. Amendment filed 8-22-72; effective thirtieth
						day thereafter (Register 72, No. 35).
3. Amendment filed 9-15-81;
						effective thirtieth day thereafter (Register 81, No.
						38).
Note: Authority cited: Sections
						  66000,
						  89030, and
						  89900, Education
						  Code. Reference: Section
						  89900, Education
						  Code.