California Code of Regulations › Title 5 - Education › Division 6 - California Community Colleges › Chapter 10 - Community College Administration › Subchapter 4.5 - Auxiliary Organizations › Article 2 - District Responsibilities › Section 59257 - Implementing Regulations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Each district governing board wishing to establish an
						auxiliary organization must adopt implementing regulations, and submit such
						regulations to the Chancellor for approval. The implementing regulations must
						contain provisions which address at least the following subjects:
(a) Provisions which set forth the district's
					 method for recognizing an auxiliary organization, which procedure must include
					 a public hearing prior to such recognition;
(b) Provisions which limit authorized
					 auxiliary organizations to those performing recognized functions described in
					 section 59259;
(c) Provisions which implement section
					 72674 of
					 the Education Code, regarding composition and meetings of boards of directors
					 of auxiliary organizations;
(d)
					 Provisions which implement subdivision (a) of section
					 72672 of
					 the Education Code, regarding the audit of auxiliary organizations;
(e) Provisions which implement subdivision
					 (c) of section
					 72672 of Education Code, regarding
					 salaries, working conditions, and benefits for full-time employees of auxiliary
					 organizations;
(f) Provisions which
					 implement section
					 72675 of
					 the Education Code, regarding expenditures and fund appropriations by auxiliary
					 organizations. In implementing subdivision (b)(2) of section
					 72675, the district regulations may
					 specify different standards for different types of auxiliary
					 organizations.
(g) Provisions which
					 establish recordkeeping responsibilities of auxiliary organizations;
(h) Provisions which establish a procedure
					 for periodic review of each auxiliary organization by the district to ensure
					 that it is complying with sections
					 72670,
					 72670.5,
					 72671,
					 72672,
					 72673,
					 72674,
					 72675,
					 72676,
					 72677,
					 72678,
					 72679,
					 72680, and
					 72682 of
					 the Education Code; district implementing regulations; any written agreement
					 with the district; and its articles of incorporation or bylaws;
(i) Provisions which prohibit the district
					 from transferring any of its funds or resources other than funds or resources
					 derived from gifts or bequests, to any of its auxiliary organizations, when the
					 purpose of such transfer is either to avoid laws or regulations which constrain
					 community college districts or to provide the district with an unfair advantage
					 with respect to the application of any state funding mechanism. Such state
					 funding mechanisms include, but are not limited to, general apportionment
					 funding, capital outlay funding, Extended Opportunity Programs and Services
					 funding, and funding for programs and services for students with
					 disabilities.
(j) Provisions which
					 shall specify the following:
(1) The function
					 or functions which the auxiliary organization is to manage, operate or
					 administer;
(2) A statement of the
					 reasons for administration of the functions by the auxiliary organization
					 instead of by the college under usual district procedures;
(3) The areas of authority and responsibility
					 of the auxiliary organization and the college;
(4) The facilities to be made available, if
					 any, by the district to permit the auxiliary organization to perform the
					 functions specified in the implementing regulations or written
					 agreement;
(5) The charge or rental
					 to be paid to the district by the auxiliary organization for any district
					 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
					 auxiliary organization may determine to what extent it shall be liable
					 therefor;
(6) The district may
					 provide district employees to perform services under the direction of the
					 auxiliary organization as part of a documented exchange of value. The form and
					 manner of district reimbursement by an auxiliary organization must be agreed to
					 by the district and auxiliary, and may include tangible or intangible benefits.
(a) Tangible benefits are financially
					 quantifiable and may include: financial support to the college, student
					 scholarships, and tuition waiver programs; contributions to student, athletic,
					 and instructional programs; unrecovered costs; use of auxiliary services,
					 products, or facilities; marketing or promotional events; cash payments; or
					 similar benefits.
(b) Intangible
					 benefits are non-monetary and qualitative in nature, and may include: promotion
					 of the college's brand; maintenance and growth of donor data and protection of
					 donor privacy; growth of college endowments and assets; social media
					 engagement; enrollment growth due to funding support; in-kind services of
					 auxiliary board members and executive staff; the performance of functions
					 assigned to the auxiliary; improved relations with college constituencies; and
					 other forms of good will, or similar benefits.
(7) A simple and stable method of determining
					 in advance to what extent the auxiliary organization shall be liable for
					 indirect costs relating to federally-sponsored programs;
(8) The responsibility for maintenance and
					 payment of operating expenses;
(9)
					 The proposed expenditures for public relations or other purposes which would
					 serve to augment district appropriations for operation of the college. With
					 respect to expenditures for public relations or other purposes which would
					 serve to augment district appropriation for the college, the auxiliary
					 organization may expend funds in such amount and for such purposes as are
					 approved by the board of directors of the auxiliary organization. The governing
					 board shall name a designee who shall file with the governing board a statement
					 of auxiliary organizations' policies on accumulation and use of public
					 relations funds. 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;
(10) 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;
(11) The disposition to be made of net assets
					 on cessation of the operations under the agreement; and
(12) Provisions which require a covenant of
					 the auxiliary organization to maintain its existence throughout the period of
					 the agreement and to operate in accordance with sections
					 72670-
					 72682 of
					 the Education Code, and with the regulations contained in this subchapter as
					 well as district implementing regulations.
In addressing the requirements of this subdivision in its
						district implementing regulations, a district may provide for such requirements
						in a written agreement or agreements with an auxiliary organization. The
						agreement shall provide for all requirements of this subdivision which have not
						been addressed in the district implementing regulations. Notwithstanding
						subdivision (e) of section
						59255, if the requirements of this
						subdivision are provided for in the written agreement rather than the
						district's implementing regulations, the auxiliary organization may not be
						recognized by the district until the agreement is submitted to the Chancellor
						for approval.