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Contents of Written Agreement.   

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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.

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.

Authority cited:

Education Code 66600

Education Code 89030

Education Code 89900


Education Code 89900

(Amended by Register 81, No. 38.)