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Legal Resources | Title 5 |  T5  42667  

For-Profit Subsidiaries.   

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Subject to the approval of the chancellor and the Board of Trustees, a systemwide auxiliary organization may establish for-profit subsidiary organizations as long as neither the purpose of the systemwide auxiliary organization nor the nonprofit status of the systemwide auxiliary organization is compromised by the subsidiaries. The systemwide auxiliary organization shall cause a subsidiary organization to engage only in those activities which further the purposes of the systemwide auxiliary organization and which have been approved by the chancellor.

Authority cited:

Education Code 89030

Education Code 89900

Reference:

Education Code 89900, et seq.

(Amended by Register 95, No. 30.)