UNRELATED BUSINESS INCOME
The primary mission of the University is the creation and dissemination of knowledge. In carrying out this mission it is often necessary for the University and its affiliated units to provide goods and services for fees which enhance, promote, or support its teaching, research, and public service functions. At the same time the University must be mindful that when it provides goods and services for fees that it may be competing with local private businesses. This policy has been developed to define the legitimate purposes under which sales of goods and services for fees may be approved and to establish a mechanism to review such sales.
Educational Business Activities
Educational business activities shall be established and carried on only when pursuant to and in accordance with an authorization and statement of purpose approved by the University President or designee. Each educational business activity shall meet the following three conditions:
1) The activity is deemed to be integral to fulfillment of the institution's educational, research, public service, and campus support functions and other educational and support activities without regard to profit.
2) The activity is needed to provide an essential good or service at a reasonable price, on reasonable terms, and at a convenient location and time.
3) The activity is carried out for the primary benefit of the campus community but with sensitivity to the total community.
Unrelated Business Income
California State University, Sacramento will comply with all applicable laws and regulations pertaining to unrelated business income activities. Thus, activities not falling within the above guidelines will not be engaged in without prior review and consultation with the local business community.
This policy pertains to the activities of the recognized auxiliaries--the CSUS Foundation, the Associated Students, Capitol Public Radio, the University Trust Foundation, and the University Union as well as the University itself. It is in the best interest of the University that other related organizations also honor the contents of this policy.
Review and Approval Procedure
Authority to approve the direct sale of any goods and services by the University or any of its auxiliary organizations shall be vested in the Vice President for Administration. Before any sales project may be implemented, the unit proposing the project shall provide to the Vice President for Administration a request setting forth all pertinent information. Prior to approving any such program, the Executive Vice President for Administration shall consult with local Chambers of Commerce and others as appropriate if there is any reason to believe that there might be improper competition with local businesses.
Oversight
The Vice President for Administration is responsible for insuring that this policy is implemented and shall be available to resolve matters concerning: 1) the application of this policy, 2) questions from members of the external community, and 3) review of proposed sales to other governmental agencies. It will be the responsibility of the Executive Vice President to provide for review of this policy and its implementation annually.
*Current year plus three.
NOTE: Records which will be kept for an extended period of time or permanently should be microfilmed. .
