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(q) Services to Constituency Alumni Groups: With the approval of the campus president or designee, a campus alumni association may provide to officially recognized constituency alumni groups the following, subject to the same conditions pertaining to the campus alumni association: cash management, disbursement, and accounting services; gift reporting; and, in appropriate cases, coverage under the campus alumni association's insurance policies, inclusion in the campus alumni association's financial statements, external audits and tax reporting, or use of the campus alumni association's tax identification number.

Note: Authority cited: Sections 89030 and 89031.1, Education Code. Reference: Sections 89030 and 89902, Education Code.

s 42397.5. Audit.
(a) A campus alumni association shall permit the Chancellor, the university auditor, the campus president, and the campus internal auditor or designee to inspect and audit its books and records as well as those of its financial institution(s) as relates to the campus alumni association's account(s). In addition, a campus alumni association shall permit the university auditor and the campus internal auditor to review directly all bank account records.
(b) A campus alumni association with annual gross revenues in excess of $1 million shall have an annual audit of its financial statements performed in accordance with generally accepted auditing standards and in accordance with any additional systemwide procedures prescribed by the Chancellor or designee, by a certified public accountant selected by the alumni association.
(c) A campus alumni association with annual gross revenues in excess of $500 thousand and less than $1 million shall have an annual review of its financial statements performed by a certified public accountant selected by the alumni association in accordance with standards for accounting and review services and in accordance with any additional systemwide procedures prescribed by the Chancellor or designee.
(d) A campus alumni association with annual gross revenues less than $500 thousand shall have its financial statements compiled by a certified public accountant selected by the alumni association in accordance with standards for accounting and review services and in accordance with any additional systemwide procedures prescribed by the Chancellor or designee.
(e) A campus alumni association whose assets and records are in the custody of an auxiliary organization shall present its financial position through supplemental schedules attached to the audited financial statement of the auxiliary organization in sufficient detail to fully represent the financial position and activities of the alumni association. These schedules shall be subjected to the same procedures as the auxiliary's statements and in accordance with any additional systemwide procedures prescribed by the Chancellor or designee.
(f) When completed, the campus alumni association's financial statements shall be furnished to the campus president or designee on the date designated by the campus president or designee.
(g) A campus alumni association shall make its financial statements available upon request for public inspection within a reasonable period of time.

Note: Authority cited: Sections 89030 and 89031.1, Education Code. Reference: Sections 89030 and 89902, Education Code.

s 42397.6. Organization of Constituency Alumni Groups.
(a) A constituency alumni group organized after the effective date of this article shall be organized within and as part of the campus alumni association.
(1) A constituency alumni group representing a school, college, department, or other unit shall secure the endorsement of the school, college, department, or other unit. The administrative head of the represented unit or designee shall periodically review and provide advice concerning the planned activities of the constituency alumni group, and shall serve as anex officio voting or nonvoting member of the governing body of the constituency alumni group, if any, or of any executive or similar committee empowered to act for the governing body, if any, of the constituency alumni group.
(2) A constituency alumni group, as part of the campus alumni association, shall comply with all applicable campus policies and campus alumni association policies.
(b) A constituency alumni group separately organized prior to the effective date of this article shall be organized within and become a part of the campus alumni organization and shall comply with subdivision (a), unless the campus president enters into an agreement with the constituency alumni group which provides as follows:
(1) The separate constituency alumni group agrees to the following characteristics:
a. is organized and operated solely for the benefit of the campus and the alumni of a school, college, department, or other campus administrative, academic, geographic, or other constituent unit;
b. has as its purpose providing service and support to its members, the alumni of a constituent unit, and to the university;
c. does not restrict membership or benefits of membership on the basis of race, religion, national origin, gender, or sexual orientation;
d. recognizes the unique role of the campus president or designee in setting campus or campus unit priorities; and irrevocably dedicates its assets for the benefit of the campus or appropriate unit of the campus. In the event of the group's dissolution, its assets shall be transferred to the campus alumni association, the campus, an appropriate unit of the campus, or an auxiliary organization designated by the campus for purposes consistent with the purposes of the group and the terms of any individual gifts that are part of its assets, and, if a corporation, in conformance with the California Nonprofit Corporation Laws.
e. A constituency alumni group representing a school, college, department, or other unit shall secure the endorsement of the school, college, department, or other unit. The administrative head of the represented unit shall periodically review and provide advice concerning the planned activities of the constituency alumni group and shall serve as anex officiovoting or nonvoting member of the governing body of the constituency alumni group, if any, or of any executive or similar committee empowered to act for the governing body, if any, of the constituency alumni group.
(2) The separate constituency alumni group agrees to obtain and maintain recognition, as a separate constituency alumni group by submitting the following to the campus president or designee on an annual basis or otherwise as specified by the campus president:
a. a current list of officers, members of the governing body, and the principal contact person for the group;
b. a statement of the group's purpose and goals consistent with subsection (a) and copies of the current enabling documents of the group (i.e., bylaws, constitution, articles of incorporation, or other governing document);
c. a current roster of names and addresses of donors and members, unless such records are otherwise maintained by the campus;
d. a statement signed by the officers/representatives of the group that the governing body has read and formally voted that it will comply with this article and the agreement;
e. a copy of the group's annual financial statements;
f. for a group with accounts at a financial institution, a list identifying all such accounts, including the institution's name and address, the group's account numbers, and a statement signed by an appropriate officer or representative of the group authorizing the campus to obtain upon request from the financial institution information, records, or photocopies of transactions relating to the accounts;
g. for an incorporated, tax-exempt organization, (A) a copy of the organization's state and federal tax-exempt status determination letter; (B) a copy of the organization's most recent Internal Revenue Service Form 990; and (C) a list of the types of activities, including fundraising and membership drives, the organization intends to undertake and how the organization intends to financially support these activities.
(3) The provisions of this article shall be incorporated by reference;
(4) The exchange of value between the campus and the constituency alumni group shall be expressed and may include provision of facilities and other tangible as well as intangible exchanges;
(5) A license agreement for use of the campus name and symbols; and
(6) The term of the agreement.
(7) Privileges granted including authorization to use the name of the campus or other institutional unit. Without authorization, no group may:
a. represent itself as raising funds or otherwise providing support on behalf of or for the benefit of the campus, or any part of it, including its alumni;
b. use the name of the campus or any of its facilities or programs either expressly or by implication in connection with its activities; or
c. use campus facilities or resources in connection with its activities.
(8) If a separate constituency alumni group does not comply with this article, the campus president or designee shall by written notice require the constituency alumni group to comply within 90 days or recognition as a constituency alumni group will be withdrawn.
a. In the event the group fails to comply within this time period, the campus president or designee may withdraw the constituency alumni group's recognition. In appropriate circumstances, the campus president may extend the period for compliance when action to remedy noncompliance is in progress.
b. Upon withdrawal of recognition, the assets of the constituency alumni group shall be transferred to the campus alumni association, the campus, or the designated campus auxiliary organization for purposes consistent with the purposes of the group and the terms of any individual gifts that are part of the assets.
(9) Use of the campus or unit name and symbols, including mascot or other identifying mark by a separate constituency alumni group after July 1, 2003, is prohibited unless the group has entered into an agreement and has been recognized by the campus under the provisions of this article.

Note: Authority cited: Sections 89030 and 89031.1, Education Code. Reference: Sections 89030 and 89902, Education Code.

s 42397.7. Fundraising by Constituency Alumni Groups.
Fundraising activities of constituency alumni groups shall be governed by the fundraising provisions of this article applicable to campus alumni associations.

Note: Authority cited: Sections 89030 and 89031.1, Education Code. Reference: Sections 89030 and 89902, Education Code.

s 42397.8. Financial Activities of Constituency Alumni Groups.
Financial activities of constituency alumni groups shall be governed by the financial activities provisions of this article applicable to campus alumni associations.

Note: Authority cited: Sections 89030 and 89031.1, Education Code. Reference: Sections 89030 and 89902, Education Code.

s 42397.9. Audit of Constituency Alumni Groups.
The audit requirements of constituency alumni groups shall be governed by the audit provisions of this article applicable to campus alumni associations.

Note: Authority cited: Sections 89030 and 89031.1, Education Code. Reference: Sections 89030 and 89902, Education Code.

s 42397.10. Waiver.
For good cause and to address circumstances unique to a campus, a campus president may request that the Chancellor waive certain provisions of this article for a particular group or groups on that campus. Such waiver shall be in writing and shall specify the reasons for the waiver. Any waiver shall be subject to such terms and conditions as deemed advisable by the Chancellor.

Note: Authority cited: Sections 89030 and 89031.1, Education Code. Reference: Sections 89030 and 89902, Education Code.

s 42397.11. CSU Alumni Council and Systemwide Constituency Alumni Groups.
(a) The Chancellor may recognize a CSU Alumni Council having systemwide jurisdiction and possessing rights to represent the CSU alumni organizations before the Trustees. The Council shall be governed by the provisions of this article applicable to campus alumni associations with the system and the Chancellor replacing the campus and the campus president in those provisions.
(b) Systemwide constituency alumni groups may be recognized and regulated by the Chancellor as provided in the provisions of this article relating to campus constituency alumni groups. Systemwide constituency alumni groups shall relate to the CSU Alumni Council as provided in the provisions of this article addressing campus constituency alumni groups and their relationship to the campus alumni associations. The provisions of the campus constituency alumni groups shall apply to systemwide constituency alumni groups with the Chancellor or designee assuming the rights and responsibilities of the campus president or designee.

Note: Authority cited: Sections 89030 and 89031.1, Education Code. Reference: Sections 89030 and 89902, Education Code.

s 42400. Definition.
As used in this Subchapter 6, a campus auxiliary organization, hereinafter called an "auxiliary" organization, is an organization which is (a) included in the list of auxiliary organizations in good standing maintained by the Chancellor pursuant to Section 42406, infra, and/or (b) which is an organization specified in Education Code Section 89900, which is any organization using the name of the State or a campus, or representing an official relationship with a campus, or in which any campus official participates as a director as part of his official position. The term, "auxiliary organization" as used herein, includes student body organizations and other student groups which are subject to the provisions of Education Code Section 89900; provided, that other than student body organizations, all student clubs, societies, sororities, fraternities and similar student groups not operating any commercial activity at the campus, are not subject to the further provisions of this Article, and may represent an official relationship to the campus and may use its facilities, subject to such policies and conditions as the Board of Trustees and the campus president may from time to time establish.

Note: Authority cited for Subchapter 5: Sections 66600, 66606, 89030, 89300, 89301, 89302 and 89900, Education Code.

s 42401. Declaration of Policy.
Auxiliary organization activities are essential to the educational program of a campus, including service functions, and are an integral part of the campus program and shall be so operated. The objectives of the auxiliary organizations are as follows:
(a) To provide for student self-government, and
(b) To provide the fiscal means and the management procedures that allow the campus to carry on activities providing those instructional and service aids not normally furnished by the State budget, and
(c) To provide effective operation and to eliminate the undue difficulty which would otherwise arise under the usual governmental budgetary, purchasing, and other fiscal controls, and
(d) To provide fiscal procedures and management systems that allow effective coordination of the auxiliary activities with the campus in accordance with sound business practices.

Note: Authority cited: Sections 66600, 66606, 89030 and 89900, Education Code. Reference: Sections 89300 and 89900, Education Code.

s 42402. Authority of Campus President.
The president of each campus is responsible for the educational effectiveness, academic excellence, and general welfare of the campus, over which he presides. As stated, auxiliary organizations operate as an integral part of the overall campus program. Therefore, for the president to exercise his responsibility over the entire campus program, he shall require that auxiliary organizations operate in conformity with policy of the Board of Trustees and the campus.
To execute this authority, the president shall require that each auxiliary organization submit its programs and budgets for review at a time and in a manner specified by the president. Should the president determine that any program or appropriation planned by an auxiliary organization is not consistent with policy of the Board of Trustees and the campus, the program or appropriation shall not be implemented. Further, should a program or appropriation which had received approval, upon review, be determined by the president to be operating outside the acceptable policy of the Board of Trustees and the campus, then that program or appropriation shall be discontinued by direction of the president until further review is accomplished and an appropriate adjustment is made.
s 42403. Funds.
(a) All funds and money collected by or on behalf of a student body organization except funds and money collected from commercial services as provided in Education Code Section 89905, shall be deposited in trust by the chief fiscal officer of the campus in accordance with procedures approved by an appropriate officer of the student body organization. Such funds and money shall, subject to the approval of the campus president or designee, be deposited or invested in any one or more of the ways specified in Section 89301 of the Education Code.
The chief fiscal officer of the campus shall be custodian of all funds and money collected by or on behalf of a student body organization and shall provide the necessary accounting records and controls for such funds. These funds may be expended by the custodian only upon the submission of an appropriate claim schedule by officers of the student body organization.
The student body organization shall reimburse the campus an amount to cover the cost of custodial and accounting services provided by the campus in connection with these funds.
(b) Trust funds shall be used specifically for the purpose designated in the instrument creating the trust.
(c) Funds of an auxiliary organization shall be used for purposes consistent with Board of Trustees and campus policy, and shall not be used:
(1) To support or oppose any candidate for public office, whether partisan or not, or to support or oppose any issue before the voters of this state or any subdivision thereof or any city, municipality, or local governmental entity of any kind except as may be permitted by Section 89300 of the Education Code. The prohibition of this subdivision shall not apply to:
(A) expressions published in the student press;
(B) support of a position taken by the Board of Trustees on an issue which the Board determines will significantly affect the California State University or any campus thereof.
(C) Paragraphs (A) and (B) of subdivision (c)(1) are exceptions to the prohibition of (c)(1) and shall not be construed as authorizing an expenditure of student body organization funds collected through mandatory fees not authorized by Section 42659.
(2) To make personal loans for non-educationally related purposes, except that such loans may be made when specifically authorized by a trust instrument under which the funds were received.
(d) Indemnity bonds shall be obtained by an auxiliary organization for officers and employees handling funds of the auxiliary organization.
(e) Donations and gifts to an auxiliary organization for research and other projects which are accepted, shall be accepted and maintained in accordance with policies and regulations established by the Board of Trustees.

Note: Authority cited: Sections 89030 and 89900, Education Code. Reference: Sections 89302 and 89900, Education Code.

s 42404. Records.
(a) An auxiliary organization shall maintain adequate records and shall prepare such periodic reports showing its operations and financial status as may be required by the Board of Trustees.
(b) All records of an auxiliary organization shall be open to the Board of Trustees and the Department of Finance for audits.

Note: Authority cited: Sections 66600, 89030, and 89900, Education Code. Reference: Sections 89900 and 89904, Education Code.

s 42405. Employees.
(a) Except as otherwise provided in this Section, the governing board of each auxiliary organization shall provide salaries, working conditions and benefits for its full-time employees which are comparable to those provided campus employees performing substantially similar services. For those full-time employees who perform services that are not substantially similar to the services performed by campus employees, the salaries established shall be at least equal to the salaries prevailing in other educational institutions in the area or commercial operations of like nature.
(b) Notwithstanding anything in this Section to the contrary, the governing board of each auxiliary organization may withhold retirement benefits or permanent status benefits or both from temporary employees. For the purposes of this Section, a temporary employee is:
(1) An employee employed for a research project, workshop, institute or other special project funded by any grant, contract or gift; or
(2) An employee whose contract of employment is for a fixed term not exceeding three years.
(c) Notwithstanding anything in this Section to the contrary, the governing board of each auxiliary organization may withhold permanent status benefits from executive employees. For the purposes of this Section, an executive employee is any management employee with responsibility for the development and execution of auxiliary organization policy and includes, but is not limited to, general managers, managers, directors, and the like, as determined by the governing board of each auxiliary organization.
(d) At least annually, the Chancellor shall determine which of the auxiliary organizations included on the list prepared pursuant to Section 42406 is an auxiliary organization funded primarily by mandatory student fees collected by the Trustees. Notwithstanding anything in this Section to the contrary, the governing board of any auxiliary organization designated by the Chancellor as an auxiliary organization that is primarily funded by mandatory student fees collected by the Trustees may withhold retirement benefits from its employees.
(e) Notwithstanding anything in this Section to the contrary, the Chancellor may exempt the governing board of any newly created auxiliary organization from the requirement of providing retirement benefits for a period not to exceed three years from the date on which the Chancellor approves the establishment of the auxiliary organization pursuant to Section 42407.
(f) The Chancellor shall provide, and may from time to time revise, rules and procedures for the administration of this Section.

Note: Authority cited: Section 89900, Education Code.

s 42406. List of Auxiliary Organizations in Good Standing.
The Chancellor shall prepare and keep current a list of organizations in good standing. All auxiliary organizations in compliance with rules and regulations of the Trustees, and provisions made thereunder, shall be included on the list. Where the Chancellor has reason to believe that a particular organization should be removed from said list, he will give the governing board of such organization, and the president of the campus, reasonable notice that a conference will be held to determine whether grounds for such removal do in fact exist, and representatives of said board shall be entitled to be present at such conference and to be heard. The Chancellor may make such provisions consistent with law as may in his judgment be appropriate with respect to further cooperation and agreements between any campus and an auxiliary organization not included on the said list.
s 42407. Establishment of Auxiliary Organizations.
No new auxiliary organization shall be established unless a recommendation accompanied by a justification is submitted by the president of the campus, and approval is given by the Chancellor.

Note: Authority cited: Sections 66600 and 89900, Education Code. Reference: Section 89900, Education Code.

s 42408. Fiscal Audits.
(a) Each auxiliary organization shall have an annual fiscal audit performed by a certified public accountant selected by the auxiliary organization. When completed, the audit shall be furnished to the Chancellor or designee on the date or dates designated by the Chancellor or designee.
(b) The annual fiscal audits shall be performed in accordance with standard systemwide procedures prescribed by the Chancellor.
(c) Each auxiliary organization, in order to disseminate as widely as feasible the audited financial statements, shall:
(1) Publish the audited financial statements in a campus newspaper; or
(2) Publish a notice in a campus newspaper indicating the on-campus location where copies of the audited financial statements may be obtained or reviewed; or
(3) Publish or notice the audited statements in accordance with subdivision (1) or (2) in a campus bulletin or other appropriate medium if a campus newspaper is unavailable.

Note: Authority cited: Sections 89030 and 89900, Education Code. Reference: Sections 89900 and 89904, Education Code.

s 42500. Functions of Auxiliary Organizations.
Auxiliary organizations are formed to provide essential functions which are an integral part of the educational mission of a campus and the California State University.
(a) The following functions have been determined by the Board to be appropriate for auxiliary organizations to perform in accordance with applicable policies, rules, and regulations:
(1) Student Body Organization Programs;
(2) Bookstores, Food Services, and Campus Services;
(3) Housing;
(4) Student Union Programs;
(5) Supplementary Health Services;
(6) Loans, Scholarships, Grants-in-Aids, Stipends, and Related Financial Assistance;
(7) Externally Funded Projects Including Research, Workshops, Conferences, and Institutes;
(8) Instructionally-related Programs, and activities, including Agriculture, Athletics, Radio and Television Stations, Newspapers, Films, Transportation, Printing and other Instructionally Related Programs and Activities;
(9) Alumni Programs;
(10) Gifts, bequests, devises, endowments, trusts and similar funds;
(11) Public relations, fundraising, fund management, and similar development programs;
(12) Acquisition, development, sale, and transfer of real and personal property including financing transactions related to these activities.
(b) Gifts, grants, or other donations received by an auxiliary organization shall be accepted, maintained, and used in accordance with policies, rules, and regulations of the Board of Trustees.
(c) Auxiliary organizations may issue debt instruments to finance or refinance projects in connection with their mission upon prior approval of the campus president and pursuant to policies of the Board of Trustees as may be implemented by the Chancellor. For purposes of this section, "debt instruments" means loans, notes, bonds, finance leases, installment purchase or sale agreements, and certificates of participation.
(d) Student loans, scholarships, stipends and grants-in-aid shall only be given to currently admitted students. A record of such financial assistance shall be forwarded on a timely basis to the campus financial aid office and shall be documented on student financial aid recipient records kept in that office. All such financial assistance provided from student body organization funds shall be approved by the campus financial aid office before such funds are expended, and shall not exceed amounts to be provided under regulations of federal and state financial aid programs, except as provided under section 42403, subdivision (b).
(e) An auxiliary organization shall not engage in a function not listed in subdivision (a) of this section unless an appropriate amendment is made to subdivision (a) by the Board of Trustees, adding said function to the list of approved functions of auxiliary organizations, or unless such function is essential to satisfy the corporation laws of the State of California.

Note: Authority cited: Sections 89030 and 89900, Education Code. Reference: Section 89900, Education Code.

s 42501. Requirement of Written Agreement.
A written agreement on behalf of the State of California by the Chancellor of The California State University, and the auxiliary organization is required for the performance by such auxiliary organization of any of the functions listed in Section 42500, except student body organization activities. If any auxiliary organization performs more than a single function, then the written agreement may cover any number of the functions it performs on the campus or a separate agreement may cover each function performed. Authority for agreements between the auxiliary organization and a student for student projects involving agricultural, vocational, or other instructional activities, is to be incorporated in the written agreement between the auxiliary and the State.

Note: Authority cited: Sections 66600, 89030 and 89900, Education Code. Reference: Section 89900, Education Code.Authority cited: Sections 66600, 89030 and 89900, Education Code. Reference: Section 89900, Education Code.

s 42502. Contents of Written Agreement.
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.

Note: Authority cited: Sections 66000, 89030, and 89900, Education Code. Reference: Section 89900, Education Code.

s 42600. Organization.
(a) An auxiliary organization which is not a corporation shall adopt a constitution and file a copy thereof with the Chancellor.
(b) By July 1, 1982, the articles of incorporation or constitution of an auxiliary organization shall contain a provision that upon dissolution of the organization, net assets, other than trust funds, shall be distributed to a successor approved by the president of the campus and by the Board of Trustees.

Note: Authority cited: Sections 66600, 66606, 89030 and 89900, Education Code. Reference: Section 89900, Education Code.

s 42601. Operation.
All leasing of campus facilities shall be effected under provisions of Education Code, Section 89046 or other laws governing the leasing of state facilities.

Note: Authority cited: Sections 66600, 89030, and 89000, Education Code. Reference, Sections 89900 and 89046, Education Code.

s 42602. Composition of Board of Directors.
The composition of the governing board of auxiliary organizations shall be as follows:
(a) Student Body Organizations. The governing board of student body organizations shall consist primarily of students, with a representative of the campus president to advise on policy and to provide liaison between the student governing board and the president of the campus.
(b) Other Auxiliary Organizations.
(1) Approved auxiliary organizations, other than student body organizations, operating on April 1, 1969, may continue the composition of their governing boards of directors existing at that time.
(2) Approved auxiliary organizations, other than student body organizations, operating on April 1, 1969, desiring to make a substantial change in their governing board's composition, and any auxiliary organization established after that date, shall have a governing board consisting of voting membership from the following categories:
(A) Administration and staff
(B) Faculty
(C) Noncampus personnel
(D) Students
(c) The size of the governing board of an auxiliary organization shall be at least large enough to accommodate the membership from the various categories which are required by this section.

Note: Authority cited: Sections 66600, 89030, and 89900, Education Code. Reference: Section 89903, Education Code.

s 42659. Approved Uses of Student Body Organization Funds.
The principle underlying the expenditure of student body organization funds collected through mandatory fees is that such expenditures shall be made in programs that reflect the broadest variety of student interests and that are open to all students who wish to participate. Student body organization funds obtained from mandatory fees may be expended for the following programs:
(a) Programs of cultural and educational enrichment and community service.
(b) Recreational and social activities.
(c) Support of student unions.
(d) Scholarships, stipends, and grants-in-aid for only currently admitted students in accordance with provisions of Section 42500, subdivision (d).
(e) Tutorial programs.
(f) Athletic programs, both intramural and intercollegiate.
(g) Student publications.
(h) Assistance to recognized student organizations.
(i) Student travel insurance.
(j) Administration of student fee program.
(k) Student government-scholarship stipends, grants-in-aid, and reimbursements to student officers for service to student government . Before such scholarship stipends, grants-in-aid, and reimbursements are established by a student body association, the principle of establishing such payments shall be approved by a student referendum.
(l) Student employment to provide payment for services in connection with the general administration of student fee.
(m) Augmentation of counseling services, including draft information, to be performed by the campus. Such counseling may also include counseling on legal matters to the extent of helping the student to determine whether he should retain legal counsel, and of referring him to legal counsel through a bar association, legal aid foundation or similar body.
(n) Transportation services.
(o) Child day care centers for children of students and employees of the campus.
(p) Augmentation of campus health services. Additional programs may be added by appropriate amendment to this section by the Board.

Note: Authority cited: Sections 66600, 89030, and 89900, Education Code. Reference: Sections 89300 and 89302, Education Code.

s 42659.1. Governmental Affairs Representatives.

Note: Authority cited: Sections 66600, 66606, 89030, 89035, 89300, 89302, Education Code.

s 42660. Financial Aid.

Note: Authority cited: Sections 66600, 66606, 89030, 89300 and 89302, Education Code.

s 42665. Definition.
As used in this Article 5 a systemwide auxiliary organization is an auxiliary organization of the California State University (a) established pursuant to section 89900 et seq. of the Education Code; (b) included in the list of auxiliary organizations in good standing maintained by the chancellor pursuant to section 42406; (c) engaged in activities which are essential and integral to the mission and purpose of the California State University system; and (d) responsible to the chancellor who shall require that the systemwide auxiliary organization operate in conformity with the policy of the Board of Trustees and the policy of the chancellor.

Note: Authority cited: Sections 89030 and 89900, Education Code. Reference: Section 89900, et seq., Education Code.

s 42666. Requirements.
A systemwide auxiliary organization shall comply with the policies of this Subchapter 6 as they may relate to a systemwide context: (a) where the terms "president" or "campus" are used they shall mean "chancellor" or "California State University system," as appropriate; (b) sections and subsections which address student body organizations shall not apply to systemwide auxiliary organizations; and (c) composition of the governing board of directors prescribed in Section 42602 shall not apply to systemwide auxiliary organizations.

Note: Authority cited: Sections 89030 and 89900, Education Code. Reference: Section 89900, et seq., Education Code.

s 42667. For-Profit Subsidiaries.
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.

Note: Authority cited: Sections 89030 and 89900, Education Code. Reference: Section 89900, et seq., Education Code.

s 42700. Definitions.
The following definitions shall apply as used in this subchapter:
(a) "Trustees" means the Board of Trustees of the California State University created by Section 66600 of the Education Code.
(b) "California State University" means all the California State University and the Office of the Chancellor.
(c) "Chancellor" means the Chancellor of the California State University.
(d) "Office of the Chancellor" means the central offices directed by the Chancellor.
(e) "Campus" means each institution of the California State University.
(f) "Position" means any office or employment in the California State University.
(g) "Classification" or "class" means a group of positions sufficiently similar with respect to duties and responsibilities that the same title may reasonably and fairly be used to designate such position allocated to the class and that substantially the same tests of fitness may be used and that substantially the same minimum qualifications may be made to apply with equity.
(h) "Employee" means a person legally holding a position in the California State University.
(i) "Appointing power" means a person or group having authority to make appointments to positions in the California State University. Unless otherwise provided by law, the appointing power shall be the campus President for campus employees and the Chancellor for employees in the Office of the Chancellor.
(j) "Appointment" means the offer to and acceptance by a person of employment in a position in the California State University. Appointments may be temporary, probationary, permanent or at the pleasure of the appointing authority. Appointments include various personnel actions such as initial appointments, reappointments (including reappointments which confer tenure or permanent status), promotions, transfers, demotions and reinstatements.
(k) "Layoff" means the separation of an employee from a position for lack of funds or lack of work.
(l) "Academic employee" means an employee engaged either (1) primarily in instruction who is employed and compensated on the basis of class and rank or (2) in very closely related professional activities such as those carried on by professional librarians on a campus. The classes of positions whose incumbents may be eligible for inclusion in the closely related area (2 above) will be determined by the Trustees after appropriate job studies, consultation with employees and administrators and subsequent classification plan readjustment. Specific decisions on individual incumbents will be made in light of these guidelines.
(m) "Administrative employee" means an employee engaged primarily in one or a combination of professional or quasi-professional activities. The classes of positions which will be placed in the administrative category will be determined by the Trustees after appropriate job studies, consultation with employees and administrators and subsequent classification plan readjustment.
(n) "Executive employee" means an employee with primary responsibility for the execution of policy and includes the Chancellor, vice chancellors and the campus presidents.
(o) "Nonacademic employees" means an employee who provides noninstructional and nonadministrative supporting services such as secretarial, clerical, and maintenance services. A nonacademic employee may have lead responsibility, but normally does not have responsibility for major decisions. Higher academic degrees are not an essential qualification for service as a nonacademic employee.
(p) "Academic-administrative assignment" means:
(1) A work assignment to be determined by the Trustees, filled by an academic (class and rank) or an administrative employee at a campus or the Chancellor's Office. The incumbent, while on academic-administrative assignment, serves in a key administrative capacity, planning, organizing and directing activities which relate to the instructional programs and/or participates in policy planning; or
(2) The work assignment of an administrative employee who has demonstrated to the president and the faculty or the Office of the Chancellor that the employee's job performance is, to a high degree, closely identified with the total management of a campus or the California State University. Classes of positions whose incumbents may be eligible for such assignment will be determined by the Trustees after appropriate job studies, consultation with employees and administrators and subsequent classification plan readjustment. Specific decisions on individual incumbents will be made in light of these guidelines.
(q) "Tenure" or "permanent" when used in relation to employment status means the right to continued employment on a particular campus or in the Office of the Chancellor unless dismissed for cause or laid off for lack of funds or lack of work.
(r) "Probationary period" means the period an employee must serve before becoming a tenured or permanent employee.
(s) "Probationary employee" means an employee who is serving a period of probation on a campus or in the Office of the Chancellor.
(t) "Quarter system year-round operations" means the offering by a campus of regular session instruction during each of the four quarters of a college year, where each such quarter is of approximately the same length.
(u) "Year of service" means:
(1) For academic employees on 12-month assignments, nonacademic employees, administrative employees and executive employees, any 12 consecutive months of full-time employment.
(2) For academic employees, nonacademic employees, administrative employees and executive employees, in cases where any such category of employee is serving on a 10-month assignment, 10 consecutive months of full-time employment.
(3) For academic employees on academic year appointments, an academic year of full-time employment.
(4) For Management Personnel Plan employees on academic year assignments, an academic year of full-time employment; for Management Personnel Plan employees on 10-month assignments, any 10 consecutive months of full-time employment; and for Management Personnel Plan employees on 12-month assignments, any 12 consecutive months of full-time employment.
(v) "Academic year" means:
(1) For campuses not on quarter system year-round operations, a total of two consecutive semesters, or three consecutive quarters, each semester or quarter being of the same approximate length as the other semester or quarters, and which academic year commences with the opening of the fall term.
(2) For campuses on quarter system year-round operations, a total of any three quarters each of approximately the same length, in a period of four consecutive quarters, established pursuant to Article 2.5. A total of any six such quarters in a period of eight consecutive quarters, shall constitute two academic years.
(w) "College year" means that period of time, in which a campus offers regular session instruction, which period consists of two, three, or four regular terms.
(1) For campuses not on quarter system year-round operations, the college year is coterminous with the academic year.
(2) For campuses on quarter system year-round operations, the college year is composed of four consecutive quarters, each of approximately the same length and commencing with the opening of the summer quarter.
(x) "Lecturer" is a title used to cover a nonpermanent academic assignment normally of a visiting or part-time nature where the salary level of the individual is in accordance with the individual's qualifications.
(y) "Teaching service area" means a generally recognized subject matter field or a specialized curriculum depending on the manner in which faculty assignments are determined at a campus.
(z) "Triad", when used in relation to quarter system year-round operations, means a period of 36 months or 12 quarters, commencing in the case of each academic year employee at a campus or quarter system year-round operations, with the beginning of the first quarter of the employee's first academic year at such a campus.
(aa) "Qualifying monthly pay period" means, for purposes of computing credit for vacation with pay, a monthly pay period during which an employee is in pay status for eleven or more work days. Omission from pay status for more than eleven consecutive working days within two consecutive monthly pay periods bars one such period from being qualified.
(bb) "Management Personnel Plan employee" means an employee who has been designated as "management" or "supervisory" in accordance with the provisions of the Higher Education Employer-Employee Relations Act. The rights and responsibilities of a Management Personnel Plan employee shall be defined by those sections in Subchapter 7 which address Management Personnel Plan employees which sections shall supersede any other section of Subchapter 7 which may have applied to them prior to their having become Management Personnel Plan employees. A Management Personnel Plan employee is neither an administrative, academic, or nonacademic employee while serving in a Management Personnel Plan position. These previous designations shall be relevant only when a Management Personnel Plan employee exercises rights to retreat to a position in which permanent status or tenure was held prior to January 1, 1984. Only after reassuming such position shall the employee assume any rights or duties associated with administrative, academic or nonacademic status.

Note: Authority cited: Sections 66600, 89030, 89035 and 89500, Education Code. Reference: Section 89500, Education Code.

s 42701. Consultative Procedure.
It is the policy of the Trustees that faculty be consulted on academic personnel matters. Each campus shall develop campus-wide procedures whereby only members of the faculty who are tenured, and such department chairmen and academic administrators as the campus procedures shall provide, may participate at any level of consideration in the deliberations or vote on recommendations relating to appointment, retention, tenure or promotion of faculty. The procedures shall provide that those making such recommendations should consider information from other faculty members and any other source, including, but not limited to students. The campus-wide procedures shall be consonant with the regulations, policies and procedures of the Board of Trustees and the Chancellor and shall be approved by the president.

Note: Authority cited: Sections 66600, 89030, 89035 and 89500, Education Code. Reference: Section 89500,Education Code. (continued)