CSULB Purchasing Operations Manual
Section 6: Requirements for Transactions Involving the Sale, Lease, or License of Campus Property and the Marketing of its Services
A small fraction of CSULB’s procurement operations relate to transactions that provide revenues or benefits to the campus from the marketing of its property or services. This Section 6 summarizes the procedures for these transactions.
Ed Code 89048 (d) and (f), 89720; California State Constitution Article 16, Sec. 6; CSU Policy sec. 600 et seq.
6.01 Release of State-Owned Property:
The CSU may sell or exchange any of its property for a fair market value if it is determined that the sale or exchange is in the best interests of the University. However, the release or sale of State-owned CSU property to other entities without public participation is prohibited unless the property is either donated to, or sold at a predetermined fair market price, to a State agency or tax-supported institution.
As stated under California State Constitution Article 16, Sec. 6, the State of California is not empowered to make a gift or authorize the making of any gift, of any public money or thing of value to any individual. Neither shall any State-owned tangible goods, supplies, equipment, or materials be sold, released, or otherwise conveyed for use by the CSU to a CSU employee unless the general public is given equal opportunity to acquire the property. Such property may, however, be junked or otherwise disposed of and surveyed from State property records whenever the property is documented to have no remaining market value or practical use to the State.
The CSU may sell or exchange any personal property belonging to the CSU if the sale or exchange is in its best interests.
The sale, exchange, or disposal of real property acquired from revenues generated by the parking and housing programs may be transacted with any CSU auxiliary organization (including a campus Foundation), up to a limit of $10 million and with the approval of the CSU Trustees. Such real property may be offered by the CSU only when at least one of its borders is adjacent to real property not owned by the CSU. Where more than one auxiliary organization expresses interest in acquiring the real property, it shall be awarded to the highest responsible bidder. Prior to the CSU sale of any interests in its real property, the CSU must offer the property to any interested local governmental entities. No real property that is part of a main campus shall be sold or exchanged to other than a CSU auxiliary organization. CSU real property not generated by parking or housing programs may only be leased (at a fair market value) to a non-CSU party or auxiliary organization.
California State Constitution Article 16, Sec. 6; Ed Code 89036 (a), 89048 (d) and (f), 89720; CSU Policy 601.
6.02 Lease of University Personal Property:
The CSU may execute leases for any of its property when the leases are consistent with its functions as prescribed under California law. These include but are not limited to leases to a nonprofit organization composed exclusively of students of the University or members of the faculty of the University, or both, for purposes related to the activities of the university or for the activities of student or faculty organizations.
Ed Code 89046(a).
6.03 Sale or License of Intellectual Property:
Campuses have the delegated authority from the Trustees to transfer intangible intellectual property rights to university faculty, staff, or other entities for valuable consideration. It is the responsibility of the campus President to ensure that campus policies addressing intellectual property are kept current and comprehensive as to content and procedure.
CSU Policy 602.
6.04 Disposal of Vehicles:
A campus vehicle may be discarded, traded in, or sold whenever the campus determines it is within its best interests to do so, regardless of age or mileage, or at such time as the vehicle has been determined to be unsafe for continued use, or when it no longer serves the purpose for which it was acquired. Options for the disposal of a vehicle can include (1) surveying it to the DGS State Surplus Property Division of DGS, (2) transferring it to the DGS Fleet Administration Division, and (3) liquidating it through competitive bidding or auction at the maximum price attainable in the open market. All sales of publicly-owned vehicles, including any owned by CSULB, are governed by the provisions stated in the California Vehicle Code.
California Vehicle Code Sec. 24007 et seq.; CSU Policy 603.
6.05 Services Provided by the University:
Neither the CSU, nor CSULB, engages in the sale of services in competition with private enterprise, except when the rendering of services is related to its educational mission. Whenever services are sold by CSULB, the full cost of providing them must be recovered, including any direct, indirect (overhead), or marginal costs that might be applicable. The basis for setting values to the services shall be documented in a simple, equitable, and rational way, and be made available upon request.
CSU Policy 604.
Note: For policy on Public Works contracts and related Professional Services agreements, refer to (1) State University Administrative Manual (especially Sections X and XII), (2) Major Capital Outlay Projects Construction Phase Manual, and (3) A/E Design Process and Requirements training manual.
