7.  AFFILIATED CORPORATIONS

a.  Affiliated corporations are incorporated entities, whether controlled or non-controlled by the university, that are funded solely or primarily by monies other than state funds and the purpose of which is to enhance or support the mission and activities of a state university.  Affiliated corporations include, but are not limited to, alumni associations, incorporated student unions, endowment associations or foundations, and athletic corporations.

i.  University controlled affiliated corporations are affiliated corporations meeting one of the following criteria:

(1)  A majority of a quorum of the board of directors, or other committee charged with making decisions on behalf of the corporation, are university personnel or appointed by the state university chief executive officer, or

(2)  The corporation is otherwise controlled by the university or the university chief executive officer, as determined by the following considerations.

(a)  Does the university chief executive officer appoint voting members to the corporation’s organizational committee (i.e. executive committee, finance committee, audit committee, etc.)?

(b)  Does the university chief executive officer designate, appoint or hire the corporation’s executive director/chief executive officer?

(c)  To what extent does the university chief executive officer have control over the management of the corporation’s day to day operations as well as control of its major decision making processes?

(d)  To what extent are public funds used to fulfill the corporation’s responsibilities and mission?

ii.  University non-controlled affiliated corporations are affiliated corporations that do not meet one or more of the above-listed criteria

b.  State universities shall not utilize state funds for the operation of non-controlled affiliated corporations.  This provision shall not be interpreted to include reasonable fee-for-services arrangements.