Purchasing and Business Services Manual (PUR)

Effective: 10/1/1998

Revised: 11/1/2011

PUR 209: Establishment of Resale Activities

Purpose

To define when the university may engage in resale activities

Sources

Arizona Revised Statutes § 41–2753

Arizona Board of Regents Policy Manual - 1-105

University policy

Applicability

All university agency/orgs

Background

State law and regents’ policy require the university to avoid competition with private enterprise. Specifically, the university may not provide to the general public goods, services, or facilities that are practically available from private enterprise unless the provision of the goods, service, or facility offers a valuable educational or research experience for students as part of their education or fulfills the public service mission of the university. In addition, the university may not provide to students, faculty, staff, or invited guests goods, services, or facilities that are practically available from private enterprise except as authorized by the Board of Regents.

The following activities or programs are authorized resale activities:

1. Community Health Services
2. Intercollegiate Athletics
3. Memorial Union
4. Museum Store
5. Parking and Transit Services
6. Public Events
7. Residential Life
8. Stadium Management
9. Campus Health Service
10. Student Publications
11. Student recreation activities
12. Sundome
13. University Club
14. University Towers

Note:

A number of private enterprise activities are contracted to provide goods and services to the university. These include, but are not limited to, the Sun Devil Bookstore, various food service programs, and residential facilities.

Policy

All new resale activities must be approved by the chief financial officer.

Exception

This policy does not apply to service centers.

Procedure

Requests to establish a new resale activity will be submitted through the director of Purchasing and Business Services and the senior associate vice president for Finance and deputy treasurer to the chief financial officer for approval.

Requests to establish a new resale activity must include the following information:

1. Evidence that the goods and/or services to be provided are not practically available from private enterprise.
2. Evidence that similar goods or services are not already being provided by another university department or program.
3. A completed New Agency/Org Application Form, in accordance with FIN 202.
4. A proposed operating budget.

Requests will be submitted to the director of Purchasing and Business Services. If approved, the director of Purchasing and Business Services will forward the request to the senior associate vice president for Finance and deputy treasurer. If approved, the senior associate vice president for Finance and deputy treasurer will forward the request to the chief financial officer.

Cross-Reference

For information on establishment of a new agency/org, see the Financial Services Policies and Procedures Manual— FIN 202, “Establishment of Agency/Orgs.”

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