Integrated CSU Administrative Manual

CSU POLICY

Section:  CSU POLICY MANUAL FOR CONTRACTING & PROCUREMENT

Section 5000 Policies

Policy Number:  5232.0

Policy Title: Expatriate Corporations

Policy Effective Date:  January 01, 2006

Last Revision Date:  
(see revision history)

POLICY OBJECTIVE

To establish system wide contracting and procurement policy as required by Education Code 89036.

POLICY STATEMENT

The California Taxpayer and Shareholder Protection Act of 2003 prohibits state agencies from entering into any contract with an expatriate corporation or its subsidiary unless certain conditions are met.  In compliance with California Taxpayer and Shareholder Protection Act of 2003, as a condition of contracting with the CSU, all vendors must submit a declaration stating that the vendor is eligible to contract with the CSU pursuant to the California Taxpayer and Shareholder Protection Act of 2003. A campus may contract with an expatriate corporation or one of its subsidiaries when it necessary to meet a compelling public interest.

Some instances where contracting with one of these entities might rise to the need of a compelling public interest would be when there is a need for a non-competitive procurement for proprietary equipment, or a contract for service or maintenance of proprietary equipment already installed or manufactured by the expatriate corporation and where replacements or service are unavailable from another, non-prohibited source.  These justifications are in addition to what would be considered a traditional compelling public need to ensure the provision of essential services, to ensure the public health and safety, or an emergency as defined in Public Contract Code section 1102.  These examples are not exhaustive but are provided as an example.

The declaration requirement does not apply to a credit card purchase of goods of two thousand five hundred dollars ($2,500) or less. The total amount of exemption authorized herein shall not exceed seven thousand five hundred dollars ($7,500) per year for each company from which each campus is purchasing goods by credit card. It shall be the responsibility of each campus to monitor the use of this exemption and adhere to these restrictions on these purchases.

 

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

 

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

 

Related Principles:

 

Sound Business Practices:

 

Laws, State Codes, Regulations and Mandates:

Reference: Public Contract Code Section 10286 et. Seq., California Taxpayer and Shareholder Protection Act of 2003

COGNIZANT OFFICE(S)

CO Manager:

Tom Roberts
Director, Contract Services & Procurement
CSU Office of the Chancellor
troberts@calstate.edu

Subject Expert:

Tom Roberts
Director, Contract Services & Procurement
CSU Office of the Chancellor
troberts@calstate.edu

Affinity Group:

Procurement and Support Services Officers

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