41-2753

41-2753. Competition with private enterprise
by community colleges and universities; limitations; rules;
complaints

A. Community colleges and universities under the jurisdiction of a governing board
shall not, unless specifically authorized by statute:

1. Provide to persons other than students, faculty, staff and invited guests 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 a part of their education or fulfills the public service
mission of the community college or university. This paragraph does not apply to
sponsoring or providing facilities for recreational, cultural and athletic events or to
facilities providing food services and sales.

2. Enter competitive bidding for rendering any goods or services unless a clear
educational or research advantage would accrue to this state by the community college or
university rendering the goods or services. Any such bid shall fairly and fully allocate
all direct and indirect costs unless the funding agency or sources provide for or require
all bidders to use a specific procedure or formula for allocating costs.

3. Provide to students, faculty, staff or invited guests goods, services or
facilities that are practically available from private enterprise except as authorized by
the state governing board.

4. Provide goods, services or facilities for or through another state agency or a
local agency, including by intergovernmental or interagency agreement, which, if provided
directly by the contractor, would be in violation of this section or section 41-2752.

B. A governing board may adopt and implement rules or policies, as appropriate, to
provide for the disposal by sale of products and by-products which are an integral part
of research or instruction conducted by community colleges and universities under its
jurisdiction if the products and by-products are not sold to a retailer or sold at retail
to the public by the particular community college or university unless the sale is an
integral part of the particular research project or instructional program or there is no
other practical way of disposing by sale of the products or by-products, and if the
products or by-products are sold at their market value.

C. A governing board shall adopt and implement rules or policies, as appropriate,
to:

1. Regulate community college and university competition with private enterprise
and ensure compliance with this section.

2. Regulate use of community college and university facilities by students,
faculty, staff, invited guests and the general public.

3. Provide procedures for promptly hearing and resolving complaints lodged under
this article relating to community colleges and state universities under the jurisdiction
of the governing board. Such procedures shall include provisions for an expedited
hearing process if it is determined the alleged competition may cause severe financial
hardship on the person filing the complaint.

D. Any person aggrieved by a violation of this section may file a complaint with
the governing board. The governing board shall hear complaints made pursuant to this
section within sixty days and shall render its decision within thirty days after the
hearing. A person does not have standing to challenge violations of this section in the
courts of this state until the person has first made a complaint to the board and has
received the board's decision.

E. This section does not apply to:

1. The Arizona health sciences center operated by the university of Arizona, except
in those cases in which the health sciences center provides prosthetic or medical
devices, or services related to such devices, and a surgical or medical procedure is not
involved in the application of the device.

2. The provision of free medical services or equipment to indigents in association
with a community service health program.

3. Public service radio and television stations licensed to the governing boards or
to community colleges and universities under their jurisdiction.

4. Skill centers operated by the community college districts.