Provisions Relating Only to Institutions or Agencies of Higher Education
Auxiliary Enterprises
Supporting auxiliary enterprises
Educational and general funds appropriated by the General Appropriations Act (GAA) to any institution or agency named in Article III of the GAA may not be expended to support auxiliary enterprises.
Sources [+]
Article III, Section 6(8)(b) of the General Appropriations Act (Special Provisions Relating Only to State Agencies of Higher Education); Texas Government Code 2252.061(1).
Purchases from auxiliary enterprises
An institution of higher education may purchase goods and services from its auxiliary enterprises, including its bookstores, only if the institution treats the enterprises as it would any independent vendor or provider of goods and services.
In other words, an institution of higher education may purchase goods and services from an auxiliary enterprise only if the purchase is advantageous to the institution and determined without considering the purchase’s effect on the enterprise.
See also: Service departments
Definition:
- Auxiliary enterprises
- A business activity conducted at a state agency that provides a service to the agency and is not paid for with appropriated money.