ARTICLE 2. Revenues [89720. - 89726.]

Cal. Education Code - EDC 2.

in effect

Cal. Education Code - EDC § 89720. Section 89720.

The trustees may accept on behalf of the state any gift, bequest, devise, or donation of real or personal property whenever the gift and the terms and conditions thereof will aid in carrying out the primary functions of the California State University as specified in subdivision (b) of Section 66010.4. Neither Section 11005 of the Government Code nor any other law requiring approval by a state officer of gifts, bequests, devises, or donations shall apply to these gifts, bequests, devises, or donations. These gifts, bequests, devises, or donations, and the disposition thereof, shall be annually reported to the California Postsecondary Education Commission, the Joint Legislative Budget Committee, and the Department of Finance by January 31 of each year. Notwithstanding Sections 11005.2 and 14664 of the Government Code or any other law to the contrary, the trustees may sell or exchange interests in real property received pursuant to this section when, in the judgment of the trustees, the sale or exchange is in the best interests of the California State University. No sale or exchange of an interest in real property made pursuant to this section shall exceed ten million dollars ($10,000,000) per transaction. Notwithstanding Sections 11005 and 15853 of the Government Code or any other provision of law to the contrary, the trustees may purchase interests in real property from moneys received pursuant to this section, including those moneys received from the sale or exchange of interests in real property pursuant to this section. Any such purchase shall be consistent with any restrictions placed upon the gift, bequest, devise, or donation and shall be in the best interests of the California State University, as determined by the trustees. No interest in any real property that is part of a main campus of any of the institutions of the California State University listed in Section 89001 shall be sold or exchanged pursuant to this section. Any sale or exchange of interests in real property carried out pursuant to this section shall be reported annually to the California Postsecondary Education Commission or a successor agency, the Joint Legislative Budget Committee, and the Department of Finance, by January 31 of each year.

Cal. Education Code - EDC § 89720.5. Section 89720.5.

Prior to the sale of any interests in real property pursuant to Section 89720, the trustees shall offer the interests to local governmental agencies. It is the intent of the Legislature that the trustees may transfer interests at less than fair market value under the conditions described in Section 11011.1 of the Government Code, except that all powers and duties of the Director of General Services, the Department of General Services, and the State Public Works Board under that section shall be performed by the trustees. For purposes of this section, “local governmental agencies” shall not include private entities, private nonprofit entities, private tax exempt entities, or any consortium, cooperative, or combination of private-public entities or organizations.

Cal. Education Code - EDC § 89721. Section 89721.

Notwithstanding any other law, the chief fiscal officer of each campus of the California State University shall deposit into and maintain in local trust accounts or in trust accounts in accordance with Sections 16305 to 16305.7, inclusive, of the Government Code, or in the California State University Trust Fund, moneys received in connection with the following sources or purposes: (a) Gifts, bequests, devises, and donations received under Section 89720. (b) Any student loan or scholarship fund program, including, but not limited to, student loan programs of the state, federal government, including programs referred to in Section 89723, local government, or private sources. (c) Advance payment for anticipated expenditures or encumbrances in connection with federal grants or contracts. (d) Room, board, and similar expenses of students enrolled in the international program of the California State University. (e) Cafeteria replacement funds. (f) Miscellaneous receipts in the nature of deposits subject to return upon approval of a proper application. (g) Fees and charges for services, materials, and facilities authorized by Section 89700 if these fees or charges are required of those persons who, at their option, use the services or facilities, or are provided the materials, for which the fees or charges are made. Fees and charges so received and deposited shall be used solely to meet the costs of providing these services, materials, and facilities. (h) Fees for instructionally related activities as defined by the trustees and as authorized by Section 89700 and revenues derived from the conduct of the instructionally related activities. The trustees shall have all authority necessary to administer and use the fees and revenues received and deposited to support such instructionally related activities. (i) Fees for parking, health facilities or health services, and for extension programs, special sessions, or self-supporting instructional programs. (j) Revenue received by the trustees from the California State Lottery Education Fund pursuant to Section 8880.5 of the Government Code. (k) Moneys received by the trustees for research, workshops, conferences, institutes, and special projects. ( l ) Moneys collected as higher education fees and income from students of any campus of the California State University and from other persons pursuant to Section 89700. The Controller shall have the authority to audit the expenditure of these funds.

Cal. Education Code - EDC § 89722. Section 89722.

(a) The California State University Trust Fund is hereby created in the State Treasury. Moneys in the California State University Trust Fund are appropriated to the trustees as provided in Section 89724. Interest accruing upon the investment of moneys of the California State University Trust Fund shall be paid into and credited to that fund. The trustees shall apportion as of June 30 and December 31 of each year the revenues earned and deposited in the fund during the six calendar months ending with those dates. There shall be apportioned and credited to each campus of the California State University having deposits in the fund, an amount directly proportionate to the total deposits in the fund and the length of time the deposits remained therein. The chief fiscal officer of each campus of the California State University may allocate further this amount to the extent considered necessary. (b) Notwithstanding any other law, the Controller may use the moneys in the California State University Trust Fund for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. However, interest shall be paid on all moneys loaned to the General Fund from the California State University Trust Fund. Interest payable shall be computed at a rate determined by the Pooled Money Investment Board to be the current earning rate of the fund from which loaned. This subdivision does not authorize any transfer that will interfere with the carrying out of the object for which the California State University Trust Fund was created.

Cal. Education Code - EDC § 89722.5. Section 89722.5.

(a) There is hereby created in the State Treasury the California State University Lottery Education Fund. Moneys received by the Trustees of the California State University from the California State Lottery Education Fund pursuant to Section 8880.5 of the Government Code may be deposited and maintained in the fund. Notwithstanding Section 13340 of the Government Code, all moneys in the fund shall be continuously appropriated without regard to fiscal year for expenditure by the trustees for educational purposes pursuant to Section 8880.5 of the Government Code. All expenditures from the fund shall be subject to an annual postaudit by the Audits Division of the State Department of Finance. (b) Pending expenditure for educational purposes, the moneys in the fund may be invested by the Treasurer, subject to the approval of the trustees, in those eligible securities listed in Section 16430 of the Government Code. All interest accruing from any investment pursuant to this subdivision shall be deposited into, and credited to, the fund.

Cal. Education Code - EDC § 89722.9. Section 89722.9.

Notwithstanding Sections 16305 to 16305.7, inclusive, of the Government Code and any other law to the contrary, financial aid money in the possession of the California State University may be deposited by the chief fiscal officer of each campus of the California State University in a checking account in the centralized treasury system. The funds in the checking account shall be invested by the Treasurer. Interest earned thereon shall be deposited in the California State University Trust Fund. The interest earnings shall be continuously appropriated for expenditure by the Trustees of the California State University for financial aid, except that the interest earned from the investment of federal financial aid moneys may be returned to the United States if required by applicable federal law.

Cal. Education Code - EDC § 89723. Section 89723.

The trustees are vested with all necessary power to perform acts, receive and expend funds, and cooperate with state and federal agencies as provided in Section 12400 for the purpose of receiving and spending the funds provided by the act of Congress entitled “An act to strengthen the national defense and to encourage and assist in the expansion and improvement of educational programs to meet critical national needs; and for other purposes” (National Defense Education Act of 1958), approved September 2, 1958, and the act of Congress entitled “An act to amend the Public Health Service Act to increase the opportunities for training professional nursing personnel, and for other purposes” (Nurse Training Act of 1964), approved September 4, 1964. The trustees may provide for the establishment and maintenance of student loan funds pursuant to those acts of Congress. Money allocated for the purpose of establishing a student loan fund at a campus of the California State University may be withdrawn from the State Treasury and deposited to the credit of that institution in a trust account in accordance with the provisions of Sections 16305 to 16305.7, inclusive, of the Government Code for the purpose of making loans to students in accordance with the federal acts.

Cal. Education Code - EDC § 89724. Section 89724.

(a) All money received in accordance with the following shall be appropriated for the support of the California State University in addition to other amounts as may be appropriated by the Legislature: (1) All money received from the sale of California State University publications. (2) All money received under an agreement entered into pursuant to Section 89036. (3) Except as to the fees and charges specified in subdivisions (g) and (h) of Section 89721, all money collected as fees from students of the California State University and received from other persons under Sections 89030, 89036 to 89039, inclusive, 89700, 89705, 89708, 89709, 89720, and 89721, and money received pursuant to Section 2080.8 of the Civil Code. (b) (1) Money received under Sections 89720 and 89721, or received pursuant to Section 2080.8 of the Civil Code, is appropriated pursuant to subdivision (a) without regard to fiscal year. (2) Money received pursuant to Section 2080.8 of the Civil Code shall be used for student scholarships and loans pursuant to any regulations the trustees provide. (3) Money received pursuant to Sections 89720 and 89721 may be invested, upon approval of the trustees, by the Treasurer or by the chief fiscal officer of a campus of the California State University, in those eligible securities listed in Section 16430 of the Government Code. (4) (A) Money received under Sections 89720 and 89721, and received pursuant to Section 2080.8 of the Civil Code, may be invested, upon approval of the trustees and in accordance with Section 89726, by the chief fiscal officer of a campus of the California State University, in any of the following: (i) Mutual funds subject to registration by, and under the regulatory authority of, the United States Securities and Exchange Commission. (ii) Publicly traded real estate investment trusts registered with the United States Securities and Exchange Commission. (iii) Institutional commingled funds, including commingled trust funds and collective trust funds, offered by investment advisors registered with, and under the regulatory authority of, the United States Securities and Exchange Commission. (iv) Exchange-traded funds subject to registration by, and under the regulatory authority of, the United States Securities and Exchange Commission. (B) All interest and other earnings received pursuant to the investment of money received pursuant to Sections 89720 and 89721 shall also be used for purposes established by the trustees consistent with the terms and conditions of the gift, bequest, devise, donation, or agreement under Sections 89720 and 89721. (5) Except as otherwise provided with respect to money received pursuant to Section 2080.8 of the Civil Code and Sections 89720 and 89721, all money received pursuant to this section shall augment the support appropriation to the California State University for the fiscal year to which the collections apply. (c) All money received from the sale or the disposition of real property acquired by or on behalf of a campus of the California State University by gift, devise, or donation pursuant to Section 89720 or pursuant to the predecessor of that section is hereby appropriated to the trustees for expenditure for capital outlay for the acquisition and improvement of real property for the campus, in addition to any other amounts appropriated by the Legislature. All money received from the sale or other disposition of personal property, other than money, acquired by or on behalf of a campus of the California State University by gift, bequest, or donation pursuant to Section 89720 or the predecessor of that section is hereby appropriated to the trustees for expenditure for capital outlay for, or the acquisition and improvement of real or personal property for, the campus, in addition to other amounts appropriated by the Legislature. No money shall be expended by the trustees under this subdivision without the approval of the Director of Finance. The money shall augment the support or capital outlay appropriation of the California State University current at the date of issuance of the Controller’s receipt as may be designated by the trustees before the deposit of that money in the State Treasury.

Cal. Education Code - EDC § 89725. Section 89725.

(a) Notwithstanding any law to the contrary, grants, revenues, and funds of any nature received by the trustees for research, workshops, conferences, institutes, and special projects from the state, federal government, local government, or private persons, may be transmitted to the Treasurer and, if transmitted, shall be deposited in the California State University Special Projects Fund, which is hereby established in the State Treasury. (b) All grants, revenues, and funds deposited in the California State University Special Projects Fund are appropriated without regard to fiscal year to the trustees for the operation, support, and development of research, workshops, conferences, institutes, and special projects in the California State University. (c) Provision shall be made by the trustees for reimbursements to the General Fund for the cost of space and services furnished to projects funded by the California State University Special Projects Fund. (d) Notwithstanding any law to the contrary, the trustees shall have authority to establish the rules and procedures under which the fund shall operate. All expenditures shall be made in accordance with the rules and procedures, without prior approval of the Department of General Services or the Department of Finance. Expenditures from the fund shall be audited as frequently as the Audits Division of the Department of Finance deems appropriate. (e) (1) Moneys in the California State University Special Projects Fund may be invested by the Treasurer or by the chief fiscal officer of a campus of the California State University, upon approval of the trustees, only in eligible securities listed in Section 16430 of the Government Code, or, in accordance with Section 89726, in any of the following: (A) Mutual funds subject to registration by, and under the regulatory authority of, the United States Securities and Exchange Commission. (B) Publicly traded real estate investment trusts registered with the United States Securities and Exchange Commission. (C) Institutional commingled funds, including commingled trust funds and collective trust funds, offered by investment advisors registered with, and under the regulatory authority of, the United States Securities and Exchange Commission. (D) Exchange-traded funds subject to registration by, and under the regulatory authority of, the United States Securities and Exchange Commission. (2) All interest or other earnings received pursuant to those investments described in paragraph (1) shall be collected by the Treasurer, and shall be deposited in the fund.

Cal. Education Code - EDC § 89725.1. Section 89725.1.

Moneys received from the sale of interests in real property of the California State University in Contra Costa County shall be deposited and maintained in the State Treasury to the credit of the California State University Special Projects Fund and shall be available to the trustees for the purchase and development of real property for a California State University off campus center in Contra Costa County.

Cal. Education Code - EDC § 89726. Section 89726.

(a) (1) The trustees may invest in securities or investments not listed in Section 16430 of the Government Code only if the trustees have established a committee to provide advice and expertise on investments. (2) A majority of the members of the committee shall be individuals who have investment expertise and who are not employees of the California State University. (3) The trustees shall allow the Treasurer to serve as a member of the committee or to appoint a deputy treasurer to serve as a member of the committee. (b) The total amount invested in securities or investments not listed in Section 16430 of the Government Code shall not exceed the following amounts: (1) In the fiscal year ending June 30, 2022, 30 percent of all moneys invested pursuant to Sections 89724 and 89725. (2) In the fiscal year ending June 30, 2023, and each fiscal year thereafter, 65 percent of all moneys invested pursuant to Sections 89724 and 89725. (c) (1) The trustees shall receive an investment performance report quarterly and distribute an annual report to the Legislature, in compliance with Section 9795 of the Government Code, and the Department of Finance. (2) The investment performance reports shall include investment returns, comparisons to benchmarks, holdings, market values, and fees. (d) Any additional moneys earned through investments in securities or investments not listed in Section 16430 of the Government Code shall be used only for capital outlay or maintenance, and shall not be used for ongoing operations. (e) The trustees shall not submit a request to the Department of Finance or the Legislature for any funds to compensate for investment loss resulting from investments in securities or investments not listed in Section 16430 of the Government Code. (f) The trustees shall not cite investment loss resulting from investments in securities or investments not listed in Section 16430 of the Government Code to justify approval of an increase in student tuition or fees. No increase in tuition or reduction in course sections offered shall be adopted because of investment losses sustained as a result of this section.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026