1200 PR.01 Identification and Approval of Private Business Use Activities

Revision Date: 
April 27, 2015

Policy 1200 Post-Issuance Tax-Exempt Bond Compliance (TEBC) requires the approval of all potentially private business use (PBU) activities by the TEBC Director or higher level.  Any activity that allows external parties to use University property is potentially PBU.  These activities must be reported to the TEBC Director so she or he can determine whether the activity actually involves the private business use of tax-exempt bond-financed (TEB-financed) property. 

The matrix below provides guidance for identifying and obtaining the required approvals for potentially PBU activities.  Specifically, this matrix outlines:

  • What broad categories of activities contain potentially PBU activities (that is, what categories of activities might allow the use of University property by external parties);
  • When a specific activity in this broad category might be PBU;
  • Who is responsible for identifying the potentially PBU activity (the “Identifier”); and
  • Who the Identifier should contact to obtain the TEBC Director’s review and approval.  In some cases, the Identifier will contact the TEBC Director directly.  In other cases, the Identifier will contact another unit, which will obtain the TEBC Director’s approval as part of a broader review and approval process.

Units Involved in the Identification and Approval of PBU Activities

Activity Category

Activity in This Category May be PBU If:

Unit Responsible for Identifying the Potentially PBU Activity

Unit to Contact to Gain TEBC Director’s Approval

Sale of Yale Property (Transfer of Ownership)

Yale sells a building to an external party or terminates a long-term (>10 years) lease from an external party.

University Properties 

Contact OGC/Real Estate 

Lease

Yale leases a Yale building or space (indoors or outdoors) to an external party.

For first-time leases of a specific space or building–University Properties

Contact TEBC Director. (See Procedure 2100 PR.01 Executing Revenue Agreements)

Use

Yale allows an external party to use space in a Yale facility for a short time.

Unit allowing an external party to use a Yale facility

Contact OGC/Real Estate.  (See Procedure 2100 PR.01 Executing Revenue Agreements)

Property, Tenant and Parking Management Contracts

Yale contracts with an external party to provide property, tenant or parking services in Yale buildings.

University Properties

Contact TEBC Director

All Other Management/Service Contracts

Yale contracts with an external party to provide services in Yale buildings. Examples: food or merchandise sales at sports events; childcare center.

Purchasing or the unit initiating the contract

Contact TEBC Director

Utility Output Contracts

Yale sells utilities to external entities other than Yale New Haven Hospital; existing external customers (e.g. Dwight Hall); and lessors of Yale property. The last two groups are already tracked so do not have to be reported.

Director of Utilities

Contact OGC/(Robert Bienstock)

Sponsored Research Agreements (SRA), Clinical Trial Agreements (CTA), Material Transfer Agreements (MTA)

An external party gives Yale money, materials, equipment, software and other research support to do research.

Office of Sponsored Projects (OSP)

Contact TEBC Director  (See Procedure 2100 PR.01 Executing Revenue Agreements)

Technology transfer & licensing agreements

A license agreement transferring technology or other inventions resulting from Yale research to an external party includes some sponsored research.  

Office of Cooperative Research (OCR)

Contact TEBC Director  (See Procedure 2100 PR.01 Executing Revenue Agreements)

Corporate researchers working at Yale

An employee of an external company is given the right to work temporarily in a Yale research building.

Department in which the employee works or  Office of Sponsored Projects (OSP)

TEBC Director

Unrelated trade or business (UTB) activities by Yale

Activity is unrelated to Yale’s educational, research and patient care mission and is done regularly, continuously, and to earn a profit. E.g. Sale of goods or services by Internal Service Providers (ISPs) or others to external parties.

For technical service agreements (TSAs)–Office of Sponsored Projects (OSP).  For all other sales of goods and services —Business Manager or ISP Director.

Contact TEBC Director

Naming rights

Yale executes an agreement giving an external party the right to name a Yale building or space after a for-profit entity, or after an individual or a non-profit with an overlapping name with a for-profit entity.

Office of Development

TEBC Director

Joint ventures, partnerships and limited liability companies (LLC) agreements

Yale enters into a joint venture, partnership, or LLC agreement with a non-501(c)(3) entity that involves the use of University space.

Unit proposing the joint venture, partnership or LLC

TEBC Director (See Policy 3411 Joint Ventures)

Other actual or beneficial use of, or economic benefit from, University property

Yale gives to an external party any special or priority rights to use Yale property.

Unit proposing to give such rights

TEBC Director

Religious Use

Yale allows a space to be used for sectarian worship or religious indoctrination

Unit proposing to give such rights

TEBC Director

For information on how the TEBC Director determines whether a potentially PBU activity that has been identified and forwarded to the TEBC Director as outlined above is actually PBU, see Procedure 1200 PR.02 Procedure for Ensuring Post-Issuance TEBC.