Office of General Counsel

Frequently Asked Questions

Is the University a 501(c)(3) Entity?

What is a Notary Public and how do I become a Notary?

Are there requirements for making agreements for student internships and field placements?

What are the permitted uses of Social Security numbers?

Can the University promise to keep an agreement confidential?

More FAQ's to come...

Is the University a 501(c)(3) Entity?
The Office of General Counsel is often asked if the University is a 501(c)(3) entity under the Internal Revenue Code. It is not. The following is the text of an informational memo prepared by our office on the Tax Exempt Status of the University:

Central Michigan University is a body corporate established by Article 8, sections 4 and 6 of the Constitution of the State of Michigan. Repeated court decisions have established that public universities created by the constitution and statutes of Michigan are governmental entities with authority, within the scope of their functions, “coordinate with and equal to” that of the state legislature. Regents v Auditor General, 167 Mich 444 (1911). See also, Sterling v Regents of University of Michigan, 110 Mich 369 (1896); Attorney General ex rel Cook v Burhans, 304 Mich 108 (1942); Branum v Board of Regents of University of Michigan, 5 Mich App 134 (1966); Federated Papers v Michigan State University Board of Trustees, 460 Mich 75 (1999).

Central Michigan University is not subject to federal income tax. Governmental instrumentalities and political subdivisions of states are not subject to federal income tax because they are described in section 115 of the Internal Revenue Code.

Central Michigan University may receive donations which are tax deductible. Governmental instrumentalities and political subdivisions of states may receive donations which are tax deductible to the donors. Internal Revenue Code, Section 170(c)(1) and Section 170(b)(1)(A)(ii) and (v).

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What is a Notary Public and how do I become a Notary?
A Notary Public has specific duties and responsibilities. For an informational presentation on what a Notary is and what those duties and responsibilities are, please see this PowerPoint presentation.

Persons applying to be a Notary Public must acquire a Notary Bond. The University’s Risk Management & Insurance Office can assist you with obtaining the bond and the appropriate forms. Please go to: http://www.rmi.cmich.edu/.

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Are there requirements for making agreements for student internships and field placements?
The University calls these agreements “Affiliation Agreements.”

Please go to the following site for a description of these agreements and directions/requirements for developing them: http://www.provost.cmich.edu/viceprovost/ .

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What are the permitted uses of Social Security numbers?
Michigan’s Social Security Number Privacy Act became effective in March, 2005. It describes permitted and prohibited uses of Social Security numbers. It also requires that the University have a policy in place on the use of those numbers for students, staff and others. This policy is found in the University’s Administrative Policy Manual, available through our site. Please go to: http://www.cmich.edu/General_Counsel_Home/Policies_Procedures_and_Guidelines.htm and click on policy number 3-14. If you have other questions concerning use of Social Security numbers, please contact our office.

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Can the University promise to keep an agreement confidential?
The University is often asked to promise confidentiality of information it obtains or develops in the course of a contract with a third party. Because the University is a public body subject to the Freedom of Information Act, such promises must be made very carefully.

Promises that the University will keep certain information confidential may be made only under limited circumstances. The conditions for promising confidentiality are set out in Michigan law, specifically, the Freedom of Information Act itself and the Confidential Research and Investment Information Act.

Freedom of Information Act

The Freedom of Information Act is found at MCLA 15.231, et seq. Section 13 (MCLA 15.243) provides that certain information is exempt from disclosure under the Freedom of Information Act. Exception (f) applies to trade secrets or commercial or financial information:
(f) Trade secrets or commercial or financial information voluntarily provided to an agency for use in developing governmental policy if:
(i) The information is submitted upon a promise of confidentiality by the public body.

(ii) The promise of confidentiality is authorized by the chief administrative officer of the public body or by an elected official at the time the promise is made.

(iii) A description of the information is recorded by the public body within a reasonable time after it has been submitted, maintained in a central place within the public body, and made available to a person upon request. This subdivision does not apply to information submitted as required by law or as a condition of receiving a governmental contract, license, or other benefit.
This exception may apply to agreements the University makes with commercial vendors or, for example, a corporation that wants the University to conduct some market testing of its products. It may apply to protect the confidentiality of source codes of software vendors. It will not apply to keep confidential the fact that the agreement exists, or the amount the University is paid, or pays, in connection with the agreement. It will only rarely apply to the entire contract or agreement itself. On the other hand, it may apply to protect the confidentiality of financial information supplied by a bidder which is used by the University to decide whether that entity has the financial resources to perform the contract.

The exception applies to information provided to the University for use in developing governmental policy. This is one of the hardest conditions to meet. Units within the University are encouraged to discuss the applicability of this condition with the Contracting and Purchasing Services Office, the General Counsel’s office and, in connection with research grants or contracts, the Office of Research and Sponsored Programs.

For the exception to apply, the information must be submitted upon a promise of confidentiality by the University. This means that the promise must be requested by the outside party to the contract, and the University must make the commitment to keep the information confidential before the information is shared.

The promise of confidentiality must be authorized by the president of the University. If the president will sign the entire contract with the other party, then the promise of confidentiality may be included in the contract itself. However, usually the promise is contained in a separate letter. The unit within the University that needs the promise of confidentiality so that it can pursue the work of a contract should prepare a letter for the president’s signature. Assistance in drafting such a letter can be obtained from the Office of General Counsel, the Director of Contracting and Purchasing Services and, in connection with research grants or contracts, the Office of Research and Sponsored Programs.

Within 20 days after the contract is signed, a copy of the letter is sent to the Faculty Personnel Services office. A short, non-confidential description of the information to be kept confidential is prepared by the originating unit and also provided to Faculty Personnel Services. That office keeps the letter and description and makes them available to anyone who asks. The purpose of this provision is to allow the public to know how many promises of confidentiality the University has made and, in general terms, what kind of information has been promised confidentiality.

Confidential Research and Investment Information Act

The second law that allows the University to keep confidential certain information received from third parties is the Confidential Research and Investment Information Act. MCLA 390.1551, et seq.

The Confidential Research and Investment Information Act (CRIIA) extends the ability of the University to promise confidentiality beyond what is usually allowed by the Freedom of Information Act. Section 3 of the Act (MCLA 390.1553) declares that the following information is exempt from disclosure under the Freedom of Information Act:
Trade secrets, commercial information, or financial information, including that information as it relates to computer hardware and software, that is provided to a public university or college by a private external source and that is in the possession of the public university or college in the performance of a lawful function.
The information that may be kept confidential is similar to that covered by section (f) of the Freedom of Information Act. However, this law interprets and applies those words to clarify that information that is used in the performance of a lawful function is covered. It also removes any doubt that the law applies to information related to computer hardware and software.

Before the information may be kept confidential, however, the following four conditions must be met:
  1. The information must be used exclusively for research, testing, evaluation, and related activities.


  2. The third party must clearly designate the information as confidential before or at the time it is received by the University. The information cannot be designated as confidential after it has been received by the University.


  3. The University and the third party must enter into an agreement to keep the information confidential.

    The agreement must be authorized by the President of the University or his/her designee. This law allows the President to delegate the authority to sign confidentiality agreements. President Rao has delegated this authority to the Vice Provost for Research, the Vice President for Technology, and the Associate Dean of the College of Graduate Studies. (Memo dated June 13, 2006)

    The unit within the University that wishes to maintain the confidentiality of certain information it will receive from third parties may contact one of the three officers listed above. They will advise on the format and content of the letter authorizing the confidentiality.


  4. Once the confidentiality agreement is authorized, a document containing a general description of the information to be kept confidential, the term of the confidentiality agreement (the start and end dates), the name of the third party with whom the confidentiality agreement was made, and a general description of the nature of the intended use for the information must be recorded and maintained in a central place and made available to the public upon request. The Faculty Personnel Services office maintains these documents and provides them to the public when requested.
There are exceptions to the exception; that is, there are times when confidentiality cannot be maintained even if the above conditions are met. For example, to the extent the information indicates a substantial likelihood that a person may be killed or injured by the use of the product or process, the University has an affirmative duty to notify appropriate local, state and federal regulatory agencies if the product or process is in the stream of commerce and other conditions do not apply. Additional information about these exceptions is available from the office of General Counsel.

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