Question: Is it appropriate for an employee to sell food items to students in the locker room area? Can an employee of a district make personal financial gain from something like this?

Response: The immediate answer is no, an employee of a district cannot make personal financial gain from selling food items to students on campus during the school day with few exceptions. State law (Education Code section 51520) prohibits any solicitation -- sales or other requests for money -- of students on school grounds except by district-controlled programs, such as the cafeteria, student groups or other board-approved groups. Teachers and other employees do not fall into these categories. In addition, an employee’s fund-raising would be taxable income to that individual, reportable to the Internal Revenue Service and Franchise Tax Board. Student body groups may participate in the district’s special income tax exempt status, but employees may not.

If by chance the employee had a separate business, with a business tax identification number and an official business license, and they were approved to sell food items on campus under limited circumstances, this may be allowable if working in conjunction with the food service program or a student group. But, based on the information you’ve provided, we don’t believe this is the case.

Even if this employee was working in conjunction with an approved student group and/or the food service program, there are limitations on what food and beverage items can be sold and how often the sales can occur. But again, this does not apply based on the information provided in your question.

3/13/09