(a) Except as otherwise provided in this Section, the governing board of each auxiliary organization shall provide salaries, working conditions and benefits for its full-time employees which are comparable to those provided campus employees performing substantially similar services. For those full-time employees who perform services that are not substantially similar to the services performed by campus employees, the salaries established shall be at least equal to the salaries prevailing in other educational institutions in the area or commercial operations of like nature.

(b) Notwithstanding anything in this Section to the contrary, the governing board of each auxiliary organization may withhold retirement benefits or permanent status benefits or both from temporary employees. For the purposes of this Section, a temporary employee is:

(c) Notwithstanding anything in this Section to the contrary, the governing board of each auxiliary organization may withhold permanent status benefits from executive employees. For the purposes of this Section, an executive employee is any management employee with responsibility for the development and execution of auxiliary organization policy and includes, but is not limited to, general managers, managers, directors, and the like, as determined by the governing board of each auxiliary organization.

(d) At least annually, the Chancellor shall determine which of the auxiliary organizations included on the list prepared pursuant to Section 42406 is an auxiliary organization funded primarily by mandatory student fees collected by the Trustees. Notwithstanding anything in this Section to the contrary, the governing board of any auxiliary organization designated by the Chancellor as an auxiliary organization that is primarily funded by mandatory student fees collected by the Trustees may withhold retirement benefits from its employees.

(e) Notwithstanding anything in this Section to the contrary, the Chancellor may exempt the governing board of any newly created auxiliary organization from the requirement of providing retirement benefits for a period not to exceed three years from the date on which the Chancellor approves the establishment of the auxiliary organization pursuant to Section 42407.

(f) The Chancellor shall provide, and may from time to time revise, rules and procedures for the administration of this Section.