When NIU’s contract with Pepsi ends starting in 2008, the company won’t be required to provide scholarships or funding to NIU.

Neither will Coke nor any other contracted vendor of a college or university, as a state law was passed in August 1999 that no longer allows universities to require donations for a new contract.

The law states that no college, university or institution under a governing board may require, stipulate, suggest or encourage a donation as part of a condition to award a contract.

“It’s sort of sad,” said Eddie Williams, executive vice president of Business and Finance and chief of Operations. “We are dealing with tight budgets, and this was a way to support our staff and students.”

“We had already started negotiations, so we grandfathered NIU,” said Mary Viola, communications director for PepsiAmericas. “We will honor our contract.”

NIU signed a 10-year contract with Pepsi in August 1998 for exclusive soda rights on campus. Pepsi agreed to provide $400,000 in donations per year.

“There’s no jeopardy at all of losing current funding,” Williams said. “There’s no risk in any possible way.”

Although the current law will not require donations, exclusive contracts with other universities have been signed since the law went into effect, Viola said.

Sue Willis, faculty senate president, mentioned the Pepsi contract two weeks ago at the faculty senate meeting after learning the legislation would prohibit funding on any new contracts.

“I know none of the schools are making an effort to resurrect this matter,” Williams said. “Maybe through those discussions, someone will look at it again.”

The decision to keep Pepsi as NIU’s exclusive beverage provider won’t be an issue for a few years.

“We will look at what is the best option at that time,” Williams said.