Added by Stats. 1980, Ch. 858, Sec. 2. Effective August 31, 1980.
The provisions of Section 72678 shall not be applicable if any of the following conditions are met:
(a)The contract or transaction is between an auxiliary organization and a member of the board of directors of that auxiliary organization.
(b)The contract or transaction is between an auxiliary organization and a partnership or unincorporated association of which any member of the governing board of that auxiliary organization is a partner or in which he or she is the owner or holder, directly or indirectly, of a proprietorship interest.
(c)The contract or transaction is between an auxiliary organization and a corporation in which any member of the board of directors of that auxiliary organization is the owner or holder, directly or indirectly, of 5 percent or more of the outstanding common stock.
(d)A member of the board of directors of an auxiliary organization is interested in a contract or transaction within the meaning of Section 72677, and without first disclosing such interest to the governing board at a public meeting of the board, influences or attempts to influence another member or members of the board to enter into the contract or transaction.
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