279.7A - INTEREST IN PUBLIC CONTRACTS PROHIBITED -- EXCEPTIONS.
279.7A INTEREST IN PUBLIC CONTRACTS PROHIBITED --
EXCEPTIONS.
A member of the board of directors of a school corporation shall
not have an interest, direct or indirect, in a contract for the
purchase of goods, including materials and profits, and the
performance of services for the director's school corporation. A
contract entered into in violation of this section is void. This
section does not apply to contracts for the purchase of goods or
services which benefit a director, or to compensation for part-time
or temporary employment which benefits a director, if the benefit to
the director does not exceed two thousand five hundred dollars in a
fiscal year, and contracts made by a school board, upon competitive
bid in writing, publicly invited and opened. This section does not
apply to a contract that is a bond, note, or other obligation of a
school corporation if the contract is not acquired directly from the
school corporation, but is acquired in a transaction with a third
party, who may or may not be the original underwriter, purchaser, or
obligee of the contract, or to a contract in which a director has an
interest solely by reason of employment if the contract is made by
competitive bid in writing, publicly invited and opened, or if the
remuneration of employment will not be directly affected as a result
of the contract and the duties of employment do not directly involve
the procurement or preparation of any part of the contract. The
competitive bid qualification of this section does not apply to a
contract for professional services not customarily awarded by
competitive bid. Section History: Recent Form
90 Acts, ch 1209, §2; 91 Acts, ch 258, §40; 2000 Acts, ch 1187,
§1; 2001 Acts, ch 53, §2; 2003 Acts, ch 36, §1
Referred to in § 277.27