§ 72679 Auxiliary Organization Contract Exemptions

Key Takeaways

•This law says some rules don’t apply if a board member of a group (like a school club) makes a deal with the group.
•It also doesn’t apply if the board member owns part of a company or business that makes a deal with the group.
•If a board member tries to push a deal without telling everyone first in a public meeting, the rules don’t apply either.

Example

A parent on the school booster club board wants the club to buy supplies from their store.

If the parent doesn’t tell the board in a public meeting and tries to get them to buy from their store, the usual rules about fair deals don’t apply here.

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. (Added by Stats. 1980, Ch. 858, Sec. 2. Effective August 31, 1980.)

Key Takeaways

•This law says some rules don’t apply if a board member of a group (like a school club) makes a deal with the group.
•It also doesn’t apply if the board member owns part of a company or business that makes a deal with the group.
•If a board member tries to push a deal without telling everyone first in a public meeting, the rules don’t apply either.

Example

A parent on the school booster club board wants the club to buy supplies from their store.

If the parent doesn’t tell the board in a public meeting and tries to get them to buy from their store, the usual rules about fair deals don’t apply here.

Key Takeaways

Example

Key Terms

References

§ 72679 Auxiliary Organization Contract Exemptions

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References