Specific Financial Interest Standards

California Education Code:

Section 89006. Unlawful to Utilize NonPublic Information for Personal Pecuniary Gain

It is unlawful for any person to utilize any information, not a matter of public record, that is received by that person by reason of his or her
employment by, or contractual relationship with, the trustees, the California State University, or an auxiliary organization of the California State
University, for personal pecuniary gain, not contemplated by the terms of the employment or contract, regardless of whether the person is or is not so
employed or under contract at the time the gain is realized. (4/93)

Section 89906. Financial Interest Prohibited

No member of the governing board of an auxiliary organization shall be financially interested in any contract or other transaction entered into by the
board of which he is a member, and any contract or transaction entered into in violation of this section is void. (4/77)

Section 89907. Exception to Financial Interest Prohibition

No contract or other transaction entered into by the governing board of an auxiliary organization is void under the provisions of Section 89906, nor shall
any member of such board be dis-qualified or deemed guilty of misconduct in office under said provisions, if the circumstances specified in the following sub
divisions exist:

  1. The fact of such financial interest is disclosed or known to the governing board and noted in the minutes, and the governing board thereafter
    authorizes, approves, or ratifies the contract or trans-action in good faith by a vote sufficient for the purpose without counting the vote or votes of
    such financially interested member or members; and
  2. The contract or transaction is just and reasonable as to the auxiliary organization at the time it is authorized or approved. (4/77)

Section 89908. Other Prohibited Financial Interests

The provisions of Section 89907 shall not be applicable if the circumstances specified in any of the following subdivisions exist:

  1. The contract or transaction is between an auxiliary organization and a member of the governing board of that auxiliary organization.
  2. 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 is the owner or holder, directly or indirectly, of a proprietorship interest.
  3. The contract or transaction is between an auxiliary organization and a corporation in which any member of the governing board of that auxiliary
    organization is the owner or holder, directly or indirectly, of 5 percent or more of the outstanding common stock.
  4. A member of the governing board of an auxiliary organization is interested in a contract or transaction within the meaning of Section 89906,
    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. (4/77)

Section 89909. Unlawful to Utilize NonPublic Information for Personal Pecuniary Gain

It is unlawful for any person to utilize any information, not a matter of public record, which is received by him by reason of his membership on the governing
board of an auxiliary organization, for personal pecuniary gain, regardless of whether he is or is not a member of the governing board at the time such gain is
realized. (4/77)

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