Sec. 9-203. Prohibition of Substantial Conflict of Interest.

1. A Trustee or the President of the University shall not be interested directly or indirectly in any contract with the University, the State, or any political subdivision of the State, which shall cause a substantial conflict of interest.
2. "Interest", as used in this subpart, means a pecuniary interest.
3. If there is a conflict of interest on the part of a Trustee or the President of the University in respect to a contract with the University, the State, or any political subdivision of the State, and if the personal interest of the Trustee or the President is of such substance as to induce action on his or her part in promoting the contract for his or her personal benefit, then the conflict of interest shall be deemed substantial and is therefore prohibited.
4. Notwithstanding subsection (3) above, a substantial conflict of interest of a Trustee or the President of the University shall be deemed notto exist in the following cases:
   1. A contract between the University, the State, or any political subdivision of the State and any of the following:
      1. A corporation in which a Trustee or the President of the University is a stockholder owning one percent (1%) or less of the total outstanding stock of any class where such stock is not listed on a stock exchange, or is a stockholder owning stock with a total market value of Twenty-five Thousand Dollars ($25,000) or less where such stock is listed on a stock exchange;
      2. A corporation in which a trust (where a Trustee or the President of the University is a beneficiary under the trust) owns one percent (1%) or less of the total outstanding stock of any class where such stock is not listed on a stock exchange, or owns stock with a total market value of Twenty-five Thousand Dollars ($25,000) or less where such stock is listed on a stock exchange;
      3. A professional limited liability company organized pursuant to Act 23 of the Michigan Public Acts of 1993, as amended (MCL 450.5101 et seq.), if the Trustee or the President of the University is an employee but not a member of the company.
   2. A contract awarded to the lowest qualified bidder, upon receipt of sealed bids pursuant to a published notice for bids, provided the notice does not bar, except as authorized by law, any qualified person, firm, corporation, or trust from bidding. This subsection (b) does not apply to amendments or renegotiations of a contract or to additional payments under a contract which were not authorized by the contract at the time of award.
   3. A contract for public utility services where the rates for the services are regulated by the state or federal government.