Members and officers of the city and county boards of education and the district boards of education of independent school districts may be financially interested in or have any personal beneficial interest, either directly or indirectly, in the purchase of or contract for any personal property or contractual service under either of the following conditions:

1. (1) The contract or agreement under which the financial interest arises was created prior to the election or appointment of the individual to the position he or she holds.
2. (2) The individual holding the position does not participate in, by discussion or by vote, the decision-making process which creates the financial or personal beneficial interest.

(Acts 1967, Ex. Sess., No. 217, p. 259, §3; Act 2011-583, p. 1279, §1.)