1. Except as otherwise provided in subsection 2, all members of the Board, directors and other officers or employees of the Department are prohibited from having any interest, directly or indirectly, in any contract entered into by the Department.
2. If the Director of the Department deems it necessary to enter into a contract with one of the persons described in subsection 1, the Director shall submit the proposed contract to the State Board of Examiners for approval. Upon its approval, the Director may enter into the contract.
3. Any contract made in violation of this section may be declared void at the instance of the State or any person interested in the contract except a person prohibited from being interested in it.
4. Any person violating the provisions of this section, directly or indirectly, is guilty of a gross misdemeanor, forfeits his or her office and is forever disqualified from holding any public office in this state.