CHAPTER 4. AUTHORITY BOARD OF DIRECTORS AND OFFICERS
IC 21-9-4
Chapter 4. Authority Board of Directors and Officers
IC 21-9-4-1
Board of directors; members; vacancy; chairman; removal
Sec. 1. (a) The board of directors of the authority is established.The board consists of the following:
(1) The following four (4) ex officio members or directors:
(A) The treasurer of state.
(B) The state superintendent of public instruction.
(C) The Indiana commissioner for higher education.
(D) The budget director.
(2) Five (5) appointed members or directors who:
(A) are appointed by the governor; and
(B) have knowledge, skill, and experience in academic,business, financial, or education fields.
(b) During a member's term of service on the board, an appointedmember of the board may not be an official or employee of the state.
(c) Not more than three (3) of the appointed members of the boardmay belong to the same political party.
(d) An appointed member serves a four (4) year term. Anappointed member shall hold over after the expiration of themember's term until the member's successor is appointed andqualified.
(e) The governor may reappoint an appointed member of theboard.
(f) A vacancy shall be filled for the balance of an unexpired termin the same manner as the original appointment.
(g) The treasurer of state shall serve as chairman of the board. Theboard shall annually elect one (1) of its ex officio members as vicechairman, and may elect any other officer that the board desires.
(h) The governor may remove an appointed member formisfeasance, malfeasance, willful neglect of duty, or other causeafter notice and a public hearing, unless the member expresslywaives the notice and hearing in writing.
As added by P.L.165-1996, SEC.1. Amended by P.L.2-2007,SEC.247.
IC 21-9-4-2
Salary; reimbursement
Sec. 2. (a) An appointed member of the board is not entitled to theminimum salary per diem provided by IC 4-10-11-2.1(b). Eachappointed member is, however, entitled to reimbursement fortraveling expenses and other expenses actually incurred inconnection with the member's duties.
(b) An ex officio member of the board is entitled toreimbursement for traveling expenses and other expenses actuallyincurred in connection with the member's duties.
As added by P.L.165-1996, SEC.1.
IC 21-9-4-3
Designation of ex officio member
Sec. 3. An ex officio member of the board may designate a personto serve as an ex officio member of the board in the absence of theex officio member.
As added by P.L.165-1996, SEC.1.
IC 21-9-4-4
Power of board to employ manager and delegate functions
Sec. 4. The board may:
(1) employ a manager, who is not a member of the board; and
(2) delegate necessary and appropriate functions and authorityto the manager.
As added by P.L.165-1996, SEC.1.
IC 21-9-4-5
Quorum; presence at meetings; authority to act; meetings
Sec. 5. (a) Five (5) members of the board are a quorum for:
(1) the transaction of business at a meeting of the board; or
(2) the exercise of a power or function of the authority.
(b) This subsection applies to a meeting of the board at which atleast five (5) members of the board are physically present at the placewhere the meeting is conducted. A member of the board mayparticipate in a meeting of the board by using a means ofcommunication that permits:
(1) the member;
(2) all other members participating in the meeting; and
(3) all members of the public physically present at the placewhere the meeting is conducted;
to simultaneously communicate with each other during the meeting.A member who participates in a meeting described in this subsectionis considered to be present at the meeting. If a meeting is held underthis subsection, the memoranda of the meeting prepared underIC 5-14-1.5-4 must state the name of each member who wasphysically present at the place where the meeting was conducted,who participated in the meeting by using a means of communicationdescribed in this subsection, and who was absent from the meeting.
(c) The affirmative vote of a majority of all the members of theboard who are present is necessary for the authority to take action. Avacancy in the membership of the board does not impair the right ofa quorum to exercise all the rights and perform all the duties of theauthority. An action taken by the board under this article may beauthorized by:
(1) resolution at any regular or special meeting; or
(2) unanimous consent of all the members who have notabstained.
A resolution takes effect immediately upon adoption and need not bepublished or posted.
(d) The board shall meet at the call of the chairman and asprovided in the bylaws of the authority. (e) Meetings of the board may be held anywhere in Indiana.
As added by P.L.165-1996, SEC.1.
IC 21-9-4-6
Authority as public agency; board as governing body
Sec. 6. (a) The authority is a public agency for purposes ofIC 5-14-1.5 and IC 5-14-3.
(b) The board is a governing body for purposes of IC 5-14-1.5.
As added by P.L.165-1996, SEC.1.
IC 21-9-4-7
Powers of board
Sec. 7. In addition to any power granted by this article, the boardhas all powers necessary or convenient to carry out and effectuate thepurposes and objectives of this article, the purposes and objectivesof the education savings programs, and the powers delegated by lawor executive order, including the following powers:
(1) To develop and implement the education savings programsand, notwithstanding any provision in this article to thecontrary, other services consistent with the purposes andobjectives of this article, through:
(A) rules or emergency rules adopted under IC 4-22-2; or
(B) rules, guidelines, procedures, or policies established bythe board and approved by the commission for highereducation.
(2) To conform the education savings programs and,notwithstanding any provision in this article to the contrary,services consistent with the purposes and objectives of thisarticle, to the requirements of a qualified state tuition programset forth in Section 529 of the Internal Revenue Code and allapplicable federal regulations, through:
(A) rules or emergency rules adopted under IC 4-22-2; or
(B) guidelines, procedures, or policies established by theboard.
(3) To retain professional services, including the following:
(A) Financial advisers and managers.
(B) Custodians and other fiduciaries.
(C) Investment advisers and managers.
(D) Accountants and auditors.
(E) Consultants or other experts.
(F) Actuarial services providers.
(G) Attorneys.
(4) To establish minimum account deposit amounts (both initialand periodic).
(5) To employ persons, if the board chooses, and as may benecessary, and to fix the terms of their employment.
(6) To recommend legislation to the governor and generalassembly.
(7) To apply for designation as a tax exempt entity under theInternal Revenue Code. (8) To adopt such rules, bylaws, procedures, guidelines, andpolicies as are necessary to carry out the education savingsprograms and services and the authority's management andoperations.
(9) To sue and be sued.
(10) To provide or facilitate provision of benefits and incentivesfor the benefit of qualified beneficiaries, account owners,contributors, or account beneficiaries as the board's resourcesallow or as are directed or provided for by the general assembly.
(11) To conform the education savings programs to federal taxadvantages or incentives, as in existence periodically, to theextent consistent with the purposes and objectives of thisarticle.
(12) To interpret, in rules, policies, guidelines, and procedures,the provisions of this article broadly in light of the purposes andobjectives of this article.
(13) To charge, impose, and collect administrative fees andservice charges in connection with any agreement, contract, ortransaction under an education savings program or services.
(14) To have perpetual succession.
As added by P.L.165-1996, SEC.1. Amended by P.L.25-1999, SEC.8;P.L.135-2002, SEC.18; P.L.2-2007, SEC.248.
IC 21-9-4-8
Annual report by authority
Sec. 8. The authority shall prepare an annual report for theeducation savings programs and services and promptly transmit theannual report to the governor and the general assembly. Theauthority shall make available, upon request, copies of the annualreport to qualified beneficiaries, account owners, and the public. Areport transmitted under this section to the general assembly must bein an electronic format under IC 5-14-6.
As added by P.L.165-1996, SEC.1. Amended by P.L.135-2002,SEC.19; P.L.28-2004, SEC.157.
IC 21-9-4-9
Acceptance of gifts, bequests, donations, and devises by authority
Sec. 9. (a) The authority may accept gifts, bequests, donations,and devises of personal and real property:
(1) as trustees for the maintenance, use, or benefit of theauthority, the education savings programs, or the endowmentfund; or
(2) to be administered for other public or charitable purposesfor the benefit or use of account owners or accountbeneficiaries.
(b) The authority may receive, accept, hold, administer, and useany property transferred to the authority by gift, bequest, donation,or devise in accordance with the terms, conditions, obligations,liabilities, and burdens imposed on the gift, bequest, donation, ordevise if, in the judgment of the board, the action is in the best
interest of the authority, the education savings programs, theendowment fund, account owners, contributors, or accountbeneficiaries, as applicable.
(c) The authority may accept a gift, devise, donation, or bequestmade for the purpose of providing an annuity on conditionsconsistent with the conditions set forth in IC 21-30-3-3 andIC 21-30-3-4 (relating to boards of trustees of state educationalinstitutions).
(d) The authority may, if not inconsistent with the terms andconditions of a gift of real property:
(1) sell, convey, or otherwise dispose of the real property; and
(2) invest, reinvest, or use the proceeds as, in the judgment ofthe board, is of the greatest benefit to the authority, theeducation savings programs, the endowment fund, accountbeneficiaries, and account owners.
(e) When acting under the powers granted by this article and alsowith respect to the money in the endowment fund and the programaccount as provided in IC 21-9-5 and IC 21-9-7, the members serveas trustees of private trusts, subject to the terms and conditions of thetrust program or the gift, bequest, donation, or devise and lawapplicable to private trusts.
As added by P.L.165-1996, SEC.1. Amended by P.L.135-2002,SEC.20; P.L.2-2007, SEC.249.
IC 21-9-4-10
Duties of manager of authority
Sec. 10. A manager or another person designated by resolution ofthe authority:
(1) shall keep a record of the proceedings of the authority;
(2) shall be custodian of:
(A) all books, documents, and papers filed with theauthority; and
(B) the minute book or journal of the authority; and
(3) may copy all minutes and other records and documents ofthe authority and may give certificates of the authority to theeffect that the copies are true copies. A person who deals withthe authority may rely upon the certificates.
As added by P.L.165-1996, SEC.1.
IC 21-9-4-11
Surety bond
Sec. 11. Before the adoption and implementation of any educationsavings program, the:
(1) chairman;
(2) vice chairman;
(3) manager; and
(4) any officer elected by the authority or member of theauthority authorized by resolution to handle funds or signchecks;
shall execute a surety bond in the penal sum of one hundred thousand
dollars ($100,000). The surety bond shall be conditioned upon thefaithful performance of the duties of the office of the principal andshall be executed by a surety company authorized to transactbusiness in Indiana. The authority shall pay the cost of the bonds.
As added by P.L.165-1996, SEC.1.
IC 21-9-4-12
Duties of authority
Sec. 12. The authority shall do the following:
(1) Provide the board and each member, officer, employee,consultant, counsel, and agent of the authority or the board adefense in a suit arising out of the performance of duties for oron behalf of the authority or the board, if the board determinesthat the duties were performed in good faith.
(2) Save a person described in subdivision (1) or the boardharmless from any liability, cost, or damage in connection withan action arising out of the performance of duties for or onbehalf of the authority or the board, including the payment ofany legal fees, except where the liability, cost, or damage ispredicated on, or arises out of, the bad faith of the person or theboard, or is based on the person's or board's malfeasance in theperformance of duties.
As added by P.L.165-1996, SEC.1.
IC 21-9-4-13
Conflicts of interest
Sec. 13. Notwithstanding any other law, it is not a conflict ofinterest or violation of any other law for a person to serve as amember of the authority. However, a member shall disclose aconflict of interest relating to actions of the authority as required andin a manner provided by IC 35-44-1-3.
As added by P.L.165-1996, SEC.1.