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 appointed
member 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 board
may belong to the same political party.
(d) An appointed member serves a four (4) year term. An
appointed member shall hold over after the expiration of the
member's term until the member's successor is appointed and
qualified.
(e) The governor may reappoint an appointed member of the
board.
(f) A vacancy shall be filled for the balance of an unexpired term
in the same manner as the original appointment.
(g) The treasurer of state shall serve as chairman of the board. The
board shall annually elect one (1) of its ex officio members as vice
chairman, and may elect any other officer that the board desires.
(h) The governor may remove an appointed member for
misfeasance, malfeasance, willful neglect of duty, or other cause
after notice and a public hearing, unless the member expressly
waives 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 the
minimum salary per diem provided by IC 4-10-11-2.1(b). Each
appointed member is, however, entitled to reimbursement for
traveling expenses and other expenses actually incurred in
connection with the member's duties.
(b) An ex officio member of the board is entitled to
reimbursement for traveling expenses and other expenses actually
incurred 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 person
to serve as an ex officio member of the board in the absence of the
ex 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 authority
to 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 at
least five (5) members of the board are physically present at the place
where the meeting is conducted. A member of the board may
participate in a meeting of the board by using a means of
communication that permits:
(1) the member;
(2) all other members participating in the meeting; and
(3) all members of the public physically present at the place
where the meeting is conducted;
to simultaneously communicate with each other during the meeting.
A member who participates in a meeting described in this subsection
is considered to be present at the meeting. If a meeting is held under
this subsection, the memoranda of the meeting prepared under
IC 5-14-1.5-4 must state the name of each member who was
physically present at the place where the meeting was conducted,
who participated in the meeting by using a means of communication
described in this subsection, and who was absent from the meeting.
(c) The affirmative vote of a majority of all the members of the
board who are present is necessary for the authority to take action. A
vacancy in the membership of the board does not impair the right of
a quorum to exercise all the rights and perform all the duties of the
authority. An action taken by the board under this article may be
authorized by:
(1) resolution at any regular or special meeting; or
(2) unanimous consent of all the members who have not
abstained.
A resolution takes effect immediately upon adoption and need not be
published or posted.
(d) The board shall meet at the call of the chairman and as
provided 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 of
IC 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 board
has all powers necessary or convenient to carry out and effectuate the
purposes and objectives of this article, the purposes and objectives
of the education savings programs, and the powers delegated by law
or executive order, including the following powers:
(1) To develop and implement the education savings programs
and, notwithstanding any provision in this article to the
contrary, other services consistent with the purposes and
objectives of this article, through:
(A) rules or emergency rules adopted under IC 4-22-2; or
(B) rules, guidelines, procedures, or policies established by
the board and approved by the commission for higher
education.
(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 this
article, to the requirements of a qualified state tuition program
set forth in Section 529 of the Internal Revenue Code and all
applicable federal regulations, through:
(A) rules or emergency rules adopted under IC 4-22-2; or
(B) guidelines, procedures, or policies established by the
board.
(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 initial
and periodic).
(5) To employ persons, if the board chooses, and as may be
necessary, and to fix the terms of their employment.
(6) To recommend legislation to the governor and general
assembly.
(7) To apply for designation as a tax exempt entity under the
Internal Revenue Code.
(8) To adopt such rules, bylaws, procedures, guidelines, and
policies as are necessary to carry out the education savings
programs and services and the authority's management and
operations.
(9) To sue and be sued.
(10) To provide or facilitate provision of benefits and incentives
for the benefit of qualified beneficiaries, account owners,
contributors, or account beneficiaries as the board's resources
allow or as are directed or provided for by the general assembly.
(11) To conform the education savings programs to federal tax
advantages or incentives, as in existence periodically, to the
extent consistent with the purposes and objectives of this
article.
(12) To interpret, in rules, policies, guidelines, and procedures,
the provisions of this article broadly in light of the purposes and
objectives of this article.
(13) To charge, impose, and collect administrative fees and
service charges in connection with any agreement, contract, or
transaction 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 the
education savings programs and services and promptly transmit the
annual report to the governor and the general assembly. The
authority shall make available, upon request, copies of the annual
report to qualified beneficiaries, account owners, and the public. A
report transmitted under this section to the general assembly must be
in 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 the
authority, the education savings programs, or the endowment
fund; or
(2) to be administered for other public or charitable purposes
for the benefit or use of account owners or account
beneficiaries.
(b) The authority may receive, accept, hold, administer, and use
any 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, or
devise if, in the judgment of the board, the action is in the best
interest of the authority, the education savings programs, the
endowment fund, account owners, contributors, or account
beneficiaries, as applicable.
(c) The authority may accept a gift, devise, donation, or bequest
made for the purpose of providing an annuity on conditions
consistent with the conditions set forth in IC 21-30-3-3 and
IC 21-30-3-4 (relating to boards of trustees of state educational
institutions).
(d) The authority may, if not inconsistent with the terms and
conditions 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 of
the board, is of the greatest benefit to the authority, the
education savings programs, the endowment fund, account
beneficiaries, and account owners.
(e) When acting under the powers granted by this article and also
with respect to the money in the endowment fund and the program
account as provided in IC 21-9-5 and IC 21-9-7, the members serve
as trustees of private trusts, subject to the terms and conditions of the
trust program or the gift, bequest, donation, or devise and law
applicable 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 of
the 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 the
authority; and
(B) the minute book or journal of the authority; and
(3) may copy all minutes and other records and documents of
the authority and may give certificates of the authority to the
effect that the copies are true copies. A person who deals with
the 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 education
savings program, the:
(1) chairman;
(2) vice chairman;
(3) manager; and
(4) any officer elected by the authority or member of the
authority authorized by resolution to handle funds or sign
checks;
shall execute a surety bond in the penal sum of one hundred thousand
dollars ($100,000). The surety bond shall be conditioned upon the
faithful performance of the duties of the office of the principal and
shall be executed by a surety company authorized to transact
business 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 a
defense in a suit arising out of the performance of duties for or
on behalf of the authority or the board, if the board determines
that the duties were performed in good faith.
(2) Save a person described in subdivision (1) or the board
harmless from any liability, cost, or damage in connection with
an action arising out of the performance of duties for or on
behalf of the authority or the board, including the payment of
any legal fees, except where the liability, cost, or damage is
predicated on, or arises out of, the bad faith of the person or the
board, or is based on the person's or board's malfeasance in the
performance 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 of
interest or violation of any other law for a person to serve as a
member of the authority. However, a member shall disclose a
conflict of interest relating to actions of the authority as required and
in a manner provided by IC 35-44-1-3.
As added by P.L.165-1996, SEC.1.