Chapter 07-362

Chapter 362

2007 -- H 6345

Enacted 07/07/07

A N A C T

RELATING TO EDUCATION -- THE RHODE ISLAND STUDENT LOAN AUTHORITY

Introduced By: Representatives DeSimone, and E Coderre

Date Introduced: May 01, 2007

It is enacted by the General Assembly as follows:

SECTION 1. Section 16-62-7 of the General Laws in Chapter 16-62 entitled "The Rhode

Island Student Loan Authority" is hereby amended to read as follows:

16-62-7. Directors, officers, and employees. -- (a) The powers of the authority shall be

vested in a board of directors consisting of ~~seven (7)~~ six (6) members as follows: five (5)

members appointed by the governor to the Rhode Island higher education assistance authority

from among members of the general public as provided in section 16-57-7, all appointments

subject to the advice and consent of the senate; and the general treasurer, ex-officio. The general

treasurer may designate a subordinate within his or her department or agency to represent him or

her at all meetings of the board.

(b) The directors shall receive no compensation for the performance of their duties under

this chapter, but each director shall be reimbursed for his or her reasonable expenses incurred in

carrying out those duties. A director may engage in private employment, or in a profession or

business.

directors shall constitute a quorum and any action to be taken by the authority under the

provisions of this chapter may be authorized by resolution approved by a majority of the directors

present and voting at any regular or special meeting at which a quorum is present. A vacancy in

the membership of the board of directors shall not impair the right of a quorum to exercise all the

rights and perform all the duties of the authority.

(d) In addition to electing a chairperson, the board of directors shall appoint a secretary

and any additional officers and staff members as they shall deem appropriate and shall determine

the amount of compensation, if any, each shall receive. The board of directors may appoint a

chief executive officer and vest in that person or his or her subordinates the authority to appoint

additional staff members and to determine the amount of compensation each individual shall

receive.

(e) No fulltime employee shall during the period of his or her employment by the

authority engage in any other private employment, profession, or business, including, but not

limited to, consulting.

(f) Notwithstanding any other law to the contrary, it shall not be or constitute a conflict

of interest for a director, officer, or employee of any financial institution, investment banking

firm, brokerage firm, commercial bank, trust company, savings and loan association, credit union,

insurance company, educational institution, or any other firm, person, or corporation to serve as a

director of the authority nor shall any contract or transaction between the authority and any

financial institution, investment banking firm, brokerage firm, commercial bank, trust company,

savings and loan association, credit union, insurance company, educational institution, or any

other firm, person, or corporation be void or voidable by reason of any service as director of the

authority. If any director, officer, or employee of the authority shall be interested either directly or

indirectly, or shall be a director, officer, or employee of or have an ownership interest (other than

as the owner of less than one percent (1%) of the shares of a publicly held corporation) in any

firm or corporation interested directly or indirectly in any contract with the authority, that interest

shall be disclosed to the authority and set forth in the minutes of the authority, and the director,

officer, or employee having that interest in it shall not participate on behalf of the authority in the

authorization of this contract. Interested directors may be counted in determining the presence of

a quorum at a meeting of the board of directors of the authority which authorizes the contract or

transaction.

(g) Any action taken by the authority under the provisions of this chapter may be

authorized by vote at any regular or special meeting, and each vote shall take effect immediately.

(h) The board of directors may designate from among its members an executive

committee and one or more other committees each of which, to the extent authorized by the board

of directors, shall have and may exercise all the authority of the board of directors, but no

committee shall have the authority of the board of directors in reference to the disposition of all

or substantially all the property and assets of the authority, or amending the bylaws of the

authority.

(i) Any action required by this chapter to be taken at a meeting of the board of directors,

or any action which may be taken at a meeting of the board of directors, or committee of it, may

be taken without a meeting if a consent in writing, setting forth the action to be taken, shall be

signed before or after that action by all of the directors, or all of the members of the committee.

(j) The board shall conduct a training course for newly appointed and qualified members

and new designees of ex-officio members within six (6) months of their qualification or

designation. The course shall be developed by the chair of the board, approved by the board, and

conducted by the chair of the board. The board may approve the use of any board or staff

members or other individuals to assist with training. The training course shall include instruction

in the subject area of this chapter and chapters 46 of title 42, 14 of title 36, and 2 of title 38; and

the board's rules and regulations. The director of the department of administration shall, within

ninety (90) days of the effective date of this act, disseminate training materials relating to the

provisions of chapters 46 of title 42, 14 of title 36, and 2 of title 38.

SECTION 2. This act shall take effect upon passage.

=======

LC02961

=======