WASHINGTON — The Municipal Securities Rulemaking Board on Monday launched its search for seven new board of directors who will serve three-year terms starting Oct. 1.

The board consists of 21 members who serve for three years on a staggered basis, so that seven roll off every year and are replaced.

The MSRB has been required by the Dodd-Frank Act to have a majority of public board members since October 2010 and has 11 public members and 10 members from regulated entities.

Four of the new seven members must be “public representatives” who are not affiliated with an entity regulated by the board. Public members may represent institutional or retail municipal bond investors, the public, or an issuer.

The remaining three new members must be representatives of muni broker-dealers, banks or advisors. Applications can be submitted on the MSRB’s website.

The 11-member nominating and governance committee selects candidates and interviews them during the third and fourth quarter of the MSRB’s fiscal year, which runs through Sept. 30. The committee then nominates finalists to the full board of directors, who elect the new members.

Board members whose terms expire this year are: chairman Jay Goldstone, chief operating and finance officer of San Diego; vice chairman Stephen Heaney, managing director at Stone & Youngberg; Sheryl Bailey, deputy administrator of Chesterfield County, Va.; David Madigan, chief investment officer at Breckinridge Capital Advisors Inc.; Benjamin Thompson, chief executive officer at Samson Capital Advisors; Alan Polsky, senior vice president at Dougherty & Co. and former board chair; and Robert Lamb, president of Lamont Financial Services Corp.

Unlike board members of most other nonprofit muni groups but similar to another self-regulator, the Financial Industry Regulatory Authority, the MSRB pays its board members.

In 2010, it paid directors $45,000 annually and committee heads $50,000, according to MSRB communications director Jennifer Galloway.

The board’s vice chairman received an additional $15,000 and the chairman an additional $30,000.

Board members are to attend quarterly meetings and must serve on one or more committee, such as the audit committee, finance committee, nominating and governance committee, or steering committee.

Committee members also convene through conference calls and periodic in-person meetings.

Members may also serve on working groups, which may be established to help the board make rules.

Board members typically spend one to five hours each week on MSRB-related work, according to the Form 990 the board filed with the Internal Revenue Service for its fiscal year 2011.

The board pays for required travel, reimbursing members the cost of business-class rail fare, coach airfare on trips of three hours or less, and first-class or business-class airfare on longer trips.

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