(a)

(1) In each county of the state there is created a public body corporate and politic to be known as the rural development authority.

(2) The authority shall not transact any business or exercise its powers under this chapter until or unless the county court, by proper resolution, shall declare, at any time, its need for a development authority to function in the county.

(b) (1) (A) The determination as to whether there is a need for an authority to function may be made by:

(i) The county court on its own motion; or

(ii) The county court upon the filing of a petition signed by twenty-five (25) residents of the county asserting that there is need for an authority to function in the county and requesting that the court so declare.

(B)

(i) In either event, the court shall hold a public hearing on the matter as set forth in this section.

(ii) Prior to any hearing held to determine if there is need for an authority to function in the county, the clerk shall cause notice of the hearing to be published for at least two (2) successive weeks in a newspaper of general circulation in the county, setting forth the time and place of the hearing.

(iii) Not more than two (2) weeks after the last publication of the notice, the court shall hold a public hearing on it and adopt a resolution which shall state if there is a need for a development authority in the county and define the area of operation, which may be enlarged or reduced by a majority of the commissioners, appointed pursuant to this chapter, at any subsequent meeting.

(iv) The court may adopt a resolution declaring that there is a need for development authority in the county if it shall find that:

(a) Chronic unemployment or chronic underemployment exists in the area; or

(b) The economic development of the area is inadequate when compared with the economic development of other parts of rural America.

(2) The determination as to whether there is need for a development authority to function shall be made upon the petition of a majority in number of the owners of title to real property and the owners of a majority in value of the real property in any proposed development area, as shown by the last assessment, which petition shall define the boundaries of the proposed area of development and request the creation of a rural development authority for the area.

(c) In any suit, action, or proceeding involving the validity or enforcement of, or relating to, any resolution, regulation, or contract of the authority, the authority shall be conclusively deemed to have become established and authorized to transact business and exercise its powers under this chapter upon proof of its compliance with this section.