(a)

(1) The general assembly finds and declares that:

(A) The tributaries and subtributaries of the major waterways of Tennessee are among the basic resources of the state;

(B) Determination and effectuation of the best means for control of the flood waters of those tributaries and subtributaries, development of their full potential as a domestic, municipal, industrial and agricultural water source and use of their waters and shoreline lands for recreation and industrial development are public purposes essential to the integrated economic development of the areas drained by these streams and to the future economic welfare of the entire state;

(C) Development of the watershed of the Beech River by a local development authority will provide information on problems of water control and development valuable in the formulation of state policy with respect to similar action on larger streams; and

(D) Creation of a local development authority is essential to the achievement of these objectives in the watershed of the Beech River in Decatur and Henderson counties.

(2) There is, therefore, hereby created the Beech River watershed development authority, referred to as “authority” in this part, to exercise the powers granted in this part, in and with respect to the portions of the counties of Decatur and Henderson making up the watershed of the Beech River.

(b) The authority shall be a body politic and corporate and shall be governed by a board of directors consisting of:

(1) The commissioner of environment and conservation, the county mayor of Decatur County, and the county mayor of Henderson County as ex officio members; and

(2) Five (5) additional members to be appointed by the governor from persons residing in Decatur or Henderson County and to include persons active in municipal, industrial, agricultural and commercial groups concerned with the development of the Beech River watershed. One (1) such member shall be appointed for a three-year term, two (2) for six-year terms and two (2) for nine-year terms, but such terms shall continue in all events until successors are appointed. Their successors shall be appointed by the governor for terms of nine (9) years. Two (2) members shall be appointed from persons residing in Decatur County and three (3) from persons residing in Henderson County. In the event of a vacancy on the board, the governor shall appoint a successor for the unexpired term.

(c) The board of directors of the authority shall elect a chair from the voting members of the board for a term of three (3) years or for so long as such person remains a member of the board, whichever is less.

(d) The commissioner shall serve on the board in an advisory capacity without vote. The other members shall each have one (1) vote. The directors shall serve without pay except for actual traveling expenses and other necessary expenses incurred in the performance of their official duties, such expenses to be reimbursed from such funds as may be available to the authority.

(e)

(1) Upon completion of the membership of the board, the members shall meet and organize at Lexington, set a regular time and place for the meetings of the authority and obtain offices and all necessary equipment for the office.

(2) The board may employ an executive secretary and such other persons as it deems necessary to carry out the purposes stated in this part and the salary of any such employees may be paid out of such funds as may be available to the authority from any source. The executive secretary shall be the custodian of funds belonging to the authority and shall keep such records and accounts as may be required by the board. The executive secretary shall also execute a corporate surety bond as prescribed by the board.