(a) The organization of the agency shall be as follows:

(1) The agency shall be governed by a board of directors consisting of twelve (12) members;

(2)

(A) The governor shall appoint one (1) director from each county named in § 64-1-601(b). Each director shall be chosen from a list of three (3) candidates nominated by majority vote of the county legislative bodies of each county. Candidates shall include persons active in municipal, industrial, agricultural, commercial and citizen organizations, such as the Upper Duck River development association, and active in promoting comprehensive unified development of the resources and economic growth of the Upper Duck River watershed. The presiding officer of the governing body of each county shall certify such nominations to the governor. From the nominations, the governor shall appoint three (3) directors for terms of three (3) years and two (2) directors for terms of four (4) years. Successors shall be appointed for terms of six (6) years. Directors shall serve until their successors are appointed. If a vacancy occurs, the governor shall appoint a successor for the unexpired term;

(B) The governor shall designate a member of the governor's staff or cabinet to serve as a director during the governor's term of office;

(C) The governor shall designate county mayors from two (2) counties of the area to serve as directors for two-year terms;

(D) The governor shall designate mayors of two (2) incorporated cities or towns of the area to serve as directors for two-year terms; and

(E) The governor shall appoint two (2) additional directors for terms of four (4) years. The governor may choose from a list of six (6) at-large candidates nominated by the board of directors. There is no residency requirement for the two (2) additional directors other than to be citizens of the state; and

(3) The board of directors shall elect a chair, vice chair and secretary-treasurer and set a regular time and place for meetings of the board.

(b) Directors serve without compensation, except reimbursement 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 agency. All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.