(a)

(1) The municipal port authority shall be created by ordinance of the governing body of the city or town and shall be an instrumentality of the city or town creating the authority.

(2)

(A) Any city or incorporated town in the State of Arkansas shall have the right, by ordinance, to create and set up a port authority.

(B)

(i) The authority shall consist of and be governed by a board of not less than five (5) members and not more than seven (7) members, one (1) of whom may be the mayor of the city or incorporated town creating the authority.

(ii) If the mayor is a member of the port authority, the mayor shall be chair.

(iii) If the mayor is not a member of the port authority, the chair shall be elected by the members of the authority.

(b)

(1) The members shall be appointed by the mayor of the city or town creating the authority and shall be qualified electors residing in the city or town or within the county in which the city or town is located.

(2) (A) (i) The members of the board shall be appointed for a period of one (1) year, two (2) years, three (3) years, four (4) years, and five (5) years, respectively.

(ii) If the authority consists of more than five (5) members, the new members shall initially be appointed for staggered terms so that in no year will more than two (2) members be appointed to a full five-year term.

(B)

(i) Upon the termination of office of each member, his or her successor shall be appointed for a term of five (5) years and shall serve until his or her successor has been appointed and qualified.

(ii) In the event of a vacancy, however caused, the successor shall be appointed by the mayor for the unexpired term.

(3)

(A) The board shall elect one (1) of their number as vice chair and shall elect a secretary and a treasurer who need not necessarily be members of the board.

(B) The authority shall require a surety bond of the treasurer appointee in such amount as the authority may fix, and the premiums on it shall be paid by the authority as a necessary expense of the authority.

(4) The board shall meet upon the call of its chair. A majority of all of its members shall constitute a quorum for the transaction of business.

(5) The members of the authority shall receive such compensation for their services as shall be determined and prescribed by the ordinance setting up and creating the authority.