A. The Arizona historical society is established.

B. Subject to limitations imposed by law, the society may purchase, receive, hold, lease and sell property, real and personal, for the benefit of this state and use of the society. The society may solicit private monetary donations for program activities.

C. The society shall have a president, a treasurer and other officers who are elected by the members of the society at times and by methods the bylaws of the society prescribe. Each member of the board of directors shall have knowledge, competence, experience and interest in the fields related to the preservation and promotion of Arizona history and be a member of the society or become a member of the society before senate confirmation. The governor shall appoint the members pursuant to section 38-211 for a term of four years. The board of directors may designate from among its members an executive committee with authority to act in place of the board of directors and in accordance with directions the board of directors may give when the board of directors is not in session.

D. The board of directors is established consisting of the following members who are appointed pursuant to subsection C of this section:

1. One member from each county.

2. One member who is recommended by each of the designated historical organizations as prescribed by subsection I of this section.

3. Five members of the public.

E. The president shall preside at meetings of the society and of the board of directors. Each member of the board of directors is entitled to only one vote. The board of directors may conduct meetings telephonically.

F. The treasurer shall have custody of the monies of the society, other than legislative appropriations. The treasurer shall hold the monies of the society deposited in trust for the society’s use and for the benefit of this state and shall disburse them only as prescribed by law and the bylaws of the society.

G. The board of directors shall hold in trust for this state and administer for the benefit of this state and use of the society all property acquired by the society.

H. All expenditures of legislative appropriations to the society shall be made on claims that are duly itemized, verified and approved by the executive director of the society. The executive director of the society shall present and file claims for payment with the director of the department of administration. The director of the department of administration shall draw the warrant on the state treasurer. The society may expend nonappropriated private funds related to program activities.

I. The board of directors shall annually designate one or more historical organizations within each county of this state that are incorporated as nonprofit organizations and that are deemed to have a functioning program of historical value based on criteria established by the board of directors. The board of directors may organize chapters made up of groups of its members who have a common interest in a geographical area of this state or a common interest in a field of history, may provide for the governance of these chapters and may grant to any chapter the power to exercise authority of the society as the board of directors may determine.

J. The board of directors, subject to legislative appropriation, may contract with certified historical organizations for services to be performed for the benefit of this state. The contracts shall be prepared by the Arizona historical society. The board of directors shall annually review the contracts to ensure fulfillment of their provisions.

K. Subject to chapter 4, article 4 of this title, the board of directors may employ an executive director and may employ or authorize the employment of other employees it considers appropriate to carry out the functions of the society. The executive director and all other employees shall have duties and exercise authority as may be prescribed by the board of directors or by the executive director acting under the direction of the board of directors.

L. The board may operate a program for the establishment and maintenance of historical markers at various locations in this state.