§ 106-65.86. Certification by Board; requirements. - North Carolina Statutes

§ 106‑65.86. Certification by Board; requirements.

(a)        The Board may certify a cotton growers' organization for thepurpose of entering into agreements with the State of North Carolina, otherstates, the federal government and other parties as may be necessary to carryout the purposes of this Article.

(b)        In order to be eligible for certification by the Board, thecotton growers' organization must demonstrate to the satisfaction of the Boardthat:

(1)        It is a nonprofit organization and could qualify as a tax‑exemptorganization under section 501(a) of the Internal Revenue Code of 1954 (26 USC501(a));

(2)        Membership in the organization shall be open to all cottongrowers in this State;

(3)        The organization shall have only one class of members witheach member entitled to only one vote;

(4)        The organization's board of directors shall be composed of:

a.         Two cotton growers from this State being appointed by theCommissioner, with the consent of the Board; and

b.         One representative of State government from this State,appointed by the Commissioner, with the consent of the Board.

(5)        All books and records of account and minutes of proceedingsof the organization shall be available for inspection or audit by theCommissioner or his representative at any reasonable time; and

(6)        Employees or agents of the growers' organization who handlefunds of the organization shall be adequately bonded. (1983, c. 136, s. 3.)