43-6-421 - Cotton growers' organization Certification.
43-6-421. Cotton growers' organization Certification.
(a) The commissioner may certify a cotton growers' organization for the purpose of entering into agreements with the state of Tennessee, other states, the federal government and other parties as may be necessary to carry out the purposes of this part.
(b) In order to be eligible for certification by the commissioner, the cotton growers' organization must demonstrate to the satisfaction of the commissioner that:
(1) It is a nonprofit organization and could qualify as a tax exempt organization under § 501(a) of the Internal Revenue Code of 1954 [26 U.S.C. § 501(a)];
(2) Membership in the organization shall be open to all cotton growers in this state;
(3) The organization shall have only one (1) class of members with each member entitled to only one (1) vote; and
(4) The organization's board of directors shall be comprised as follows:
(A) Four (4) Tennessee cotton growers to be appointed by the commissioner;
(B) One (1) representative from each cotton producer organization certified as a producer organization by the National Cotton Council and eligible to name delegates to such council; and
(C) One (1) representative of state government from this state to be appointed by the commissioner.
(c) All books and records of account and minutes of proceedings of the organization shall be available for inspection or audit by the commissioner at any reasonable time.
(d) Employees or agents of the growers' organization who handle funds of the organization shall be adequately bonded in an amount to be determined by the commissioner.
(e) If the commissioner finds that the growers' organization meets the requirements set forth in subsection (b), the commissioner shall certify the organization in writing, for the purposes of this part only, and such certification shall not affect any other organization of cotton growers established for other purposes. The commissioner shall certify only one (1) such organization; provided, that the commissioner may revoke the certification of the organization if at any time the organization fails to meet the requirements of this part.
[Acts 1989, ch. 350, § 11.]