792

LAWS OF MARYLAND

Ch. 266

report to the State Department of Agriculture.

(D)        [[THE]] IF RAW AGRICULTURAL PRODUCTS ARE

DELIVERED BY MEMBERS TO A COOPERATIVE ASSOCIATION UNDER
MARKETING CONTRACTS WHICH ENTITLE THE MEMBERS TO NET
PROCEEDS FROM THE SALE OF THE PRODUCTS IN THEIR RAW OR
PROCESSED STATE AND SUBJECT THE MEMBERS TO ASSESSMENTS IN
THE EVENT OF AN OPERATING LOSS, THE FINANCIAL STATEMENTS
INCLUDED IN THE ANNUAL REPORT REFERRED TO IN (A) ABOVE
FOR ASSOCIATIONS ENGAGED IN HANDLING RAW AGRICULTURAL
PRODUCTS SHALL BE AUDITED BY THE ASSOCIATION'S

INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT. THE AUDIT SHALL
BE MADE IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING
STANDARDS.         COPIES OF AN ANNUAL REPORT TOGETHER WITH THE

INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT ON HIS
EXAMINATION OF THE ASSOCIATION'S FINANCIAL STATEMENTS
SHALL BE FURNISHED TO EACH MEMBER OR STOCKHOLDER OF THE
ASSOCIATION AND THE MARYLAND SECRETARY OF AGRICULTURE.
[[THE REPORT SHALL BE EXPLAINED ORALLY BY THE CERTIFIED
PUBLIC ACCOUNTANT TO THE BOARD.]] AN INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANT AND LEGAL COUNSEL SHALL BE

APPOINTED BY THE ASSOCIATION'S BOARD OF DIRECTORS. THE

CERTIFIED PUBLIC ACCOUNTANT SHALL EXPLAIN HIS REPORT
ORALLY TO THE BOARD OF DIRECTORS.

IF THE SECRETARY OF AGRICULTURE FINDS ANY FINANCIAL
MISREPRESENTATION IN THE INFORMATION CONTAINED IN THE
ANNUAL REPORT, HE SHALL SO NOTIFY EACH DIRECTOR OF THE
ASSOCIATION AS SHOWN ON THE RECORDS OF THE DEPARTMENT
WITHIN 180 DAYS FOLLOWING THE END OF ITS FISCAL YEAR.
THE SECRETARY OF AGRICULTURE MAY ENGAGE INDEPENDENT OR
STATE EMPLOYED AUDITORS TO DETERMINE IF THERE IS ANY
MISREPRESENTATION.

[[(E) INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS      AND

LEGAL COUNSEL FOR ASSOCIATIONS ENGAGED IN HANDLING   PAW

AGRICULTURAL PRODUCTS SHALL BE APPOINTED BY ITS BOARD     OF
DIRECTORS.]]

[[(F)]] (E) THE REQUIREMENTS OF THIS SECTION SHALL
BE MET ALSO BY ALL FOREIGN COOPERATIVE ASSOCIATIONS
ENGAGED IN HANDLING RAW AGRICULTURAL PRODUCTS THAT HAVE
ONE OR MORE MARYLAND RESIDENTS AS MEMBERS OR
STOCKHOLDERS.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1976.

Approved May 4, 1976.

CHAPTER 267
(Senate Bill 172)