(1) Certification or recognition as an exclusive representative shall be extended or continued, as the case may be, only to a labor or employee organization the written bylaws of which provide for and guarantee the following rights and safeguards and whose practices conform to such rights and safeguards as:
(a) provisions are made for democratic organization and procedures;
(b) elections are conducted pursuant to adequate standards and safeguards;
(c) controls are provided for the regulation of officers and agents having fiduciary responsibility to the organization; and
(d) requirements exist for maintenance of sound accounting and fiscal controls, including annual audits.
(2) The board shall hear and decide all disputes arising under subsection (1).