If a player cannot locate his/her disc and a member of the card declares 'time starts now' and even after the entire group searches for 3 minutes and the disc is still not found. What is the ruling?

What if the disc is found after the 3 minutes?

I ask this because in the rule book it states that TWO players or an official must note when the timing of the 3 minutes begins.

Not ONE player.

Does this mean the 3 minute rule is thrown out and the player whom had lost the disc gets to throw from his found disc without penalty?

I'm guessing if he doesn't take a provisional then too bad for him/her, but if he did what would the ruling be?

As long as another player in the group heard the call by the player stating, "Time starts now," that's enough to meet the two player criteria. Two players don't need to shout it out or be looking at the clock when time starts.

If a player cannot locate his/her disc and a member of the card declares 'time starts now' and even after the entire group searches for 3 minutes and the disc is still not found. What is the ruling?

The one who called time counts as one person and since you heard him call time you count as number two, so time starts at that point. If it isn't found when the clock hits three minutes, your disc is considered lost.

What if the disc is found after the 3 minutes?

As soon as someone says that time is up then you have to take the lost disc penalty unless the disc was found to have been taken by someone.

As soon as someone says that time is up then you have to take the lost disc penalty unless the disc was found to have been taken by someone.
Usually you don't find out until later that someone took it so you play it as a lost disc with penalty then later deduct 2 throws from the score on that hole if had been taken.