BILL NUMBER: AB 958	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2015

INTRODUCED BY   Committee on Agriculture

                        FEBRUARY 26, 2015

   An act to amend  Section 410 of   Sections
76535, 76600, 76602, 76604, 76650, 76651, 76652, 76700, 76701, 76702,
76705, 76706, 76707, 76708, 76709, 76712, 76714, 76715, 76716,
76717, 76718, 76750, 76800, 76851, 76852, 76900, 76901, 76901.5,
76903, 76904, 76904.5, 76905, 76906, 7   6907, 76908, 76909,
and 76910 of, to add Article 9.5 (commencing with Section 76961),
Article 10 (commencing with Section 76971), and Article 11
(commencing with Section 76981) to, and to repeal and add Article 9
(commencing with Section 76950) of, Chapter 16 of Part 2 of Division
22 of,  the Food and Agricultural Code, relating to  the
Department of Food and Agriculture.   salmon marketing
and development, and making a appropriation therefor. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 958, as amended, Committee on Agriculture.  Department
of Food and Agriculture.   California Salmon Marketing
and Development Act.  
   (1) Existing law, the California Salmon Marketing and Development
Act, creates the California Salmon Council, consisting of 9 voting
members, appointed by the Secretary of Food and Agriculture, and 5
nonvoting members, as provided. Under existing law, the council is
required to provide advice and investigations for, and perform duties
delegated to it by, the secretary, including programs to promote
education, research, and public information regarding the consumption
of salmon and salmon products. Existing law provides for referendum
voting by fishermen, as defined, to determine whether the act should
be implemented and, periodically, to review whether the operation of
the act and the council should be continued. Upon approval of the
referendum, existing law requires fishermen to pay specified
assessments to the secretary and requires the secretary to expend and
invest those moneys for purposes of the act. A violation of the act
is a misdemeanor.  
   This bill would change the composition of the council to include
11 voting members, appointed by the secretary, and 3 nonvoting
members and would make various changes to the requirements covering
commercial salmon fishing, with regard to notification of the adopted
regulations by the secretary.  
   The bill would require the secretary to establish a list of
handlers, defined to include processors, receivers, and wholesalers,
and would provide for referendum voting by those handlers to
determine whether they shall be subject to the act. Upon approval of
the referendum, the bill would require handlers to pay specified
assessments to the secretary and would require the secretary to
expend and invest those moneys for purposes of the act, thereby
making an appropriation. The bill would include handlers, if subject
to the act, in the periodic referenda to determine whether the
operation of the act and the council should be continued and would
make other conforming changes. By authorizing handlers to be subject
to the requirements of the act, the violation of which is a
misdemeanor, the bill would impose a state-mandated local program.
 
   Existing law states the intent of the Legislature that the
Department of Food and Agriculture, in cooperation with appropriate
county officials and industry representatives, develop mutually
satisfactory sources of nonstate funding to augment budget programs
in the areas of county agricultural commissioners and weights and
measures.  
   This bill would make a clarifying change to the statement of
intent. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 76535 of the   Food
and Agricultural Code   is amended to read: 
   76535.   (a)    "Handler" means any of the
following: 
   (a) 
    (1)  A processor. 
   (b) 
    (2)  A receiver. 
   (c) 
    (3)  A wholesaler. 
   (d) 
    (4)  An exporter. 
   (e) 
    (5)  An individual licensed or working for a
partnership, corporation, or any other business unit or organization
licensed pursuant to subdivision (a) of Section 8032 of the Fish and
Game Code and engaged in the California commercial salmon fishery.

   (b) "Handler" does not include a commercial salmon vessel operator
who sells salmon directly to another person. 
   SEC. 2.    Section 76600 of the   Food and
Agricultural Code   is amended to read: 
   76600.  The Legislature finds and declares that  the
provisions of  this chapter  are   is
 enacted in the exercise of the power of this state for the
purposes of protecting and furthering the public health and welfare.
   SEC. 3.    Section 76602 of the   Food and
Agricultural Code   is amended to read: 
   76602.  The Legislature declares that the purposes of this chapter
are as follows:
   (a)  To enable   Enable  the salmon
fishery, with the aid of the state, to develop, maintain, and expand
the state, nationwide, and foreign markets for salmon and salmon
products harvested, processed, manufactured, sold, or distributed in
this state for human consumption, and the use and consumption of
salmon and salmon products in those markets.
   (b)  To enable   Enable    the
salmon fishery to purchase, where there are willing sellers, the
allocation rights to harvest salmon, as they may exist, of other
salmon user groups to provide fishermen, and thereby the salmon
fishery, greater access to salmon stocks than otherwise may have been
provided pursuant to a conservation, management, or allocation
agreement.
   (c) In aid, but not in limitation, of the purpose in subdivision
(a),  to  authorize and enable the  director
  secretary  to formulate and effectuate, directly
or in cooperation with other agencies, organizations, including the
Oregon Salmon Commission,  the West Coast Fisheries
Development Foundation, and the National Fish and Seafood Promotion
Council,  and instrumentalities  which 
 that  are specified in this chapter, sales stimulation and
 consumer,   consumer  or other educational
programs designed to increase the use and consumption of salmon and
salmon products for human consumption.
   (d)  To provide   Provide  funds for the
administration and enforcement of this chapter by mandatory fees to
be collected in the manner  which is  prescribed in
this chapter.
   SEC. 4.    Section 76604 of the   Food and
Agricultural Code   is amended to read: 
   76604.  If any provision of this chapter or the application
thereof to any person or circumstances is held invalid, that
invalidity does not affect other provisions or applications of
 the act which   this chapter that  can be
given effect without the invalid provision or application, and to
this end the provisions of this  act   chapter
 are severable.
   SEC. 5.    Section 76650 of the   Food and
Agricultural Code   is amended to read: 
   76650.  The  director   secretary  shall
administer and enforce this chapter, and may exercise any of the
administrative powers which are conferred by Sections 11180 to 11191,
inclusive, of the Government Code upon a head of a department. In
order to effectuate the declared purposes of this chapter, the
 director   secretary  may contract to
carry out the declared intent and purposes of this chapter.
   SEC. 6.    Section 76651 of the   Food and
Agricultural Code   is amended to read: 
   76651.  Upon recommendation by the council, the  director
  secretary  may adopt, consistent with this
chapter, any regulations  which   that 
cover the administration and enforcement of this chapter that may be
necessary to carry out the purposes and attain the objectives of this
chapter, except the  director   secretary 
shall not engage in any salmon promotion activity or pursue the
purchase of allocation rights to harvest salmon without the approval
of a majority of the voting members of the council.
   SEC. 7.    Section 76652 of the   Food and
Agricultural Code   is amended to read: 
   76652.  Upon the adoption of any regulations under this chapter, a
copy of the regulations shall be  posted on a bulletin board
which shall be maintained by the director in his or her office
  displayed on the department's Internet Web site 
. No regulation shall become effective until five days after the
date of  that posting   display on the Internet
Web site  and  mailing. The director shall mail a copy
of the notice of the issuance of the regulations  
mailing  to every marketing association and every receiver that
is directly affected by the regulations whose name and address may be
on file in the office of the  director  
secretary  and to every person who files in the office of the
 director   secretary  a written request
for  that notice.   a   copy of the
regulations. 
   SEC. 8.    Section 76700 of the   Food and
Agricultural Code   is amended to read: 
   76700.  There is in the state government the California Salmon
Council. The council shall be composed of  nine 
 11  voting members and their alternates, and  five
  three  nonvoting members.
   SEC. 9.    Section 76701 of the   Food and
Agricultural Code   is amended to read: 
   76701.  The voting members of the council shall be appointed by
the  director   secretary  , after
consultation with the Director of Fish and  Game 
 Wildlife  , giving due consideration to proper geographic
distribution. The  nine   11  members shall
include:
   (a) Five commercial salmon vessel operators or their
representatives, and their alternates.
   (b)  Two  Three  handlers who are
receivers or processors or their representatives, and their
alternates.
   (c)  One representative   Two representatives
 of a handler who is an exporter or a wholesaler, and 
an alternate   their alternates  .
   (d) One public member, and an alternate.
   SEC. 10.    Section 76702 of the   Food and
Agricultural Code   is amended to read: 
   76702.  (a) The commercial salmon vessel operators and their
alternates shall be selected from lists of nominees submitted by
marketing associations and any organization deemed to represent the
majority of organized commercial salmon vessel operators, and from
nominations by individual commercial salmon vessel operators.
   (b) The receivers, processors, wholesalers, or exporters and their
alternates shall be selected from lists of nominees submitted by an
organization deemed to represent the majority of those organized
groups in the state, and from individual receivers, processors,
wholesalers, and exporters.
   (c) The public member and alternate shall be selected by the
 director   secretary  from a list
submitted by the commercial salmon vessel operators and handler
members of the council.
   SEC. 11.    Section 76705 of the   Food and
Agricultural Code   is amended to read: 
   76705.  Any vacancy in the membership of the council 
which   that  occurs during the unexpired term
shall be filled by the  director  secretary
 for the unexpired term from the eligible nominees. No council
member or alternate shall serve more than two consecutive three-year
terms. Service as an alternate does not disqualify a person to then
serve two additional terms as a member, and a member who was
appointed for a one-year or a two-year term may serve two additional
three-year terms.
   SEC. 12.    Section 76706 of the   Food and
Agricultural Code   is amended to read: 
   76706.  The  director   secretary  may
remove any member of the council or alternate for cause, and, upon
that removal, there is a vacancy  which   that
 shall be filled in the manner as provided for the unexpired
term in Section 76705.
   SEC. 13.   Section 76707 of the   Food and
Agricultural Code   is amended to read: 
   76707.  The  director   secretary  shall
give notice, not later than January 31 of each year, of the
vacancies that will exist upon the expiration of terms on March 31,
in writing, to all marketing associations and organizations deemed to
represent the majority of organized fishermen, or receivers,
processors, wholesalers, and exporters, and shall issue any press
releases and public statements that the  director 
 secretary  deems appropriate requesting nominations.
   SEC. 14.    Section 76708 of the   Food and
Agricultural Code   is amended to read: 
   76708.  (a) The notice requesting nominations shall indicate that
nominations shall be mailed  or sent electronically  to the
 director   secretary  at his or her office
in Sacramento and that the  director will  
secretary shall  consider nominations  received by mail
  sent electronically or  postmarked not later than
March 1.
   (b) Nominations shall set forth all of the following:
   (1) The name and address of each nominee.
   (2) Whether each nominee is being nominated as a member or
alternate member.
   (3) The type of category for which the nominee is being nominated.

   (4) The list of qualifications and supporters, if any, for the
nominee.
   (5) The name and address of the nominating marketing association,
organization, or individual.
   SEC. 15.    Section 76709 of the   Food and
Agricultural Code  is amended to read: 
   76709.  The nonvoting members of the council shall be
representatives of the following agencies, as selected by the
 director:  secretary: 
   (a) The department.
   (b) The Department of Fish and  Game 
Wildlife  .
   (c) The California Sea Grant Program. 
   (d) The West Coast Fisheries Development Foundation or the Coastal
Fisheries Foundation.  
   (e) The California State World Trade Commission. 
   SEC. 16.    Section 76712 of the   Food and
Agricultural Code   is amended to read: 
   76712.  (a) The council shall select annually from its voting
members, to serve at its pleasure, a chair and vice chair.
   (b) The chair and vice chair, together with four other voting
members, selected annually by the council, shall constitute the
executive committee of the council. The executive committee shall
have and exercise any powers of the council that the council may
delegate to it. 
   (c) If handlers have become subject to this chapter pursuant to
Article 9.5 (commencing with Section 76961), the officers and the
other members of the executive committee shall be equally divided
between commercial salmon vessel operators and handlers. 
   SEC. 17.    Section 76714 of the   Food and
Agricultural Code   is amended to read: 
   76714.  The voting members of the council shall receive forty
dollars ($40) per day per diem for each day spent in actual
attendance at the meetings or on the business of the council and
shall be reimbursed for necessary traveling and other expenses
incurred in the performance of their official duties, except, during
the first year of council operations, when members shall serve at
their own expense. Nonvoting members shall be reimbursed at the same
rate as voting members when their agencies do not pay their expenses.
Alternates shall only be paid expenses and per diem for meetings at
which they serve as the replacement for the  regular
  voting  member.
   SEC. 18.    Section 76715 of the   Food and
Agricultural Code   is amended to read: 
   76715.  No member of the council, except  a member
  members  of the executive committee, shall
receive compensation for more than three days' service per 
month, except the chair, who   month. The chair 
may receive compensation for not more than seven days per month.
   SEC. 19.    Section 76716 of the   Food and
Agricultural Code   is amended to read: 
   76716.  The  director   secretary may
require any employee or agent of the council to give a fidelity bond,
executed by a surety company  which   that
 is authorized to do business in this state, in favor of the
 director   secretary  , in the sum, and
containing any terms and conditions, that the  director
  secretary  may prescribe. The cost of the
fidelity bonds of employees or agents of the council shall be paid
from the funds  which   that  are collected
pursuant to this chapter.
   SEC. 20.    Section 76717 of the   Food and
Agricultural Code   is amended to read: 
   76717.  No member or employee of the council shall be held
responsible individually to any person for liability on any contract
or agreement of the council. All salaries, expenses, costs,
obligations, and liabilities  which   that 
arise out of the administration and enforcement of this chapter are
payable only from funds  which   that  are
collected pursuant to  the provisions of this
chapter.
   SEC. 21.    Section 76718 of the   Food and
Agricultural Code   is amended to read: 
   76718.  An alternate member of the council shall sit as a 
regular   voting  member of the council if the
member for whom he or she is an alternate fails for any reason to
attend any meeting of the council. The alternate member shall be
compensated and reimbursed in the same manner and to the same extent
as a  regular   voting  member when so
serving. When so serving, the alternate member has all of the powers,
duties, liabilities, and immunities of the member in whose place he
or she is serving, except that the alternate to the chair or vice
chair shall not succeed to the functions of these offices.
   SEC. 22.    Section 76750 of the   Food and
Agricultural Code   is amended to read: 
   76750.  The duties of the council shall be advisory, except as to
those duties that may be delegated to it by the secretary or as
otherwise designated in this chapter. The council may, subject to the
approval of the secretary, exercise any of the following powers that
may be delegated to the council by the secretary:
   (a)  To recommend   Recommend  to the
secretary administrative regulations that relate to the
administration and enforcement of this chapter.
   (b)  To investigate   Investigate  
 all matters that affect the administration of this chapter, and
to report violations of this chapter to the secretary.
   (c)  To employ   Employ  and, at its
pleasure, discharge a manager and such clerical help and other
employees as it deems necessary, and to prescribe their duties and
powers and fix their compensation.
   (d) To contract   Contract  with, or
employ, and at its pleasure, discharge any other persons that it
deems necessary, and in the cases of those persons it shall employ,
to outline their powers and duties and fix their compensation.
   (e)  To establish   Establish  
 offices and incur expenses incidental thereto.
   (f)  To make   Make  contracts and other
agreements that may be proper to promote the sale of salmon and
salmon products on either a local, state, national, or international
basis.
   (g) (1)  To cooperate   Cooperate  with
any other local, state, or national commission, organization, or
agency, whether voluntary or created by state or federal law,
including, but not limited to, the Oregon Salmon  Commission,
the West Coast Fisheries Development Foundation, the Coastal
Fisheries Foundation, and the National Fish and Seafood Promotion
Council, that is   Commission, and instrumentalities
that are  engaged in work or activities similar to the work and
activities of the council, and to recommend to the secretary the
making of contracts and agreements with those organizations or
agencies for carrying on joint programs of education, research,
publicity, and advertising.
   (2)  To recommend   Recommend  to the
secretary the making of contracts and agreements with other councils,
commodity commissions, or producer organizations for joint programs
of publicity and advertising where those products are compatible with
the promotion of salmon and salmon products.
   (3) In matters of research,  to  cooperate with
organizations of recognized professional standing that are adequately
equipped with facilities for the research that is contemplated.
   (h)  To recommend   Recommend  to the
secretary the institution and promotion of scientific research to
develop or discover, or both, the health, food, therapeutic,
dietetic, and other uses of salmon.
   (i) (1)  To receive,   Receive,  invest,
and disburse funds pursuant to Article 8 (commencing with Section
76900).
   (2)  To allocate   Allocate  funds to
agencies not specifically or solely engaged in carrying on research
or promotion for salmon, if the council and the secretary are
satisfied that those allocations will be beneficial to the California
salmon fishery and will tend to effectuate the declared purposes of
this chapter.
   (j)  To present   Present  facts to, and
negotiate with, state, federal, and foreign agencies on matters that
affect this chapter.
   SEC. 23.    Section 76800 of the   Food and
Agricultural Code   is amended to read: 
   76800.  The  director   secretary  shall
conduct, or may cause the council to conduct, programs of education,
research, or public information,  which   that
 are designed to accomplish the following purposes, among
others:
   (a) Increase the consumption of salmon and salmon products.
   (b) Gather, publicize, and diffuse accurate and scientific
information which shows the importance of the use and consumption of
salmon and salmon products in relation to the public health, economy,
and diet, and proper nutrition of children and adults.
   (c) Study means and methods which are employed in harvesting,
processing, manufacturing, marketing, and distributing salmon and
salmon products in order to comply with the sanitary and other
regulations which are imposed by municipalities, this state, and the
United States.
   (d) Gather and disseminate information regarding the high
standards which are observed and imposed to insure pure and wholesome
salmon and salmon products.
   (e) Gather and disseminate information regarding the harmful
effects on the public health resulting from the breakdown or
instability of the salmon fishery, the factors and conditions
peculiar to the salmon fishery which tend to cause an unbalanced
production, and the price of salmon and salmon products in relation
to the cost of other items of food in a balanced diet.
   (f) Gather and disseminate information regarding the factors which
tend to promote increased consumption of salmon and salmon products,
stabilize the fishery, and foster a better understanding and more
efficient cooperation among fishermen, receivers, processors, and the
consuming public.
   SEC. 24.    Section 76851 of the   Food and
Agricultural Code   is amended to read: 
   76851.  If the Attorney General determines under Section 76850
that selling allocation rights to harvest salmon would be binding and
consistent with California public policy and if an agreement for
purchase of allocation rights of harvest is determined to be lawful
and binding, the Director of Fish and  Game  
Wildlife  may, in consultation with the  director
  secretary  , develop a program to authorize the
transfer of the allocation rights consistent with all other state or
federal laws and regulations. Upon authorization by the Director of
Fish and  Game   Wildlife  , the 
director   secretary  may, at a price and quantity
agreed to by the council, and with funds available from the council,
enter into an agreement for the purchase of the allocation rights to
harvest from another user holding bona fide rights to harvest stocks
of salmon.
   SEC. 25.    Section 76852 of the   Food and
Agricultural Code   is amended to read: 
   76852.  The council, in any negotiations for the purchase of
tribal allocations of rights to harvest, if any, however they may
exist, may, with the  director   secretary 
, seek federal or other funds as may be available to match the
council funds for the purchase of allocation rights to harvest in
recognition of the federal government's responsibility to the Indian
people and their resources.
   SEC. 26.    Section 76900 of the   Food and
Agricultural Code   is amended to read: 
   76900.   In order to carry out the programs  
Programs  and  administer   administration
of  the activities  which   that  are
conducted pursuant to this  chapter, every  
chapter shall be funded as follows: 
    (a)     Every  fisherman who sells
salmon to any person, shall pay a fee, as specified in 
Sections 76902 and 76903   this article  , for each
pound or fraction thereof, of salmon taken and sold by the
fisherman. The fee shall be collected from the fisherman and remitted
to the  director   secretary  , by any
person licensed to receive fish to whom the salmon are sold. If the
salmon are sold to any other person the fee shall be remitted to the
 director   secretary  by the fisherman.

   (b) Every handler subject to this chapter pursuant to Article 9.5
(commencing with Section 76961) shall pay the fee specified in this
article for each pound or fraction thereof, of salmon received from a
fisherman. The fee shall be remitted to the secretary by the
handler. 
   SEC. 27.    Section 76901 of the   Food and
Agricultural Code   is amended to read: 
   76901.  Consistent with Section 8041 of the Fish and Game Code,
the following persons shall remit the fees required by 
subdivision (a) of  Section  76902   76900
 to the  director:   secretary: 
   (a) Any person who is required to be licensed as a fish receiver
by Section 8033 of the Fish and Game Code, and receives salmon in
this state from persons conducting the activities of a commercial
fisherman.
   (b) Any commercial fisherman who sells salmon to any person who is
not a licensed fish receiver.
   SEC. 28.    Section 76901.5 of the   Food
and Agricultural Code   is amended to read: 
   76901.5.  (a) Each person who is required by this chapter to
collect a fee from fishermen  or pay a fee as a handler 
shall maintain a complete and accurate record of all transactions
subject to the fee. These records shall contain any information
required by the  director   secretary 
relating to the collection of fees, shall be preserved for a period
of three years, and shall be available for review immediately upon
demand by the  director   secretary  or the
 director's   secretary's  duly authorized
agent.
   (b) Any information obtained by the  director or the
director's   secretary or the secretary's  duly
authorized agent from inspection or audit of records shall be
confidential and shall not be disclosed except when required  by
a court order after a hearing  in a judicial proceeding.
   SEC. 29.    Section 76903 of the   Food and
Agricultural Code   is amended to read: 
   76903.  The fees imposed under this article shall be paid monthly
to the  director   secretary  within 60
days after the last day of each month. If fees are not paid within 60
days after the month for which they are due, the  director
  secretary  shall collect amounts owing under the
procedures prescribed for sales and use taxes provided in Chapter 5
(commencing with Section 6451) of Part 1 of Division 2 of the Revenue
and Taxation Code, insofar as they may be applicable, and for those
purposes, "board" means the department and "the date of which the tax
became due and payable," means that date 60 days after the month for
which it is due.
   SEC. 30.    Section 76904 of the   Food and
Agricultural Code   is amended to read: 
   76904.  Sections 8058 to 8070, inclusive, of the Fish and Game
Code apply to claims for overpayment of fees to the  director
  secretary  . For purposes of this section,
"department," as used in those sections, means the Department of Food
and Agriculture, and "landing tax" means the fees imposed pursuant
to this article.
   SEC. 31.    Section 76904.5 of the   Food
and Agricultural Code   is amended to read: 
   76904.5.  The  director  secretary  may
consult with and enter into agreements with the Director of Fish and
 Game   Wildlife  where necessary and
reasonable, to assist in the administration of this chapter and in
enforcing compliance with this chapter. If an agreement is
established, the  director   secretary 
shall reimburse the Department of Fish and  Game 
 Wildlife  for administrative costs associated with this
chapter.
   SEC. 32.    Section 76905 of the   Food and
Agricultural Code   is amended to read: 
   76905.  After one year after the establishment of the council, and
not before the commercial salmon season of 1990, the council may
recommend to the  director   secretary  an
increase over and above the two cents ($0.02) per pound fee required
by Section 76902 for the council to carry out its duties under this
chapter. The council shall consider the budget for the council,
funding for activities conducted pursuant to Article 6 (commencing
with Section 76800) and Article 7 (commencing with Section 76850), as
well as the market price of salmon, landing taxes imposed by the
Department of Fish and  Game   Wildlife  ,
assessments charged by marketing associations, and any other relevant
factor affecting the economics of the salmon fishery. The council
shall, in making any determination to increase fees, consult with
marketing associations and, if the recommended increase would exceed
seven cents ($0.07) per pound of salmon sold,  shall conduct
a ballot poll of the commercial salmon vessel operators on the
director's list established pursuant to Article 9 (commencing with
Section 76950). After an initial ballot poll on a recommended
increase exceeding seven cents ($0.07) per pound of salmon sold, the
council shall consult with marketing associations and, if the
recommended increase would exceed five cents ($0.05) per pound of
salmon sold, shall conduct a ballot poll of the commercial salmon
vessel operators on the director's list. The director  
the council shall conduct a vote of persons on the secretary's lists
established pursuant to Article 9 (commencing with Section 76950) and
Article 9.5 (commencing with Section 76961)
                 . The secretary  may not increase any fee
without a majority approval of the voting members of the council.
   SEC. 33.    Section 76906 of the   Food and
Agricultural Code   is amended to read: 
   76906.  (a) All money that is collected by the  director
  secretary  pursuant to this chapter shall be
deposited in any bank, or other depository that is approved by the
Director of Finance, allocated to the purposes of this chapter only,
and disbursed by the  director   secretary 
or the council only for the necessary expenses that are incurred by
the council and the  director   secretary 
in carrying out  the purposes and provisions of 
this chapter, including expenses generated by the auditing
requirement contained in this section. Money that is so collected
shall be deposited and disbursed in conformity with appropriate
auditing regulations  which   that  are
prescribed by the  director   secretary  .
The expenditure of the money is exempt from Section 925.6 and 16304
of the Government Code.
   (b) All expenditures by the council and the  director
  secretary  shall be audited at least once every
two years by one of the following means:
   (1) By contract with a certified public account.
   (2) By contract with a public accountant holding a valid permit
issued by the California Board of Accountancy.
   (3) By contract with a public accounting firm.
   (4) By agreement with the Department of Finance.
   SEC. 34.    Section 76907 of the   Food and
Agricultural Code   is amended to read: 
   76907.  Money  which   that  is
deposited pursuant to Section 76906 may be invested and reinvested by
the Treasurer or the council in any of the securities described in
Article 1 (commencing with Section 16430) of Chapter 3 of Part 2 of
Division 4 of Title 2 of the Government Code, or placed in a
depository as provided in Chapter 4 (commencing with Section 16500)
of Part 2 of Division 4 of Title 2 of the Government Code, and
handled in the same manner as money in the State Treasury. For these
purposes, the money may also be combined with funds  which
  that  are determined by the  director
  secretary  to be available for investment
pursuant to Section 58939. Any increment  which 
 that  is received from investment, reinvestment, or deposit
made by the Treasurer shall be remitted to the council. The
Treasurer may deduct from the remittance an amount equal to the
reasonable cost incurred in carrying out this section or may bill the
council for the costs and the council shall pay the costs from money
 which   that  is collected for it
pursuant to this chapter.
   SEC. 35.    Section 76908 of the   Food and
Agricultural Code   is amended to read: 
   76908.  The  director   secretary  ,
after consultation with the council, shall prepare an annual budget
 which   that  sets forth in reasonable
detail the proposed expenditures  which   that
 the  director   secretary  deems
necessary for the performance by him or her and by the department of
the duties  which   that  are imposed upon
them by this chapter. The  director   secretary
 shall also prepare and submit to the council an annual
statement, in reasonable detail, of the  director's 
   secretary's  expenditures pursuant to this
chapter.
   SEC. 36.    Section 76909 of the   Food and
Agricultural Code   is amended to read: 
   76909.  The  director   secretary  may
receive funds in amounts that may be reasonable and necessary to
defray the initial expenses in making effective this chapter. The
 director   secretary  shall reimburse
those persons from whom those funds are received in the amounts
received from any funds which are received by the  director
  secretary  pursuant to this article.
   SEC. 37.    Section 76910 of the   Food and
Agricultural Code   is amended to read: 
   76910.  The  director   secretary  may
accept contributions to advance the purposes of this chapter. If
requested by the donor, the contributions shall be segregated and
separately maintained for the use of the council.
   SEC. 38.    Article 9 (commencing with Section 76950)
of Chapter 16 of Part 2 of Division 22 of the   Food and
Agricultural Code   is repealed. 
   SEC. 39.    Article 9 (commencing with Section 76950)
is added to Chapter 16 of Part 2 of Division 22 of the  
Food and Agricultural Code   , to read:  

      Article 9.  Implementation and Voting Procedure for Fishermen


   76950.  On or before August 15, 1989, the secretary shall
establish a list of commercial salmon vessel operators eligible to
vote on implementation of this chapter. In establishing the list, the
secretary may require that handlers and commercial salmon vessel
operators submit the names and mailing addresses of all commercial
salmon vessel operators who harvested salmon during the previous
season, as evidenced by receipts prepared under Section 8043 of the
Fish and Game Code, together with the volume of salmon landed. The
secretary may also request the assistance of the Director of Fish and
Wildlife for the names of all commercial salmon vessel operators who
landed salmon the previous season and the volume of landings for
each vessel. The request for the information shall be in writing and
shall be subject to the confidentiality provisions of Section 8022 of
the Fish and Game Code. The list shall be filed within 30 days
following receipt of the written notice.
   76951.  Any commercial salmon vessel operator whose name does not
appear upon the secretary's list of commercial salmon vessel
operators affected may have his or her name established on the list
by filing with the secretary a signed statement, identifying himself
or herself as a commercial salmon vessel operator and furnishing
evidence of having made landings the previous year through the
submission of receipts prepared under Section 8043 of the Fish and
Game Code. Failure to be on the list does not exempt a commercial
salmon vessel operator from paying assessments under this chapter.
   76952.  This chapter, except as necessary to conduct an
implementation referendum vote under this article shall not become
operative until the secretary finds in an implementation referendum
conducted by the secretary under this article, that at least 40
percent of the total number of commercial salmon vessel operators
from the list established by the secretary have participated by
voting in the referendum, and the secretary finds either of the
following:
   (a) Sixty-five percent or more of the commercial salmon vessel
operators who voted in the referendum voted in favor of implementing
this chapter, and the commercial salmon vessel operators who voted in
the referendum marketed 51 percent or more of the total quantity of
salmon landed in the preceding fiscal year by all the commercial
salmon vessel operators who voted in the referendum.
   (b) Fifty-one percent of the commercial salmon vessel operators
who voted in the referendum voted in favor of implementing this
chapter, and the commercial salmon vessel operators who voted in the
referendum marketed 65 percent or more of the total quantity of
salmon landed in the preceding fiscal year by all of the commercial
salmon vessel operators who voted in the referendum.
   76953.  The secretary shall establish a period in which to conduct
the implementation referendum which shall not be more than 60 days
in duration, and may prescribe additional procedures as may be
necessary to conduct the referendum. If the initial period
established is less than 30 days, the secretary may extend that
period. However, the total referendum period may not exceed 60 days.
   76953.5.  (a) Before the referendum vote is conducted by the
secretary, the proponents of the council shall deposit with the
secretary the amount that the secretary determines is necessary to
defray the expenses of preparing the necessary lists and information
and conducting the referendum vote.
   (b) Any funds not used in carrying out this article shall be
returned to the proponents of the council who deposited the funds
with the secretary.
   (c) Upon establishment of the council, the council may reimburse
the proponents of the council for any funds deposited with the
secretary that were used in carrying out this article, and for any
legal expenses and costs incurred in establishing the council.
   (d) After approval by the Commercial Salmon Trollers Advisory
Committee created pursuant to Section 7862 of the Fish and Game Code,
the Department of Fish and Wildlife may expend funds collected
pursuant to Section 7861 of the Fish and Game Code, for payment to
the Secretary of Food and Agriculture to pay necessary costs incurred
in conducting the implementation referendum vote. If the commercial
salmon vessel operators who voted in the implementation referendum
voted in favor of implementing this article, as provided in Section
76952, the council shall reimburse the Commercial Salmon Stamp
Account in the Fish and Game Preservation Fund all amounts received
from that fund.
   76954.  Nonreceipt of a ballot shall not invalidate a referendum.
   76955.  (a) If the secretary finds that a favorable vote has been
given, the secretary shall so certify and give notice of the
favorable vote to all commercial salmon vessel operators whose names
and addresses may be on file with the secretary.
   (b) If the secretary finds that a favorable vote has not been
given, the secretary shall so certify and declare all provisions of
this chapter inoperative. 
   SEC. 40.    Article 9.5 (commencing with Section
76961) is added to Chapter 16 of Part 2 of Division 22 of the 
 Food and Agricultural Code   , to read:  

      Article 9.5.  Implementation and Voting Procedure for Handlers


   76961.  On or before___, the secretary shall establish a list of
handlers eligible to vote on whether they shall be subject to this
chapter. In establishing the list, the secretary may require that
handlers provide receipts of the quantity of salmon received from
commercial salmon vessel operators in the previous season. The
secretary may also request the assistance of the Director of Fish and
Wildlife in compiling the list. The request for the information
shall be in writing and shall be subject to the confidentiality
provisions of Section 8022 of the Fish and Game Code. The list shall
be filed within 30 days following receipt of the written notice.
   76962.  Any handler whose name does not appear upon the secretary'
s list of handlers may have his or her name established on the list
by filing with the secretary a signed statement, identifying himself
or herself as a handler. Failure to be on the list does not exempt a
handler from paying assessments under this chapter.
   76963.  This chapter shall not apply to handlers until the
secretary finds in a referendum conducted by the secretary under this
article that at least 40 percent of the total number of handlers
from the list established by the secretary have participated by
voting in the referendum, and the secretary finds either of the
following:
   (a) Sixty-five percent or more of the handlers who voted in the
referendum voted in favor of being subject to this chapter, and the
handlers who voted in the referendum handled 51 percent or more of
the total quantity of salmon landed in the preceding fiscal year by
all the handlers who voted in the referendum.
   (b) Fifty-one percent of the handlers who voted in the referendum
voted in favor of being subject to this chapter, and the handlers who
voted in the referendum marketed 65 percent or more of the total
quantity of salmon landed in the preceding fiscal year by all of the
handlers who voted in the referendum.
   76964.  The secretary shall establish a period in which to conduct
the referendum that shall not be more than 60 days in duration, and
may prescribe additional procedures as may be necessary to conduct
the referendum. If the initial period established is less than 30
days, the secretary may extend that period. However, the total
referendum period may not exceed 60 days.
   76965.  (a) Before the referendum vote is conducted by the
secretary, the proponents of this article shall deposit with the
secretary the amount that the secretary determines is necessary to
defray the expenses of preparing the necessary lists and information
and conducting the referendum vote.
   (b) Any funds not used in carrying out this article shall be
returned to the proponents of this article who deposited the funds
with the secretary.
   (c) Upon passage of the referendum, the council may reimburse the
proponents of this article for any funds deposited with the secretary
that were used in carrying out this article, and for any legal
expenses and costs incurred in approval of this article.
   76966.  Nonreceipt of a ballot shall not invalidate a referendum.
   76967.  (a) If the secretary finds that a favorable vote has been
given, the secretary shall so certify and give notice of the
favorable vote to all handlers whose names and addresses may be on
file with the secretary.
   (b) If the secretary finds that a favorable vote has not been
given, the secretary shall so certify and declare this article
inoperative. 
   SEC. 41.    Article 10 (commencing with Section
76971) is added to Chapter 16 of Part 2 of Division 22 of the 
 Food and Agricultural Code   , to read:  

      Article 10.  Continuation


   76971.  (a) Between January 1, 2019, and February 28, 2019, and in
the same period each five years thereafter, the secretary shall, by
the public hearing procedure, and if appropriate, the procedure
specified in this article, determine whether the council program
provided for in this chapter shall continue in effect.
   (b) If the secretary finds from evidence received at the hearing
that a substantial question exists as to whether the council program
is contrary to or does not effectuate the declared purposes or
provisions of this chapter or receives in writing a referendum
petition with the signatures of 25 percent or more of the number of
commercial salmon vessel operators who made landings in the previous
year, as evidenced by receipts prepared under Section 8043 of the
Fish and Game Code, and, if applicable, 25 percent or more of the
handlers who are subject to this chapter, the council program shall
be submitted to referendum as provided in this article.
   76972.  If the secretary determines that a referendum procedure is
appropriate, the secretary shall establish a referendum period of
not to exceed 30 days during which period ballots shall be submitted
to every commercial salmon vessel operator and, if applicable, every
handler subject to this chapter on a statewide basis. If the
secretary determines that the referendum period does not provide
sufficient time for the balloting, the secretary may extend the
referendum for an additional period not to exceed 30 days. The
ballots shall provide a "yes" or "no" voting alternative to the
following question: "Shall the California Salmon Council be continued
for the next five fiscal years commencing April 1, following this
referendum?"
   76973.  If the council program is submitted to a referendum as
provided in this article, the secretary shall find that commercial
salmon vessel operators and, if applicable, handlers subject to this
chapter statewide have approved the council program if the secretary
finds either of the following:
   (a) Sixty-five percent or more of the total number of commercial
salmon vessel operators and handlers, who voted in the referendum and
who harvested 51 percent or more of the total amount of salmon
landed during the previous fiscal year by all commercial salmon
vessel operators and handlers who voted in the referendum, approve
the program.
   (b) Fifty-one percent or more of the total number of commercial
salmon vessel operators and handlers, who voted in the review
referendum and who harvested 65 percent or more of the total amount
of salmon landed during the previous fiscal year by all commercial
salmon vessel operators and handlers who voted in the review
referendum, approve the program.
   76974.  (a) This chapter shall continue if commercial salmon
vessel operators and handlers vote for continuation in accordance
with the requirements of this article.
   (b) This chapter shall not continue in operation if commercial
salmon vessel operators and handlers vote not to continue in
accordance with the requirements of this article.
   (c) If commercial salmon vessel operators vote for continuation
and handlers do not vote for continuation, or if handlers vote for
continuation and commercial salmon vessel operators do not vote for
continuation, this chapter shall continue to be operative for the
group voting for continuation and shall no longer apply to the group
voting against continuation. 
   SEC. 42.    Article 11 (commencing with Section
76981) is added to Chapter 16 of Part 2 of Division 22 of the 
 Food and Agricultural Code   , to read:  

      Article 11.  Termination


   76981.  If the commercial salmon vessel operators and the handlers
vote to terminate the council pursuant to Article 10 (commencing
with Section 76971), the council shall remain in existence for the
purpose of furnishing the secretary with a complete record of its
outstanding financial obligations, accrued and to accrue. The
secretary shall pay from the money deposited and disbursed any
outstanding obligations and any obligations incurred by the secretary
and the department under the terms and provisions of this section.
Any money that remains shall be retained by the secretary to defray
the expenses of formulation, issuance, administration, or enforcement
of any subsequent program for salmon promotion. If no such program
is undertaken within a period of three years from the date of
termination of the council, that money shall be withdrawn from the
approved depository and paid into the special account for enhancement
and restoration programs established pursuant to Section 7861 of the
Fish and Game Code. 
   SEC. 43.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    Section 410 of the Food and
Agricultural Code is amended to read:
   410.  It is the intent of the Legislature that the Department of
Food and Agriculture, in cooperation with appropriate county
officials and industry representatives, develop mutually satisfactory
sources of nonstate funding to augment budget programs in the areas
of county agricultural commissioners and county sealers of weights
and measures.