Amended in Assembly May 4, 2015

Amended in Assembly April 22, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 958


Introduced by Committee on Agriculture

February 26, 2015


An act to amend 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, 76907, 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 salmon marketing and development, and makingbegin delete aend deletebegin insert anend insert appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 958, as amended, Committee on Agriculture. California Salmon Marketing and Developmentbegin delete Act.end deletebegin insert Act: California Salmon Council.end insert

(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 bybegin delete fishermen,end deletebegin insert commercial salmon vessel operators,end insert 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 includebegin delete 11 voting members, appointed by the secretary, andend delete 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.begin insert Upon approval of the referendum, the bill would change the composition of the council to include 11 voting members appointed by the secretary.end insert 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.

begin insert

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 76535 of the Food and Agricultural Code
2 is amended to read:

P3    1

76535.  

(a) “Handler” means any of the following:

2(1) A processor.

3(2) A receiver.

4(3) A wholesaler.

5(4) An exporter.

6(5) An individual licensed or working for a partnership,
7corporation, or any other business unit or organization licensed
8pursuant to subdivision (a) of Section 8032 of the Fish and Game
9Code and engaged in the California commercial salmon fishery.

10(b) “Handler” does not include a commercial salmon vessel
11operator who sells salmon directly to another person.

12

SEC. 2.  

Section 76600 of the Food and Agricultural Code is
13amended to read:

14

76600.  

The Legislature finds and declares that this chapter is
15enacted in the exercise of the power of this state for the purposes
16of protecting and furthering the public health and welfare.

17

SEC. 3.  

Section 76602 of the Food and Agricultural Code is
18amended to read:

19

76602.  

The Legislature declares that the purposes of this
20chapter are as follows:

21(a) Enable the salmon fishery, with the aid of the state, to
22develop, maintain, and expand the state, nationwide, and foreign
23markets for salmon and salmon products harvested, processed,
24manufactured, sold, or distributed in this state for human
25consumption, and the use and consumption of salmon and salmon
26products in those markets.

27(b) Enable the salmon fishery to purchase, where there are
28willing sellers, the allocation rights to harvest salmon, as they may
29exist, of other salmon user groups to provide fishermen, and
30 thereby the salmon fishery, greater access to salmon stocks than
31otherwise may have been provided pursuant to a conservation,
32management, or allocation agreement.

33(c) In aid, but not in limitation, of the purpose in subdivision
34(a), authorize and enable the secretary to formulate and effectuate,
35directly or in cooperation with other agencies, organizations,
36including the Oregon Salmon Commission, and instrumentalities
37that are specified in this chapter, sales stimulation and consumer
38or other educational programs designed to increase the use and
39consumption of salmon and salmon products for human
40consumption.

P4    1(d) Provide funds for the administration and enforcement of this
2chapter by mandatory fees to be collected in the manner prescribed
3in this chapter.

4

SEC. 4.  

Section 76604 of the Food and Agricultural Code is
5amended to read:

6

76604.  

If any provision of this chapter or the application thereof
7to any person or circumstances is held invalid, that invalidity does
8not affect other provisions or applications of this chapter that can
9be given effect without the invalid provision or application, and
10to this end the provisions of this chapter are severable.

11

SEC. 5.  

Section 76650 of the Food and Agricultural Code is
12amended to read:

13

76650.  

The secretary shall administer and enforce this chapter,
14and may exercise any of the administrative powersbegin delete whichend deletebegin insert thatend insert are
15conferred by Sections 11180 to 11191, inclusive, of the
16Government Code upon a head of a department. In order to
17effectuate the declared purposes of this chapter, the secretary may
18contract to carry out the declared intent and purposes of this
19chapter.

20

SEC. 6.  

Section 76651 of the Food and Agricultural Code is
21amended to read:

22

76651.  

Upon recommendation by the council, the secretary
23may adopt, consistent with this chapter, any regulations that cover
24the administration and enforcement of this chapter that may be
25necessary to carry out the purposes and attain the objectives of
26this chapter, except the secretary shall not engage in any salmon
27promotion activity or pursue the purchase of allocation rights to
28harvest salmon without the approval of a majority of the voting
29members of the council.

30

SEC. 7.  

Section 76652 of the Food and Agricultural Code is
31amended to read:

32

76652.  

Upon the adoption of any regulations under this chapter,
33a copy of the regulations shall be displayed on the department’s
34Internet Web site. No regulation shall become effective until five
35days after the date of display on the Internet Web site and mailing
36to every marketing association and every receiver that is directly
37affected by the regulations whose name and address may be on
38file in the office of the secretary and to every person who files in
39the office of the secretary a written request for a copy of the
40regulations.

P5    1

SEC. 8.  

Section 76700 of the Food and Agricultural Code is
2amended to read:

3

76700.  

begin insert(a)end insertbegin insertend insert There is in the state government the California
4Salmon Council. The council shall be composed ofbegin delete 11end deletebegin insert nineend insert voting
5members and their alternates, and three nonvoting members.

begin insert

6(b) If handlers have become subject to this chapter pursuant to
7Article 9.5 (commencing with Section 76961), the council shall be
8composed of 11 voting members and their alternates, and three
9nonvoting members.

end insert
10

SEC. 9.  

Section 76701 of the Food and Agricultural Code is
11amended to read:

12

76701.  

begin insert(a)end insertbegin insertend insert The voting members of the council shall be
13appointed by the secretary, after consultation with the Director of
14Fish and Wildlife, giving due consideration to proper geographic
15distribution.begin delete The 11end delete

begin insert

16(b) The nine members shall include:

end insert
begin insert

17(1) Five commercial salmon vessel operators or their
18representatives, and their alternates.

end insert
begin insert

19(2) Two handlers who are receivers or processors or their
20representatives, and their alternates.

end insert
begin insert

21(3) One representative of a handler who is an exporter or a
22wholesaler, and an alternate.

end insert
begin insert

23(4) One public member, and an alternate.

end insert

24begin insert(c)end insertbegin insertend insertbegin insertIf handlers become subject to this chapter pursuant to Article
259.5 (commencing with Section 76961), the 11end insert
members shall
26include:

begin delete

27(a)

end delete

28begin insert(end insertbegin insert1)end insert Five commercial salmon vessel operators or their
29representatives, and their alternates.

begin delete

30(b)

end delete

31begin insert(end insertbegin insert2)end insert Three handlers who are receivers or processors or their
32representatives, and their alternates.

begin delete

33(c)

end delete

34begin insert(end insertbegin insert3)end insert Two representatives of a handler who is an exporter or a
35wholesaler, and their alternates.

begin delete

36(d)

end delete

37begin insert(end insertbegin insert4)end insert One public member, and an alternate.

38

SEC. 10.  

Section 76702 of the Food and Agricultural Code is
39amended to read:

P6    1

76702.  

(a) The commercial salmon vessel operators and their
2alternates shall be selected from lists of nominees submitted by
3marketing associations and any organization deemed to represent
4the majority of organized commercial salmon vessel operators,
5and from nominations by individual commercial salmon vessel
6operators.

7(b) The receivers, processors, wholesalers, or exporters and
8their alternates shall be selected from lists of nominees submitted
9by an organization deemed to represent the majority of those
10organized groups in the state, and from individual receivers,
11processors, wholesalers, and exporters.

12(c) The public member and alternate shall be selected by the
13 secretary from a list submitted by the commercial salmon vessel
14operators and handler members of the council.

15

SEC. 11.  

Section 76705 of the Food and Agricultural Code is
16amended to read:

17

76705.  

Any vacancy in the membership of the council that
18occurs during the unexpired term shall be filled by the secretary
19for the unexpired term from the eligible nominees. No council
20member or alternate shall serve more than two consecutive
21three-year terms. Service as an alternate does not disqualify a
22person to then serve two additional terms as a member, and a
23member who was appointed for a one-year or a two-year term may
24serve two additional three-year terms.

25

SEC. 12.  

Section 76706 of the Food and Agricultural Code is
26amended to read:

27

76706.  

The secretary may remove any member of the council
28or alternate for cause, and, upon that removal, there is a vacancy
29that shall be filled in the manner as provided for the unexpired
30term in Section 76705.

31

SEC. 13.  

Section 76707 of the Food and Agricultural Code is
32amended to read:

33

76707.  

The secretary shall give notice, not later than January
3431 of each year, of the vacancies that will exist upon the expiration
35of terms on March 31, in writing, to all marketing associations and
36organizations deemed to represent the majority of organized
37fishermen, or receivers, processors, wholesalers, and exporters,
38and shall issue any press releases and public statements that the
39secretary deems appropriate requesting nominations.

P7    1

SEC. 14.  

Section 76708 of the Food and Agricultural Code is
2amended to read:

3

76708.  

(a) The notice requesting nominations shall indicate
4that nominations shall be mailed or sent electronically to the
5secretary at his or her office in Sacramento and that the secretary
6shall consider nominations sent electronically or postmarked not
7later than March 1.

8(b) Nominations shall set forth all of the following:

9(1) The name and address of each nominee.

10(2) Whether each nominee is being nominated as a member or
11alternate member.

12(3) The type of category for which the nominee is being
13nominated.

14(4) The list of qualifications and supporters, if any, for the
15nominee.

16(5) The name and address of the nominating marketing
17association, organization, or individual.

18

SEC. 15.  

Section 76709 of the Food and Agricultural Code is
19amended to read:

20

76709.  

The nonvoting members of the council shall be
21representatives of the following agencies, as selected by the
22secretary:

23(a) The department.

24(b) The Department of Fish and Wildlife.

25(c) The California Sea Grant Program.

26

SEC. 16.  

Section 76712 of the Food and Agricultural Code is
27amended to read:

28

76712.  

(a) The council shall select annually from its voting
29members, to serve at its pleasure, a chair and vice chair.

30(b) The chair and vice chair, together with four other voting
31members, selected annually by the council, shall constitute the
32executive committee of the council. The executive committee shall
33have and exercise any powers of the council that the council may
34delegate to it.

35(c) If handlers have become subject to this chapter pursuant to
36Article 9.5 (commencing with Section 76961), the officers and the
37other members of the executive committee shall be equally divided
38 between commercial salmon vessel operators and handlers.

39

SEC. 17.  

Section 76714 of the Food and Agricultural Code is
40amended to read:

P8    1

76714.  

The voting members of the council shall receive forty
2dollars ($40) per day per diem for each day spent in actual
3attendance at the meetings or on the business of the council and
4shall be reimbursed for necessary traveling and other expenses
5incurred in the performance of their official duties, except, during
6the first year of council operations, when members shall serve at
7their own expense. Nonvoting members shall be reimbursed at the
8same rate as voting members when their agencies do not pay their
9expenses. Alternates shall only be paid expenses and per diem for
10meetings at which they serve as the replacement for the voting
11member.

12

SEC. 18.  

Section 76715 of the Food and Agricultural Code is
13amended to read:

14

76715.  

No member of the council, except members of the
15executive committee, shall receive compensation for more than
16three days’ service per month. The chair may receive compensation
17for not more than seven days per month.

18

SEC. 19.  

Section 76716 of the Food and Agricultural Code is
19amended to read:

20

76716.  

The secretary may require any employee or agent of
21the council to give a fidelity bond, executed by a surety company
22that is authorized to do business in this state, in favor of the
23secretary, in the sum, and containing any terms and conditions,
24that the secretary may prescribe. The cost of the fidelity bonds of
25employees or agents of the council shall be paid from the funds
26that are collected pursuant to this chapter.

27

SEC. 20.  

Section 76717 of the Food and Agricultural Code is
28amended to read:

29

76717.  

No member or employee of the council shall be held
30responsible individually to any person for liability on any contract
31or agreement of the council. All salaries, expenses, costs,
32obligations, and liabilities that arise out of the administration and
33enforcement of this chapter are payable only from funds that are
34collected pursuant to this chapter.

35

SEC. 21.  

Section 76718 of the Food and Agricultural Code is
36amended to read:

37

76718.  

An alternate member of the council shall sit as a voting
38member of the council if the member for whom he or she is an
39alternate fails for any reason to attend any meeting of the council.
40The alternate member shall be compensated and reimbursed in the
P9    1same manner and to the same extent as a voting member when so
2serving. When so serving, the alternate member has all of the
3powers, duties, liabilities, and immunities of the member in whose
4place he or she is serving, except that the alternate to the chair or
5vice chair shall not succeed to the functions of these offices.

6

SEC. 22.  

Section 76750 of the Food and Agricultural Code is
7amended to read:

8

76750.  

The duties of the council shall be advisory, except as
9to those duties that may be delegated to it by the secretary or as
10otherwise designated in this chapter. The council may, subject to
11the approval of the secretary, exercise any of the following powers
12that may be delegated to the council by the secretary:

13(a) Recommend to the secretary administrative regulations that
14relate to the administration and enforcement of this chapter.

15(b) Investigate all matters that affect the administration of this
16chapter, and to report violations of this chapter to the secretary.

17(c) Employ and, at its pleasure, discharge a manager and such
18clerical help and other employees as it deems necessary, and to
19prescribe their duties and powers and fix their compensation.

20(d) Contract with, or employ, and at its pleasure, discharge any
21other persons that it deems necessary, and in the cases of those
22persons it shall employ, to outline their powers and duties and fix
23their compensation.

24(e) Establish offices and incur expenses incidental thereto.

25(f) Make contracts and other agreements that may be proper to
26promote the sale of salmon and salmon products on either a local,
27state, national, or international basis.

28(g) (1) Cooperate with any other local, state, or national
29commission, organization, or agency, whether voluntary or created
30by state or federal law, including, but not limited to, the Oregon
31Salmon Commission, and instrumentalities that are engaged in
32work or activities similar to the work and activities of the council,
33and to recommend to the secretary the making of contracts and
34agreements with those organizations or agencies for carrying on
35joint programs of education, research, publicity, and advertising.

36(2) Recommend to the secretary the making of contracts and
37agreements with other councils, commodity commissions, or
38producer organizations for joint programs of publicity and
39advertising where those products are compatible with the promotion
40of salmon and salmon products.

P10   1(3) In matters of research, cooperate with organizations of
2recognized professional standing that are adequately equipped
3with facilities for the research that is contemplated.

4(h) Recommend to the secretary the institution and promotion
5of scientific research to develop or discover, or both, the health,
6food, therapeutic, dietetic, and other uses of salmon.

7(i) (1) Receive, invest, and disburse funds pursuant to Article
88 (commencing with Section 76900).

9(2) Allocate funds to agencies not specifically or solely engaged
10in carrying on research or promotion for salmon, if the council and
11the secretary are satisfied that those allocations will be beneficial
12to the California salmon fishery and will tend to effectuate the
13declared purposes of this chapter.

14(j) Present facts to, and negotiate with, state, federal, and foreign
15agencies on matters that affect this chapter.

16

SEC. 23.  

Section 76800 of the Food and Agricultural Code is
17amended to read:

18

76800.  

The secretary shall conduct, or may cause the council
19to conduct, programs of education, research, or public information,
20that are designed to accomplish the following purposes, among
21others:

22(a) Increase the consumption of salmon and salmon products.

23(b) Gather, publicize, and diffuse accurate and scientific
24informationbegin delete whichend deletebegin insert thatend insert shows the importance of the use and
25consumption of salmon and salmon products in relation to the
26public health, economy, and diet, and proper nutrition of children
27and adults.

28(c) Study means and methodsbegin delete whichend deletebegin insert thatend insert are employed in
29harvesting, processing, manufacturing, marketing, and distributing
30salmon and salmon products in order to comply with the sanitary
31and other regulationsbegin delete whichend deletebegin insert thatend insert are imposed by municipalities,
32this state, and the United States.

33(d) Gather and disseminate information regarding the high
34standardsbegin delete whichend deletebegin insert thatend insert are observed and imposed tobegin delete insureend deletebegin insert ensureend insert
35 pure and wholesome salmon and salmon products.

36(e) Gather and disseminate information regarding the harmful
37effects on the public health resulting from the breakdown or
38instability of the salmon fishery, the factors and conditions peculiar
39to the salmon fisherybegin delete whichend deletebegin insert thatend insert tend to cause an unbalanced
P11   1production, and the price of salmon and salmon products in relation
2to the cost of other items of food in a balanced diet.

3(f) Gather and disseminate information regarding the factors
4begin delete whichend deletebegin insert thatend insert tend to promote increased consumption of salmon and
5salmon products, stabilize the fishery, and foster a better
6understanding and more efficient cooperation among fishermen,
7receivers, processors, and the consuming public.

8

SEC. 24.  

Section 76851 of the Food and Agricultural Code is
9amended to read:

10

76851.  

If the Attorney General determines under Section 76850
11that selling allocation rights to harvest salmon would be binding
12and consistent with California public policy and if an agreement
13for purchase of allocation rights of harvest is determined to be
14lawful and binding, the Director of Fish and Wildlife may, in
15consultation with the secretary, develop a program to authorize
16the transfer of the allocation rights consistent with all other state
17or federal laws and regulations. Upon authorization by the Director
18of Fish and Wildlife, the secretary may, at a price and quantity
19agreed to by the council, and with funds available from the council,
20enter into an agreement for the purchase of the allocation rights
21to harvest from another user holding bona fide rights to harvest
22stocks of salmon.

23

SEC. 25.  

Section 76852 of the Food and Agricultural Code is
24amended to read:

25

76852.  

The council, in any negotiations for the purchase of
26tribal allocations of rights to harvest, if any, however they may
27exist, may, with the secretary, seek federal or other funds as may
28be available to match the council funds for the purchase of
29allocation rights to harvest in recognition of the federal
30government’s responsibility to the Indian people and their
31resources.

32

SEC. 26.  

Section 76900 of the Food and Agricultural Code is
33amended to read:

34

76900.  

Programs and administration of the activities that are
35conducted pursuant to this chapter shall be funded as follows:

36(a) Every fisherman who sells salmon to any person, shall pay
37a fee, as specified in this article, for each pound or fraction thereof,
38of salmon taken and sold by the fisherman. The fee shall be
39collected from the fisherman and remitted to the secretary, by any
40person licensed to receive fish to whom the salmon are sold. If the
P12   1salmon are sold to any other person the fee shall be remitted to the
2secretary by the fisherman.

3(b) Every handler subject to this chapter pursuant to Article 9.5
4(commencing with Section 76961) shall pay the fee specified in
5this article for each pound or fraction thereof, of salmon received
6from a fisherman. The fee shall be remitted to the secretary by the
7handler.

8

SEC. 27.  

Section 76901 of the Food and Agricultural Code is
9amended to read:

10

76901.  

Consistent with Section 8041 of the Fish and Game
11Code, the following persons shall remit the fees required by
12subdivision (a) of Section 76900 to the secretary:

13(a) Any person who is required to be licensed as a fish receiver
14by Section 8033 of the Fish and Game Code, and receives salmon
15in this state from persons conducting the activities of a commercial
16fisherman.

17(b) Any commercial fisherman who sells salmon to any person
18who is not a licensed fish receiver.

19

SEC. 28.  

Section 76901.5 of the Food and Agricultural Code
20 is amended to read:

21

76901.5.  

(a) Each person who is required by this chapter to
22collect a fee from fishermen or pay a fee as a handler shall maintain
23a complete and accurate record of all transactions subject to the
24fee. These records shall contain any information required by the
25secretary relating to the collection of fees, shall be preserved for
26a period of three years, and shall be available for review
27immediately upon demand by the secretary or the secretary’s duly
28authorized agent.

29(b) Any information obtained by the secretary or the secretary’s
30duly authorized agent from inspection or audit of records shall be
31confidential and shall not be disclosed except when required by a
32court order after a hearing in a judicial proceeding.

33

SEC. 29.  

Section 76903 of the Food and Agricultural Code is
34amended to read:

35

76903.  

The fees imposed under this article shall be paid
36monthly to the secretary within 60 days after the last day of each
37month. If fees are not paid within 60 days after the month for which
38they are due, the secretary shall collect amounts owing under the
39procedures prescribed for sales and use taxes provided in Chapter
405 (commencing with Section 6451) of Part 1 of Division 2 of the
P13   1Revenue and Taxation Code, insofar as they may be applicable,
2and for those purposes, “board” means the department and “the
3date of which the tax became due and payable,” means that date
460 days after the month for which it is due.

5

SEC. 30.  

Section 76904 of the Food and Agricultural Code is
6amended to read:

7

76904.  

Sections 8058 to 8070, inclusive, of the Fish and Game
8Code apply to claims for overpayment of fees to the secretary. For
9purposes of this section, “department,” as used in those sections,
10means the Department of Food and Agriculture, and “landing tax”
11means the fees imposed pursuant to this article.

12

SEC. 31.  

Section 76904.5 of the Food and Agricultural Code
13 is amended to read:

14

76904.5.  

The secretary may consult with and enter into
15agreements with the Director of Fish and Wildlife where necessary
16and reasonable, to assist in the administration of this chapter and
17in enforcing compliance with this chapter. If an agreement is
18established, the secretary shall reimburse the Department of Fish
19and Wildlife for administrative costs associated with this chapter.

20

SEC. 32.  

Section 76905 of the Food and Agricultural Code is
21amended to read:

22

76905.  

After one year after the establishment of the council,
23and not before the commercial salmon season of 1990, the council
24may recommend to the secretary an increase over and above the
25two cents ($0.02) per pound fee required by Section 76902 for the
26council to carry out its duties under this chapter. The council shall
27consider the budget for the council, funding for activities conducted
28pursuant to Article 6 (commencing with Section 76800) and Article
297 (commencing with Section 76850), as well as the market price
30of salmon, landing taxes imposed by the Department of Fish and
31Wildlife, assessments charged by marketing associations, and any
32other relevant factor affecting the economics of the salmon fishery.
33The council shall, in making any determination to increase fees,
34consult with marketing associations and, if the recommended
35increase would exceed seven cents ($0.07) per pound of salmon
36sold, the council shall conduct a vote of persons on the secretary’s
37lists established pursuant to Article 9 (commencing with Section
3876950) andbegin insert, if applicable,end insert Article 9.5 (commencing with Section
3976961). The secretary may not increase any fee without a majority
40approval of the voting members of the council.

P14   1

SEC. 33.  

Section 76906 of the Food and Agricultural Code is
2amended to read:

3

76906.  

(a) All money that is collected by the secretary pursuant
4to this chapter shall be deposited in any bank, or other depository
5that is approved by the Director of Finance, allocated to the
6purposes of this chapter only, and disbursed by the secretary or
7the council only for the necessary expenses that are incurred by
8the council and the secretary in carrying out this chapter, including
9expenses generated by the auditing requirement contained in this
10section. Money that is so collected shall be deposited and disbursed
11in conformity with appropriate auditing regulations that are
12prescribed by the secretary. The expenditure of the money is
13exempt frombegin delete Sectionend deletebegin insert Sectionsend insert 925.6 and 16304 of the Government
14Code.

15(b) All expenditures by the council and the secretary shall be
16audited at least once every two years by one of the following
17means:

18(1) By contract with a certified publicbegin delete account.end deletebegin insert accountant.end insert

19(2) By contract with a public accountant holding a valid permit
20issued by the California Board of Accountancy.

21(3) By contract with a public accounting firm.

22(4) By agreement with the Department of Finance.

23

SEC. 34.  

Section 76907 of the Food and Agricultural Code is
24amended to read:

25

76907.  

Money that is deposited pursuant to Section 76906 may
26be invested and reinvested by the Treasurer or the council in any
27of the securities described in Article 1 (commencing with Section
2816430) of Chapter 3 of Part 2 of Division 4 of Title 2 of the
29Government Code, or placed in a depository as provided in Chapter
304 (commencing with Section 16500) of Part 2 of Division 4 of
31Title 2 of the Government Code, and handled in the same manner
32as money in the State Treasury. For these purposes, the money
33may also be combined with funds that are determined by the
34secretary to be available for investment pursuant to Section 58939.
35Any increment that is received from investment, reinvestment, or
36deposit made by the Treasurer shall be remitted to the council. The
37Treasurer may deduct from the remittance an amount equal to the
38reasonable cost incurred in carrying out this section or may bill
39the council for the costs and the council shall pay the costs from
40money that is collected for it pursuant to this chapter.

P15   1

SEC. 35.  

Section 76908 of the Food and Agricultural Code is
2amended to read:

3

76908.  

The secretary, after consultation with the council, shall
4prepare an annual budget that sets forth in reasonable detail the
5proposed expenditures that the secretary deems necessary for the
6performance by him or her and by the department of the duties
7that are imposed upon them by this chapter. The secretary shall
8also prepare and submit to the council an annual statement, in
9reasonable detail, of the secretary’s expenditures pursuant to this
10chapter.

11

SEC. 36.  

Section 76909 of the Food and Agricultural Code is
12amended to read:

13

76909.  

The secretary may receive funds in amounts that may
14be reasonable and necessary to defray the initial expenses in
15making effective this chapter. The secretary shall reimburse those
16persons from whom those funds are received in the amounts
17received from any fundsbegin delete whichend deletebegin insert thatend insert are received by the secretary
18pursuant to this article.

19

SEC. 37.  

Section 76910 of the Food and Agricultural Code is
20amended to read:

21

76910.  

The secretary may accept contributions to advance the
22purposes of this chapter. If requested by the donor, the
23contributions shall be segregated and separately maintained for
24the use of the council.

25

SEC. 38.  

Article 9 (commencing with Section 76950) of
26Chapter 16 of Part 2 of Division 22 of the Food and Agricultural
27Code
is repealed.

28

SEC. 39.  

Article 9 (commencing with Section 76950) is added
29to Chapter 16 of Part 2 of Division 22 of the Food and Agricultural
30Code
, to read:

31 

32Article 9.  Implementation and Voting Procedure for Fishermen
33

 

34

76950.  

On or before August 15, 1989, the secretary shall
35establish a list of commercial salmon vessel operators eligible to
36vote on implementation of this chapter. In establishing the list, the
37secretary may require that handlers and commercial salmon vessel
38operators submit the names and mailing addresses of all
39commercial salmon vessel operators who harvested salmon during
40the previous season, as evidenced by receipts prepared under
P16   1Section 8043 of the Fish and Game Code, together with the volume
2of salmon landed. The secretary may also request the assistance
3of the Director of Fish and Wildlife for the names of all commercial
4salmon vessel operators who landed salmon the previous season
5and the volume of landings for each vessel. The request for the
6information shall be in writing and shall be subject to the
7confidentiality provisions of Section 8022 of the Fish and Game
8Code. The list shall be filed within 30 days following receipt of
9the written notice.

10

76951.  

Any commercial salmon vessel operator whose name
11does not appear upon the secretary’s list of commercial salmon
12vessel operators affected may have his or her name established on
13the list by filing with the secretary a signed statement, identifying
14himself or herself as a commercial salmon vessel operator and
15furnishing evidence of having made landings the previous year
16through the submission of receipts prepared under Section 8043
17of the Fish and Game Code. Failure to be on the list does not
18exempt a commercial salmon vessel operator from paying
19assessments under this chapter.

20

76952.  

This chapter, except as necessary to conduct an
21implementation referendum vote under thisbegin delete articleend deletebegin insert article,end insert shall
22not become operative until the secretary finds in an implementation
23referendum conducted by the secretary under thisbegin delete article,end deletebegin insert articleend insert
24 that at least 40 percent of the total number of commercial salmon
25vessel operators from the list established by the secretary have
26participated by voting in the referendum, and the secretary finds
27either of the following:

28(a) Sixty-five percent or more of the commercial salmon vessel
29operators who voted in the referendum voted in favor of
30implementing this chapter, and the commercial salmon vessel
31operators who voted in the referendum marketed 51 percent or
32more of the total quantity of salmon landed in the preceding fiscal
33year by all the commercial salmon vessel operators who voted in
34the referendum.

35(b) Fifty-one percent of the commercial salmon vessel operators
36who voted in the referendum voted in favor of implementing this
37chapter, and the commercial salmon vessel operators who voted
38in the referendum marketed 65 percent or more of the total quantity
39of salmon landed in the preceding fiscal year by all of the
40commercial salmon vessel operators who voted in the referendum.

P17   1

76953.  

The secretary shall establish a period in which to
2conduct the implementation referendumbegin delete whichend deletebegin insert thatend insert shall not be
3more than 60 days in duration, and may prescribe additional
4procedures as may be necessary to conduct the referendum. If the
5initial period established is less than 30 days, the secretary may
6extend that period. However, the total referendum period may not
7exceed 60 days.

8

76953.5.  

(a) Before the referendum vote is conducted by the
9secretary, the proponents of the council shall deposit with the
10secretary the amount that the secretary determines is necessary to
11defray the expenses of preparing the necessary lists and information
12and conducting the referendum vote.

13(b) Any funds not used in carrying out this article shall be
14returned to the proponents of the council who deposited the funds
15with the secretary.

16(c) Upon establishment of the council, the council may
17reimburse the proponents of the council for any funds deposited
18with the secretary that were used in carrying out this article, and
19for any legal expenses and costs incurred in establishing the
20council.

21(d) After approval by the Commercial Salmon Trollers Advisory
22Committee created pursuant to Section 7862 of the Fish and Game
23Code, the Department of Fish and Wildlife may expend funds
24collected pursuant to Section 7861 of the Fish and Game Code,
25for payment to the Secretary of Food and Agriculture to pay
26necessary costs incurred in conducting the implementation
27referendum vote. If the commercial salmon vessel operators who
28voted in the implementation referendum voted in favor of
29implementing this article, as provided in Section 76952, the council
30shall reimburse the Commercial Salmon Stamp Account in the
31Fish and Game Preservation Fund all amounts received from that
32fund.

33

76954.  

Nonreceipt of a ballot shall not invalidate a referendum.

34

76955.  

(a) If the secretary finds that a favorable vote has been
35given, the secretary shall so certify and give notice of the favorable
36vote to all commercial salmon vessel operators whose names and
37addresses may be on file with the secretary.

38(b) If the secretary finds that a favorable vote has not been given,
39the secretary shall so certify and declare all provisions of this
40chapter inoperative.

P18   1

SEC. 40.  

Article 9.5 (commencing with Section 76961) is
2added to Chapter 16 of Part 2 of Division 22 of the Food and
3Agricultural Code
, to read:

4 

5Article 9.5.  Implementation and Voting Procedure for Handlers
6

 

7

76961.  

On or beforebegin delete___,end deletebegin insert January 31, 2016,end insert the secretary shall
8establish a list of handlers eligible to vote on whether they shall
9be subject to this chapter. In establishing the list, the secretary may
10require that handlers provide receipts of the quantity of salmon
11received from commercial salmon vessel operators in the previous
12season. The secretary may also request the assistance of the
13Director of Fish and Wildlife in compiling the list. The request for
14the information shall be in writing and shall be subject to the
15confidentiality provisions of Section 8022 of the Fish and Game
16Code. The list shall be filed within 30 days following receipt of
17the written notice.

18

76962.  

Any handler whose name does not appear upon the
19secretary’s list of handlers may have his or her name established
20on the list by filing with the secretary a signed statement,
21identifying himself or herself as a handler. Failure to be on the list
22does not exempt a handler from paying assessments under this
23chapter.

24

76963.  

This chapter shall not apply to handlers until the
25secretary finds in a referendum conducted by the secretary under
26this article that at least 40 percent of the total number of handlers
27from the list established by the secretary have participated by
28voting in the referendum, and the secretary finds either of the
29following:

30(a) Sixty-five percent or more of the handlers who voted in the
31referendum voted in favor of being subject to this chapter, and the
32handlers who voted in the referendum handled 51 percent or more
33of the total quantity of salmon landed in the preceding fiscal year
34by all the handlers who voted in the referendum.

35(b) Fifty-one percent of the handlers who voted in the
36referendum voted in favor of being subject to this chapter, and the
37handlers who voted in the referendum marketed 65 percent or more
38of the total quantity of salmon landed in the preceding fiscal year
39by all of the handlers who voted in the referendum.

P19   1

76964.  

The secretary shall establish a period in which to
2conduct the referendum that shall not be more than 60 days in
3duration, and may prescribe additional procedures as may be
4necessary to conduct the referendum. If the initial period
5established is less than 30 days, the secretary may extend that
6period. However, the total referendum period may not exceed 60
7days.

8

76965.  

(a) Before the referendum vote is conducted by the
9secretary, the proponents of this article shall deposit with the
10secretary the amount that the secretary determines is necessary to
11defray the expenses of preparing the necessary lists and information
12and conducting the referendum vote.

13(b) Any funds not used in carrying out this article shall be
14returned to the proponents of this article who deposited the funds
15with the secretary.

16(c) Upon passage of the referendum, the council may reimburse
17the proponents of this article for any funds deposited with the
18secretary that were used in carrying out this article, and for any
19legal expenses and costs incurred in approval of this article.

20

76966.  

Nonreceipt of a ballot shall not invalidate a referendum.

21

76967.  

(a) If the secretary finds that a favorable vote has been
22given, the secretary shall so certify and give notice of the favorable
23vote to all handlers whose names and addresses may be on file
24with the secretary.

25(b) If the secretary finds that a favorable vote has not been given,
26the secretary shall so certify and declare this article inoperative.

27

SEC. 41.  

Article 10 (commencing with Section 76971) is added
28to Chapter 16 of Part 2 of Division 22 of the Food and Agricultural
29Code
, to read:

30 

31Article 10.  Continuation
32

 

33

76971.  

(a) Between January 1, 2019, and February 28, 2019,
34and in the same period each five years thereafter, the secretary
35shall, by the public hearing procedure, and if appropriate, the
36procedure specified in this article, determine whether the council
37program provided for in this chapter shall continue in effect.

38(b) If the secretary finds from evidence received at the hearing
39that a substantial question exists as to whether the council program
40is contrary to or does not effectuate the declared purposes or
P20   1provisions of this chapter or receives in writing a referendum
2petition with the signatures of 25 percent or more of the number
3of commercial salmon vessel operators who made landings in the
4previous year, as evidenced by receipts prepared under Section
58043 of the Fish and Game Code, and, if applicable, 25 percent or
6more of the handlers who are subject to this chapter, the council
7program shall be submitted to referendum as provided in this
8article.

9

76972.  

If the secretary determines that a referendum procedure
10is appropriate, the secretary shall establish a referendum period of
11not to exceed 30 days during which period ballots shall be
12submitted to every commercial salmon vessel operator and, if
13applicable, every handler subject to this chapter on a statewide
14basis. If the secretary determines that the referendum period does
15not provide sufficient time for the balloting, the secretary may
16extend the referendum for an additional period not to exceed 30
17days. The ballots shall provide a “yes” or “no” voting alternative
18to the following question: “Shall the California Salmon Council
19be continued for the next five fiscal years commencing April 1,
20following this referendum?”

21

76973.  

If the council program is submitted to a referendum as
22provided in this article, the secretary shall find that commercial
23salmon vessel operators and, if applicable, handlers subject to this
24chapter statewide have approved the council program if the
25secretary finds either of the following:

26(a) Sixty-five percent or more of the total number of commercial
27salmon vessel operators and handlers, who voted in the referendum
28and who harvested 51 percent or more of the total amount of
29salmon landed during the previous fiscal year by all commercial
30salmon vessel operators and handlers who voted in the referendum,
31approve the program.

32(b) Fifty-one percent or more of the total number of commercial
33salmon vessel operators and handlers, who voted in the review
34referendum and who harvested 65 percent or more of the total
35amount of salmon landed during the previous fiscal year by all
36commercial salmon vessel operators and handlers who voted in
37the review referendum, approve the program.

38

76974.  

(a) This chapter shall continue if commercial salmon
39vessel operators and handlers vote for continuation in accordance
40with the requirements of this article.

P21   1(b) This chapter shall not continue in operation if commercial
2salmon vessel operators and handlers vote not to continue in
3accordance with the requirements of this article.

4(c) If commercial salmon vessel operators vote for continuation
5and handlers do not vote for continuation, or if handlers vote for
6continuation and commercial salmon vessel operators do not vote
7for continuation, this chapter shall continue to be operative for the
8group voting for continuation and shall no longer apply to the
9group voting against continuation.

10

SEC. 42.  

Article 11 (commencing with Section 76981) is added
11to Chapter 16 of Part 2 of Division 22 of the Food and Agricultural
12Code
, to read:

13 

14Article 11.  Termination
15

 

16

76981.  

If the commercial salmon vessel operators and the
17handlers vote to terminate the council pursuant to Article 10
18(commencing with Section 76971), the council shall remain in
19existence for the purpose of furnishing the secretary with a
20complete record of its outstanding financial obligations, accrued
21and to accrue. The secretary shall pay from the money deposited
22and disbursed any outstanding obligations and any obligations
23incurred by the secretary and the department under the terms and
24provisions of this section. Any money that remains shall be retained
25by the secretary to defray the expenses of formulation, issuance,
26administration, or enforcement of any subsequent program for
27salmon promotion. If no such program is undertaken within a
28period of three years from the date of termination of the council,
29that money shall be withdrawn from the approved depository and
30paid into the special account for enhancement and restoration
31programs established pursuant to Section 7861 of the Fish and
32Game Code.

33

SEC. 43.  

No reimbursement is required by this act pursuant to
34Section 6 of Article XIII B of the California Constitution because
35the only costs that may be incurred by a local agency or school
36district will be incurred because this act creates a new crime or
37infraction, eliminates a crime or infraction, or changes the penalty
38for a crime or infraction, within the meaning of Section 17556 of
39the Government Code, or changes the definition of a crime within
P22   1the meaning of Section 6 of Article XIII B of the California
2Constitution.



O

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