Amended in Assembly May 18, 2015

Amended in Assembly May 4, 2015

Amended in Assembly April 22, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 958

Introduced by Committee on Agriculture

February 26, 2015

An act to amend Sections begin delete 76535, end delete 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 making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 958, as amended, Committee on Agriculture. California Salmon Marketing and Development Act: California Salmon Council.

(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 commercial salmon vessel operators, 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 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 change the composition of the council to include 11 voting members appointed by the secretary. Upon approval of the referendum, the bill would require begin insert fishermen who sell salmon to the ultimate consumer and end insert 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.

(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.

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

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

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

begin delete

SECTION 1.  

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

76535.  

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

(1) A processor.

(2) A receiver.

(3) A wholesaler.

(4) An exporter.

(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.

end delete

begin delete SEC. 2. end delete
begin insert SECTION 1. end insert   

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

76600.  

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

begin delete SEC. 3. end delete
begin insert SEC. 2. end insert   

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) 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) 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), authorize and enable the secretary to formulate and effectuate,
directly or in cooperation with other agencies, organizations,
including the Oregon Salmon Commission, and instrumentalities
that are specified in this chapter, sales stimulation and consumer
or other educational programs designed to increase the use and
consumption of salmon and salmon products for human
consumption.

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

begin delete SEC. 4. end delete
begin insert SEC. 3. end insert   

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 this chapter that can
be given effect without the invalid provision or application, and
to this end the provisions of this chapter are severable.

begin delete SEC. 5. end delete
begin insert SEC. 4. end insert   

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

76650.  

The secretary shall administer and enforce this chapter,
and may exercise any of the administrative powers that 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 secretary may
contract to carry out the declared intent and purposes of this
chapter.

begin delete SEC. 6. end delete
begin insert SEC. 5. end insert   

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

76651.  

Upon recommendation by the council, the secretary
may adopt, consistent with this chapter, any regulations 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 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.

begin delete SEC. 7. end delete
begin insert SEC. 6. end insert   

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 displayed on the department’s
Internet Web site. No regulation shall become effective until five
days after the date of display on the Internet Web site and 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 secretary and to every person who files in
the office of the secretary a written request for a copy of the
regulations.

begin delete SEC. 8. end delete
begin insert SEC. 7. end insert   

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

76700.  

(a) There is in the state government the California
Salmon Council. The council shall be composed of nine voting
members and their alternates, and three nonvoting members.

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

begin delete SEC. 9. end delete
begin insert SEC. 8. end insert   

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

76701.  

(a) The voting members of the council shall be
appointed by the secretary, after consultation with the Director of
Fish and Wildlife, giving due consideration to proper geographic
distribution.

(b) The nine members shall include:

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

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

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

(4) One public member, and an alternate.

(c) If handlers become subject to this chapter pursuant to Article
9.5 (commencing with Section 76961), the 11 members shall
include:

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

(2) Three handlers who are receivers or processors or their
representatives, and their alternates.

(3) Two representatives of a handler who is an exporter or a
wholesaler, and their alternates.

(4) One public member, and an alternate.

begin delete SEC. 10. end delete
begin insert SEC. 9. end insert   

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
secretary from a list submitted by the commercial salmon vessel
operators and handler members of the council.

begin delete SEC. 11. end delete
begin insert SEC. 10. end insert   

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

76705.  

Any vacancy in the membership of the council that
occurs during the unexpired term shall be filled by the 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.

begin delete SEC. 12. end delete
begin insert SEC. 11. end insert   

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

76706.  

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

begin delete SEC. 13. end delete
begin insert SEC. 12. end insert   

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

76707.  

The 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
secretary deems appropriate requesting nominations.

begin delete SEC. 14. end delete
begin insert SEC. 13. end insert   

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
secretary at his or her office in Sacramento and that the secretary
shall consider nominations 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.

begin delete SEC. 15. end delete
begin insert SEC. 14. end insert   

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
secretary:

(a) The department.

(b) The Department of Fish and Wildlife.

(c) The California Sea Grant Program.

begin delete SEC. 16. end delete
begin insert SEC. 15. end insert   

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.

begin delete SEC. 17. end delete
begin insert SEC. 16. end insert   

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 voting
member.

begin delete SEC. 18. end delete
begin insert SEC. 17. end insert   

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

76715.  

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

begin delete SEC. 19. end delete
begin insert SEC. 18. end insert   

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

76716.  

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

begin delete SEC. 20. end delete
begin insert SEC. 19. end insert   

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 that arise out of the administration and
enforcement of this chapter are payable only from funds that are
collected pursuant to this chapter.

begin delete SEC. 21. end delete
begin insert SEC. 20. end insert   

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

76718.  

An alternate member of the council shall sit as a 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 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.

begin delete SEC. 22. end delete
begin insert SEC. 21. end insert   

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

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

(c) 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) 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) Establish offices and incur expenses incidental thereto.

(f) 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) 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, 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) 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, cooperate with organizations of
recognized professional standing that are adequately equipped
with facilities for the research that is contemplated.

(h) 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) Receive, invest, and disburse funds pursuant to Article
8 (commencing with Section 76900).

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

begin delete SEC. 23. end delete
begin insert SEC. 22. end insert   

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

76800.  

The secretary shall conduct, or may cause the council
to conduct, programs of education, research, or public information,
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 that 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 that are employed in harvesting,
processing, manufacturing, marketing, and distributing salmon
and salmon products in order to comply with the sanitary and other
regulations that are imposed by municipalities, this state, and the
United States.

(d) Gather and disseminate information regarding the high
standards that are observed and imposed to ensure 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 that 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
that 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.

begin delete SEC. 24. end delete
begin insert SEC. 23. end insert   

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 Wildlife may, in
consultation with the 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 Wildlife, the 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.

begin delete SEC. 25. end delete
begin insert SEC. 24. end insert   

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 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.

begin delete SEC. 26. end delete
begin insert SEC. 25. end insert   

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

76900.  

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

(a)  begin insert (1) end insert begin insert   end insert Every fisherman who sells salmon to any begin delete person, end delete begin insert person
who is required to be licensed as a fish receiver pursuant to Section
8033 of the Fish and Game Code end insert shall pay begin delete a fee, as end delete begin insert the fee end insert
specified in begin delete this article, end delete begin insert Sections 76902 and 76905 end insert for each begin delete pound end delete
begin insert pound, end insert or fraction thereof, of salmon taken and sold by the
begin delete fisherman. end delete begin insert fisherman to the fish receiver. end insert The fee shall be collected
from the fisherman and remitted to the begin delete secretary, end delete begin insert secretary end insert by any
person licensed to receive fish to whom the salmon are sold. begin delete If the
salmon are sold to any other person the fee shall be remitted to the
secretary by the fisherman. end delete

begin insert

(2) Every fisherman licensed pursuant to Section 8033.5 of the
Fish and Game Code who sells salmon to the ultimate consumer
shall pay the fee specified in paragraph (1) and, if handlers have
become subject to this chapter pursuant to Article 9.5 (commencing
with Section 76961), shall also pay the fee specified in paragraph
(1) of subdivision (b) for each pound, or fraction thereof, of salmon
taken and sold by the fisherman to the ultimate consumer. The fees
shall be remitted to the secretary by the fisherman.

end insert

(b)  begin insert (1) end insert begin insert   end insert Every handler subject to this chapter pursuant to Article
9.5 (commencing with Section 76961) shall pay the fee specified
in begin delete this article end delete begin insert Sections 76902 and 76905 end insert for each begin delete pound end delete begin insert pound, end insert or
fraction thereof, of salmon received from a fisherman. The fee
shall be remitted to the secretary by the handler.

begin insert

(2) Every handler subject to this chapter pursuant to Article 9.5
(commencing with Section 76961) shall pay the fee specified in
paragraph (1) and shall also pay the fee specified in paragraph
(1) of subdivision (a) for each pound, or fraction thereof, of salmon
that the handler has caught while conducting the activities of a
commercial fisherman for his or her own processing or sale. The
fees shall be remitted to the secretary by the handler.

end insert

begin delete SEC. 27. end delete
begin insert SEC. 26. end insert   

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 76900 to the 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 begin insert licensed pursuant to Section
8033.5 of the Fish and Game Code end insert who sells salmon to begin delete any person
who is not a licensed fish receiver. end delete begin insert the ultimate consumer. end insert

begin delete SEC. 28. end delete
begin insert SEC. 27. end insert   

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
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 secretary or the secretary’s duly
authorized agent.

(b) Any information obtained by the 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.

begin delete SEC. 29. end delete
begin insert SEC. 28. end insert   

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 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 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.

begin delete SEC. 30. end delete
begin insert SEC. 29. end insert   

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 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.

begin delete SEC. 31. end delete
begin insert SEC. 30. end insert   

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

76904.5.  

The secretary may consult with and enter into
agreements with the Director of Fish and 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 secretary shall reimburse the Department of Fish
and Wildlife for administrative costs associated with this chapter.

begin delete SEC. 32. end delete
begin insert SEC. 31. end insert   

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 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
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, the council shall conduct a vote of persons on the secretary’s
lists established pursuant to Article 9 (commencing with Section
76950) and, if applicable, 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.

begin delete SEC. 33. end delete
begin insert SEC. 32. end insert   

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

76906.  

(a) All money that is collected by the 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 secretary or
the council only for the necessary expenses that are incurred by
the council and the secretary in carrying out 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 that are
prescribed by the secretary. The expenditure of the money is
exempt from Sections 925.6 and 16304 of the Government Code.

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

(1) By contract with a certified public accountant.

(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.

begin delete SEC. 34. end delete
begin insert SEC. 33. end insert   

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

76907.  

Money 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 that are determined by the
secretary to be available for investment pursuant to Section 58939.
Any increment 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 that is collected for it pursuant to this chapter.

begin delete SEC. 35. end delete
begin insert SEC. 34. end insert   

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

76908.  

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

begin delete SEC. 36. end delete
begin insert SEC. 35. end insert   

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

76909.  

The secretary may receive funds in amounts that may
be reasonable and necessary to defray the initial expenses in
making effective this chapter. The secretary shall reimburse those
persons from whom those funds are received in the amounts
received from any funds that are received by the secretary pursuant
to this article.

begin delete SEC. 37. end delete
begin insert SEC. 36. end insert   

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

76910.  

The 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.

begin delete SEC. 38. end delete
begin insert SEC. 37. end insert   

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

begin delete SEC. 39. end delete
begin insert SEC. 38. end insert   

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 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.

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.

begin delete SEC. 40. end delete
begin insert SEC. 39. end insert   

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 January 31, 2016, 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.

begin delete SEC. 41. end delete
begin insert SEC. 40. end insert   

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.

begin delete SEC. 42. end delete
begin insert SEC. 41. end insert   

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.

begin delete SEC. 43. end delete
begin insert SEC. 42. end insert   

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.