BILL REQ. #:  H-4363.2 

Read first time 01/15/10.   Referred to Committee on Agriculture & Natural Resources.

     AN ACT Relating to maximizing the value from the sale of surplus salmon from state hatcheries; amending RCW 77.12.451, 77.95.090, and 77.04.160; adding a new section to chapter 77.95 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that there is an opportunity to increase the financial and environmental value of surplus salmon returning to the state's hatcheries. A recent pilot project using surplus salmon at the Bingham creek hatchery conducted by the Hood Canal salmon enhancement group in coordination with the Chehalis Basin task force demonstrated that more financial value could be realized from surplus salmon than is currently being realized by the department of fish and wildlife. In addition, the regional fisheries enhancement group proposes to use salmon not fit for human consumption more effectively in adding nutrients to individual watersheds.

Sec. 2   RCW 77.12.451 and 1990 c 36 s 1 are each amended to read as follows:
     (1) The director may take or remove any species of fish or shellfish from the waters or beaches of the state.
     (2) The director may sell food fish or shellfish caught or taken during department test fishing operations.
     (3) The director ((shall not sell inedible salmon for human consumption.)) may give salmon and carcasses ((may be given)) to state institutions or schools or to economically depressed people, unless the salmon are unfit for human consumption. ((Salmon not fit for human consumption may be sold by the director for animal food, fish food, or for industrial purposes.))
     (4) ((In the sale of)) (a) The director may sell surplus salmon from state hatcheries, including eggs and carcasses. Prior to selling surplus salmon, the director must first provide an opportunity for a regional fisheries enhancement group, or a coalition of regional fisheries enhancement groups, to utilize the surplus salmon pursuant to a memorandum of understanding entered into under the provisions of section 3 of this act.
     (b) All profits from the sale of surplus salmon must be deposited into the regional fisheries enhancement group account created in RCW 77.95.090.
     (c) The ((division of purchasing shall)) director may require that a portion of the surplus salmon, either sold or subject to a memorandum of understanding under section 3 of this act, be processed and returned to the state by the purchaser or memorandum signatory. The processed salmon ((shall)) must be fit for human consumption and in a form suitable for distribution to individuals. The ((division of purchasing)) director shall establish the required percentage at a level that does not discourage competitive bidding for the surplus salmon. The measure of the percentage is the combined value of all of the surplus salmon sold. The department of social and health services shall distribute the processed salmon to economically depressed individuals and state institutions pursuant to rules adopted by the department of social and health services.
     (d) The director may not sell inedible salmon for human consumption. However, the director may sell salmon not fit for human consumption for animal food, fish food, watershed nutrient enhancement, or for industrial purposes pursuant to this subsection (4).

NEW SECTION.  Sec. 3   A new section is added to chapter 77.95 RCW to read as follows:
     (1) A regional fisheries enhancement group constituted under this chapter may enter into a memorandum of understanding with the department that allows the regional fisheries enhancement group to facilitate and provide oversight in the collection and disposition of all excess state contracted hatchery return salmon. The memorandum of understanding may be executed with a single regional fisheries enhancement group or a coalition of regional fisheries enhancement groups.
     (2) Once executed, the department must provide all surplus salmon, including carcasses and eggs, from the state hatcheries subject to the memorandum of understanding to the memorandum's signatories. The signatories must utilize the surplus salmon in a manner that most efficiently increases base funds for regional fisheries enhancement groups and programs, and assist in the offset operation and maintenance costs at dedicated hatchery facilities, maximizes nutrient enhancement opportunities, and increases the value of donations to state food bank distribution centers.
     (3) Any net revenue derived from execution of a memorandum of understanding entered into under this section must be deposited into the regional fisheries enhancement group account created in RCW 77.95.090 for use by the regional fisheries enhancement group or groups that are signatories to the memorandum of understanding.

Sec. 4   RCW 77.95.090 and 2009 c 340 s 4 are each amended to read as follows:
     (1) The dedicated regional fisheries enhancement group account is created in the custody of the state treasurer. Only the commission or the commission's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.
     (2) A portion of each recreational fishing license fee shall be used as provided in RCW 77.32.440. A surcharge of one hundred dollars shall be collected on each commercial salmon fishery license, each salmon delivery license, and each salmon charter license sold in the state. All receipts shall be placed in the regional fisheries enhancement group account and shall be used exclusively for regional fisheries enhancement group projects for the purposes of RCW 77.95.110. Except as provided in RCW 77.95.320, funds from the regional fisheries enhancement group account shall not serve as replacement funding for department operated salmon projects that exist on January 1, 1991.
     (3) All revenue from the ((department's)) sale of salmon carcasses and eggs, either directly through sale by the department or under the terms of a memorandum of understanding entered into under section 3 of this act, that return to group facilities shall be deposited in the regional fisheries enhancement group account for use by the regional fisheries enhancement group that produced the surplus or were signatories to the memorandum of understanding. The commission shall adopt rules to implement this section pursuant to chapter 34.05 RCW.

Sec. 5   RCW 77.04.160 and 2001 c 337 s 5 are each amended to read as follows:
     (1) The department shall prepare an annual surplus salmon report. This report shall include the disposition of adult salmonids that have returned to salmonid hatchery facilities operated under the jurisdiction of the state that:
     (a) Have not been harvested; and
     (b) Were not allowed to escape for natural spawning.
     (2) The report shall include, by species, the number and estimated weight of surplus salmon and steelhead and a description of the disposition of the adult carcasses including, but not limited to, the following categories:
     (a) Disposed in landfills;
     (b) Transferred to another government agency for reproductive purposes;
     (c) Sold to contract buyers in the round;
     (d) Sold to contract buyers after spawning;
     (e) Included in a memorandum of understanding entered into under section 3 of this act;
     (f) Transferred to Native American tribes;
     (((f))) (g) Donated to food banks; and
     (((g))) (h) Used in stream nutrient enrichment programs.
     (3) The report shall also include, by species, information on the number of requests for viable salmon eggs, the number of these requests that were granted and the number that were denied, the geographic areas for which these requests were granted or denied, and a brief explanation given for each denial of a request for viable salmon eggs.
     (4) The report shall be included in the biennial ((state of the salmon)) report required by RCW 77.85.020 and other similar state reports on salmon.
     (5) The report shall include an assessment of the infrastructure needs and facility modifications necessary to implement chapter 337, Laws of 2001.