---
kind: "section"
citation: "16 U.S.C. § 4009"
title: "16"
title_heading: "Conservation"
number: "4009"
heading: "Establishment of seafood marketing councils"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/16/4009"
units:
  - "Chapter 60 — Fish and Seafood Promotion"
---

# §4009. Establishment of seafood marketing councils

- (a) **Application—** An application for a charter for a seafood marketing [council](/usc/16/4003.md?p=2) for one or more species of [fish and fish products](/usc/16/1826c.md?p=1) of that species may be filed by [persons](/usc/16/4003.md?p=11) who meet the requirements specified in accordance with [subsection (b)(6)](#b-6) of this section.
- (b) **Form of application—** An application for a charter for a [council](/usc/16/4003.md?p=2) shall be made by filing with the [Secretary](/usc/16/4003.md?p=16) the text of a proposed charter in such form as shall be prescribed by regulation by the [Secretary](/usc/16/4003.md?p=16). The text of a proposed charter must contain such information as the [Secretary](/usc/16/4003.md?p=16) considers necessary or appropriate for carrying out the provisions of this chapter, including—
  - (1) the name of the [council](/usc/16/4003.md?p=2) and a provision proclaiming its establishment;
  - (2) a declaration of the purposes and objectives of the [council](/usc/16/4003.md?p=2);
  - (3) a description of the species of [fish and fish products](/usc/16/1826c.md?p=1) for which the [council](/usc/16/4003.md?p=2) will implement [marketing and promotion](/usc/16/4003.md?p=8) plans under [section 4010 of this title](/usc/16/4010.md);
  - (4) the identification of each [sector](/usc/16/4003.md?p=15) and the number and terms of representatives of each [sector](/usc/16/4003.md?p=15) that will be represented as voting [members](/usc/16/4003.md?p=9) of the [council](/usc/16/4003.md?p=2);
  - (5) the identification of those [sectors](/usc/16/4003.md?p=15) (including the [sector](/usc/16/4003.md?p=15) consisting of [harvesters](/usc/16/4003.md?p=5), the [sector](/usc/16/4003.md?p=15) consisting of [receivers](/usc/16/4003.md?p=13), and, if subject to assessment, the [sector](/usc/16/4003.md?p=15) consisting of [importers](/usc/16/4003.md?p=6)) subject to a referendum to establish a [council](/usc/16/4003.md?p=2) under [subsection (e)](#e) of this section;
  - (6) a specification for each [sector](/usc/16/4003.md?p=15) described under paragraph (5) of this subsection of the minimum requirements, as measured by income, volume, or other relevant factors, that a [person](/usc/16/4003.md?p=11) engaging in business in the [sector](/usc/16/4003.md?p=15) must meet in order to participate in a referendum;
  - (7)
    - (A) a description of the procedures for determining assessment rates under [section 4012 of this title](/usc/16/4012.md);
    - (B) the proposed rate or rates that will be imposed by the [council](/usc/16/4003.md?p=2) on [receivers](/usc/16/4003.md?p=13) and, if subject to assessment, [importers](/usc/16/4003.md?p=6) during its first year of operation;
    - (C) the maximum amount an assessment rate for any period may be raised above the rate applicable for the immediately preceding period; and
    - (D) the maximum rate or rates that can be imposed by a [council](/usc/16/4003.md?p=2) on [receivers](/usc/16/4003.md?p=13) or [importers](/usc/16/4003.md?p=6) during the operation of the [council](/usc/16/4003.md?p=2);
  - (8) a provision setting forth the definition of a quorum for making decisions on [council](/usc/16/4003.md?p=2) business and the procedures for selecting a chairman of the [council](/usc/16/4003.md?p=2);
  - (9) a provision setting forth the voting procedures by which votes may be cast by proxy; and
  - (10) such other provisions relating to administration of the [council](/usc/16/4003.md?p=2) as the [Secretary](/usc/16/4003.md?p=16) considers necessary.

  The text of a proposed charter shall be accompanied by a document identifying, to the extent practicable by address of place of business, the [persons](/usc/16/4003.md?p=11) (hereinafter referred to as “[sector](/usc/16/4003.md?p=15) participants”) that are considered by the applicants to meet the requirements specified in paragraph (6) of this subsection. The text of a proposed charter shall include provisions setting forth procedures for providing refunds to those [sector](/usc/16/4003.md?p=15) participants subject to assessment under [section 4012 of this title](/usc/16/4012.md), and may also include provisions which establish a maximum limit on the amount that any one [sector](/usc/16/4003.md?p=15) participant may be required to pay under an assessment for any period.

- (c) **Contents of charter—** The [Secretary](/usc/16/4003.md?p=16) may not approve a proposed charter filed under [subsection (a)](#a) of this section unless such charter provides that—
  - (1) the [council](/usc/16/4003.md?p=2) will have voting [members](/usc/16/4003.md?p=9) representing the harvesting, receiving and, if subject to assessment, importing [sectors](/usc/16/4003.md?p=15); and
  - (2) the [members](/usc/16/4003.md?p=9) of the [council](/usc/16/4003.md?p=2) shall serve without compensation, but shall be reimbursed for their reasonable expenses incurred in performing their duties as [members](/usc/16/4003.md?p=9) of the [council](/usc/16/4003.md?p=2).
- (d) **Review of charter—**
  - (1) Within 180 days of the receipt of an application to establish a [council](/usc/16/4003.md?p=2), the [Secretary](/usc/16/4003.md?p=16) shall—
    - (A) identify, to the extent practicable, those [sector](/usc/16/4003.md?p=15) participants that meet the requirements for eligibility to participate in the referendum under [subsection (e)](#e) of this section;
    - (B) determine, to the extent practicable, if the charter is accompanied by a petition comprised of the signatures or corporate certifications, as the case may be, of no less than three [sector](/usc/16/4003.md?p=15) participants in each [sector](/usc/16/4003.md?p=15) identified in accordance with [subsection (b)(5)](#b-5) of this section who collectively accounted for, in the twelve-month period immediately preceding the month in which the application was filed, not less than 10 percent of the value of the [fish](/usc/16/4003.md?p=3) or [fish](/usc/16/4003.md?p=3) products described in accordance with [subsection (b)(3)](#b-3) of this section that were handled by each such [sector](/usc/16/4003.md?p=15) during that period; and
    - (C) determine if the proposed charter is consistent with the provisions of this chapter and any other applicable law.
  - (2) If any negative determination is made under paragraph (1) of this subsection regarding a proposed charter, the [Secretary](/usc/16/4003.md?p=16) shall advise in writing the [sector](/usc/16/4003.md?p=15) participants who made the application of the reasons for such determination. A corrected application may be submitted thereafter to the [Secretary](/usc/16/4003.md?p=16) for approval.
- (e) **Conduct of referendum—**
  - (1) Upon making affirmative determinations under [subsection (d)(1)](#d-1) of this section regarding a proposed charter, the [Secretary](/usc/16/4003.md?p=16), within 90 days after the date of the last of such determinations, shall conduct a referendum on the adoption of the proposed charter among all [sector](/usc/16/4003.md?p=15) participants identified in accordance with [subsection (d)(1)(A)](#d-1-A) of this section. The [Secretary](/usc/16/4003.md?p=16) shall by order establish the [council](/usc/16/4003.md?p=2) and approve the proposed charter, if the referendum votes which are cast in favor of the proposed charter constitute a majority of the [sector](/usc/16/4003.md?p=15) participants voting in each [sector](/usc/16/4003.md?p=15) and the majority collectively accounts for, in the twelve-month period immediately preceding the month in which the proposed charter was filed under [subsection (a)](#a) of this section, at least sixty-six percent of the value of the [fish and fish products](/usc/16/1826c.md?p=1) described in accordance with [subsection (b)(3)](#b-3) of this section that were handled by that [sector](/usc/16/4003.md?p=15) during such period.
  - (2) Not less than thirty days prior to holding a referendum under this subsection, the [Secretary](/usc/16/4003.md?p=16) shall—
    - (A) publish (by such means as will result in wide publicity in regions affected by the proposed charter) the text of the proposed charter and a list of those [sector](/usc/16/4003.md?p=15) participants eligible to vote in the referendum; and
    - (B) provide for public comment, including the opportunity for a public meeting.
  - (3)
    - (A) The [Secretary](/usc/16/4003.md?p=16) shall pay all costs of a referendum which establishes a [council](/usc/16/4003.md?p=2) under this subsection. Within two years after a [council](/usc/16/4003.md?p=2) is established the [council](/usc/16/4003.md?p=2) shall reimburse the [Secretary](/usc/16/4003.md?p=16) for any expenses incurred for the conduct of the referendum from assessments collected by the [council](/usc/16/4003.md?p=2). Prior to the holding of a referendum under this subsection, the [Secretary](/usc/16/4003.md?p=16) shall require the applicants to post a bond or other security acceptable to the [Secretary](/usc/16/4003.md?p=16), in an amount which the [Secretary](/usc/16/4003.md?p=16) determines to be sufficient to pay any expenses incurred for the conduct of the referendum, and shall immediately recover such amount if a referendum fails to result in the establishment of a [council](/usc/16/4003.md?p=2).
    - (B) As used in this paragraph, the term “expenses incurred for the conduct of the referendum” does not include salaries of Government employees or other administrative overhead, but is limited to those additional direct costs incurred in connection with conduct of the referendum.
- (f) **Nominations—**
  - (1) Within thirty days after a [council](/usc/16/4003.md?p=2) is established under [subsection (e)](#e) of this section, the [Secretary](/usc/16/4003.md?p=16) shall solicit from the [sectors](/usc/16/4003.md?p=15) represented on the [council](/usc/16/4003.md?p=2) nominations for [members](/usc/16/4003.md?p=9) of the [council](/usc/16/4003.md?p=2). If the [harvesters](/usc/16/4003.md?p=5) and [receivers](/usc/16/4003.md?p=13) represented on the [council](/usc/16/4003.md?p=2) are engaged in business in two or more regions of the [United States](/usc/16/4003.md?p=17), the nominations made under this paragraph, and the appointments to the [council](/usc/16/4003.md?p=2) made under paragraph (3) of this subsection, must, to the extent practicable, result in equitable representation for the constituent regions.
  - (2) No [person](/usc/16/4003.md?p=11) is eligible for nomination or appointment as a [member](/usc/16/4003.md?p=9) of a [council](/usc/16/4003.md?p=2) unless such [person](/usc/16/4003.md?p=11) is knowledgeable and experienced with regard to the activities of, and is or has been actively engaged in the business of, the [sector](/usc/16/4003.md?p=15) which such [person](/usc/16/4003.md?p=11) will represent on the [council](/usc/16/4003.md?p=2).
  - (3) The [Secretary](/usc/16/4003.md?p=16) shall, within sixty days after the end of the thirty-day period referred to in paragraph (1) of this subsection, appoint the [members](/usc/16/4003.md?p=9) of the [council](/usc/16/4003.md?p=2) from among the nominees.
  - (4) A vacancy on a [council](/usc/16/4003.md?p=2) shall be filled, within sixty days after the vacancy occurs, in the same manner in which the original appointment was made. A [member](/usc/16/4003.md?p=9) appointed to fill a vacancy occurring before the expiration of the term for which the [member](/usc/16/4003.md?p=9)’s predecessor was appointed shall be appointed only for the remainder of such term.
  - (5) The [Secretary](/usc/16/4003.md?p=16) shall remove any [member](/usc/16/4003.md?p=9) of a [council](/usc/16/4003.md?p=2) if the [council](/usc/16/4003.md?p=2) concerned first recommends, by not less than two-thirds of its [members](/usc/16/4003.md?p=9), removal for cause. Such a recommendation of a [council](/usc/16/4003.md?p=2) must be in writing and accompanied by a statement of the reasons upon which the recommendation is based.
- (g) **Nature of a council—** A [council](/usc/16/4003.md?p=2) is not an instrumentality of the [United States](/usc/16/4003.md?p=17) Government.

## Source credit

(Pub. L. 99–659, title II, § 210, Nov. 14, 1986, 100 Stat. 3721.)