[Code of Federal Regulations]
[Title 50, Volume 7]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 50CFR270.23]

[Page 696-697]
 
                    TITLE 50--WILDLIFE AND FISHERIES
 
  CHAPTER II--NATIONAL MARINE FISHERIES SERVICE, NATIONAL OCEANIC AND 
           ATMOSPHERIC ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 270_SPECIES-SPECIFIC SEAFOOD MARKETING COUNCILS--Table of Contents
 
Sec. 270.23  Dissolution of Councils.

    (a) Petition for termination. (1) A petition to terminate a Council 
may be filed with NMFS by no less than three sector participants in any 
one sector. Any petition filed under this subsection must be accompanied 
by a written document explaining the reasons for such petition.
    (2) If NMFS determines that a petition filed under paragraph (a)(1) 
of this section is accompanied by the signatures, or corporate 
certifications, of no less than three sector participants in the sector 
referred to in paragraph (a)(1) of this section who collectively 
accounted for, in the 12-month period immediately preceding the month in 
which the petition was filed, not less than 20 percent of the value of 
the fish or fish products described in Sec. 270.3(c)(2)(iii) that were 
handled by that sector during the period, NMFS within 90 days after the 
determination, will conduct a referendum for termination of the Council 
among all sector participants in that sector.
    (3) Not less than 30 days prior to holding a referendum, NMFS will 
publish an announcement in the Federal Register of the referendum, 
including an explanation of the reasons for the petition for termination 
filed under paragraph (a)(1) of this section and any other relevant 
information NMFS considers appropriate.
    (4) If the referendum votes which are cast in favor of terminating 
the Council constitute a majority of the sector participants voting and 
the majority, in the period in paragraph (a)(2) of this section, 
collectively accounted for not less than 66 percent of the value of such 
fish and fish products that were handled during such period by the 
sector in paragraph (a)(1) of this section,

[[Page 697]]

NMFS will by order of publication terminate the Council effective as of 
a date by which the affairs of the Council may be concluded on an 
orderly basis.
    (5) NMFS initially will pay all costs of a referendum conducted in 
Sec. 270.23. Prior to conducting such a referendum, NMFS will require 
petitioners to post a bond or other security acceptable to NMFS in an 
amount which NMFS determines to be sufficient to pay any expenses 
incurred for the conduct of the referendum.
    (6) If a referendum conducted under Sec. 270.23 fails to result in 
the termination of the Council, NMFS will immediately recover the amount 
of the bond posted by the petitioners under Sec. 270.23(a)(5).
    (7) If a referendum conducted under this subsection results in the 
termination of the Council, NMFS will recover the expenses incurred for 
the conduct of the referendum from the account established by the 
Council. If the amount remaining in such account is insufficient for 
NMFS to recover all expenses incurred for the conduct of the referendum, 
NMFS will recover the balance of the expenses from the petitioners that 
posted a bond under paragraph (a)(5) of this section.
    (b) Payment of remaining funds. If a Council is terminated under 
section Sec. 270.23(a)(4), NMFS, after recovering all expenses incurred 
for the conduct of the referendum under paragraph (a) of this section, 
will take such action as is necessary and practicable to ensure that 
moneys remaining in the account established by the Council under Sec. 
270.17 are paid on a prorated basis to the sector participants from whom 
those moneys were collected under Sec. 270.20.