No, it doesn't happen all of the time. Unfortunately, it does happen though. I don't know what the rules are up there, but down here, there are no specific laws governing this behavior.
As long as you are within the 'creel limit' for the day, what you do with them is your business. However, our club attempts to 'collect' any dead fish and either gives them away, or disposes of them properly. Most of our club won't take any home to eat.
I'm pretty sure that in some areas, dumping dead fish back into the water is against the law. Regardlesss, it's in very poor taste.
Tex