76R10008 DB-D                           
         By Swinford                                           H.B. No. 2719
         Substitute the following for H.B. No. 2719:
         By Hardcastle                                     C.S.H.B. No. 2719
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the promotion of Texas agricultural products; providing
 1-3     a penalty.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 12.020(c), Agriculture Code, is amended
 1-6     to read as follows:
 1-7           (c)  The provisions of this code subject to this section and
 1-8     the applicable penalty amounts are as follows:
 1-9                Provision                      Maximum Penalty
1-10                                                       
1-11     Chapters 13, 14, 18, 46, 61, 94,
1-12     95, 101, 102, 103, 121, 125,                   $500
1-13     132, and 134
1-14     Subchapter B, Chapter 71
1-15     Chapter 19                                    $2,000
1-16     Chapters 75 and 76
1-17     Subchapters A and C, Chapter 71               $5,000
1-18     Chapters 72, 73, and 74
1-19           SECTION 2.  Title 3, Agriculture Code, is amended by adding
1-20     Chapter 46 to read as follows:
1-21                   CHAPTER 46. "GO TEXAN" PARTNER PROGRAM
1-22           Sec. 46.001.  FINDINGS.  The legislature finds that this
1-23     state needs a Texas agricultural product promotion program to
1-24     increase consumer awareness of Texas agricultural products and
1-25     expand the markets for Texas agricultural products. The legislature
 2-1     further finds that the Texas Department of Agriculture, through the
 2-2     establishment of the "Go Texan" Partner Program and use of program
 2-3     grants and matching funds, is the proper department to promote and
 2-4     advertise these products.
 2-5           Sec. 46.002.  DEFINITIONS.  In this chapter "Texas
 2-6     agricultural product" means an agricultural, horticultural,
 2-7     viticultural, or vegetable product, either in its natural or
 2-8     processed state, that has been produced, processed, or otherwise
 2-9     had value added to the product in this state, including:
2-10                 (1)  bees;
2-11                 (2)  honey;
2-12                 (3)  fish or other seafood;
2-13                 (4)  a forestry product;
2-14                 (5)  livestock or a livestock product;
2-15                 (6)  planting seed; or
2-16                 (7)  poultry or a poultry product.
2-17           Sec. 46.003.  GENERAL AUTHORITY.  The Texas Department of
2-18     Agriculture shall establish and maintain the "Go Texan" Partner
2-19     Program to encourage the development and expansion of markets for
2-20     Texas agricultural products through participation of eligible
2-21     applicants who provide funds to be matched for promotional
2-22     marketing programs implemented by the department.
2-23           Sec. 46.004.  ELIGIBLE APPLICANT.  An eligible applicant must
2-24     be:
2-25                 (1)  a state or regional organization or board that
2-26     promotes the marketing and sale of Texas agricultural products and
2-27     does not stand to profit directly from specific sales of
 3-1     agricultural commodities;
 3-2                 (2)  a cooperative organization, as defined by
 3-3     department rule;
 3-4                 (3)  a state agency or board that promotes the
 3-5     marketing and sale of agricultural commodities;
 3-6                 (4)  a national organization or board that represents
 3-7     Texas producers and promotes the marketing and sale of Texas
 3-8     agricultural products;
 3-9                 (5)  an eligible small business, as defined by
3-10     department rule; or
3-11                 (6)  any other entity that promotes the marketing and
3-12     sale of Texas agricultural products, as determined by the
3-13     department.
3-14           Sec. 46.005.  DEPARTMENT POWERS AND DUTIES.  The department
3-15     shall administer the "Go Texan" Partner Program.  The duties of the
3-16     department in administering the program include:
3-17                 (1)  developing procedures for acceptance and
3-18     administration of funds received to administer the program,
3-19     including appropriations, gifts, license plate revenue, and
3-20     matching funds;
3-21                 (2)  developing application and selection procedures
3-22     including procedures for soliciting and accepting applications and
3-23     screening applications for review by the "Go Texan" Partner Program
3-24     Advisory Board;
3-25                 (3)  developing a general promotional campaign for
3-26     Texas agricultural products and advertising campaigns for specific
3-27     Texas agricultural products based on project requests submitted by
 4-1     successful applicants;
 4-2                 (4)  developing advertising programs and promotional
 4-3     materials for use by program participants and establishing
 4-4     guidelines on advertising activities by participants;
 4-5                 (5)  contracting with media representatives for the
 4-6     purpose of dispersing promotional materials; and
 4-7                 (6)  receiving matching funds from program participants
 4-8     and donations or grants from any source, and establishing internal
 4-9     reporting requirements for use of funds.
4-10           Sec. 46.006.  REQUIREMENTS FOR PARTICIPATION.  To be eligible
4-11     for participation in the program through the use of matching funds
4-12     under this chapter, an organization must:
4-13                 (1)  be an eligible applicant under Section 46.004 of
4-14     this chapter;
4-15                 (2)  prepare and submit a project request and
4-16     application as provided by department rule; and
4-17                 (3)  meet any other requirement established by
4-18     department rule.
4-19           Sec. 46.007.  PROJECT REQUESTS.  (a)  A project request
4-20     submitted by an eligible participant must describe the advertising
4-21     or other market-oriented promotional activities to be carried out
4-22     by the department using matching funds.
4-23           (b)  The department may not approve a project request
4-24     submitted under this section unless the request includes:
4-25                 (1)  a specific description of the project and how
4-26     assistance received under this chapter could be expended in
4-27     implementing the request;
 5-1                 (2)  a description of anticipated benefits to be
 5-2     achieved as a result of the marketing promotional program; and
 5-3                 (3)  additional information as required by the
 5-4     department.
 5-5           Sec. 46.008.  "GO TEXAN" PARTNER PROGRAM ACCOUNT.  (a)  The
 5-6     "Go Texan" partner program account is an account in the general
 5-7     revenue fund. The account is composed of:
 5-8                 (1)  legislative appropriations;
 5-9                 (2)  gifts, grants, and matching funds received under
5-10     Subsection (b);
5-11                 (3)  money required to be deposited in the account
5-12     under Section 502.2761, Transportation Code; and
5-13                 (4)  other money required by law to be deposited in the
5-14     account.
5-15           (b)  The department may solicit and accept gifts in kind and
5-16     grants of money from the federal government, local governments,
5-17     private corporations, or other persons to be used for the purposes
5-18     of this chapter.
5-19           (c)  Money in the account may be appropriated to the
5-20     department only for the purpose of implementing and maintaining the
5-21     "Go Texan" Partner Program.
5-22           (d)  Income from money in the account shall be credited to
5-23     the account.
5-24           (e)  The account is exempt from the application of Section
5-25     403.095, Government Code.
5-26           Sec. 46.009.  USE OF FUNDS.  (a)  Funds received under this
5-27     chapter may only be used for activities promoting the sale of Texas
 6-1     agricultural products.  The department by rule may allocate funds
 6-2     to categories of eligible participants and to general or
 6-3     product-specific promotional activities.
 6-4           (b)  The department shall adopt rules to ensure that money in
 6-5     the "Go Texan" partner program account is used only for the
 6-6     purposes prescribed under this section.
 6-7           (c)  The payment of the administrative expenses under the
 6-8     program  may not exceed seven percent of the average account
 6-9     balance for the fiscal year.
6-10           Sec. 46.010.  "GO TEXAN" PARTNER PROGRAM ADVISORY BOARD.  (a)
6-11     The "Go Texan" Partner Program Advisory Board is composed of at
6-12     least eight members appointed by the commissioner to assist the
6-13     department in the implementation of the "Go Texan" Partner Program.
6-14           (b)  The board shall include:
6-15                 (1)  two representatives from the department;
6-16                 (2)  one representative from the United States
6-17     Department of Agriculture (USDA) Commodity Credit Corporation,
6-18     involved in the promotion of agricultural commodities;
6-19                 (3)  one representative each from the radio, print, and
6-20     television advertising media;
6-21                 (4)  one representative from the advertising
6-22     profession;
6-23                 (5)  one consumer representative; and
6-24                 (6)  other members the commissioner determines as
6-25     necessary for the purposes of this chapter.
6-26           (c)  A member of the advisory board serves at the pleasure of
6-27     the commissioner.
 7-1           (d)  A member serves without compensation but is entitled to
 7-2     reimbursement for actual expenses incurred in the performance of
 7-3     official board duties, subject to approval of the commissioner.
 7-4     Money for expense reimbursement shall be deducted from the "Go
 7-5     Texan" partner program account.
 7-6           (e)  Except as provided by Subsection (d), Chapter 2110,
 7-7     Government Code, does not apply to the board.
 7-8           (f)  An eligible applicant is not ineligible to participate
 7-9     in the program established under this chapter solely because a
7-10     board member is also an officer, director, or employee of the
7-11     applicant organization, provided that the board member shall be
7-12     recused from an action taken by the board on an application
7-13     involving an applicant organization with which the board member
7-14     serves as an officer, director, or employee.
7-15           (g)  The board shall:
7-16                 (1)  review applications of eligible participants and
7-17     approve or deny funding under this chapter;
7-18                 (2)  advise the department on matters related to the
7-19     administration of the account; and
7-20                 (3)  advise the department on the adoption of rules
7-21     relating to the administration of the "Go Texan" Partner Program.
7-22           (h)  The commissioner shall provide the board with staff
7-23     necessary to assist the board in carrying out its duties under this
7-24     chapter.
7-25           Sec. 46.011.  CRITERIA FOR ALLOCATION OF FUNDS. The
7-26     department shall by rule and with the advice of the board establish
7-27     criteria for allocation of funds to participant projects.  Rules
 8-1     adopted under this section must include:
 8-2                 (1)  the factors to be considered in evaluating
 8-3     projects; and
 8-4                 (2)  a maximum funding amount for each project.
 8-5           Sec. 46.012.  RULEMAKING AUTHORITY.  The department shall
 8-6     adopt rules to administer this chapter including rules for the use
 8-7     of the "Go Texan" logo.
 8-8           Sec. 46.013.  ADMINISTRATIVE PENALTIES; CIVIL PENALTIES;
 8-9     INJUNCTIVE RELIEF.  (a)  In addition to the other provisions of
8-10     this chapter, a person violates this chapter if the person:
8-11                 (1)  uses, reproduces, or distributes the logo of the
8-12     "Go Texan" Partner Program without registering with the department;
8-13     or
8-14                 (2)  violates a rule adopted by the department under
8-15     this chapter.
8-16           (b)  A person who violates this chapter:
8-17                 (1)  forfeits the person's ability to use the logo of
8-18     the "Go Texan" Partner Program; and
8-19                 (2)  is ineligible for a grant of funds under this
8-20     chapter.
8-21           (c)  The department may assess an administrative penalty as
8-22     provided by Section 12.020, Agriculture Code, against a person who
8-23     violates this chapter.
8-24           (d)  A person who violates this chapter is subject to a civil
8-25     penalty not to exceed $500 for each violation.  Each day that a
8-26     violation continues may be considered a separate violation for
8-27     purposes of a civil penalty assessed under this chapter.
 9-1           (e)  At the request of the department, the attorney general
 9-2     or the county attorney or district attorney of the county in which
 9-3     the violation is alleged to have occurred shall file suit to
 9-4     collect the civil penalty.
 9-5           (f)  A civil penalty collected under this section shall be
 9-6     deposited to the credit of the general revenue fund.
 9-7           (g)  At the request of the department, the attorney general
 9-8     or the county or district attorney of the county in which the
 9-9     alleged violation is threatened to occur or is occurring shall file
9-10     suit for the appropriate injunctive relief to prevent or abate a
9-11     violation of this chapter.  Venue for an action brought under this
9-12     subsection is in Travis County.
9-13           SECTION 3.  Subchapter F, Chapter 502, Transportation Code,
9-14     is amended by adding Section 502.2761 to read as follows:
9-15           Sec. 502.2761.  TEXAS AGRICULTURAL PRODUCTS LICENSE PLATES.
9-16     (a)  The department shall issue specially designed license plates
9-17     for passenger cars and light trucks to support the promotion of
9-18     Texas agricultural products.
9-19           (b)  The license plates must include the words "Go Texan" and
9-20     the "Go Texan" logo of the Department of Agriculture and must be of
9-21     a color, quality, and design approved by the commissioner of
9-22     agriculture.
9-23           (c)  The department shall issue license plates under this
9-24     section to a person who:
9-25                 (1)  applies to the county assessor-collector of the
9-26     county in which the person resides on the form provided by the
9-27     department; and
 10-1                (2)  pays an annual fee of $30, in addition to the fee
 10-2    prescribed by Section 502.161 or Section 502.162 and, if
 10-3    personalized prestige license plates are issued, in addition to the
 10-4    fee prescribed by Section 502.251.
 10-5          (d)  The department shall deposit $25 of each fee collected
 10-6    under Subsection (c) to the credit of the "Go Texan" partner
 10-7    program account established by Section 46.008, Agriculture Code.
 10-8          (e)  The remainder of each fee collected under this section,
 10-9    after deposit as provided by Subsection (d), shall be deposited to
10-10    the credit of the state highway fund and may be used only to defray
10-11    the cost of administering this section.
10-12          (f)  If the owner of a vehicle registered under this section
10-13    disposes of the vehicle during the registration year, the owner
10-14    shall return the special license plates to the department.
10-15          SECTION 4.  This Act takes effect September 1, 1999.
10-16          SECTION 5.  The importance of this legislation and the
10-17    crowded condition of the calendars in both houses create an
10-18    emergency and an imperative public necessity that the
10-19    constitutional rule requiring bills to be read on three several
10-20    days in each house be suspended, and this rule is hereby suspended.