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.