1-1     By:  Swinford (Senate Sponsor - Lucio)                H.B. No. 2719
 1-2           (In the Senate - Received from the House April 16, 1999;
 1-3     April 19, 1999, read first time and referred to Committee on
 1-4     Natural Resources; April 27, 1999, reported favorably by the
 1-5     following vote:  Yeas 6, Nays 0; April 27, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the promotion of Texas agricultural products; providing
 1-9     a penalty.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 12.020(c), Agriculture Code, is amended
1-12     to read as follows:
1-13           (c)  The provisions of this code subject to this section and
1-14     the applicable penalty amounts are as follows:
1-15                Provision                      Maximum Penalty
1-16     Chapters 13, 14, 18, 46, 61, 94,
1-17     95, 101, 102, 103, 121, 125,
1-18     132, and 134                                    $500 
1-19     Subchapter B, Chapter 71
1-20     Chapter 19
1-21     Chapters 75 and 76                            $2,000 
1-22     Subchapters A and C, Chapter 71
1-23     Chapters 72, 73, and 74                      $5,000. 
1-24           SECTION 2.  Title 3, Agriculture Code, is amended by adding
1-25     Chapter 46 to read as follows:
1-26                   CHAPTER 46. "GO TEXAN" PARTNER PROGRAM
1-27           Sec. 46.001.  FINDINGS.  The legislature finds that this
1-28     state needs a Texas agricultural product promotion program to
1-29     increase consumer awareness of Texas agricultural products and
1-30     expand the markets for Texas agricultural products. The legislature
1-31     further finds that the Texas Department of Agriculture, through the
1-32     establishment of the "Go Texan" Partner Program and use of program
1-33     grants and matching funds, is the proper department to promote and
1-34     advertise these products.
1-35           Sec. 46.002.  DEFINITION.  In this chapter "Texas
1-36     agricultural product" means an agricultural, horticultural,
1-37     viticultural, or vegetable product, either in its natural or
1-38     processed state, that has been produced, processed, or otherwise
1-39     had value added to the product in this state, including:
1-40                 (1)  bees;
1-41                 (2)  honey;
1-42                 (3)  fish or other seafood;
1-43                 (4)  a forestry product;
1-44                 (5)  livestock or a livestock product;
1-45                 (6)  planting seed; or
1-46                 (7)  poultry or a poultry product.
1-47           Sec. 46.003.  GENERAL AUTHORITY.  The Texas Department of
1-48     Agriculture shall establish and maintain the "Go Texan" Partner
1-49     Program to encourage the development and expansion of markets for
1-50     Texas agricultural products through participation of eligible
1-51     applicants who provide funds to be matched for promotional
1-52     marketing programs implemented by the department.
1-53           Sec. 46.004.  ELIGIBLE APPLICANT.  An eligible applicant must
1-54     be:
1-55                 (1)  a state or regional organization or board that
1-56     promotes the marketing and sale of Texas agricultural products and
1-57     does not stand to profit directly from specific sales of
1-58     agricultural commodities;
1-59                 (2)  a cooperative organization, as defined by
1-60     department rule;
1-61                 (3)  a state agency or board that promotes the
1-62     marketing and sale of agricultural commodities;
1-63                 (4)  a national organization or board that represents
1-64     Texas producers and promotes the marketing and sale of Texas
1-65     agricultural products;
 2-1                 (5)  an eligible small business, as defined by
 2-2     department rule; or
 2-3                 (6)  any other entity that promotes the marketing and
 2-4     sale of Texas agricultural products, as determined by the
 2-5     department.
 2-6           Sec. 46.005.  DEPARTMENT POWERS AND DUTIES.  The department
 2-7     shall administer the "Go Texan" Partner Program.  The duties of the
 2-8     department in administering the program include:
 2-9                 (1)  developing procedures for acceptance and
2-10     administration of funds received to administer the program,
2-11     including appropriations, gifts, license plate revenue, and
2-12     matching funds;
2-13                 (2)  developing application and selection procedures
2-14     including procedures for soliciting and accepting applications and
2-15     screening applications for review by the "Go Texan" Partner Program
2-16     Advisory Board;
2-17                 (3)  developing a general promotional campaign for
2-18     Texas agricultural products and advertising campaigns for specific
2-19     Texas agricultural products based on project requests submitted by
2-20     successful applicants;
2-21                 (4)  developing advertising programs and promotional
2-22     materials for use by program participants and establishing
2-23     guidelines on advertising activities by participants;
2-24                 (5)  contracting with media representatives for the
2-25     purpose of dispersing promotional materials; and
2-26                 (6)  receiving matching funds from program participants
2-27     and donations or grants from any source, and establishing internal
2-28     reporting requirements for use of funds.
2-29           Sec. 46.006.  REQUIREMENTS FOR PARTICIPATION.  To be eligible
2-30     for participation in the program through the use of matching funds
2-31     under this chapter, an organization must:
2-32                 (1)  be an eligible applicant under Section 46.004 of
2-33     this chapter;
2-34                 (2)  prepare and submit a project request and
2-35     application as provided by department rule; and
2-36                 (3)  meet any other requirement established by
2-37     department rule.
2-38           Sec. 46.007.  PROJECT REQUESTS.  (a)  A project request
2-39     submitted by an eligible participant must describe the advertising
2-40     or other market-oriented promotional activities to be carried out
2-41     by the department using matching funds.
2-42           (b)  The department may not approve a project request
2-43     submitted under this section unless the request includes:
2-44                 (1)  a specific description of the project and how
2-45     assistance received under this chapter could be expended in
2-46     implementing the request;
2-47                 (2)  a description of anticipated benefits to be
2-48     achieved as a result of the marketing promotional program; and
2-49                 (3)  additional information as required by the
2-50     department.
2-51           Sec. 46.008.  "GO TEXAN" PARTNER PROGRAM ACCOUNT.  (a)  The
2-52     "Go Texan" partner program account is an account in the general
2-53     revenue fund. The account is composed of:
2-54                 (1)  legislative appropriations;
2-55                 (2)  gifts, grants, and matching funds received under
2-56     Subsection (b);
2-57                 (3)  money required to be deposited in the account
2-58     under Section 502.2761, Transportation Code; and
2-59                 (4)  other money required by law to be deposited in the
2-60     account.
2-61           (b)  The department may solicit and accept gifts in kind and
2-62     grants of money from the federal government, local governments,
2-63     private corporations, or other persons to be used for the purposes
2-64     of this chapter.
2-65           (c)  Money in the account may be appropriated to the
2-66     department only for the purpose of implementing and maintaining the
2-67     "Go Texan" Partner Program.
2-68           (d)  Income from money in the account shall be credited to
2-69     the account.
 3-1           (e)  The account is exempt from the application of Section
 3-2     403.095, Government Code.
 3-3           Sec. 46.009.  USE OF FUNDS.  (a)  Funds received under this
 3-4     chapter may only be used for activities promoting the sale of Texas
 3-5     agricultural products.  The department by rule may allocate funds
 3-6     to categories of eligible participants and to general or
 3-7     product-specific promotional activities.
 3-8           (b)  The department shall adopt rules to ensure that money in
 3-9     the "Go Texan" partner program account is used only for the
3-10     purposes prescribed under this section.
3-11           (c)  The payment of the administrative expenses under the
3-12     program  may not exceed seven percent of the average account
3-13     balance for the fiscal year.
3-14           Sec. 46.010.  "GO TEXAN" PARTNER PROGRAM ADVISORY BOARD.  (a)
3-15     The "Go Texan" Partner Program Advisory Board is composed of at
3-16     least eight members appointed by the commissioner to assist the
3-17     department in the implementation of the "Go Texan" Partner Program.
3-18           (b)  The board shall include:
3-19                 (1)  two representatives from the department;
3-20                 (2)  one representative from the United States
3-21     Department of Agriculture (USDA) Commodity Credit Corporation,
3-22     involved in the promotion of agricultural commodities;
3-23                 (3)  one representative each from the radio, print, and
3-24     television advertising media;
3-25                 (4)  one representative from the advertising
3-26     profession;
3-27                 (5)  one consumer representative; and
3-28                 (6)  other members the commissioner determines as
3-29     necessary for the purposes of this chapter.
3-30           (c)  A member of the advisory board serves at the pleasure of
3-31     the commissioner.
3-32           (d)  A member serves without compensation but is entitled to
3-33     reimbursement for actual expenses incurred in the performance of
3-34     official board duties, subject to approval of the commissioner.
3-35     Money for expense reimbursement shall be deducted from the "Go
3-36     Texan" partner program account.
3-37           (e)  Except as provided by Subsection (d), Chapter 2110,
3-38     Government Code, does not apply to the board.
3-39           (f)  An eligible applicant is not ineligible to participate
3-40     in the program established under this chapter solely because a
3-41     board member is also an officer, director, or employee of the
3-42     applicant organization, provided that the board member shall be
3-43     recused from an action taken by the board on an application
3-44     involving an applicant organization with which the board member
3-45     serves as an officer, director, or employee.
3-46           (g)  The board shall:
3-47                 (1)  review applications of eligible participants and
3-48     approve or deny funding under this chapter;
3-49                 (2)  advise the department on matters related to the
3-50     administration of the account; and
3-51                 (3)  advise the department on the adoption of rules
3-52     relating to the administration of the "Go Texan" Partner Program.
3-53           (h)  The commissioner shall provide the board with staff
3-54     necessary to assist the board in carrying out its duties under this
3-55     chapter.
3-56           Sec. 46.011.  CRITERIA FOR ALLOCATION OF FUNDS. The
3-57     department shall by rule and with the advice of the board establish
3-58     criteria for allocation of funds to participant projects.  Rules
3-59     adopted under this section must include:
3-60                 (1)  the factors to be considered in evaluating
3-61     projects; and
3-62                 (2)  a maximum funding amount for each project.
3-63           Sec. 46.012.  RULEMAKING AUTHORITY.  The department shall
3-64     adopt rules to administer this chapter including rules for the use
3-65     of the "Go Texan" logo.
3-66           Sec. 46.013.  ADMINISTRATIVE PENALTIES; CIVIL PENALTIES;
3-67     INJUNCTIVE RELIEF.  (a)  In addition to the other provisions of
3-68     this chapter, a person violates this chapter if the person:
3-69                 (1)  uses, reproduces, or distributes the logo of the
 4-1     "Go Texan" Partner Program without registering with the department;
 4-2     or
 4-3                 (2)  violates a rule adopted by the department under
 4-4     this chapter.
 4-5           (b)  A person who violates this chapter:
 4-6                 (1)  forfeits the person's ability to use the logo of
 4-7     the "Go Texan" Partner Program; and
 4-8                 (2)  is ineligible for a grant of funds under this
 4-9     chapter.
4-10           (c)  The department may assess an administrative penalty as
4-11     provided by Section 12.020 against a person who violates this
4-12     chapter.
4-13           (d)  A person who violates this chapter is subject to a civil
4-14     penalty not to exceed $500 for each violation.  Each day that a
4-15     violation continues may be considered a separate violation for
4-16     purposes of a civil penalty assessed under this chapter.
4-17           (e)  At the request of the department, the attorney general
4-18     or the county attorney or district attorney of the county in which
4-19     the violation is alleged to have occurred shall file suit to
4-20     collect the civil penalty.
4-21           (f)  A civil penalty collected under this section shall be
4-22     deposited to the credit of the general revenue fund.
4-23           (g)  At the request of the department, the attorney general
4-24     or the county or district attorney of the county in which the
4-25     alleged violation is threatened to occur or is occurring shall file
4-26     suit for the appropriate injunctive relief to prevent or abate a
4-27     violation of this chapter.  Venue for an action brought under this
4-28     subsection is in Travis County.
4-29           SECTION 3.  Subchapter F, Chapter 502, Transportation Code,
4-30     is amended by adding Section 502.2761 to read as follows:
4-31           Sec. 502.2761.  TEXAS AGRICULTURAL PRODUCTS LICENSE PLATES.
4-32     (a)  The department shall issue specially designed license plates
4-33     for passenger cars and light trucks to support the promotion of
4-34     Texas agricultural products.
4-35           (b)  The license plates must include the words "Go Texan" and
4-36     the "Go Texan" logo of the Department of Agriculture and must be of
4-37     a color, quality, and design approved by the commissioner of
4-38     agriculture.
4-39           (c)  The department shall issue license plates under this
4-40     section to a person who:
4-41                 (1)  applies to the county assessor-collector of the
4-42     county in which the person resides on the form provided by the
4-43     department; and
4-44                 (2)  pays an annual fee of $30, in addition to the fee
4-45     prescribed by Section 502.161 or Section 502.162 and, if
4-46     personalized prestige license plates are issued, in addition to the
4-47     fee prescribed by Section 502.251.
4-48           (d)  The department shall deposit $25 of each fee collected
4-49     under Subsection (c) to the credit of the "Go Texan" partner
4-50     program account established by Section 46.008, Agriculture Code.
4-51           (e)  The remainder of each fee collected under this section,
4-52     after deposit as provided by Subsection (d), shall be deposited to
4-53     the credit of the state highway fund and may be used only to defray
4-54     the cost of administering this section.
4-55           (f)  If the owner of a vehicle registered under this section
4-56     disposes of the vehicle during the registration year, the owner
4-57     shall return the special license plates to the department.
4-58           SECTION 4.  Title 3, Agriculture Code, is amended by adding
4-59     Chapter 47 to read as follows:
4-60                      CHAPTER 47. TEXAS OYSTER PROGRAM 
4-61           Sec. 47.001.  PROMOTION AND ADVERTISEMENT.  (a)  The
4-62     department may promote and advertise the Texas oyster industry by:
4-63                 (1)  using current market research to develop an oyster
4-64     marketing plan to increase consumption of Texas oysters;
4-65                 (2)  conducting a public relations campaign to create a
4-66     responsible and accurate image of the Texas oyster industry;
4-67                 (3)  providing information, education, and training to
4-68     consumers on safe and proper handling of oysters; and
4-69                 (4)  using other methods the department considers
 5-1     appropriate.
 5-2           (b)  The department, following guidance of the oyster
 5-3     advisory committee established under Section 47.002, may use a
 5-4     portion of the oyster sales fee funds provided for administrative
 5-5     purposes.
 5-6           Sec. 47.002.  OYSTER ADVISORY COMMITTEE.  (a)  The
 5-7     commissioner shall appoint an oyster advisory committee to provide
 5-8     guidance and direction on the programs and activities established
 5-9     under this chapter and expenditures of the funds appropriated for
5-10     the purposes of this chapter.
5-11           (b)  Members of the advisory committee serve without
5-12     compensation or reimbursement of expenses.
5-13           (c)  The advisory committee shall meet and elect a
5-14     chairperson from its members and shall conduct other meetings it
5-15     considers necessary to provide guidance and direction to the
5-16     department.
5-17           (d)  The advisory committee consists of the following nine
5-18     members:
5-19                 (1)  six members appointed by the commissioner from a
5-20     list of nominations submitted individually by oyster dealers who
5-21     have been certified in Texas for at least 12 months of each year of
5-22     the three years preceding the nomination;
5-23                 (2)  two members appointed by the commissioner from a
5-24     list of nominations submitted individually by oyster dealers who
5-25     have been certified in Texas for at least six months of each year
5-26     of the three years preceding the nomination; and
5-27                 (3)  one member appointed by the commissioner
5-28     representing consumer interests.
5-29           (e)  The advisory committee shall develop its own bylaws
5-30     under which it shall operate.  The bylaws shall stipulate that five
5-31     members constitute a quorum sufficient to conduct meetings and
5-32     business of the advisory committee.
5-33           (f)  An advisory committee member serves a three-year term,
5-34     with the terms of three members expiring August 31 of each year.
5-35           (g)  A member of the advisory committee may be reappointed to
5-36     the advisory committee.
5-37           SECTION 5.  For the first appointment to the oyster advisory
5-38     committee created under Chapter 47, Agriculture Code, as added by
5-39     this Act, the commissioner of agriculture shall appoint two members
5-40     from the list submitted under Section 47.002(d)(1), Agriculture
5-41     Code, as added by this Act, and one member from the list submitted
5-42     under Section 47.002(d)(2), Agriculture Code, as added by this Act,
5-43     or the consumer representative, to serve terms of one year, two
5-44     years, and three years, respectively, to establish the rotation.
5-45           SECTION 6.  This Act takes effect September 1, 1999.
5-46           SECTION 7.  The importance of this legislation and the
5-47     crowded condition of the calendars in both houses create an
5-48     emergency and an imperative public necessity that the
5-49     constitutional rule requiring bills to be read on three several
5-50     days in each house be suspended, and this rule is hereby suspended.
5-51                                  * * * * *