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 * * * * *