By Brown of Brazos H.B. No. 153 77R1184 JMG-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to developing an international trade and development 1-3 program for Texas-grown agricultural products. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 3, Agriculture Code, is amended by adding 1-6 Chapter 46A to read as follows: 1-7 CHAPTER 46A. INTERNATIONAL AGRICULTURE TRADE AND DEVELOPMENT 1-8 Sec. 46A.001. FINDINGS. (a) The legislature finds that: 1-9 this state needs an international agriculture trade and development 1-10 program to increase prosperity in Texas agricultural products and 1-11 expand the markets for Texas agricultural products; foreign markets 1-12 require products that Texas can produce but does not; 1-13 specifications of products used abroad need to be assessed, ways of 1-14 producing these products in Texas need to be developed and 1-15 introduced, and, in turn, these products must be promoted abroad; 1-16 alliances and loyalties between Texas and foreign trading partners 1-17 can be built through cooperative research and education; rural 1-18 communities in Texas need knowledge and understanding of other 1-19 countries, languages, cultures, economies, emerging trends, and the 1-20 global marketplace; and an integrated statewide program for 1-21 international agriculture trade and development is needed. 1-22 (b) The legislature further finds that the Department of 1-23 Agriculture, linked by memoranda of agreement with the agriculture 1-24 programs of The Texas A&M University System and Texas Tech 2-1 University, is the proper department to: 2-2 (1) prepare rural communities to respond to 2-3 international agriculture trade opportunities; 2-4 (2) develop usage of Texas agricultural products in 2-5 other countries; 2-6 (3) promote the development of new agricultural 2-7 processes and new Texas products to meet foreign demand; 2-8 (4) conduct international training, education, and 2-9 research exchanges on which to base future trade relations; 2-10 (5) link Texas programs and interests to current 2-11 externally funded national and global programs in international 2-12 agriculture and rural development; and 2-13 (6) advertise Texas agricultural products 2-14 internationally. 2-15 Sec. 46A.002. DEFINITIONS. In this chapter: 2-16 (1) "Program" means the International Agriculture 2-17 Trade and Development Partner Program. 2-18 (2) "Texas agricultural product" has the meaning 2-19 assigned by Section 46.002. 2-20 Sec. 46A.003. GENERAL AUTHORITY. The department shall 2-21 establish and maintain the International Agriculture Trade and 2-22 Development Partner Program to encourage the development and 2-23 expansion of foreign markets for Texas agricultural products 2-24 through participation of eligible applicants who provide funds to 2-25 be matched for promotional trade, development, and marketing 2-26 programs implemented by the department. 2-27 Sec. 46A.004. ELIGIBLE APPLICANT. An eligible applicant 3-1 must be: 3-2 (1) a state or regional organization or board that 3-3 promotes the marketing and sale of Texas agricultural products and 3-4 does not stand to profit directly from specific sales of 3-5 agricultural commodities; 3-6 (2) a cooperative organization, as defined by 3-7 department rule; 3-8 (3) a state agency or board that promotes the 3-9 marketing and sale of agricultural commodities; 3-10 (4) a national organization or board that represents 3-11 Texas producers and promotes the marketing and sale of Texas 3-12 agricultural products; 3-13 (5) an eligible small business, as defined by 3-14 department rule; or 3-15 (6) any other entity that promotes the marketing and 3-16 sale of Texas agricultural products, as determined by the 3-17 department. 3-18 Sec. 46A.005. DUTIES. The department shall administer the 3-19 program. The duties of the department in administering the program 3-20 include: 3-21 (1) developing procedures for acceptance and 3-22 administration of funds received to administer the program, 3-23 including appropriations, gifts, and matching funds; 3-24 (2) developing application and selection procedures, 3-25 including procedures for soliciting and accepting applications and 3-26 screening applications for review by the program advisory board; 3-27 (3) developing an international promotional campaign 4-1 for Texas agricultural products and international advertising 4-2 campaigns for specific agricultural products based on project 4-3 requests submitted by successful applicants; 4-4 (4) developing international advertising programs and 4-5 promotional materials for use by program participants and 4-6 establishing guidelines on advertising activities by participants; 4-7 (5) contracting with media representatives for the 4-8 purpose of dispersing promotional materials; and 4-9 (6) receiving matching funds from program participants 4-10 and donations or grants from any source, and establishing internal 4-11 reporting requirements for use of funds. 4-12 Sec. 46A.006. REQUIREMENTS FOR PARTICIPATION. To be 4-13 eligible for participation in the program through the use of 4-14 matching funds under this chapter, an organization must: 4-15 (1) be an eligible applicant under Section 46A.004 of 4-16 this chapter; 4-17 (2) prepare and submit a project request and 4-18 application as provided by department rule; and 4-19 (3) meet any other requirement established by 4-20 department rule. 4-21 Sec. 46A.007. PROJECT REQUESTS. (a) A project request 4-22 submitted by an eligible participant must describe the 4-23 international advertising or other international market-oriented 4-24 promotional activities to be carried out by the department using 4-25 matching funds. 4-26 (b) The department may not approve a project request 4-27 submitted under this section unless the request includes: 5-1 (1) a specific description of the project and how 5-2 assistance received under this chapter could be expended in 5-3 implementing the request; 5-4 (2) a description of anticipated benefits to be 5-5 achieved as a result of the international marketing promotional 5-6 program; and 5-7 (3) additional information as required by the 5-8 department. 5-9 Sec. 46A.008. INTERNATIONAL AGRICULTURE TRADE AND 5-10 DEVELOPMENT PARTNER PROGRAM ACCOUNT. (a) The International 5-11 Agriculture Trade and Development Partner Program account is an 5-12 account in the general revenue fund. The account is composed of: 5-13 (1) legislative appropriations; 5-14 (2) gifts, grants, and matching funds received under 5-15 Subsection (b); and 5-16 (3) other money required by law to be deposited in the 5-17 account. 5-18 (b) The department may solicit and accept gifts in kind and 5-19 grants of money from the federal government, local governments, 5-20 private corporations, or other persons to be used for the purposes 5-21 of this chapter. 5-22 (c) Money in the account may be appropriated to the 5-23 department only for the purpose of implementing and maintaining the 5-24 program. 5-25 (d) Income from money in the account shall be credited to 5-26 the account. 5-27 (e) The account is exempt from the application of Section 6-1 403.095, Government Code. 6-2 Sec. 46A.009. USE OF FUNDS. (a) Funds received under this 6-3 chapter may only be used for activities promoting the international 6-4 sale of Texas agricultural products. The department by rule may 6-5 allocate funds to categories of eligible participants and to 6-6 general or product-specific promotional activities. 6-7 (b) The department shall adopt rules to ensure that money in 6-8 the International Agriculture Trade and Development Partner Program 6-9 account is used only for the purposes prescribed under this 6-10 section. 6-11 (c) The payment of the administrative expenses under the 6-12 program may not exceed seven percent of the average account balance 6-13 for the fiscal year. 6-14 Sec. 46A.010. INTERNATIONAL AGRICULTURE TRADE AND 6-15 DEVELOPMENT PARTNER PROGRAM ADVISORY BOARD. (a) The International 6-16 Agriculture Trade and Development Partner Program Advisory Board is 6-17 composed of at least eight members appointed by the commissioner to 6-18 assist the department in the implementation of the program. 6-19 (b) The board shall include: 6-20 (1) two representatives from the department; 6-21 (2) one representative from the United States 6-22 Department of Agriculture (USDA) Commodity Credit Corporation 6-23 involved in the promotion of agricultural commodities; 6-24 (3) one representative each from the radio, print, and 6-25 television advertising media; 6-26 (4) one representative from the advertising 6-27 profession; 7-1 (5) one consumer representative; and 7-2 (6) other members the commissioner determines as 7-3 necessary for the purposes of this chapter. 7-4 (c) A member of the advisory board serves at the pleasure of 7-5 the commissioner. 7-6 (d) A member serves without compensation but is entitled to 7-7 reimbursement for actual expenses incurred in the performance of 7-8 official board duties, subject to approval of the commissioner. 7-9 Money for expense reimbursement shall be deducted from the 7-10 International Agriculture Trade and Development Partner Program 7-11 account. 7-12 (e) Except as provided by Subsection (d), Chapter 2110, 7-13 Government Code, does not apply to the board. 7-14 (f) An eligible applicant is not ineligible to participate 7-15 in the program established under this chapter solely because a 7-16 board member is also an officer, director, or employee of the 7-17 applicant organization, provided that the board member shall be 7-18 recused from an action taken by the board on an application 7-19 involving an applicant organization with which the board member 7-20 serves as an officer, director, or employee. 7-21 (g) The board shall: 7-22 (1) review applications of eligible participants and 7-23 approve or deny funding under this chapter; 7-24 (2) advise the department on matters related to the 7-25 administration of the account; and 7-26 (3) advise the department on the adoption of rules 7-27 relating to the administration of the program. 8-1 (h) The commissioner shall provide the board with staff 8-2 necessary to assist the board in carrying out its duties under this 8-3 chapter. 8-4 Sec. 46A.011. CRITERIA FOR ALLOCATION OF FUNDS. The 8-5 department shall by rule and with the advice of the board establish 8-6 criteria for allocation of funds to participant projects. Rules 8-7 adopted under this section must include: 8-8 (1) the factors to be considered in evaluating 8-9 projects; and 8-10 (2) a maximum funding amount for each project. 8-11 Sec. 46A.012. RULEMAKING AUTHORITY. The department shall 8-12 adopt rules to administer this chapter. 8-13 Sec. 46A.013. ADMINISTRATIVE PENALTIES; CIVIL PENALTIES; 8-14 INJUNCTIVE RELIEF. (a) In addition to the other provisions of 8-15 this chapter, a person violates this chapter if the person violates 8-16 a rule adopted by the department under this chapter. 8-17 (b) A person who violates this chapter is ineligible for a 8-18 grant of funds under this chapter. 8-19 (c) The department may assess an administrative penalty as 8-20 provided by Section 12.020 against a person who violates this 8-21 chapter. 8-22 (d) A person who violates this chapter is subject to a civil 8-23 penalty not to exceed $500 for each violation. Each day that a 8-24 violation continues may be considered a separate violation for 8-25 purposes of a civil penalty assessed under this chapter. 8-26 (e) At the request of the department, the attorney general 8-27 or the county or district attorney of the county in which the 9-1 violation is alleged to have occurred shall file suit to collect 9-2 the civil penalty. 9-3 (f) A civil penalty collected under this section shall be 9-4 deposited to the credit of the general revenue fund. 9-5 (g) At the request of the department, the attorney general 9-6 or the county or district attorney of the county in which the 9-7 alleged violation is threatened to occur or is occurring shall file 9-8 suit for the appropriate injunctive relief to prevent or abate a 9-9 violation of this chapter. Venue for an action brought under this 9-10 subsection is in Travis County. 9-11 SECTION 2. Section 12.020(c), Agriculture Code, is amended to 9-12 read as follows: 9-13 (c) The provisions of this code subject to this section and 9-14 the applicable penalty amounts are as follows: 9-15 Provision 9-16 9-17 Maximum Penalty 9-18 Chapters 13, 14, 18, 46, 46A, 61, 9-19 94, 95, 101, 102, 103, 121, 125, 9-20 132, and 134 9-21 $500 9-22 Subchapter B, Chapter 71 9-23 Chapter 19 9-24 Chapters 75 and 76 9-25 $2,000 9-26 Subchapters A and C, Chapter 71 9-27 Chapters 72, 73, and 74 10-1 $5,000. 10-2 SECTION 3. This Act takes effect September 1, 2001.