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.