HBA-JRA H.B. 2719 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2719 By: Swinford Agriculture & Livestock 7/22/1999 Enrolled BACKGROUND AND PURPOSE H.B. 2719 creates the "Go Texan" Partner Program (GoTePP) to encourage the development and expansion of markets for Texas agricultural products through matching funds for promotional marketing programs, and creates a fund to finance the program. This bill also creates the Texas Oyster Program to promote and advertise the Texas oyster industry. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Department of Agriculture in SECTION 1 (Sections 46.004, 46.006, 46.009, 46.011, and 46.012, Agriculture Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 12.020(c), Agriculture Code, to provide that the maximum penalty for a violation of Chapter 46, Agriculture Code, is $500. SECTION 2. Amends Title 3, Agriculture Code, by adding Chapter 46, as follows: CHAPTER 46. "GO TEXAN" PARTNER PROGRAM Sec. 46.001. FINDINGS. Sets forth legislative findings. Sec. 46.002. DEFINITIONS. Defines "Texas agricultural product" in this chapter. Sec. 46.003. GENERAL AUTHORITY. Requires the Texas Department of Agriculture (department) to establish and maintain the "Go Texan" Partner Program (GoTePP) to encourage the development and expansion of markets for Texas agricultural products through participation of eligible applicants who provide funds to be matched for promotional marketing programs implemented by the department. Sec. 46.004. ELIGIBLE APPLICANT. Provides that an eligible applicant must be a state or regional organization or board that promotes the marketing and sale of Texas agricultural products and does not stand to profit directly from specific sales of agricultural commodities, a cooperative organization as defined by department rule, a state agency or board that promotes the marketing and sale of agricultural commodities, a national nonprofit trade organization that represents Texas producers and promotes the marketing and sale of Texas agricultural products, an eligible small business as defined by department rule, or any other entity that promotes the marketing and sale of Texas agricultural products, as determined by the department. Sec. 46.005. DEPARTMENT POWERS AND DUTIES. Requires the department to administer GoTePP. Sets forth the duties included in administering GoTePP. Sec. 46.006. REQUIREMENTS FOR PARTICIPATION. Provides that an organization, to be eligible for participation in the program through the use of matching funds under this chapter, must be an eligible applicant under Section 46.004 of this chapter, prepare and submit a project request and application as provided by department rule, and meet any other requirement established by department rule. Sec. 46.007. PROJECT REQUESTS. Provides that a project request submitted by an eligible participant must describe the advertising or other market-oriented promotional activities to be carried out by the department using matching funds. Prohibits the department from approving a project request submitted under this section unless the request includes a specific description of the project and how assistance received under this chapter could be expended in implementing the request, a description of anticipated benefits to be achieved as a result of the marketing promotional program, and additional information as required by the department. Sec. 46.008. "GO TEXAN" PARTNER PROGRAM ACCOUNT. Provides that the GoTePP account is an account in the general revenue fund composed of legislative appropriations, gifts, grants, and matching funds, money required to be deposited in the account under Section 502.2761, Transportation Code, and any other money required by law to be deposited in the account. Authorizes the department to solicit and accept gifts in kind and grants of money from the federal government, local governments, private corporations, or other persons to be used for the purposes of this chapter. Authorizes money in the account to be appropriated to the department only for the purpose of implementing and maintaining GoTePP. Requires income from money in the account to be credited to the account. Exempts the account from application of Section 403.095 (Use of Dedicated Revenue), Government Code. Sec. 46.009. USE OF FUNDS. Provides that funds received under this chapter may only be used for activities promoting the sale of Texas agricultural products. Authorizes the department, by rule, to allocate funds to categories of eligible participants and to general or product-specific promotional activities. Requires the department to adopt rules to ensure that money in the GoTePP account is used only the purposes prescribed under this section. Prohibits the payment of administrative expenses under GoTePP to from exceeding seven percent of the average account balance for the fiscal year. Sec. 46.010. "GO TEXAN" PARTNER PROGRAM ADVISORY BOARD. (a) Establishes the GoTePP advisory board (board) to assist the department in the implementation of GoTePP. (b) Sets forth the composition of the board. (c) Provides that the member of the board serves at the pleasure the commissioner. (d) Provides that a member serves without compensation but is entitled to reimbursement for actual expenses incurred in the performance of official board duties, subject to approval of the commissioner, to be deducted from the GoTePP account. (e) Provides that Chapter 2110 (State Agency Advisory Committees), Government Code, does not apply to the board, except as provided by Subsection (d). (f) Provides that an eligible applicant is not ineligible to participate solely because a board member is also an officer, director, or employee of the applicant organization, provided that the board member shall be recused from an action taken by the board on an application involving an applicant organization with which the board member serves as an officer, director, or employee. (g) Requires the board to review applications of eligible participants and approve or deny funding, advise the department on account administration matters, and advise the department on the adoption of rules relating to the administration of GoTePP. (h) Requires the commissioner to provide the board with staff necessary to assist the board in carrying out its duties under this chapter. Sec. 46.011. CRITERIA FOR ALLOCATION OF FUNDS. Requires the department, by rule, to establish criteria for allocation of funds to participant projects, which must include the factors to be considered in evaluating projects and a maximum funding amount for each project. Sec. 46.012. RULEMAKING AUTHORITY. Requires the department to adopt rules to administer this chapter including rules for the use of the "Go Texan" logo. Sec. 46.013. ADMINISTRATIVE PENALTIES; CIVIL PENALTIES; INJUNCTIVE RELIEF. (a) Provides that a person violates this chapter by using, reproducing, or distributing the GoTePP logo without registering with the department or by violating a rule adopted by the department under this chapter. (b) Provides that a person who violates this chapter forfeits the ability to use the GoTePP logo and is ineligible for a grant of funds under this chapter. (c) Authorizes the department to assess an administrative penalty against a person who violates this chapter. (d) Provides that a person who violates this chapter is subject to a civil penalty of up to $500 for each violation and provides that each day a violation continues may be considered a separate violation. (e) Requires the attorney general or the county or district attorney of the county in which the violation is alleged to file suit to collect the civil penalty at the request of the department. (f) Requires a civil penalty collected under this section to be deposited to the credit of the general revenue fund. (g) Requires the attorney general or the county or district attorney of the county in which the alleged violation is threatened to occur or is occurring to file suit for the appropriate injunctive relief to prevent or abate a violation of this chapter at the request of the department. Provides that Travis County is the venue for an action brought under this section. SECTION 3. Amends Subchapter F, Chapter 502, Transportation Code, by adding Section 502.2761, as follows: Sec. 502.2761. TEXAS AGRICULTURAL PRODUCTS LICENSE PLATES. Requires the department to issue specially designed license plates that include the words "Go Texan" and the GoTePP logo for passenger cars and light trucks to support the promotion of Texas agricultural products. Requires the department to issue such license plates to a person who appropriately applies to the county assessor-collector and pays an annual fee of $30 in addition to any other required fees. Requires the department to deposit $25 of each fee to the GoTePP account and the remainder to the credit of the state highway fund, which may be used only to defray the cost of administering this section. Requires a person to return the special license plate to the department if the person disposes of the vehicle registered under this section. SECTION 4. Amends Title 3, Agriculture Code, by adding Chapter 47, as follows: CHAPTER 47. TEXAS OYSTER PROGRAM Sec. 47.001. PROMOTION AND ADVERTISEMENT. Authorizes the Texas Department of Agriculture (department) to promote and advertise the Texas oyster industry by certain methods. Authorizes the department, following guidance of the oyster advisory committee, to use a portion of the oyster sales fee funds provided for administrative purposes. Sec. 47.002. OYSTER ADVISORY COMMITTEE. (a)Requires the commissioner of agriculture (commissioner) to appoint an oyster advisory committee to provide guidance and direction on the programs and activities established under this chapter and expenditures of the funds appropriated for the purposes of this chapter. (b) Provides that members of the advisory committee serve without compensation or reimbursement of expenses. (c) Requires the advisory committee to meet and elect a chairperson from its members and conduct other necessary meetings. (d) Sets forth the composition of the committee. (e) Requires the advisory committee to develop its own bylaws and to operate under them. Requires the bylaws to stipulate that five members constitute a quorum. (f) Provides that an advisory committee member serves a three-year term, with the terms of three members expiring August 31 of each year. (g) Authorizes a member of the advisory committee to be reappointed to the advisory committee. SECTION 5. Sets forth the method by which the commissioner is required to appoint the initial members of the oyster advisory committee. SECTION 6. Provides that this Act takes effect only if a specific appropriation for the implementation of this Act is provided in H.B. 1 (General Appropriations Act), Acts of the 76th Legislature, Regular Session, 1999. SECTION 7. Effective date: September 1, 1999. SECTION 8. Emergency clause.