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  H.B. No. 3446
 
 
 
 
AN ACT
  relating to the promotion by the governor's office of economic
  development of Texas manufactured products; providing civil and
  administrative penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle F, Title 4, Government Code, is amended
  by adding Chapter 490C to read as follows:
  CHAPTER 490C. PROMOTION OF TEXAS MANUFACTURED PRODUCTS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 490C.001.  DEFINITIONS. In this chapter:
               (1)  "Genuine Texas program" means the program
  established by the office under this chapter to develop and expand
  markets for Texas manufactured products.
               (2)  "Texas manufactured product" means a product that
  is manufactured in this state or otherwise has value added to the
  product in this state. The term does not include a Texas
  agricultural product, as defined by Section 46.002, Agriculture
  Code.
               (3)  "Office" means the governor's office of economic
  development.
  [Sections 490C.002-490C.050 reserved for expansion]
  SUBCHAPTER B. POWERS AND DUTIES OF OFFICE
         Sec. 490C.051.  ESTABLISHMENT OF GENUINE TEXAS PROGRAM. The
  office may establish and administer a program in accordance with
  this chapter to develop and expand markets for Texas manufactured
  products.
         Sec. 490C.052.  RULEMAKING AUTHORITY. The office may adopt
  rules and establish procedures to administer this chapter.
         Sec. 490C.053.  DUTIES OF OFFICE. If the office establishes
  a Genuine Texas program under this chapter, the office shall:
               (1)  design and administer the use of a logo for Texas
  manufactured products and adopt manufactured product quality
  standards and other criteria for evaluating applications to use the
  logo;
               (2)  develop procedures for acceptance and
  administration of money received to administer the program;
               (3)  develop a general promotional campaign for Texas
  manufactured products and advertising campaigns for specific Texas
  manufactured products;
               (4)  contract with media representatives to disperse
  promotional materials;
               (5)  receive gifts, donations, or grants from any
  source and establish internal reporting requirements for use of
  available money; and
               (6)  enter into a memorandum of understanding with the
  Department of Agriculture to minimize duplication of programs.
         Sec. 490C.054.  FEE FOR USE OF LOGO. To cover the costs of
  administering the Genuine Texas program, the office may require a
  person to pay a fee not to exceed $100 a year for use of the logo
  designed under Section 490C.053(1).
         Sec. 490C.055.  PROMOTIONAL EVENTS. The office may use
  available money to purchase food and beverages for a promotional
  event.
         Sec. 490C.056.  SALE OF PROMOTIONAL ITEMS. (a) The office
  may sell or contract for the sale of items, including clothing,
  posters, and banners, to promote Texas manufactured products.
         (b)  The office may use the office's Internet website to
  advertise and sell the items described by Subsection (a).
         Sec. 490C.057.  ADVISORY BOARD. (a) If the office
  establishes a Genuine Texas program as authorized by this chapter,
  the office shall appoint an advisory board to assist in the
  implementation of the program.
         (b)  A member of the advisory board serves at the pleasure of
  the office.
         (c)  A member of the advisory board serves without
  compensation but is entitled to reimbursement for actual expenses
  incurred in the performance of official board duties, subject to
  approval of the office.
         (d)  Chapter 2110 does not apply to the advisory board.
         (e)  At the request of the office, the advisory board shall
  advise the office on the adoption of rules and the establishment of
  procedures relating to the administration of the Genuine Texas
  program.
         (f)  The office shall provide the advisory board with the
  staff necessary to assist the board in carrying out the board's
  duties under this section.
  [Sections 490C.058-490C.100 reserved for expansion]
  SUBCHAPTER C. ENFORCEMENT
         Sec. 490C.101.  VIOLATION. A person violates this chapter
  if the person:
               (1)  uses, reproduces, or distributes the logo designed
  by the office under Section 490C.053 without the consent of the
  office; or
               (2)  violates a rule adopted or a procedure established
  by the office under this chapter.
         Sec. 490C.102.  SUSPENSION OR FORFEITURE OF RIGHT TO USE
  LOGO. (a) The office may temporarily suspend or permanently
  forfeit the right of a person who violates this chapter to use the
  logo of the Genuine Texas program.
         (b)  Before suspending or forfeiting a person's right to use
  the logo, the office may consider the circumstances and seriousness
  of the violation, any efforts by the person to correct the
  violation, and whether the person previously has violated this
  chapter.
         Sec. 490C.103.  ADMINISTRATIVE PENALTY. The office may
  impose an administrative penalty not to exceed $500 against a
  person who violates this chapter. A proceeding to impose the
  administrative penalty is a contested case under Chapter 2001.
         Sec. 490C.104.  CIVIL PENALTY. A person who violates this
  chapter is subject to a civil penalty not to exceed $500 for each
  violation.
         Sec. 490C.105.  CALCULATING AMOUNT OF ADMINISTRATIVE OR
  CIVIL PENALTY. (a) Each day that a violation continues may be
  considered a separate violation for purposes of an administrative
  or civil penalty under this subchapter.
         (b)  The amount of an administrative or civil penalty must be
  based on:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the history of previous violations;
               (3)  the amount necessary to deter a future violation;
               (4)  efforts by the person to correct the violation;
  and
               (5)  any other matter that justice may require.
         Sec. 490C.106.  ENFORCEMENT OF ADMINISTRATIVE OR CIVIL
  PENALTY. (a) The enforcement of an administrative penalty under
  this section may be stayed during the time the order is under
  judicial review if the person pays the penalty to the clerk of the
  court or files a supersedeas bond with the court in the amount of
  the penalty. A person who cannot afford to pay the penalty or file
  the bond may stay the enforcement by filing an affidavit in the
  manner required by the Texas Rules of Civil Procedure for a party
  who cannot afford to file security for costs, subject to the right
  of the office to contest the affidavit as provided by those rules.
         (b)  At the request of the office, the attorney general or
  the county attorney or district attorney of the county in which the
  violation is alleged to have occurred may file suit to collect the
  civil penalty.
         Sec. 490C.107.  DEPOSIT OF MONEY. An administrative or
  civil penalty collected under this subchapter shall be deposited to
  the credit of the general revenue fund.
         Sec. 490C.108.  INJUNCTIVE RELIEF. (a) At the request of
  the office, the attorney general or the county or district attorney
  of the county in which the alleged violation is threatened to occur
  or is occurring may file suit for the appropriate injunctive relief
  to prevent or abate a violation of this chapter.
         (b)  Venue for an action brought under this section is in
  Travis County.
         SECTION 2.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3446 was passed by the House on April
  26, 2007, by the following vote:  Yeas 139, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 3446 on May 21, 2007, by the following vote:  Yeas 142, Nays 1,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 3446 was passed by the Senate, with
  amendments, on May 17, 2007, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor