Regular Session 2015-2016 Senate Bill 0157 P.N. 0266

PRINTER'S NO. 266

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

157

Session of

2015

INTRODUCED BY TEPLITZ, ARGALL, BREWSTER, FONTANA, COSTA,

FARNESE, GREENLEAF, SMITH, BOSCOLA, SCHWANK, TARTAGLIONE,

YUDICHAK, BROWNE AND RAFFERTY, JANUARY 29, 2015

REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,

JANUARY 29, 2015

AN ACT

Providing for Made in PA trademark, for licensee qualification,

for duties and authority of Department of Community and

Economic Development, for trademark license agreement,

application and licensure process and for costs; establishing

the Made in PA Trademark Licensing Fund; and providing for

civil penalties, for injunctive relief and for rules and

regulations.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Made in PA

Trademark Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department." The Department of Community and Economic

Development of the Commonwealth.

"Fund." The Made in PA Trademark Licensing Fund established

in section 8.

"Licensee." A qualified entity that is subject to a current

Made in PA trademark license agreement with the department.

"Made in PA trademark." One or more trademarks that:

(1) consist of the phrase "Made in PA" or "Made in

Pennsylvania"; and

(2) may include specific graphic designs or artwork as

part of the trademark registration.

"Pennsylvania-made commodity." Tangible products produced or

manufactured in this Commonwealth by a business and that are

transported or intended to be transported in commerce.

"Person." An individual, partnership, corporation,

association or another legal entity.

"Qualified entity." A person that produces, manufactures,

sells, offers for sale, markets or promotes Pennsylvania-made

commodities.

Section 3. Made in PA trademark.

The department shall take the actions necessary and

appropriate to acquire, create, establish, register, maintain,

license, promote and protect a Made in PA trademark for use on

or in connection with the sale, marketing or promotion of a

Pennsylvania-made commodity.

Section 4. Licensee qualification.

To become a licensee a qualified entity must be:

(1) a person that produces or manufactures a

Pennsylvania-made commodity in whole or in part at a facility

located within this Commonwealth;

(2) a person that promotes or markets a Pennsylvania-

made commodity from a person that satisfies the provisions of

paragraph (1); or

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(3) a person approved by the department to use and

promote the use of the Made in PA trademark to constituencies

in furthering the purposes of this act.

Section 5. Duties and authority of department.

(a) Authority to enter into trademark license agreements.--

The department:

(1) May enter into a trademark license agreement with a

qualified entity.

(2) Shall establish the terms and conditions under which

a person may be licensed to use the Made in PA trademark.

Terms and conditions must require a licensee to produce,

process, promote or market a Pennsylvania-made commodity in a

manner acceptable to the department that protects the

reputation of the Made in PA trademark.

(3) May periodically review a licensing agreement to

determine if the terms are being met.

(b) Cooperative activities.--The department may engage in

cooperative activities to implement and advance the purposes of

this act.

(1) The department shall compile a list of the qualified

entities who become licensees under this act. The list shall

be made available to the public on the department's Internet

website and for other public distribution as the department

approves.

(2) The list shall be updated every three months and

include:

(i) the Pennsylvania-made commodity produced,

manufactured or promoted by the licensee;

(ii) contact information for the licensee that may

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include an Internet website link; and

(iii) one or more locations where the Pennsylvania-

made commodity may be purchased.

Section 6. Trademark license agreement, application and

licensure process.

(a) General rules.--

(1) A qualified entity may apply to be licensed to use

the Made in PA trademark.

(2) An application must:

(i) be on a form prepared by the department; and

(ii) require identification information and other

information the department deems necessary to determine

if an applicant is a qualified entity.

(3) The application form shall be provided by the

department upon request.

(4) The department may determine whether a person is a

qualified entity for purposes of this act.

(5) If the department determines that an applicant is a

qualified entity, it shall offer that qualified entity a

trademark license agreement.

(6) A trademark license agreement under this act is

effective for one year from the date upon which an agreement

is executed and may be renewed. An agreement must contain

provisions allowing for the termination of the license

agreement by the department or a licensee upon 60 days'

advance written notice to the other party.

(b) Preexisting trademark license agreements.--A trademark

license agreement that is in effect prior to the effective date

of this section and authorizes the use of a Made in PA trademark

remains in effect until it is terminated or until the end of the

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current contract year, whichever occurs first.

Section 7. Costs.

Reimbursement of costs are as follows:

(1) The department may charge a licensee for costs

incurred by the department in connection with the licensee's

participation in an activity, trade show, exhibition or other

promotional event conducted or facilitated by the department.

A charge must reasonably reflect the costs incurred by the

department in facilitating the licensee's participation and

may include the costs as proportional shares of event

registration fees, equipment rental fees, display area rental

fees and related costs.

(2) The department may charge a licensee for costs of

Made in PA promotional materials provided by the department

at the request of the licensee.

Section 8. Made in PA Trademark Licensing Fund.

(a) Establishment.--There is established in the State

Treasury a special fund to be known as the Made in PA Trademark

Licensing Fund. The fund shall be an interest-bearing restricted

revenue account. The following money shall be deposited into the

fund:

(1) Money as is appropriated, given, granted or donated

for the purpose established under this act by the Federal

Government, the Commonwealth or another government or private

agency or person.

(2) Funds derived from the costs established under

section 7.

(3) Funds derived from civil penalties collected by the

department under section 9.

(b) Appropriation.--Money in the fund is appropriated on a

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continuing basis to the department for the purpose of

administering this act. The interest and earnings received from

investment or deposit of the money in the fund shall be paid

into the account for the purpose authorized by this section.

Unexpended money and interest or earnings on the money in the

fund may not be transferred or revert to the General Fund, but

shall remain in the account to be used by the department for the

purpose specified under this section.

(1) promote the licensure and use of the Made in PA

trademark with respect to Pennsylvania-made commodities;

(2) promote the Made in PA trademark as an

identification of origin and quality;

(3) promote Pennsylvania-made commodities with respect

to which the Made in PA trademark is licensed;

(4) pay costs associated with monitoring the use of the

Made in PA trademark to prohibit the unlawful or unauthorized

use of the trademark and enforcing rights of the trademark;

and

(5) otherwise fund the department's costs in

administering and enforcing this act.

Section 9. Civil penalties.

In addition to any other remedy available at law or in equity

for a violation of a provision of this act or a trademark

license agreement established under this act, the department may

assess a civil penalty upon the person responsible for the

violation. The civil penalty assessed may not exceed $10,000 and

is payable to the Commonwealth and collectible in a manner

provided under law for the collection of debt.

Section 10. Injunctive relief.

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In addition to the other remedies provided under this act,

the Attorney General, at the request of the department, may

initiate, in Commonwealth Court or the court of common pleas of

the county in which the defendant resides or has his place of

business, an action in equity for an injunction to restrain

violations of this act or a trademark license agreement. In the

proceeding, the court shall, upon motion of the Commonwealth,

issue a preliminary injunction if it finds the defendant is

engaging in unlawful conduct under this act or is engaging in

conduct that is causing immediate or irreparable harm to the

public. The Commonwealth may not be required to furnish bond or

other security in connection with the proceedings. In addition

to an injunction, the court, in equity proceedings, may levy

civil penalties as provided under section 9.

Section 11. Rules and regulations.

The department shall promulgate rules and regulations

necessary to promote the efficient, uniform and Statewide

administration of this act. For two years from the effective

date of this section, the department may promulgate, adopt and

use guidelines to implement the provisions of this act. The

guidelines must be published in the Pennsylvania Bulletin but

not be subject to review under section 205 of the act of July

31, 1968 (P.L.769, No.240), referred to as the Commonwealth

Documents Law, sections 204(b) and 301(10) of the act of October

15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys

Act, or the act of June 25, 1982 (P.L.633, No.181), known as the

Regulatory Review Act. The guidelines expire no later than

December 31, 2015, and must be replaced by regulations that have

been promulgated, adopted and published as provided under law.

Section 12. Effective date.

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This act shall take effect in 60 days.

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