PRINTER'S NO. 1916
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1521
Session of
2019
INTRODUCED BY PASHINSKI, CAUSER, BERNSTINE, A. DAVIS, T. DAVIS,
DeLISSIO, FREEMAN, GREINER, HANBIDGE, HERSHEY, HICKERNELL,
M. K. KELLER, KINSEY, LONGIETTI, MALAGARI, McNEILL, MILLARD,
MOUL, OWLETT, RYAN, SAPPEY, SAYLOR, SNYDER, STRUZZI, WEBSTER,
ZIMMERMAN AND IRVIN, MAY 29, 2019
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
MAY 29, 2019
AN ACT
Amending Title 3 (Agriculture) of the Pennsylvania Consolidated
Statutes, in Pennsylvania Preferred® Trademark, providing for
military veterans; and making editorial changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Chapter 46 of Title 3 of the Pennsylvania
Consolidated Statutes is amended by adding a subchapter heading
to read:
SUBCHAPTER A
GENERAL PROVISIONS
Section 2. Chapter 46 of Title 3 is amended by adding a
subchapter heading to read:
SUBCHAPTER B
PENNSYLVANIA PREFERRED PROGRAM
Section 3. Sections 4603, 4604, 4605, 4606 and 4607 of Title
3 are renumbered to read:
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§ [4603] 4611. Pennsylvania Preferred® trademark.
The department shall take all actions necessary and
appropriate to acquire, create, establish, register, maintain,
license, promote and protect a Pennsylvania Preferred® trademark
for use on or in connection with the sale, marketing or
promotion of a Pennsylvania-produced agricultural commodity.
§ [4604] 4612. Licensee qualification.
A qualified entity shall meet at least one of the following
requirements to become a licensee:
(1) Be a person that produces an agricultural commodity:
(i) that is entirely harvested from a Pennsylvania
location or is grown at a Pennsylvania location for at
least 75% of the commodity's production cycle; and
(ii) that, if inspected by the department, the USDA,
the FDA or an independent certifying agency approved by
the department, is approved by the inspecting authority
as meeting all applicable quality, sanitation, safety and
labeling standards of that inspecting authority.
(2) Be a person that processes an agricultural
commodity:
(i) in whole or in part at a facility which is
located within this Commonwealth; and
(ii) in whole or in part at a facility, which, if
the agricultural commodity is intended for human
consumption, is in compliance with Subchapter B of
Chapter 57 (relating to food safety) and all applicable
Federal and State food quality, sanitation, safety and
labeling standards regulations; and
(iii) the use of which, to the maximum extent
possible given production season restrictions or market
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availability, is a Pennsylvania-produced agricultural
commodity.
(3) Be a person that promotes or markets an agricultural
commodity from a person that meets the provisions of
paragraph (1) or (2).
(4) Be a public eating and drinking place licensed under
and in compliance with Subchapter A of Chapter 57 (relating
to retail food facility safety) or under the act of August
24, 1951 (P.L.1304, No.315), known as the Local Health
Administration Law, which offers a menu item that includes an
agricultural commodity from a person that meets the
provisions of paragraph (1) or (2).
(5) Be a person approved by the department to use and
promote the use of the Pennsylvania Preferred® trademark to
constituencies in furthering the purposes of this chapter.
§ [4605] 4613. Duties and authority of department.
(a) Department authority to enter into trademark license
agreements.--
(1) The department may enter into a trademark license
agreement with a qualified entity.
(2) The department shall establish the terms and
conditions under which a person may be licensed to use the
Pennsylvania Preferred® trademark. Terms and conditions shall
require a licensee to produce, process, promote or market an
agricultural commodity in a manner acceptable to the
department which protects the reputation of the Pennsylvania
Preferred® trademark.
(3) The department may periodically review a licensing
agreement to determine if the terms are being met.
(b) Cooperative activities.--The department may engage in
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cooperative activities to implement and advance the purposes of
this chapter.
§ [4606] 4614. Trademark license agreement, application and
licensure process.
(a) General rule.--
(1) A qualified entity may apply to be licensed to use
the Pennsylvania Preferred® trademark.
(2) An application shall be on a form prepared by the
department and shall 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 shall have the discretion to
determine whether a person is a qualified entity for purposes
of this chapter.
(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 chapter
shall be effective for one year from the date upon which an
agreement is executed and may be renewed. An agreement shall
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 that authorizes the use of a Pennsylvania
Preferred® trademark shall remain in effect until it is
terminated or until the end of the current contract year,
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whichever occurs first.
§ [4607] 4615. Costs.
Reimbursement of costs are as follows:
(1) The department may charge a licensee for costs
incurred by the department in connection with that licensee's
participation in any activity, trade show, exhibition or
other promotional event conducted or facilitated by the
department. A charge shall reasonably reflect the costs
incurred by the department in facilitating the licensee's
participation and may include such 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
Pennsylvania Preferred® promotional materials provided by the
department at the request of the licensee.
Section 4. Section 4608 of Title 3 is amended to read:
§ [4608] 4616. Pennsylvania Preferred® Trademark Licensing
Fund.
(a) Establishment.--There is established in the State
Treasury a special fund which shall be an interest-bearing
restricted revenue account to be known as the Pennsylvania
Preferred® Trademark Licensing Fund. The following money shall
be deposited into the fund:
(1) Money as is appropriated, given, granted or donated
for the purpose established under this chapter by the Federal
Government, the Commonwealth or any other government or
private agency or person.
(2) Funds derived from the costs established under
section [4607] 4615 (relating to costs).
(3) Funds derived from civil penalties collected by the
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department under section [4609] 4617 (relating to civil
penalties).
(b) Appropriation.--Money in the fund is appropriated on a
continuing basis to the department for the purpose of
administering this chapter. All 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. Any unexpended money and any 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.
(c) Use.--Money deposited in the fund shall be used as
follows:
(1) To promote the licensure and use of the Pennsylvania
Preferred® trademark with respect to Pennsylvania-produced
agricultural commodities.
(2) To promote the Pennsylvania Preferred® trademark as
an identification of origin and quality.
(3) To promote Pennsylvania-produced agricultural
commodities with respect to which the Pennsylvania Preferred®
trademark is licensed.
(4) To pay costs associated with monitoring the use of
the Pennsylvania Preferred® trademark, prohibiting the
unlawful or unauthorized use of the trademark and enforcing
rights in the trademark.
(5) To otherwise fund the department's costs in
administering and enforcing this chapter.
Section 5. Section 4609 of Title 3 is renumbered to read:
§ [4609] 4617. Civil penalties.
In addition to any other remedy available at law or in equity
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for a violation of a provision of this chapter or a trademark
license agreement established under this chapter, the department
may assess a civil penalty upon the person responsible for the
violation. The civil penalty assessed shall not exceed $10,000
and shall be payable to the Commonwealth and collectible in any
manner provided under law for the collection of debt.
Section 6. Sections 4610 and 4611 of Title 3 are amended to
read:
§ [4610] 4618. Injunctive relief.
In addition to any other remedies provided for under this
chapter, the Attorney General, at the request of the department,
may initiate, in the 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 chapter or a trademark license
agreement. In the proceeding, the court shall, upon motion of
the Commonwealth, issue a preliminary injunction if it finds
that the defendant is engaging in unlawful conduct under this
chapter or is engaging in conduct which is causing immediate or
irreparable harm to the public. The Commonwealth shall 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 [4609] 4617 (relating to civil penalties).
§ [4611] 4619. Rules and regulations.
The department shall promulgate rules and regulations
necessary to promote the efficient, uniform and Statewide
administration of this chapter. For two years from the effective
date of this section, the department shall have the power and
authority to promulgate, adopt and use guidelines to implement
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the provisions of this chapter. The guidelines shall be
published in the Pennsylvania Bulletin but shall 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. All guidelines shall expire no later than
December 31, 2013, and shall be replaced by regulations which
shall have been promulgated, adopted and published as provided
under law.
Section 7. Chapter 46 of Title 3 is amended by adding
subchapters to read:
SUBCHAPTER C
(Reserved)
SUBCHAPTER D
MILITARY VETERANS
Sec.
4631. Purpose.
4632. Definitions.
4633. Qualified veterans.
§ 4631. Purpose.
The purpose of this subchapter is to:
(1) Benefit qualified veterans and qualified veteran
business entities that are licensed by the department under
Subchapter B by allowing and encouraging the use of other
trademarks or descriptive labels, packaging or advertisement
information to inform consumers that agricultural commodities
were produced by veterans of the armed forces of the United
States.
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(2) Encourage qualified veterans and qualified veteran
business entities to avail themselves of marketing
opportunities for Pennsylvania-produced agricultural
commodities through licensure under Subchapter B and
partnership with organizations such as the Farmer Veteran
Coalition Homegrown By Heroes program and similar programs
intended to encourage veterans to farm or to otherwise
benefit farmers who are veterans.
§ 4632. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Qualified veteran." A qualified entity who:
(1) is a veteran of one or more of the armed forces of
the United States, including the United States Army, the
United States Navy, the United States Marine Corps, the
United States Air Force or the United States Coast Guard; and
(2) has received an honorable discharge or a general
discharge under honorable conditions.
"Qualified veteran business entity." A qualified entity to
which the following apply:
(1) The entity is a corporation, partnership,
association or other business organization.
(2) Qualified veterans make up 50% or more of the
entity's ownership and a minimum of 50% of the entity's
management control.
§ 4633. Qualified veterans and qualified veteran business
entities.
(a) Encouragement of participation.--The department shall
promote participation under this subchapter by qualified
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veterans and qualified veteran business entities and shall
conduct outreach and education efforts to encourage and
facilitate veteran participation.
(b) Coordination of effort.--The department shall cooperate
with military, government or private sector marketing efforts
that identify, emphasize and encourage the production and
marketing of Pennsylvania-produced agricultural commodities by
qualified veterans and qualified veteran business entities and
may allow the use of the Pennsylvania Preferred® trademark in a
cooperative effort.
Section 8. This act shall take effect in 60 days.
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