PRINTER'S NO. 774
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
623
Session of
2019
INTRODUCED BY SCHWANK, COSTA, HUGHES, STREET, FONTANA,
TARTAGLIONE, SABATINA, SANTARSIERO, FARNESE, BREWSTER AND
BAKER, MAY 13, 2019
REFERRED TO AGRICULTURE AND RURAL AFFAIRS, MAY 13, 2019
AN ACT
Amending Title 3 (Agriculture) of the Pennsylvania Consolidated
Statutes, in Pennsylvania Preferred® Trademark, further
providing for definitions, renumbering provisions relating to
Pennsylvania Preferred® trademark, licensee qualification,
duties and authority of department, trademark license
agreement, application and licensure process and for costs,
further providing for Pennsylvania Preferred® Trademark
Licensing Fund, renumbering provisions relating to civil
penalties and injunctive relief and further providing for
rules and regulations; and providing for Pennsylvania
Preferred Organic Program.
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. Section 4602 of Title 3 is amended by adding
definitions to read:
§ 4602. Definitions.
The following words and phrases when used in this chapter
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Advisory committee." The Pennsylvania Preferred Organic
Advisory Committee established under section 4623 (relating to
Pennsylvania Preferred Organic Advisory Committee).
* * *
"Pennsylvania Preferred® Organic trademark." One or more
trademarks that consist of the phrase "Pennsylvania Preferred,"
"PA Preferred," "Pennsylvania Preferred Organic" or "PA
Preferred Organic" and that may include specific graphic designs
or artwork as part of the trademark registration, and that
identify the agricultural commodity with respect to which the
trademark is used as meeting the requirements of this chapter
for Pennsylvania-produced organic agricultural commodities.
* * *
"USDA National Organic Program." The National Organic
Program established under section 6517 of the Organic Foods
Production Act of 1990 (Public Law 101-624, 104 Stat. 3935) and
any attendant regulations.
Section 3. Chapter 46 of Title 3 is amended by adding a
subchapter heading to read:
SUBCHAPTER B
PENNSYLVANIA PREFERRED PROGRAM
Section 4. Sections 4603, 4604, 4605, 4606 and 4607 of Title
3 are renumbered to read:
§ [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
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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
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).
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(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
cooperative activities to implement and advance the purposes of
this chapter.
§ [4606] 4614. Trademark license agreement, application and
licensure process.
(a) General rule.--
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(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,
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
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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 5. 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
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
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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 promote the Pennsylvania Preferred® Organic
Program and its objectives.
(6) To otherwise fund the department's costs in
administering and enforcing this chapter.
Section 6. 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
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
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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 7. 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.
(a) General rule.--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 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
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(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.]
(b) Organic standards.--The organic food or product
regulations adopted under the Organic Foods Production Act of
1990 (Public Law 101-624, 104 Stat. 3935) that are in effect on
the effective date of this subsection or that are adopted after
the effective date of this subsection shall be the organic
standards under which the department shall license qualified
entities to make use of the Pennsylvania Preferred® Organic
trademark with respect to Pennsylvania-produced organic
agricultural commodities, except to the extent the department
promulgates regulatory standards that vary from those Federal
standards.
(c) Regulatory standards.--The secretary may, by regulation,
prescribe standards under which the department shall license
qualified entities to make use of the Pennsylvania Preferred®
trademark with respect to Pennsylvania-produced organic
agricultural commodities that vary from regulatory standards
promulgated under authority of subsection (b).
Section 8. Chapter 46 of Title 3 is amended by adding a
subchapter to read:
SUBCHAPTER C
PENNSYLVANIA PREFERRED ORGANIC PROGRAM
Sec.
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4621. Pennsylvania Preferred® Organic Program.
4622. Purpose.
4623. Pennsylvania Preferred® Organic Advisory Committee.
4624. Licensure for use of trademarks for organic agricultural
products.
§ 4621. Pennsylvania Preferred® Organic Program.
The department shall establish, administer and operate a
Pennsylvania Preferred® Organic Program.
§ 4622. Purpose.
The purposes of this subchapter shall be to:
(1) Establish a program under which qualified producers,
processors and marketers of Pennsylvania-produced organic
agricultural commodities can be licensed by the department to
make use of the Pennsylvania Preferred® Organic trademark
with respect to those organic products.
(2) Establish licensure standards that require qualified
producers described under paragraph (1) to meet or exceed the
standards required under the USDA National Organic Program.
(3) Establish the Pennsylvania Preferred® Organic
trademark as a symbol of product quality and of organic
production in accordance with rigorous, state-of-the-science
standards for production of organic agricultural commodities.
(4) Provide added product value for licensed qualified
entities that make use of the Pennsylvania Preferred® Organic
trademark.
(5) Encourage producers of Pennsylvania-produced organic
agricultural commodities to, as a desirable business measure,
meet or exceed USDA National Organic Program standards and to
pursue licensure to make use of the Pennsylvania Preferred®
Organic trademark.
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(6) Provide the department, the advisory committee
established under section 4623 (relating to Pennsylvania
Preferred® Organic Program) and Pennsylvania's organic
producers greater familiarity with the requirements of the
USDA National Organic Program and, in time, pursue USDA
approval of the Pennsylvania Preferred® Organic Program as
the official organics program in this Commonwealth.
(7) Encourage organic production and organic soil-
building practices that enhance biodiversity, conserve
natural resources and contribute to other public and
environmental health benefits.
(8) Update this chapter to improve Pennsylvania's
competitiveness in organic agricultural commodities.
§ 4623. Pennsylvania Preferred® Organic Advisory Committee.
(a) Establishment.--The secretary shall establish an
advisory committee, which shall be known as the Pennsylvania
Preferred® Organic Advisory Committee, to advise the secretary
with respect to the secretary's responsibilities under this
subchapter.
(b) Membership.--The following shall apply:
(1) Each member of the advisory committee may have an
alternate. The composition of the advisory committee shall be
as follows:
(i) The secretary or a designee, who shall chair the
advisory committee.
(ii) Six members shall be producers, at least two of
whom shall be producers of meat, fowl, fish, dairy
products or eggs.
(iii) Two members shall be processors.
(iv) One member shall be a wholesale distributor.
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(v) One member shall be a representative of an
accredited certifying agency operating in this
Commonwealth.
(vi) One member shall be a consumer representative.
The following shall apply:
(A) The consumer representative may not have a
financial interest in the direct sales or marketing
of the organic product industry.
(B) The consumer representative shall be a
member or employee of representatives of recognized
nonprofit organizations whose principal purpose is
the protection of consumer health.
(vii) One member shall be an environmental
representative. The following shall apply:
(A) The environmental representatives may not
have a financial interest in the direct sales or
marketing of the organic product industry.
(B) The environmental representative shall be a
member or employee of representatives of recognized
nonprofit organizations whose principal purpose is
the protection of the environment.
(viii) Two members shall be technical
representatives with scientific credentials related to
agricultural chemicals, toxicology or food science. The
following shall apply:
(A) The technical representatives shall not have
a financial interest in the production, handling,
processing or marketing of the organic products
industry.
(B) The technical representatives may be
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involved in organic research or technical review,
providing that the technical representatives have no
financial benefit from results of the research
project or technical review.
(ix) One member shall be a retail representative.
(2) Except for the consumer, environmental and technical
representatives described in paragraph (1)(vi), (vii) and
(viii), the members of the advisory committee shall have
derived a substantial portion of their business income,
wages, or salary from services the members provide that
directly result in the production, handling, processing or
retailing of products sold as organic for at least three
years preceding the appointment to the advisory committee.
(b) Duties.--The advisory committee shall do the following:
(1) Advise the secretary on education, outreach and
technical assistance for producers.
(2) Advise with respect to the creation of standards
under which the department shall license qualified entities
to make use of the Pennsylvania Preferred® Organic trademark
in connection with the sale, marketing or promotion of
Pennsylvania-produced organic agricultural commodities.
(3) Advise the secretary on program and regulatory
standards for the Pennsylvania Preferred® Organic Program and
ways to improve that program, with the objective of
establishing standards at least as rigorous as those for the
USDA National Organic Program.
(4) As requested by the secretary, support organic
agriculture through outreach and educational efforts targeted
to producers, consumers, academia, Federal regulators and
others.
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(c) Quorum.--Nine members shall constitute a quorum of the
advisory committee.
(d) Terms.--The secretary shall appoint advisory committee
members to an initial one-year term and, thereafter, to terms
such that the terms of five members expire each year.
§ 4624. Licensure for use of trademarks for organic
agricultural products.
(a) General.--A qualified entity may apply to be licensed by
the department to make use of the Pennsylvania Preferred®
trademark or the Pennsylvania Preferred® Organic trademark with
respect to organic agricultural products.
(b) Pennsylvania Preferred® Organic trademark licensure.--
The department shall license a qualified entity to use the
Pennsylvania Preferred® Organic trademark with respect to
agricultural products that meet or exceed the organic standards
for those agricultural products as adopted by the USDA National
Organic Program and any additional standards established by the
department through regulation.
Section 9. This act shall take effect in 60 days.
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