PRINTER'S NO. 134
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
157
Session of
2023
INTRODUCED BY PASHINSKI, MADDEN, RABB, SANCHEZ, KINSEY, CIRESI,
HILL-EVANS, JOZWIAK, HARKINS, FLEMING, NEILSON, BURGOS,
GUENST, STURLA, MALAGARI, ZIMMERMAN, KINKEAD, HADDOCK,
O'MARA, ROZZI, JAMES, WARREN, FREEMAN, KHAN AND SAMUELSON,
MARCH 8, 2023
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
MARCH 8, 2023
AN ACT
Amending Title 3 (Agriculture) of the Pennsylvania Consolidated
Statutes, in Pennsylvania Preferred® Trademark, further
providing for definitions, providing for Pennsylvania
Preferred® and Pennsylvania Preferred Organic® Trademark
Licensing Fund and for rules and regulations, repealing
provisions relating to Pennsylvania Preferred® Trademark
Licensing Fund and to rules and regulations, providing for
the Pennsylvania Preferred Organic® Program, for Pennsylvania
Preferred Organic® trademark and for purpose, establishing
the Pennsylvania Preferred Organic® Advisory Committee and
providing for standards, for duties and authority of
department, for trademark license agreement, application and
licensure process, for costs, for civil penalties and for
injunctive relief; and making an editorial change.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 4602 of Title 3 of the Pennsylvania
Consolidated Statutes is amended by adding definitions to read:
§ 4602. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Advisory committee." The Pennsylvania Preferred Organic ®
Advisory Committee established under section 4624 (relating to
Pennsylvania Preferred Organic ® Advisory Committee).
* * *
"Pennsylvania Preferred Organic® trademark." One or more
trademarks that consist of the phrase "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 Production Program." The National
Organic Production Program established under 7 U.S.C. § 6503
(relating to national organic production program) and any
attendant regulations.
Section 2. Title 3 is amended by adding sections to read:
§ 4603. Pennsylvania Preferred ® and Pennsylvania Preferred
Organic ® Trademark Licensing Fund.
(a) Redesignation.--The Pennsylvania Preferred ® Trademark
Licensing Fund in the State Treasury is redesignated the
Pennsylvania Preferred ® and Pennsylvania Preferred Organic ®
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
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sections 4615 (relating to costs) and 4628 (relating to
costs).
(3) Funds derived from civil penalties collected by the
department under sections 4617 (relating to civil penalties)
and 4629 (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 fund 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 fund to be used by the department for the
purpose specified under this section.
(c) Use.--Money deposited into the fund shall be used as
follows:
(1) To promote the licensure and use of the Pennsylvania
Preferred® trademark and Pennsylvania Preferred Organic ®
trademark with respect to Pennsylvania-produced agricultural
commodities.
(2) To promote the Pennsylvania Preferred® trademark and
Pennsylvania Preferred Organic ® 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 promote the Pennsylvania Preferred Organic ®
Program.
(5) To pay costs associated with monitoring the use of
the Pennsylvania Preferred® trademark, prohibiting the
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unlawful or unauthorized use of the trademark and enforcing
rights in the trademark.
(6) To promote participation under this chapter by
qualified veterans and qualified veteran business entities.
(7) To promote, encourage and facilitate cooperation by
the department 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.
(8) To otherwise fund the department's costs in
administering and enforcing this chapter.
(d) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Qualified veteran." As defined under section 4632 (relating
to definitions).
"Qualified veteran business entity." As defined under
section 4632.
§ 4604. Rules and regulations.
The department shall promulgate rules and regulations
necessary to promote the efficient, uniform and Statewide
administration of this subchapter.
Section 3. Sections 4616 and 4619 of Title 3 are repealed:
[§ 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:
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(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 4615 (relating to costs).
(3) Funds derived from civil penalties collected by the
department under section 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
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rights in the trademark.
(4.1) To promote participation under this chapter by
qualified veterans and qualified veteran business entities.
(4.2) To promote, encourage and facilitate cooperation
by the department 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.
(5) To otherwise fund the department's costs in
administering and enforcing this chapter.
(d) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Qualified veteran." As defined under section 4632 (relating
to definitions).
"Qualified veteran business entity." As defined under
section 4632.
§ 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
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
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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 4. Subchapter C heading of Chapter 46 of Title 3 is
amended to read:
SUBCHAPTER C
[(Reserved)]
Pennsylvania Preferred Organic® Program
Section 5. Subchapter C of Chapter 46 of Title 3 is amended
by adding sections to read:
§ 4621. Pennsylvania Preferred Organic ® Program.
The department shall establish, administer and operate a
Pennsylvania Preferred Organic ® Program.
§ 4622. Pennsylvania Preferred Organic ® trademark.
The department shall take all actions necessary and
appropriate to acquire, create, establish, register, maintain,
license, promote and protect a Pennsylvania Preferred Organic ®
trademark for use on or in connection with the sale, marketing
or promotion of a Pennsylvania-produced agricultural organic
commodity.
§ 4623. Purpose.
The purposes of this subchapter is 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 agricultural organic products.
(2) Establish licensure standards that require qualified
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producers described under paragraph (1) to meet or exceed the
standards required under the USDA National Organic Production
Program.
(3) Establish the Pennsylvania Preferred Organic ®
trademark as a symbol of product quality and of organic
production in accordance with rigorous, scientific 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 Production Program
standards and to pursue licensure to make use of the
Pennsylvania Preferred Organic ® trademark.
(6) Provide the department, the advisory committee
established under section 4624 (relating to Pennsylvania
Preferred Organic ® Advisory Committee) and this
Commonwealth's organic producers greater familiarity with the
requirements of the USDA National Organic Production 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) Improve this Commonwealth's competitiveness in
organic agricultural commodities.
§ 4624. Pennsylvania Preferred Organic ® Advisory Committee.
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(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.--
(1) Each member of the advisory committee may have an
alternate. The advisory committee shall be composed of:
(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.
(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 representative may not
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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
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 that 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.
(c) Duties.--The advisory committee shall have the following
duties:
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(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 Production Program.
(4) As requested by the secretary, support organic
agriculture through outreach and educational efforts targeted
to producers, consumers, academia, Federal regulators and
others.
(d) Terms.--The members of the advisory committee shall
serve for terms of two years or three years or until their
successors are appointed, except that the members of the
advisory board first appointed shall be appointed for staggered
terms so that the terms of no more than five members shall
expire annually.
§ 4625. Standards.
(a) Organic standards.--The organic food or product
regulations adopted under 7 U.S.C. § 6521 (relating to
administration) that are in effect on the effective date of this
section, or that are adopted after the effective date of this
section, shall be the organic standards under which the
department licenses qualified entities to make use of the
Pennsylvania Preferred Organic ® trademark with respect to
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Pennsylvania-produced organic agricultural commodities, except
to the extent that the department promulgates regulatory
standards that vary from those Federal standards.
(b) Regulatory standards.--The secretary may, by regulation,
prescribe 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 that vary from regulatory standards
promulgated under the authority of subsection (a).
§ 4626. 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 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 Organic ® trademark.
(3) The department may periodically review a trademark
license 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.
§ 4627. Trademark license agreement, application and licensure
process.
(a) Application for agreement.--
(1) A qualified entity may apply to be licensed to use
the Pennsylvania Preferred Organic ® trademark.
(2) The application shall be on a form prepared by the
department and include identification information and other
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information that the department deems necessary to determine
if the 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 subchapter.
(5) If the department determines that an applicant is a
qualified entity, the department shall offer the qualified
entity a trademark license agreement.
(6) A trademark license agreement under this subchapter
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
trademark 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 or Pennsylvania Preferred Organic ®
trademark shall remain in effect until it is terminated or until
the end of the current contract year, whichever occurs first.
§ 4628. 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 an 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
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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 Organic® promotional materials
provided by the department at the request of the licensee.
§ 4629. Civil penalties.
In addition to other remedies available at law or in equity
for a violation of a provision of this subchapter or a trademark
license agreement established under this subchapter, 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.
§ 4630. Injunctive relief.
In addition to any other remedies provided for under this
subchapter, 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 a 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
subchapter 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
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section 4629 (relating to civil penalties).
Section 6. This act shall take effect in 60 days.
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