Bill Text: PA HB2260 | 2009-2010 | Regular Session | Amended

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Bill Title: Providing for the registration, licensing and use of a Pennsylvania Preferred trademark; establishing the Pennsylvania Preferred Trademark Licensing Fund; and providing for penalties and for enforcement.

Spectrum: Moderate Partisan Bill (Democrat 36-8)

Status: (Introduced - Dead) 2010-09-14 - Re-committed to APPROPRIATIONS [HB2260 Detail]

Download: Pennsylvania-2009-HB2260-Amended.html

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PRIOR PRINTER'S NO. 3223 PRINTER'S NO. 3867
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2260 Session of2010
INTRODUCED BY HOUGHTON, HANNA, BRADFORD, BRIGGS, SANTARSIERO, BELFANTI, CALTAGIRONE, DALEY, DONATUCCI, FREEMAN, GEORGE, GIBBONS, GOODMAN, HARHAI, HENNESSEY, HESS, HORNAMAN, HUTCHINSON, JOSEPHS, KORTZ, KULA, LENTZ, LONGIETTI, MANN, MARSHALL, McILVAINE SMITH, M. O'BRIEN, O'NEILL, PARKER, PASHINSKI, PETRARCA, READSHAW, ROHRER, SAINATO, SANTONI, SIPTROTH, K. SMITH, SOLOBAY, STURLA, WHITE, FABRIZIO, BEYER AND GEIST, FEBRUARY 18, 2010
AS REPORTED FROM COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 8, 2010
AN ACT
Amending Title 3 (Agriculture) of the Pennsylvania Consolidated
Statutes, providing for the registration, licensing and use
of a Pennsylvania Preferred® trademark; establishing the
Pennsylvania Preferred® Trademark Licensing Fund; and
providing for penalties and for enforcement.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 3 of the Pennsylvania Consolidated Statutes
is amended by adding a chapter to read:
CHAPTER 46
PENNSYLVANIA PREFERRED® TRADEMARK
Sec.
§ 4601. Short title of chapter.
§ 4602. Declaration of policy.
§ 4603. Definitions.
§ 4604. Pennsylvania Preferred® trademark.
§ 4605. Fees and costs.
§ 4606. Establishment of fund.
§ 4607. Disposition of funds.
§ 4608. Duties and authority of department.
§ 4609. Trademark license agreement, application and licensure
process.
§ 4610. Pennsylvania-produced agricultural commodity or <--
agricultural product Qualifying standards. <--
§ 4611. Civil penalties.
§ 4612. Injunctive relief.
§ 4601. Short title of chapter.
This chapter shall be known and may be cited as the
Pennsylvania Preferred Act.
§ 4602. Declaration of policy.
The General Assembly finds and declares as follows:
(1) The promotion of the production and consumption of
Pennsylvania-produced agricultural commodities and <--
agricultural products is of major economic interest in this
Commonwealth.
(2) It is the policy of the Commonwealth to maintain the
Pennsylvania Preferred® trademark as a uniform, recognizable
state-of-origin standard for Pennsylvania-produced
agricultural commodities and agricultural products that are <--
produced to all applicable production and quality standards
and to provide producers and marketers of these commodities
and products with the opportunity to make use of this <--
trademark for marketing purposes.
(3) It is the purpose of this chapter to provide the
department authority to implement this policy by authorizing
it to acquire, maintain and license the Pennsylvania
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Preferred® trademark and to engage in cooperative
relationships and other activities in furtherance of
promoting commerce in Pennsylvania-produced agricultural
commodities and agricultural products that are licensed to <--
use this trademark.
§ 4603. Definitions.
The following words and terms when used in this chapter shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agricultural commodity." As defined in section 4502 <--
(relating to definitions). Agricultural, aquacultural, <--
horticultural, viticultural and dairy products, livestock and
the products thereof, ranch-raised furbearing animals and the
products thereof, the products of poultry and bee raising,
forestry and forestry products and any and all products raised
or produced on farms intended for human consumption and the
processed or manufactured products thereof intended for human
consumption, transported or intended to be transported in
commerce.
"FDA." The Food and Drug Administration of the United States
Department of Health and Human Services.
"Fund." The Pennsylvania Preferred® Trademark Licensing Fund
established in section 4606 (relating to establishment of fund).
"Licensee." A qualified entity that is subject to a current
trademark license agreement with the Department of Agriculture,
addressing the conditions under which the qualified entity may
make commercial use of the Pennsylvania Preferred® trademark.
"Pennsylvania Preferred® trademark." One or more trademarks
that consist of the phrase "Pennsylvania Preferred" or "PA
Preferred," and that may include specific graphic designs or
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artwork as part of the trademark registration.
"Person." An individual, partnership, corporation,
association or any other legal entity.
"Qualified entity." A person that produces, processes,
prepares, sells or is involved with any aspect of production,
processing, preparation or sale of Pennsylvania-produced
agricultural commodities or agricultural products. <--
"USDA." The United States Department of Agriculture.
§ 4604. Pennsylvania Preferred® trademark.
The department shall take all actions necessary and
appropriate to acquire, create, register, maintain, license,
promote and protect a Pennsylvania Preferred® trademark for use
on or in connection with the sale or promotion of Pennsylvania-
produced agricultural commodities and agricultural products. <--
§ 4605. Fees and costs.
(a) Trademark license fee.--The department is authorized to
impose and collect a license fee of up to $100 for the use of
the Pennsylvania Preferred® trademark in connection with the
advertising, display, promotion, packaging, marketing or sale of
Pennsylvania-produced agricultural commodities and agricultural <--
products.
(b) Reimbursement of costs.--The department is authorized to
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. The 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 other costs. <--
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(b) Fee interval.--A fee established under subsection (a)
shall be due each time a person enters into a trademark license
agreement with the department and each time an existing
trademark license agreement is renewed for an additional one-
year interval.
(c) Procedure for establishing trademark license fee.--The
department shall establish the trademark license fee described
in subsection (a) through publication of notice in the
Pennsylvania Bulletin and may revise this fee by the same
procedure.
(d) Fee interval.--A fee established under subsection (a) <--
shall be due each time a person enters into a trademark license
agreement with the department and each time an existing
trademark license agreement is renewed for an additional one-
year interval.
(d) Reimbursement of costs.--The department is authorized to <--
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. The 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 other costs.
§ 4606. Establishment of fund.
There is established a special fund in the State Treasury, to
be known as the Pennsylvania Preferred® Trademark Licensing
Fund, for the following purposes:
(1) To promote the licensure and use of the Pennsylvania
Preferred® trademark with respect to Pennsylvania-produced
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agricultural commodities and agricultural products. <--
(2) To promote the Pennsylvania Preferred® trademark as
a standard of origin and quality.
(3) To promote Pennsylvania-produced agricultural
commodities and agricultural products 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.
§ 4607. Disposition of funds.
The following funds shall be credited to the Pennsylvania
Preferred® Trademark Licensing Fund:
(1) Funds derived from the fees established under
section 4605(a) (relating to fees and costs).
(2) Funds derived from the reimbursement of costs
described in section 4605(b) 4605(d). <--
(3) Funds derived from contributions from any other
sources and designated by the contributor to be credited to
the fund.
(4) Funds derived from civil penalties collected by the
department under section 4611 (relating to civil penalties).
(5) Any other funds lawfully designated to be credited
to the fund.
§ 4608. Duties and authority of department.
(a) Department authority to enter into trademark license
agreements.--The department is authorized to enter into a
trademark license agreement with any qualified entity. The
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agreement shall address the conditions under which the qualified
entity may make commercial use of the Pennsylvania Preferred®
trademark.
(b) Department authority to protect commercial value of
trademark.--The department shall include, in a trademark license
agreement, such terms and requirements as it determines are
reasonably necessary to ensure that a licensee and the
Pennsylvania-produced agricultural commodities and agricultural <--
products it markets under the Pennsylvania Preferred® trademark
are:
(1) in compliance with all applicable Federal and State
standards;
(2) produced using current applicable good production
practices and good management practices acceptable to the <--
department; and
(3) produced for introduction into commerce so as to
create and protect the reputation of commodities and products <--
marketed under the Pennsylvania Preferred® trademark as being <--
of good quality.
(c) Cooperative activities.--The department is authorized to
engage in cooperative activities with other entities to
implement and advance the purposes of this chapter.
§ 4609. Trademark license agreement, application and licensure
process.
(a) General rule.--
(1) A person may apply to be licensed to use the
Pennsylvania Preferred® trademark.
(2) The application shall be on a form prepared by the
department and shall require identification information and
other information the department deems necessary to making a
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determination as to whether an applicant is a qualified
entity.
(3) The application form shall be provided by the
department upon request.
(4) The department shall have and exercise 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, addressing the conditions under
which the qualified entity may make commercial use of the
Pennsylvania Preferred® trademark.
(6) A trademark license agreement under this chapter
shall be of no more than one year's duration and shall
contain provisions allowing for the termination of the
license agreement by the department upon 60 days' advance
written notice to the licensee.
(b) Preexisting trademark license agreements.--Any trademark
license agreement that is in effect prior to the effective date
of this chapter and that authorizes the use of the Pennsylvania
Preferred® trademark shall remain in effect until it is
terminated or until the end of the current contract year,
whichever occurs first.
§ 4610. Pennsylvania-produced agricultural commodity or <--
agricultural product Qualifying standards. <--
A Pennsylvania-produced agricultural commodity or <--
agricultural product includes the following:
(1) Fresh unprocessed food, nursery products and other
agricultural commodities that:
(i) are entirely harvested from a Pennsylvania
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location; or
(ii) are grown at a Pennsylvania location for at
least 75% of the product's production cycle, inspected by
the department, USDA, FDA or an independent certifying
agency approved by the department, and are approved by
the inspecting entity as meeting all applicable quality
standards of that inspecting entity with no exceptions.
(2) Agricultural products where:
(i) the licensee is headquartered has a business <--
location within this Commonwealth;
(ii) the final processing and packaging of the
agricultural product occurs within this Commonwealth; and
(iii) the licensee agrees that where the primary
agricultural ingredients of the processed agricultural
product are grown within this Commonwealth, the licensee
shall buy as much of that Pennsylvania-produced
ingredient as is practical given production season
restrictions and other business conditions.
(3) Processors or manufacturers of agricultural products
where:
(i) the licensee is headquartered has a business <--
location within this Commonwealth;
(ii) the final processing and packaging of the
agricultural product occurs within this Commonwealth; and
(iii) the licensee agrees that where the primary
agricultural ingredients of the processed agricultural
product are grown within this Commonwealth, the licensee
shall buy as much of that Pennsylvania-produced
ingredient as is practical given production season
restrictions and other business conditions.
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(4) Grocery stores, plant nurseries and other retailers
where the licensee:
(i) is physically located has a business location <--
within this Commonwealth; and
(ii) carries at least 50 different Pennsylvania
Preferred® commodities or products.
(5) Individual restaurant menu items that include
featured Pennsylvania Preferred® ingredients.
(6) Restaurants that:
(i) are physically located have a business location <--
within this Commonwealth; and
(ii) offer as many Pennsylvania Preferred® items as
is practical given production season restrictions and
other business conditions.
(7) Indirect program participants, such as distributors,
wholesalers and trade associations that agree to promote use
of the Pennsylvania Preferred® trademark to their
constituencies and to use the Pennsylvania Preferred®
trademark only in connection with furthering the purposes of
this chapter.
§ 4611. 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
violation. The civil penalty assessed shall not exceed $10,000
and shall be payable to the Commonwealth and collectible in any
manner now or hereafter provided at law for the collection of
debt.
§ 4612. Injunctive relief.
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In addition to any other remedies provided for in 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 any such 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 in
section 4611 (relating to civil penalties).
Section 2. This act shall take effect in 60 days.
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