TITLE 4.AGRICULTURE

Part 1. TEXAS DEPARTMENT OF AGRICULTURE

Chapter 17. MARKETING AND PROMOTION

The Texas Department of Agriculture (the department) adopts amendments to §§17.51-17.52, §17.54, §17.56, and §17.304, and new §17.59, concerning the department's GO TEXAN membership and GO TEXAN Partner Program rules. Sections 17.52, 17.54 and 17.56 are adopted with changes made to the proposal published in the December 5, 2003 issue of the Texas Register (28 TexReg 10850) for purposes of clarification. Sections 17.51, 17.59 and 17.304 are adopted without changes and will not be republished. The amendments and new section are adopted to establish a GO TEXAN membership category for nonagricultural products, in accordance with Texas Agriculture Code, §12.0175, as amended by House Bill 1858, 78th Regular Session, 2003 (HB 1858), and to establish additional eligibility criteria for the GO TEXAN membership and GO TEXAN Partner programs. The adoption of new §17.59 will serve to increase sales and business opportunities for non-agricultural products produced in Texas because of the department's promotional and marketing programs. Amendments, other than those relating to the promotion of non-agricultural products, will ensure that public awareness for the program is enhanced and that efficiencies continue to be incorporated into the program.

The amendments to §17.51 provide a definition for "Other Products" and modify the definitions for "Produced in Texas" and "Producer". The amendments to §17.52, §17.54, §17.56 clarify that the department, in the evaluation of an applicant or participant in the GO TEXAN membership program may consider whether the applicant or participant, or their products, enhance the integrity, image, or commercial appeal of the program. The amendments to §17.304 provide that as a requirement for participation in the GO TEXAN Partner Program, the applicant must disclose certain criminal history information of any owners having a 10% or more interest in the applicant's business, and provide for the forfeiting of funds awarded to a successful applicant for failure to continue to comply with disclosure of any criminal conviction information required to be reported to the program. New §17.59 establishes a membership category for non-agricultural products, including eligibility requirements, an application process, and restrictions on use of the GO TEXAN promotional mark.

No comments were received on the proposal.

Subchapter C. TAP, TASTE OF TEXAS, VINTAGE TEXAS, TEXAS GROWN, NATURALLY TEXAS AND GO TEXAN AND DESIGN MARKS

4 TAC §§17.51, 17.52, 17.54, 17.56, 17.59

The amendments to §17.51-17.52, §17.54 and §17.56 and new §17.59 are adopted under the Texas Agriculture Code, §12.0175, as amended by HB 1858, which authorizes the department to establish by rule programs to promote and market agricultural products and other products, grown, processed or produced in the state and to charge a membership fee for participation in such programs.

§17.52.Application for Registration To Use the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design Mark.

(a) No person shall use, employ, adopt, or utilize the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design mark, unless prior application for registration or licensing has been made to the department and permission to make such use, employment, adoption, or utilization has been granted.

(b) Unless permission is otherwise granted by the department, the GO TEXAN and Design mark may only be used by registrants and licensees to certify and promote the following Texas agricultural products:

(1) agricultural products produced in Texas;

(2) agricultural food products processed in Texas, regardless of origin, and unprocessed agricultural food products grown in Texas. A food service company, including a restaurant, is not eligible for membership unless it processes a packaged product for resale, in which case, the mark may only be used to promote the specific program-eligible products. Food service companies or restaurants may not use the mark in any general fashion to promote the business or its services;

(3) wine which is:

(A) at least 75% by volume, derived from grapes grown and fermented in the State of Texas; and

(B) fully produced and finished within the State of Texas;

(4) Texas-grown nursery, floral, and forestry products;

(5) leather, textile, or apparel products approved by the commissioner as being:

(A) composed of 50% or greater natural fibers derived from crops or livestock grown or raised within the State of Texas, the identity of the fibers having been preserved throughout processing so as to be verifiable by satisfactory documentation as having originated in Texas; or

(B) composed of 50% or greater natural fibers, regardless of where grown or raised, which have been processed into leather, textile, or apparel products within the State of Texas in a manner which substantially changes their form, and, if composed of natural fibers derived from crops or livestock grown or raised outside the State of Texas, the natural fibers must be of a type commercially produced within the State of Texas;

(6) horticulture product(s);

(7) lamb or goat meat(s). In order to be certified as "GO TEXAN" lamb or goat meat(s), lamb or goat meat(s) must be from a lamb or goat that has been fed in Texas for at least 30 days and:

(A) be from a lamb or goat that has been slaughtered in Texas; or

(B) be from a lamb or goat slaughtered and fabricated in Texas;

(C) for purposes of this paragraph, "fabricated" shall be defined as the process of taking a carcass and cutting the carcass into wholesale or retail cuts of meat;

(8) livestock or poultry feed(s), feed supplement(s) and pet food(s);

(9) fish, shellfish, or other aquatic species in their raw form or processed form;

(10) natural fiber(s);

(11) natural wood(s);

(12) processed food product(s);

(13) processed natural fiber and natural wood product(s);

(14) wildlife processed for food or by-products;

(15) equine species; and

(16) Texas processed agricultural product(s).

(c) The Texas Agricultural Product, Taste of Texas, Vintage Texas, Texas Grown, and Naturally Texas marks shall only be used by program members to identify products meeting the requirements for membership for those programs prior to May 23, 1999 as follows:

(1) for the TAP mark, for products identified in subsection (b)(1) of this section;

(2) for the Taste of Texas mark, for products identified in subsection (b)(2) of this section;

(3) for the Vintage Texas mark, for products identified in subsection (b)(3) of this section;

(4) for the Texas Grown mark, for products identified in subsection (b)(4) of this section; or

(5) for the Naturally Texas mark, for products identified in subsection (b)(5) of this section.

(d) Applications submitted under this section shall be made in writing on a form prescribed by the department. Application forms may be obtained by contacting the Texas Department of Agriculture Marketing and Promotion Division at P.O. Box 12847, Austin, Texas 78711, phone (512) 463-7624.

(e) Applications shall be submitted to the assistant commissioner for Marketing and Promotion, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711.

(f) If approved, applicants shall remit the required registration fee within 30 days of notification of approval.

(g) Upon receipt of the registration fee, the department shall mail to the registrant or licensee a certificate of registration, which shall expire on August 31 following the year of issuance. The department shall also enclose copies of the mark, suitable for reproduction. If the certificate is for less than one full year, registration fees will be assessed on a pro rata basis.

(h) Other than the use of the mark, no registrant or licensee shall use any statement of affiliation or endorsement by the State of Texas or the department in the selling, advertising, marketing, packaging, or other commercial handling of TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN products.

(i) Registrants and licensees shall indemnify and hold harmless the commissioner, the State of Texas, and the department for any claims, losses, or damages arising out of or in connection with that person's advertising, marketing, packaging, manufacture, or other commercial handling of TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN products.

(j) Any permission under the certificate of registration granted to a registrant to use the mark shall be nonexclusive and nontransferable for the products listed in the application.

(k) Registrants shall do nothing inconsistent with the ownership of the mark in the department, and all use of the mark by any registrant shall inure to the benefit of and be on behalf of the department. Further the registrants shall not have any right, title, or interest in the mark, other than the right to use the mark in accordance with the certificate of registration. Registrants must agree not to attack the title of the department to the mark, or attack the validity of the certificate of registration or the permission granted by the department.

(l) The nature and quality of the goods sold by registrants in connection with the mark shall conform to any standards which may be set from time to time by the department. Registrants shall cooperate with the commissioner by permitting reasonable inspection of the registrant's operation and supplying the commissioner with specimens of use of the mark upon request. Registrants shall not use the mark on goods sold or marketed as products from another country or state, or as products from a city or region outside of Texas, unless prior written authorization is received from the department.

(m) Registrants and licensees shall comply with all applicable laws and regulations and obtain all appropriate governmental approval pertaining to the selling, advertising, marketing, packaging, manufacturing, or other commercial handling of the products covered by the certification of registration.

(n) Registrants shall use the mark only in the form and manner, and with appropriate legends, as prescribed from time to time by the commissioner. Registrants shall affix on all product(s) bearing the mark the following legal notice: GO TEXAN and Design is a certification mark of the Texas Department of Agriculture.

(o) The department shall have the sole right and discretion to bring infringement or unfair competition proceedings involving the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design marks.

(p) The department may consider in its evaluation of an applicant or registrant any information regarding an applicant or member that could impair the department's efforts to promote the development of markets for Texas agriculture and other products.

(q) The consideration of information as provided in subsection (p) of this section may include consideration of any information that may not enhance the integrity and positive image of the program, including, but not limited to, a review of criminal information, as allowed by applicable laws and regulations.

§17.54.Denial of Application to Use the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design Mark.

An application for registration or license to use the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design mark may be denied if:

(1) application is not made in compliance with 17.52 of this title (relating to Application for Permission To Use the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design mark;

(2) the applicant cannot provide adequate assurances that the product for which application is made qualifies and will continue to qualify for the program(s) in which it is enrolled;

(3) the product is of a quality markedly inferior to that representative of similar products produced in Texas;

(4) the applicant has misused the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design mark prior to the date of application; or

(5) applicant's use of the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design mark would either:

(A) impair or frustrate the department's efforts to expand or encourage development of the markets for Texas agricultural and other products; or

(B) fail to enhance the integrity and image of the program, as determined by the department; or

(6) for reasons of policy, as determined by the department.

§17.56.Termination of Registration To Use the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design marks.

(a) Registration to use the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design mark may be revoked at any time if the mark is misused.

(b) Misuse of the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design mark includes, but is not limited to:

(1) use of the mark in the selling, advertising, marketing, packaging, or other commercial handling of a product for which registration to use the mark has not been granted by the department;

(2) use of the mark in the selling, advertising, marketing, packaging, or other commercial handling of a product which is of a quality markedly inferior to that representative of similar products produced in Texas; or

(3) use of the mark would either:

(A) impair or frustrate the department's efforts to expand or encourage development of the markets for Texas agricultural and other products; or

(B) fail to enhance the integrity and image of the program, as determined by the department

(4) use of the mark in a manner violating any rule promulgated by the commissioner.

(c) Proceedings for the revocation of registration to use the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design mark shall be conducted in the manner provided for contested cases by the Administrative Procedure Act, Texas Government Code, Chapter 2001, and Chapter 1 of this title (relating to General Practice and Procedure).

(d) A proceeding for revocation of registration to use the TAP, Taste of Texas, Vintage Texas, Texas Grown, Naturally Texas, or GO TEXAN and Design mark shall not preclude the commissioner from pursuing any other remedies, including, where applicable, the penal and injunctive remedies provided for by law.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400350

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: February 5, 2004

Proposal publication date: December 5, 2003

For further information, please call: (512) 463-4075


Subchapter G. GO TEXAN PARTNER PROGRAM RULES

4 TAC §17.304

The amendments to §17.304 are adopted under the Texas Agriculture Code (the Code), §46.012, which authorizes the department to adopt rules to administer the Code, Chapter 46, relating to the GO TEXAN Partner Program, including rules for the use of the GO TEXAN logo. .

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 16, 2004.

TRD-200400351

Dolores Alvarado Hibbs

Deputy General Counsel

Texas Department of Agriculture

Effective date: February 5, 2004

Proposal publication date: December 5, 2003

For further information, please call: (512) 463-4075