| 1 | 1 | | 88R3620 SRA-D |
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| 2 | 2 | | By: Hughes S.B. No. 1109 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the labeling, advertising, and sale of products as |
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| 8 | 8 | | "Made in Texas"; authorizing a civil penalty. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 17, Business & Commerce Code, is amended |
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| 11 | 11 | | by adding Subchapter E-1 to read as follows: |
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| 12 | 12 | | SUBCHAPTER E-1. LABELING, ADVERTISING, AND SALE OF "MADE IN TEXAS" |
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| 13 | 13 | | PRODUCTS |
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| 14 | 14 | | Sec. 17.71. "MADE IN TEXAS" LABELING STANDARD. (a) The |
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| 15 | 15 | | comptroller by rule shall establish criteria for determining |
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| 16 | 16 | | whether a product may use "Made in Texas" or equivalent phrasing to |
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| 17 | 17 | | represent that the product was made in whole or in substantial part |
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| 18 | 18 | | in Texas. |
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| 19 | 19 | | (b) The criteria established under this section must |
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| 20 | 20 | | include a requirement that all or virtually all significant parts |
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| 21 | 21 | | and processing of a product originated in this state. |
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| 22 | 22 | | Sec. 17.72. COMPLIANCE WITH STANDARD REQUIRED. To the |
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| 23 | 23 | | extent a person sells, advertises, or offers for sale in this state |
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| 24 | 24 | | a product with "Made in Texas" or equivalent phrasing to represent |
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| 25 | 25 | | that the product was made in whole or in substantial part in Texas, |
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| 26 | 26 | | the label must be consistent with rules adopted by the comptroller |
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| 27 | 27 | | under Section 17.71. |
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| 28 | 28 | | Sec. 17.73. CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A person |
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| 29 | 29 | | who violates Section 17.72 is liable to this state for a civil |
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| 30 | 30 | | penalty not to exceed $500 for each violation. |
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| 31 | 31 | | (b) The attorney general may bring an action in the name of |
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| 32 | 32 | | the state to: |
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| 33 | 33 | | (1) recover a civil penalty under this section; or |
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| 34 | 34 | | (2) restrain or enjoin the person from violating |
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| 35 | 35 | | Section 17.72. |
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| 36 | 36 | | (c) The action may be brought in a district court in: |
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| 37 | 37 | | (1) Travis County; or |
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| 38 | 38 | | (2) a county in which any part of the violation or |
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| 39 | 39 | | threatened violation occurs. |
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| 40 | 40 | | (d) A civil penalty collected under this section shall be |
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| 41 | 41 | | deposited in the state treasury to the credit of the general revenue |
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| 42 | 42 | | fund. |
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| 43 | 43 | | Sec. 17.74. AMOUNT OF CIVIL PENALTY. (a) Each day that a |
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| 44 | 44 | | violation continues may be considered a separate violation for |
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| 45 | 45 | | purposes of a civil penalty under this subchapter. |
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| 46 | 46 | | (b) The amount of a civil penalty must be based on: |
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| 47 | 47 | | (1) the seriousness of the violation, including the |
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| 48 | 48 | | nature, circumstances, extent, and gravity of the violation; |
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| 49 | 49 | | (2) the history of previous violations; |
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| 50 | 50 | | (3) the amount necessary to deter a future violation; |
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| 51 | 51 | | (4) efforts by the person to correct the violation; |
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| 52 | 52 | | and |
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| 53 | 53 | | (5) any other matter that justice may require. |
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| 54 | 54 | | SECTION 2. This Act takes effect September 1, 2023. |
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