By Swinford H.B. No. 1679
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to arbitration of seed performance disputes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 64.001, Agriculture Code, is amended to
1-5 read as follows:
1-6 Sec. 64.001. APPLICABILITY. This chapter applies only to
1-7 claims or counterclaims due to the failure of <vegetable> seed
1-8 purchased in a seed bag or package that contains or has attached
1-9 the notice required by Section 64.003 of this code.
1-10 SECTION 2. Section 64.002, Agriculture Code, is amended to
1-11 read as follows:
1-12 Sec. 64.002. REQUIREMENT OF ARBITRATION. (a) When a
1-13 purchaser of <vegetable> seed designed for planting claims to have
1-14 been damaged by the failure of the <vegetable> seed to produce or
1-15 perform as represented by warranty or by the label required to be
1-16 attached to the <vegetable> seed under this subtitle or as a result
1-17 of negligence, the purchaser must submit the claim to arbitration
1-18 as provided by this chapter as a prerequisite to the exercise of
1-19 the purchaser's right to maintain a legal action against the
1-20 labeler, as defined by Section 19.9, Texas Administrative Code (4
1-21 TAC Sec. 19.9), or any other seller of the <vegetable> seed.
1-22 (b) Any period of limitations that applies to the claim
1-23 shall be tolled until the 11th day after the date of filing with
2-1 the commissioner of the report of arbitration by the board of
2-2 arbitration.
2-3 (c) A claim of damages due to the failure of the <vegetable>
2-4 seed as described by Subsection (a) of this section may not be
2-5 asserted as a counterclaim or defense in any action brought by a
2-6 seller against a purchaser until the purchaser has submitted a
2-7 claim to arbitration.
2-8 (d) When the court in which an action has been filed by a
2-9 seller of <vegetable> seed described by Subsection (c) of this
2-10 section receives from the purchaser a copy of the purchaser's
2-11 complaint filed in arbitration, accompanied by a written notice of
2-12 intention to use the claim as a counterclaim or defense in the
2-13 action, the seller's action shall be stayed. Any period of
2-14 limitations that applies to the claim is suspended until the 11th
2-15 day after the date of filing with the commissioner of the report of
2-16 arbitration by the board of arbitration.
2-17 SECTION 3. Section 64.003, Agriculture Code, is amended to
2-18 read as follows:
2-19 Sec. 64.003. NOTICE OF ARBITRATION REQUIREMENT.
2-20 (a) Conspicuous language calling attention to the requirement for
2-21 arbitration under this chapter shall be included on the analysis
2-22 label required under this subtitle or otherwise attached to the
2-23 <vegetable> seed bag or package.
2-24 (b) The required notice shall read substantially as follows:
2-25 NOTICE OF REQUIRED ARBITRATION
3-1 Under the <vegetable> seed laws of Texas, arbitration is
3-2 required as a precondition of maintaining certain legal actions,
3-3 counterclaims, or defenses against a seller of <vegetable> seed.
3-4 Information about this requirement may be obtained from the state
3-5 commissioner of agriculture.
3-6 SECTION 4. Section 64.006, Agriculture Code, is amended to
3-7 read as follows:
3-8 Sec. 64.006. ARBITRATION PROCEDURES. (a) A purchaser may
3-9 begin arbitration by filing with the commissioner a sworn complaint
3-10 and a nonrefundable filing fee of $10. The purchaser shall send a
3-11 copy of the complaint to the seller by certified mail. Except in
3-12 the case of <vegetable> seed that has not been planted, the
3-13 complaint must be filed within the time necessary to permit
3-14 effective inspection of the plants under field conditions.
3-15 (b) Not later than the 15th day after the date the seller
3-16 receives a copy of the complaint, the seller shall file with the
3-17 commissioner an answer to the complaint and send a copy of the
3-18 answer to the purchaser by certified mail.
3-19 (c) The commissioner shall refer the complaint and the
3-20 answer to the arbitration board for investigation, findings, and
3-21 recommendations.
3-22 (d) On referral of the complaint for investigation, the
3-23 arbitration board shall make a prompt and full investigation of the
3-24 matters complained of and report its findings and recommendations
3-25 to the commissioner not later than the 60th day after the date of
4-1 the referral, or before a later date determined by the parties.
4-2 (e) The report of the arbitration board shall include
4-3 findings of fact, conclusions of law, and recommendations as to
4-4 costs, if any. If there is a cost, the commissioner shall assess
4-5 the cost of arbitration against any party found responsible.
4-6 (f) In the course of its investigation, the arbitration
4-7 board or any of its members may:
4-8 (1) examine the purchaser and the seller on all
4-9 matters that the arbitration board considers relevant;
4-10 (2) grow to production a representative sample of the
4-11 <vegetable> seed through the facilities of the commissioner or a
4-12 designated university under the commissioner's supervision; or
4-13 (3) hold informal hearings at the time and place the
4-14 chairman of the State Seed and Plant Board directs, with reasonable
4-15 notice to all parties.
4-16 (g) The arbitration board may delegate all or any part of
4-17 any investigation to one or more of its members. Any delegated
4-18 investigation shall be summarized in writing and considered by the
4-19 arbitration board in its report.
4-20 (h) The arbitration board shall consider any field
4-21 inspection or other data submitted by either party in its report
4-22 and recommendation.
4-23 (i) The members of the arbitration board serve without
4-24 compensation but are entitled to reimbursement for expenses
4-25 incurred in the performance of their duties in the amounts provided
5-1 by the General Appropriations Act.
5-2 (j) After the arbitration board has filed a report of
5-3 arbitration, the commissioner shall promptly transmit the report by
5-4 certified mail to all parties.
5-5 SECTION 5. This Act takes effect September 1, 1993.
5-6 SECTION 6. The importance of this legislation and the
5-7 crowded condition of the calendars in both houses create an
5-8 emergency and an imperative public necessity that the
5-9 constitutional rule requiring bills to be read on three several
5-10 days in each house be suspended, and this rule is hereby suspended.