1-1  By:  Swinford (Senate Sponsor - Bivins)               H.B. No. 1679
    1-2        (In the Senate - Received from the House May 3, 1993;
    1-3  May 4, 1993, read first time and referred to Committee on Natural
    1-4  Resources; May 14, 1993, reported favorably by the following vote:
    1-5  Yeas 8, Nays 0; May 14, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Sims               x                               
    1-9        Truan              x                               
   1-10        Armbrister         x                               
   1-11        Barrientos                                     x   
   1-12        Bivins             x                               
   1-13        Brown                                          x   
   1-14        Carriker           x                               
   1-15        Lucio              x                               
   1-16        Montford           x                               
   1-17        Ratliff            x                               
   1-18        Shelley                                        x   
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to arbitration of seed performance disputes.
   1-22        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-23        SECTION 1.  Section 64.001, Agriculture Code, is amended to
   1-24  read as follows:
   1-25        Sec. 64.001.  APPLICABILITY.  This chapter applies only to
   1-26  claims or counterclaims due to the failure of <vegetable> seed
   1-27  purchased in a seed bag or package that contains or has attached
   1-28  the notice required by Section 64.003 of this code.
   1-29        SECTION 2.  Section 64.002, Agriculture Code, is amended to
   1-30  read as follows:
   1-31        Sec. 64.002.  REQUIREMENT OF ARBITRATION.  (a)  When a
   1-32  purchaser of <vegetable> seed designed for planting claims to have
   1-33  been damaged by the failure of the <vegetable> seed to produce or
   1-34  perform as represented by warranty or by the label required to be
   1-35  attached to the <vegetable> seed under this subtitle or as a result
   1-36  of negligence, the purchaser must submit the claim to arbitration
   1-37  as provided by this chapter as a prerequisite to the exercise of
   1-38  the purchaser's right to maintain a legal action against the
   1-39  labeler, as defined by Section 19.9, Texas Administrative Code (4
   1-40  TAC Sec. 19.9), or any other seller of the <vegetable> seed.
   1-41        (b)  Any period of limitations that applies to the claim
   1-42  shall be tolled until the 11th day after the date of filing with
   1-43  the commissioner of the report of arbitration by the board of
   1-44  arbitration.
   1-45        (c)  A claim of damages due to the failure of the <vegetable>
   1-46  seed as described by Subsection (a) of this section may not be
   1-47  asserted as a counterclaim or defense in any action brought by a
   1-48  seller against a purchaser until the purchaser has submitted a
   1-49  claim to arbitration.
   1-50        (d)  When the court in which an action has been filed by a
   1-51  seller of <vegetable> seed described by Subsection (c) of this
   1-52  section receives from the purchaser a copy of the purchaser's
   1-53  complaint filed in arbitration, accompanied by a written notice of
   1-54  intention to use the claim as a counterclaim or defense in the
   1-55  action, the seller's action shall be stayed.  Any period of
   1-56  limitations that applies to the claim is suspended until the 11th
   1-57  day after the date of filing with the commissioner of the report of
   1-58  arbitration by the board of arbitration.
   1-59        SECTION 3.  Section 64.003, Agriculture Code, is amended to
   1-60  read as follows:
   1-61        Sec. 64.003.  NOTICE OF ARBITRATION REQUIREMENT.
   1-62  (a)  Conspicuous language calling attention to the requirement for
   1-63  arbitration under this chapter shall be included on the analysis
   1-64  label required under this subtitle or otherwise attached to the
   1-65  <vegetable> seed bag or package.
   1-66        (b)  The required notice shall read substantially as follows:
   1-67                    NOTICE OF REQUIRED ARBITRATION
   1-68        Under the <vegetable> seed laws of Texas, arbitration is
    2-1  required as a precondition of maintaining certain legal actions,
    2-2  counterclaims, or defenses against a seller of <vegetable> seed.
    2-3  Information about this requirement may be obtained from the state
    2-4  commissioner of agriculture.
    2-5        SECTION 4.  Section 64.006, Agriculture Code, is amended to
    2-6  read as follows:
    2-7        Sec. 64.006.  ARBITRATION PROCEDURES.  (a)  A purchaser may
    2-8  begin arbitration by filing with the commissioner a sworn complaint
    2-9  and a nonrefundable filing fee of $10.  The purchaser shall send a
   2-10  copy of the complaint to the seller by certified mail.  Except in
   2-11  the case of <vegetable> seed that has not been planted, the
   2-12  complaint must be filed within the time necessary to permit
   2-13  effective inspection of the plants under field conditions.
   2-14        (b)  Not later than the 15th day after the date the seller
   2-15  receives a copy of the complaint, the seller shall file with the
   2-16  commissioner an answer to the complaint and send a copy of the
   2-17  answer to the purchaser by certified mail.
   2-18        (c)  The commissioner shall refer the complaint and the
   2-19  answer to the arbitration board for investigation, findings, and
   2-20  recommendations.
   2-21        (d)  On referral of the complaint for investigation, the
   2-22  arbitration board shall make a prompt and full investigation of the
   2-23  matters complained of and report its findings and recommendations
   2-24  to the commissioner not later than the 60th day after the date of
   2-25  the referral, or before a later date determined by the parties.
   2-26        (e)  The report of the arbitration board shall include
   2-27  findings of fact, conclusions of law, and recommendations as to
   2-28  costs, if any.  If there is a cost, the commissioner shall assess
   2-29  the cost of arbitration against any party found responsible.
   2-30        (f)  In the course of its investigation, the arbitration
   2-31  board or any of its members may:
   2-32              (1)  examine the purchaser and the seller on all
   2-33  matters that the arbitration board considers relevant;
   2-34              (2)  grow to production a representative sample of the
   2-35  <vegetable> seed through the facilities of the commissioner or a
   2-36  designated university under the commissioner's supervision; or
   2-37              (3)  hold informal hearings at the time and place the
   2-38  chairman of the State Seed and Plant Board directs, with reasonable
   2-39  notice to all parties.
   2-40        (g)  The arbitration board may delegate all or any part of
   2-41  any investigation to one or more of its members.  Any delegated
   2-42  investigation shall be summarized in writing and considered by the
   2-43  arbitration board in its report.
   2-44        (h)  The arbitration board shall consider any field
   2-45  inspection or other data submitted by either party in its report
   2-46  and recommendation.
   2-47        (i)  The members of the arbitration board serve without
   2-48  compensation but are entitled to reimbursement for expenses
   2-49  incurred in the performance of their duties in the amounts provided
   2-50  by the General Appropriations Act.
   2-51        (j)  After the arbitration board has filed a report of
   2-52  arbitration, the commissioner shall promptly transmit the report by
   2-53  certified mail to all parties.
   2-54        SECTION 5.  This Act takes effect September 1, 1993.
   2-55        SECTION 6.  The importance of this legislation and the
   2-56  crowded condition of the calendars in both houses create an
   2-57  emergency and an imperative public necessity that the
   2-58  constitutional rule requiring bills to be read on three several
   2-59  days in each house be suspended, and this rule is hereby suspended.
   2-60                               * * * * *
   2-61                                                         Austin,
   2-62  Texas
   2-63                                                         May 14, 1993
   2-64  Hon. Bob Bullock
   2-65  President of the Senate
   2-66  Sir:
   2-67  We, your Committee on Natural Resources to which was referred H.B.
   2-68  No. 1679, have had the same under consideration, and I am
   2-69  instructed to report it back to the Senate with the recommendation
   2-70  that it do pass and be printed.
    3-1                                                         Sims,
    3-2  Chairman
    3-3                               * * * * *
    3-4                               WITNESSES
    3-5                                                  FOR   AGAINST  ON
    3-6  ___________________________________________________________________
    3-7  Name:  Carol Taylor                                      x
    3-8  Representing:  Texas Trial Lawyers Assn
    3-9  City:  Austin TX
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