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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