By:  Swinford                                                     H.B. No. 1398



A BILL TO BE ENTITLED

AN ACT

relating to procedures for arbitration of seed performance 
disputes.        
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 64.002(a), Agriculture Code, is amended 
to read as follows:
	(a)  When a purchaser of seed designed for planting claims to 
have been damaged by the failure of the seed to produce or perform 
as represented by warranty or by the label required to be attached 
to the seed under this subtitle or as a result of negligence, the 
purchaser must submit the claim to arbitration as provided by this 
chapter not later than the 10th day after the date on which the 
purchaser discovered or reasonably should have discovered the 
defect as a prerequisite to the exercise of the purchaser's right to 
maintain a legal action against the labeler [, as defined by Section 
19.9, Texas Administrative Code (4 TAC Sec. 19.9),] or any other 
seller of the seed.
	SECTION 2.  Section 64.004, Agriculture Code, is amended to 
read as follows: 
	Sec. 64.004.  EFFECT OF ARBITRATION.  In any litigation 
involving a complaint that has been the subject of arbitration 
under this chapter, any party may introduce the report of 
arbitration as evidence of the facts found in the report, and the 
court may give such weight to the arbitration board's findings of 
fact, conclusions of law, and recommendations as to damages and 
costs as the court determines advisable.  The court may also take 
into account any findings of the board of arbitration with respect 
to the failure of any party to cooperate in the arbitration 
proceedings, including [any finding as to the effect of delay in 
filing the arbitration claim or] the arbitration board's ability to 
determine the facts of the case.
	SECTION 3.  Section 64.006(a), Agriculture Code, is amended 
to read as follows:
	(a)  A purchaser may begin arbitration by filing with the 
commissioner a sworn complaint and a filing fee, as provided by 
department rule.  The purchaser shall send a copy of the complaint 
to the seller by certified mail. [Except in the case of seed that 
has not been planted, the complaint must be filed within the time 
necessary to permit effective inspection of the plants under field 
conditions.]
	SECTION 4.  Chapter 64, Agriculture Code, is amended by 
adding Section 64.0065 to read as follows:
	Sec. 64.0065.  EFFECT OF NONCOMPLIANCE.  The arbitration 
board may dismiss a purchaser's claim to arbitration if the 
purchaser fails to submit the claim within the period prescribed by 
Section 64.002(a).
	SECTION 5.  Section 64.002(a), Agriculture Code, as amended 
by this Act, applies only to a claim to arbitration received by the 
board of arbitration on or after September 1, 2003.
	SECTION 6.  This Act takes effect September 1, 2003.