By: Swinford (Senate Sponsor - Duncan) H.B. No. 1398
(In the Senate - Received from the House April 28, 2003;
May 1, 2003, read first time and referred to Subcommittee on
Agriculture; May 7, 2003, reported to Committee on Natural
Resources; May 19, 2003, reported favorably by the following vote:
Yeas 8, Nays 0, 1 present not voting; May 19, 2003, sent to
printer.)
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.
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