CHAPTER 64. ARBITRATION OF SEED PERFORMANCE DISPUTES

AGRICULTURE CODE

TITLE 5. PRODUCTION, PROCESSING, AND SALE OF HORTICULTURAL

PRODUCTS

SUBTITLE A. SEED AND FERTILIZER

CHAPTER 64. ARBITRATION OF SEED PERFORMANCE DISPUTES

Sec. 64.001. APPLICABILITY. This chapter applies only to claims

or counterclaims due to the failure of seed purchased in a seed

bag or package that contains or has attached the notice required

by Section 64.003 of this code.

Added by Acts 1989, 71st Leg., ch. 604, Sec. 1, eff. Jan. 1,

1990. Amended by Acts 1993, 73rd Leg., ch. 598, Sec. 1, eff.

Sept. 1, 1993.

Sec. 64.002. REQUIREMENT OF ARBITRATION. (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 or any other seller of the

seed.

(b) Any period of limitations that applies to the claim shall be

tolled until the 11th day after the date of filing with the

commissioner of the report of arbitration by the board of

arbitration.

(c) A claim of damages due to the failure of the seed as

described by Subsection (a) of this section may not be asserted

as a counterclaim or defense in any action brought by a seller

against a purchaser until the purchaser has submitted a claim to

arbitration.

(d) When the court in which an action has been filed by a seller

of seed described by Subsection (c) of this section receives from

the purchaser a copy of the purchaser's complaint filed in

arbitration, accompanied by a written notice of intention to use

the claim as a counterclaim or defense in the action, the

seller's action shall be stayed. Any period of limitations that

applies to the claim is suspended until the 11th day after the

date of filing with the commissioner of the report of arbitration

by the board of arbitration.

Added by Acts 1989, 71st Leg., ch. 604, Sec. 1, eff. Jan. 1,

1990. Amended by Acts 1993, 73rd Leg., ch. 598, Sec. 2, eff.

Sept. 1, 1993; Acts 2003, 78th Leg., ch. 543, Sec. 1, eff. Sept.

1, 2003.

Sec. 64.003. NOTICE OF ARBITRATION REQUIREMENT. (a)

Conspicuous language calling attention to the requirement for

arbitration under this chapter shall be included on the analysis

label required under this subtitle or otherwise attached to the

seed bag or package.

(b) The required notice shall read substantially as follows:

NOTICE OF REQUIRED ARBITRATION

Under the seed laws of Texas, arbitration is required as a

precondition of maintaining certain legal actions, counterclaims,

or defenses against a seller of seed. Information about this

requirement may be obtained from the state commissioner of

agriculture.

Added by Acts 1989, 71st Leg., ch. 604, Sec. 1, eff. Jan. 1,

1990. Amended by Acts 1993, 73rd Leg., ch. 598, Sec. 3, eff.

Sept. 1, 1993.

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 the arbitration board's ability to

determine the facts of the case.

Added by Acts 1989, 71st Leg., ch. 604, Sec. 1, eff. Jan. 1,

1990. Amended by Acts 2003, 78th Leg., ch. 543, Sec. 2, eff.

Sept. 1, 2003.

Sec. 64.005. ARBITRATION BOARD. (a) The State Seed and Plant

Board, as constituted under Section 62.002 of this code, is the

board of arbitration for complaints filed under this chapter.

(b) As a board of arbitration, the State Seed and Plant Board

shall conduct arbitration as provided by this chapter. The

arbitration board may be called into session by the commissioner

or the chairman of the State Seed and Plant Board to consider

matters referred to the arbitration board by the commissioner or

the chairman.

(c) The State Seed and Plant Board shall also be given the

authority to hire an outside arbitrator who is not an employee of

the Department of Agriculture or a member of the arbitration

board.

Added by Acts 1989, 71st Leg., ch. 604, Sec. 1, eff. Jan. 1,

1990.

Sec. 64.006. ARBITRATION PROCEDURES. (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.

(b) Not later than the 15th day after the date the seller

receives a copy of the complaint, the seller shall file with the

commissioner an answer to the complaint and send a copy of the

answer to the purchaser by certified mail.

(c) The commissioner shall refer the complaint and the answer to

the arbitration board for investigation, findings, and

recommendations.

(d) On referral of the complaint for investigation, the

arbitration board shall make a prompt and full investigation of

the matters complained of and report its findings and

recommendations to the commissioner not later than the 60th day

after the date of the referral, or before a later date determined

by the parties.

(e) The report of the arbitration board shall include findings

of fact, conclusions of law, and recommendations as to costs, if

any. If there is a cost, the commissioner shall assess the cost

of arbitration against any party found responsible.

(f) In the course of its investigation, the arbitration board or

any of its members may:

(1) examine the purchaser and the seller on all matters that the

arbitration board considers relevant;

(2) grow to production a representative sample of the seed

through the facilities of the commissioner or a designated

university under the commissioner's supervision; or

(3) hold informal hearings at the time and place the chairman of

the State Seed and Plant Board directs, with reasonable notice to

all parties.

(g) The arbitration board may delegate all or any part of any

investigation to one or more of its members. Any delegated

investigation shall be summarized in writing and considered by

the arbitration board in its report.

(h) The arbitration board shall consider any field inspection or

other data submitted by either party in its report and

recommendation.

(i) The members of the arbitration board serve without

compensation but are entitled to reimbursement for expenses

incurred in the performance of their duties in the amounts

provided by the General Appropriations Act.

(j) After the arbitration board has filed a report of

arbitration, the commissioner shall promptly transmit the report

by certified mail to all parties.

Added by Acts 1989, 71st Leg., ch. 604, Sec. 1, eff. Jan. 1,

1990. Amended by Acts 1993, 73rd Leg., ch. 598, Sec. 4, eff.

Sept. 1, 1993; Acts 1995, 74th Leg., ch. 419, Sec. 2.25, eff.

Sept. 1, 1995; Acts 2003, 78th Leg., ch. 543, Sec. 3, eff. Sept.

1, 2003.

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).

Added by Acts 2003, 78th Leg., ch. 543, Sec. 4, eff. Sept. 1,

2003.

Sec. 64.007. DEPARTMENT RULES. The department may adopt rules

necessary to carry out the purposes of this chapter.

Added by Acts 1989, 71st Leg., ch. 604, Sec. 1, eff. Jan. 1,

1990.