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.