AGRICULTURE CODE
CHAPTER 64. ARBITRATION OF SEED PERFORMANCE DISPUTES
§ 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, § 1, eff. Jan. 1, 1990.
Amended by Acts 1993, 73rd Leg., ch. 598, § 1, eff. Sept. 1,
1993.
§ 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, § 1, eff. Jan. 1, 1990.
Amended by Acts 1993, 73rd Leg., ch. 598, § 2, eff. Sept. 1,
1993; Acts 2003, 78th Leg., ch. 543, § 1, eff. Sept. 1, 2003.
§ 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, § 1, eff. Jan. 1, 1990.
Amended by Acts 1993, 73rd Leg., ch. 598, § 3, eff. Sept. 1,
1993.
§ 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, § 1, eff. Jan. 1, 1990.
Amended by Acts 2003, 78th Leg., ch. 543, § 2, eff. Sept. 1,
2003.
§ 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, § 1, eff. Jan. 1, 1990.
§ 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, § 1, eff. Jan. 1, 1990.
Amended by Acts 1993, 73rd Leg., ch. 598, § 4, eff. Sept. 1,
1993; Acts 1995, 74th Leg., ch. 419, § 2.25, eff. Sept. 1, 1995;
Acts 2003, 78th Leg., ch. 543, § 3, eff. Sept. 1, 2003.
§ 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, § 4, eff. Sept. 1, 2003.
§ 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, § 1, eff. Jan. 1, 1990.
