February 18, 2003
HOUSE BILL No. 1797
_____
DIGEST OF HB 1797
(Updated February 12, 2003 7:24 PM - DI 92)
Citations Affected: IC 15-4.
Synopsis: Seed arbitration council. States the duties and powers of the
Indiana seed arbitration council. Increases filing fees for arbitration by
the council. Requires parties to an arbitration to share equally the
council's investigation costs. Requires the council to maintain trade
secrets and other proprietary information as confidential. Provides
other procedures under which the council conducts arbitration.
Authorizes the state seed commissioner to adopt administrative rules
to supplement the arbitration procedures and to describe the conditions
and circumstances under which arbitration is applicable. Repeals a
seed arbitration council statute that is superseded by the new
procedures.
Effective: July 1, 2003.
Chowning
, Friend, Gutwein
January 21, 2003, read first time and referred to Committee on Agriculture, Natural
Resources and Rural Development.
February 17, 2003, reported _ Do Pass.
February 18, 2003
First Regular Session 113th General Assembly (2003)
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HOUSE BILL No. 1797
A BILL FOR AN ACT to amend the Indiana Code concerning
agriculture and animals.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 15-4-11-8.3; (03)HB1797.1.1. -->
SECTION 1.
IC 15-4-11-8.3
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]: Sec. 8.3. The council shall do the following:
(1) Assist buyers and sellers in determining the validity of
complaints between the buyer and the seller.
(2) Recommend cost damages resulting from the failure of
seed to perform or produce properly, whether related to:
(A) specific representations on the label;
(B) other information on the seed container; or
(C) conditions attributed to the quality of the seed.
SOURCE: IC 15-4-11-8.5; (03)HB1797.1.2. -->
SECTION 2.
IC 15-4-11-8.5
IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]:
Sec. 8.5. The council may do the following:
(1) Examine all nonprivileged records of the buyer and the
seller that the council considers relevant to a complaint filed
under this chapter.
(2) Investigate and conduct tests the council considers
necessary to determine the validity of the complaint. The
council may enter into contracts with qualified persons to
perform investigations and tests under this subdivision.
(3) Hold hearings at the times and places designated by the
chairman to perform the functions described in section 8.3 of
this chapter. Written notice of a hearing must be given to the
buyer and the seller not later than twenty (20) days before the
hearing. Each party must be given an opportunity to present
its position at a hearing.
(4) Negotiate and recommend to the buyer and the seller
conditions for settlement of a complaint.
(5) Hold hearings to present:
(A) the results of the investigations of a complaint; and
(B) the recommendations to the buyer and the seller for
settlement of the complaint.
(6) Enter the property of the buyer or the seller to obtain
information and perform investigations under this chapter.
(7) Compel either or both of the following by subpoena:
(A) The attendance and testimony of witnesses.
(B) The production of documents.
If the council issues a subpoena, the circuit or superior court
of the county where a subpoena is to be served shall enforce
the subpoena.
SOURCE: IC 15-4-11-9; (03)HB1797.1.3. -->
SECTION 3.
IC 15-4-11-9
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) As a condition
precedent to maintaining a civil action against a seller for failure of the
agricultural or vegetable seeds to produce or perform:
(1) as represented by the label required to be attached to those
seeds or furnished under
IC 15-4-1-4
or
IC 15-4-1-5
;
(2) as represented by warranty; or
(3) because of negligence;
the buyer must submit the claim to arbitration.
(b) Any applicable period of limitation with respect to a claim
subject to this chapter is tolled until ten (10) twenty (20) days after the
filing of the report of arbitration with the commissioner.
SOURCE: IC 15-4-11-10; (03)HB1797.1.4. -->
SECTION 4.
IC 15-4-11-10
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 10. (a) As a condition
precedent to asserting a counterclaim or a defense in an action brought
by a seller against a buyer, the counterclaim or defense must be
submitted to arbitration.
(b) Upon the buyer's filing of a written notice of intention to assert
a claim as a counterclaim or defense, accompanied by a copy of the
buyer's complaint in arbitration filed under section 15 of this chapter,
the action brought by the seller shall be stayed and any applicable
statute of limitations is tolled with respect to the claim until ten (10)
twenty (20) days after filing of the report of arbitration with the
commissioner.
SOURCE: IC 15-4-11-14; (03)HB1797.1.5. -->
SECTION 5.
IC 15-4-11-14
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14. (a) A buyer shall
invoke arbitration under this chapter by filing a sworn complaint with
the commissioner together with a filing fee of ten one hundred dollars
($10). ($100). The buyer shall serve a copy of the complaint upon the
seller by certified mail.
(b) Except in case of seed that has not been planted, the claim shall
be filed within such a reasonable time after the alleged defect or
violation becomes apparent so as to permit effective inspection of:
(1) the crops or plants under field conditions; or
(2) the grain harvested from the crops or plants.
(c) Notwithstanding subsection (b), a claim must be filed not
later than ninety (90) days after completion of the harvest.
SOURCE: IC 15-4-11-15; (03)HB1797.1.6. -->
SECTION 6.
IC 15-4-11-15
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 15. Within five (5) (a)
Not later than twenty (20) days after receipt of a copy of the
complaint, the seller shall file with the commissioner an answer to the
complaint and serve a copy of the answer upon the buyer by certified
mail.
(b) The seller shall pay a filing fee of one hundred dollars ($100)
to the commissioner when the seller files the answer to the
complaint under subsection (a).
SOURCE: IC 15-4-11-15.5; (03)HB1797.1.7. -->
SECTION 7.
IC 15-4-11-15.5
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 15.5. (a) Before beginning a
complaint investigation, the commissioner shall prepare and
provide to the parties an estimate of the costs to be incurred during
the investigation of the complaint.
(b) Before a complaint investigation begins, the buyer and the
seller shall each pay to the commissioner an amount equal to fifty
percent (50%) of the costs estimated by the commissioner under
subsection (a). The money required to be paid under this
subsection is in addition to the filing fee required by sections 14
and 15 of this chapter.
(c) The commissioner shall deposit the money paid under
subsection (b) in a separate account. The costs of the investigation
shall be paid from money in the account.
(d) If the actual costs of the investigation are greater than the
costs estimated under subsection (a), the buyer and the seller shall
each pay fifty percent (50%) of the difference between the actual
costs and the costs estimated under subsection (a).
(e) If the actual costs of the investigation are less than the costs
estimated under subsection (a), the commissioner shall refund to
the buyer and the seller each fifty percent (50%) of the difference
between the actual costs and the costs estimated under subsection
(a).
SOURCE: IC 15-4-11-17.5; (03)HB1797.1.8. -->
SECTION 8.
IC 15-4-11-17.5
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 17.5. If the council determines
that a hearing should be conducted for the parties to present their
respective positions, a party may have attorneys present with
whom the party may confer, but an attorney for a party may not
participate directly in the proceedings unless requested to do so by
the chairman.
SOURCE: IC 15-4-11-20.5; (03)HB1797.1.9. -->
SECTION 9.
IC 15-4-11-20.5
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 20.5. The council shall ensure
that all trade secrets and other information of a proprietary nature
collected during the course of an investigation under this chapter
be kept confidential to the degree necessary to ensure the property
rights of the seller and the civil rights of the buyer.
SOURCE: IC 15-4-11-22.5; (03)HB1797.1.10. -->
SECTION 10.
IC 15-4-11-22.5
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 22.5. The buyer and seller shall
each give written notice to the commissioner of the acceptance or
rejection of the council's recommended terms of settlement not
later than thirty (30) days after the date of the council's
recommendation.
SOURCE: IC 15-4-11-24; (03)HB1797.1.11. -->
SECTION 11.
IC 15-4-11-24
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 24. The commissioner may adopt
rules under
IC 4-22-2
to do the following:
(1) Describe the conditions and circumstances relating to seed
to which arbitration under this chapter is applicable.
(2) Supplement the procedures of the arbitration process set
forth in this chapter.
SOURCE: IC 15-4-11-19; (03)HB1797.1.12. -->
SECTION 12.
IC 15-4-11-19
IS REPEALED [EFFECTIVE JULY
1, 2003].