CHAPTER 5. INDIANA SEED ARBITRATION COUNCIL

IC 15-15-5
    Chapter 5. Indiana Seed Arbitration Council

IC 15-15-5-1
Applicability of chapter; notice
    Sec. 1. This chapter applies to civil actions against a seller for thefailure of agricultural or vegetable seeds to perform if the containerin which the seeds were sold included the following notice on thelabel:

NOTICE OF REQUIRED ARBITRATION

        Under the seed laws of Indiana and some other states,arbitration is required as a precondition of maintaining certainlegal actions, counterclaims, or defenses against a seller of seed.Information about this requirement, where applicable, may beobtained from a state's seed commissioner or the Indiana StateDepartment of Agriculture.
As added by P.L.2-2008, SEC.6. Amended by P.L.120-2008, SEC.48.

IC 15-15-5-2
Uniform Arbitration Act; applicability
    Sec. 2. Arbitration under this chapter is not subject to IC 34-57-2.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-3
"Agricultural or vegetable seeds"
    Sec. 3. As used in this chapter, "agricultural or vegetable seeds"refers to:
        (1) agricultural; or
        (2) vegetable;
seeds that are subject to IC 15-15-1.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-4
"Arbitration"
    Sec. 4. As used in this chapter, "arbitration" refers to arbitrationconducted under this chapter.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-5
"Buyer"
    Sec. 5. As used in this chapter, "buyer" means a buyer of:
        (1) agricultural; or
        (2) vegetable;
seeds that are subject to IC 15-15-1.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-6
"Commissioner"
    Sec. 6. As used in this chapter, "commissioner" refers to the stateseed commissioner.As added by P.L.2-2008, SEC.6.

IC 15-15-5-7
"Council"
    Sec. 7. As used in this chapter, "council" refers to the Indiana seedarbitration council established by section 9 of this chapter.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-8
"Seller"
    Sec. 8. As used in this chapter, "seller" refers to a seller of:
        (1) agricultural; or
        (2) vegetable;
seeds that are subject to IC 15-15-1.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-9
Indiana seed arbitration council established
    Sec. 9. (a) The Indiana seed arbitration council is established.
    (b) The following persons or their designees are members of thecouncil:
        (1) The director of Purdue University cooperative extensionservice.
        (2) The director of the office of agricultural research programsat Purdue University.
        (3) The president of the Indiana Seed Trade Association.
        (4) The president of an Indiana farmer organization selected bythe commissioner.
        (5) The commissioner.
    (c) The council shall select a chairperson from its membership.
    (d) The council may be called into session by the commissioneror by the council's chairperson to consider matters under this chapter.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-10
Council's duties
    Sec. 10. The council shall do the following:
        (1) Assist buyers and sellers in determining the validity ofcomplaints between the buyer and the seller.
        (2) Recommend cost damages resulting from the failure of seedto perform or produce properly, whether the damages arerelated to:
            (A) specific representations on the label;
            (B) other information on the seed container; or
            (C) conditions attributed to the quality of the seed.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-11
Authority of council; investigations; hearings; subpoenas
    Sec. 11. The council may do the following:        (1) Examine all nonprivileged records of the buyer and theseller that the council considers relevant to a complaint filedunder this chapter.
        (2) Investigate and conduct tests the council considersnecessary to determine the validity of the complaint. Thecouncil may enter into contracts with qualified persons toperform investigations and tests under this subdivision.
        (3) Hold hearings at the times and places designated by thechairperson to perform the functions described in section 10 ofthis chapter. Written notice of a hearing must be given to thebuyer and the seller not later than twenty (20) days before thehearing. Each party must be given an opportunity to present itsposition at a hearing.
        (4) Negotiate and recommend to the buyer and the sellerconditions for settlement of a complaint.
        (5) Hold hearings to present:
            (A) the results of the investigation of a complaint; and
            (B) the recommendations to the buyer and the seller forsettlement of the complaint.
        (6) 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 ofthe county in which a subpoena is to be served shall enforce thesubpoena.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-12
Conditions precedent to civil suit; tolling of limitations
    Sec. 12. (a) As a condition precedent to maintaining a civil actionagainst a seller for failure of the agricultural or vegetable seeds toproduce or perform:
        (1) as represented by the label required to be attached to thoseseeds or furnished under IC 15-15-1-32 or IC 15-15-1-33;
        (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 claimsubject to this chapter is tolled until twenty (20) days after the filingof the report of arbitration with the commissioner.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-13
Counterclaims or defenses; notice
    Sec. 13. (a) As a condition precedent to asserting a counterclaimor a defense in an action brought by a seller against a buyer, thecounterclaim or defense must be submitted to arbitration.
    (b) Upon the buyer's filing of a written notice of intention to asserta claim as a counterclaim or defense, accompanied by a copy of thebuyer's complaint in arbitration filed under section 18 of this chapter,

the action brought by the seller shall be stayed and any applicablestatute of limitations is tolled with respect to the claim until twenty(20) days after filing of the report of arbitration with thecommissioner.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-14
Binding effect of arbitration report
    Sec. 14. The report of arbitration under section 21 of this chapteris binding upon all parties to the extent that they have so agreed in acontract governing the sale of the seed.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-15
Absence of agreement to be bound by arbitration; presentation ofpost report claims
    Sec. 15. In the absence of an agreement to be bound byarbitration, a buyer may:
        (1) commence legal proceedings against a seller based upon aclaim subject to this chapter; or
        (2) assert a claim subject to this chapter as a counterclaim ordefense in any action brought by the seller;
at any time after the receipt of the report of arbitration.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-16
Report of arbitration as evidence in subsequent litigation
    Sec. 16. In any litigation involving a complaint that has been thesubject of arbitration under this chapter, any party may introduce thereport of arbitration as evidence of the facts found in the report, andthe court may give such weight to the council's findings of fact andconclusions of law and recommendations as to damages and costscontained in the report as the court considers appropriate based uponall the evidence before the court. The court may also take intoaccount any finding of the council with respect to the failure of anyparty to cooperate in the arbitration proceedings, including anyfinding as to the effect of delay in filing the arbitration claim uponthe council's ability to determine the facts of the case.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-17
Filing arbitration claim; filing fee; time of complaint
    Sec. 17. (a) A buyer that seeks to assert a claim under this chaptershall invoke arbitration under this chapter by filing a sworncomplaint with the commissioner together with a filing fee of onehundred dollars ($100). The buyer shall serve a copy of thecomplaint upon the seller by certified mail.
    (b) Except in the case of seed that has not been planted, the claimshall be filed within a reasonable time after the alleged defect orviolation 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 laterthan ninety (90) days after completion of the harvest of the crop ofthe seed at issue.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-18
Answer to complaint; filing fee
    Sec. 18. (a) Not later than twenty (20) days after receipt of a copyof the complaint, the seller shall file with the commissioner ananswer to the complaint and serve a copy of the answer upon thebuyer 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 complaintunder subsection (a).
As added by P.L.2-2008, SEC.6.

IC 15-15-5-19
Investigation; payment of costs; disposition of payments
    Sec. 19. (a) Before beginning a complaint investigation, thecommissioner shall prepare and provide to the parties an estimate ofthe costs to be incurred during the investigation of the complaint.
    (b) Before a complaint investigation begins, the buyer and theseller shall each pay to the commissioner an amount equal to fiftypercent (50%) of the costs estimated by the commissioner undersubsection (a). The money required to be paid under this subsectionis in addition to the filing fees required by sections 17 and 18 of thischapter.
    (c) The commissioner shall deposit the money paid undersubsection (b) in a separate account. The costs of the investigationshall be paid from money in the account.
    (d) If the actual costs of the investigation are greater than the costsestimated under subsection (a), the buyer and the seller shall eachpay fifty percent (50%) of the difference between the actual costsand the costs estimated under subsection (a).
    (e) If the actual costs of the investigation are less than the costsestimated under subsection (a), the commissioner shall refund to thebuyer and the seller each fifty percent (50%) of the differencebetween the actual costs and the costs estimated under subsection (a).
As added by P.L.2-2008, SEC.6.

IC 15-15-5-20
Council investigation of complaint
    Sec. 20. The commissioner shall refer the complaint and answerto the council for investigation, findings, and recommendations.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-21
Report of findings    Sec. 21. Upon referral of a complaint for investigation, the councilshall make a prompt and full investigation of the matters complainedof and report its findings and recommendations to the commissionernot later than sixty (60) days after the referral or a later date as theparties may determine.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-22
Council report; contents
    Sec. 22. The report of the council must include findings of facts,conclusions of law, and recommendations as to costs, if any.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-23
Delegation of investigation
    Sec. 23. The council may delegate all or any part of anyinvestigation to one (1) or more of its members. Any delegatedinvestigation shall be summarized in writing and considered by thecouncil in its report.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-24
Confidentiality of trade secrets and proprietary information
    Sec. 24. The council shall ensure that all trade secrets and otherinformation of a proprietary nature collected during the course of aninvestigation under this chapter are kept confidential to the degreenecessary to ensure the property rights of the seller and the civilrights of the buyer.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-25
Per diem and travel expenses
    Sec. 25. A member of the council is not entitled to the minimumsalary per diem provided by IC 4-10-11-2.1(b). A member is,however, entitled to reimbursement for traveling expenses and otherexpenses actually incurred in connection with the member's duties,as provided in the state travel policies and procedures established bythe Indiana department of administration and approved by the budgetagency.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-26
Transmission of report to parties
    Sec. 26. After the council has made its report, the commissionershall promptly transmit the report by certified mail to all parties.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-27
Settlement recommendation; acceptance or rejection ofrecommendation    Sec. 27. The buyer and seller shall each give written notice to thecommissioner of the acceptance or rejection of the council'srecommended terms of settlement not later than thirty (30) days afterthe date of the council's recommendation.
As added by P.L.2-2008, SEC.6.

IC 15-15-5-28
Rules
    Sec. 28. The commissioner may adopt rules under IC 4-22-2 to dothe following:
        (1) Describe the conditions and circumstances relating to seedto which arbitration under this chapter is applicable.
        (2) Supplement the procedures of the arbitration process setforth in this chapter.
As added by P.L.2-2008, SEC.6.