Text: HSB00673                          Text: HSB00675
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 674

Bill Text

PAG LIN
  1  1                             SUBCHAPTER 2
  1  2                    AGRICULTURAL SEED MASTERS BOARD
  1  3    Section 1.  NEW SECTION.  199.21  DEFINITIONS.
  1  4    As used in this subchapter, unless the context otherwise
  1  5 requires:
  1  6    1.  "Board" means the agricultural seed masters board as
  1  7 established in section 199.22.
  1  8    2.  "Dispute" means a controversy between a purchaser and a
  1  9 seller which is based on a claim that the seed failed to
  1 10 perform based on any of the following:
  1 11    a.  A breach of warranty, including failure to perform
  1 12 according to representations appearing on the label or placard
  1 13 for the seed which is required pursuant to section 199.3 or
  1 14 199.4.
  1 15    b.  Negligence or malfeasance attributable to the seller.
  1 16    3.  "Inquiry period" means the period for inquiry beginning
  1 17 and ending as provided in section 199.26.
  1 18    4.  "Party" means a purchaser or seller.
  1 19    5.  "Purchaser" means the purchaser of seed from a seller.
  1 20    6.  "Seed" means agricultural seed as defined in section
  1 21 199.1.
  1 22    7.  "Seller" means the seller of seed to a purchaser.
  1 23    Sec. 2.  NEW SECTION.  199.22  BOARD ESTABLISHED.
  1 24    1.  There is established an agricultural seed masters board
  1 25 within the department.  The purpose of the board is to hear
  1 26 and investigate disputes, collect and analyze evidence, and
  1 27 prepare findings of fact and opinions regarding issues
  1 28 involved in the dispute, as provided in this section.
  1 29    2.  The board shall be composed of all of the following
  1 30 persons:
  1 31    a.  The secretary of agriculture, or the secretary's
  1 32 designee.
  1 33    b.  The dean of the college of agriculture of the Iowa
  1 34 state university of science and technology, or the dean's
  1 35 designee.
  2  1    c.  A person appointed by the president of Iowa state
  2  2 university who shall be an expert in seed science.
  2  3    d.  Two persons appointed by the governor, who shall be
  2  4 confirmed by the senate, pursuant to section 2.32.
  2  5    (1)  One person shall represent persons selling seed, who
  2  6 shall be a member of an association of seed producers and who
  2  7 shall be actively engaged as a seed dealer.
  2  8    (2)  One person shall represent grain producers or oil seed
  2  9 producers.  The person shall be a member of an association of
  2 10 grain producers or oil seed producers, and shall be actively
  2 11 engaged in grain or oil seed production.
  2 12    3.  Persons appointed by the governor shall be selected
  2 13 from a list of candidates requested from interested
  2 14 organizations of seed sellers and grain or oil seed producers.
  2 15    4.  Appointed members shall serve three-year terms
  2 16 beginning and ending as provided in section 69.19.  However,
  2 17 the governor shall appoint initial members to serve for less
  2 18 than three years to ensure members serve staggered terms.  A
  2 19 member is eligible for reappointment.  An appointed member
  2 20 representing an association is entitled to receive
  2 21 compensation as provided in section 7E.6.  A vacancy on the
  2 22 board shall be filled for the unexpired portion of the regular
  2 23 term in the same manner as regular appointments are made.
  2 24    5.  The secretary of agriculture or the secretary's
  2 25 designee shall serve as chairperson of the board.
  2 26    6.  The board shall meet on a regular basis and at the call
  2 27 of the chairperson.  Four members constitute a quorum and the
  2 28 affirmative vote of a majority of the members present is
  2 29 necessary for any substantive action to be taken by the board.
  2 30 However, a master's report as required in section 199.34 shall
  2 31 not be approved if more than one member present dissents.  A
  2 32 vacancy in the membership does not impair the duties of the
  2 33 board.
  2 34    7.  A member having a conflict of interest shall not
  2 35 participate in the inquiry for which the conflict exists, and
  3  1 a statement by a member that the member has a conflict of
  3  2 interest is conclusive for this purpose.  A member shall not
  3  3 participate in an inquiry involving a dispute in which a
  3  4 member is personally interested.  Upon good cause showing that
  3  5 a member has a conflict of interest, the secretary shall
  3  6 recuse the member and may appoint a person to replace the
  3  7 recused member.  The person replacing the member must be
  3  8 knowledgeable regarding the same issues as the recused member.
  3  9 The replacement member shall have all the powers and duties of
  3 10 the recused member.
  3 11    8.  Each member of the board shall, before entering upon
  3 12 the duties of the member's office, be sworn to the faithful
  3 13 and impartial discharge of their duties under this subchapter.
  3 14    9.  The department shall serve as staff to the board.
  3 15    Sec. 3.  NEW SECTION.  199.23  RULES.
  3 16    The department shall adopt rules required to administer
  3 17 this chapter after review and approval by the board.
  3 18    Sec. 4.  NEW SECTION.  199.24  CONSENT TO AN INQUIRY.
  3 19    A purchaser shall consent to an inquiry as provided in this
  3 20 chapter by purchasing seed subject to the procedures for
  3 21 disputes provided in this chapter.  The purchaser provides
  3 22 consent if the requirement for dispute inquiry as provided in
  3 23 this subchapter is provided on a label as provided in section
  3 24 199.3, a placard for the sale of bulk seed as provided in
  3 25 section 199.4, or a sales agreement.  The notice shall appear
  3 26 in a form required by the department pursuant to rules adopted
  3 27 by the department.
  3 28    Sec. 5.  NEW SECTION.  199.25  PURPOSE OF A BOARD INQUIRY.
  3 29    The purpose of an inquiry by the board is not to propose a
  3 30 judgment regarding a dispute.  The board shall function as a
  3 31 special master.  The board shall investigate a dispute,
  3 32 collect evidence, create a record of inquiry proceedings, and
  3 33 prepare a master's report, containing findings of fact and
  3 34 opinions regarding the dispute.
  3 35    Sec. 6.  NEW SECTION.  199.26  MANDATORY INQUIRY.
  4  1    1.  A person who is a purchaser desiring to initiate a
  4  2 civil proceeding to resolve a dispute shall file an inquiry
  4  3 petition with the department, according to rules adopted by
  4  4 the department.  A purchaser shall not begin the civil
  4  5 proceeding until the parties receive a release from the board,
  4  6 or until the court determines after notice and hearing that
  4  7 one of the following applies:
  4  8    a.  The time delay required for the review would cause the
  4  9 purchaser to suffer irreparable harm.
  4 10    b.  The dispute involves a claim which has been brought as
  4 11 a class action.
  4 12    2.  If a release is necessary in order to initiate a civil
  4 13 action, the board shall conduct an inquiry as provided in this
  4 14 subchapter upon receipt of a petition for inquiry.
  4 15    3.  The board shall issue a release based upon any of the
  4 16 following:
  4 17    a.  The conclusion of the inquiry period, and the issuance
  4 18 of a master's report to the secretary as provided in section
  4 19 199.34.
  4 20    b.  A court order requiring the issuance of the release.
  4 21    c.  A determination that the purchaser did not consent to
  4 22 the inquiry, as required pursuant to section 199.24.
  4 23    d.  A determination that the purchaser's petition was filed
  4 24 in a timely manner as provided in this section.
  4 25    e.  The receipt of an affidavit signed by both parties
  4 26 waiving inquiry.
  4 27    4.  The board may terminate the inquiry if the board
  4 28 receives a petition for termination by the purchaser.
  4 29    Sec. 7.  NEW SECTION.  199.27  TIME PERIODS FOR INQUIRY
  4 30 PROCEEDINGS.
  4 31    1.  Within sixty days after receiving a petition for
  4 32 inquiry, the board shall send an inquiry notice to all parties
  4 33 to the dispute which may set a time and place for an initial
  4 34 hearing.
  4 35    2.  a.  Except as provided in paragraph "b", all of the
  5  1 following shall apply:
  5  2    (1)  The board shall conduct at least one inquiry hearing,
  5  3 if required pursuant to section 199.32, within sixty days of
  5  4 the issuance of the inquiry notice.
  5  5    (2)  The board may call subsequent inquiry hearings during
  5  6 the inquiry period, which shall be for not more than ninety
  5  7 days after the board receives a petition for inquiry.
  5  8    b.  If all parties to a dispute consent, the first inquiry
  5  9 hearing may occur after sixty days of the issuance of inquiry
  5 10 notice, and the board may continue the inquiry after the end
  5 11 of the ordinary inquiry period.  However, the inquiry period
  5 12 shall not extend for more than one hundred twenty days after
  5 13 the issuance of the inquiry notice.
  5 14    Sec. 8.  NEW SECTION.  199.28  INQUIRY PETITION, NOTICE,
  5 15 AND ANSWER.
  5 16    1.  An inquiry petition required to be filed as provided in
  5 17 section 199.26 shall be filed with the department within a
  5 18 period of time required by the board which allows the board to
  5 19 inspect seed, plants, or crops which are subject to the
  5 20 dispute.  A petition shall not be filed later than the
  5 21 expiration date for the seed.
  5 22    2.  An inquiry petition and an inquiry notice shall contain
  5 23 information required by the board according to rules adopted
  5 24 by the department.
  5 25    a.  An inquiry petition shall at least include a short and
  5 26 plain statement of the matters asserted.  If the purchaser is
  5 27 unable to state the matters in detail at the time the notice
  5 28 is served, the petition may be limited to a statement of the
  5 29 issues involved.  The purchaser shall furnish a more definite
  5 30 and detailed statement as required by the board.
  5 31    b.  An inquiry notice to the parties shall at least include
  5 32 a statement of the time, place, and nature of the inquiry
  5 33 hearing.  The department shall attach a copy of the inquiry
  5 34 petition to the notice delivered to the seller.
  5 35    3.  The department shall send the inquiry notice to the
  6  1 parties by certified mail.
  6  2    4.  The seller may file an answer to an inquiry petition
  6  3 according to procedures adopted by rule.  The answer shall
  6  4 specifically admit or deny each allegation of the petition and
  6  5 state any additional facts deemed to show a defense.
  6  6    Sec. 9.  NEW SECTION.  199.29  EFFECT OF AN INQUIRY NOTICE.
  6  7    1.  If a person receives an inquiry notice under section
  6  8 199.28, the person shall not continue civil proceedings based
  6  9 on a claim relating to a dispute subject to this subchapter,
  6 10 unless the court determines after notice and hearing that one
  6 11 of the following applies:
  6 12    a.  The time delay required for the inquiry would cause the
  6 13 person to suffer irreparable harm.
  6 14    b.  The dispute involves a claim which has been brought as
  6 15 a class action.
  6 16    2.  Time periods relating to a cause of action, including
  6 17 applicable statutes of limitations, shall be suspended upon
  6 18 filing an inquiry petition.  The suspension shall terminate at
  6 19 the conclusion of the inquiry period.
  6 20    Sec. 10.  NEW SECTION.  199.30  INQUIRY PROCEEDINGS.
  6 21    1.  A party shall assume all costs for presenting evidence
  6 22 or testimony to the board.
  6 23    2.  The board may establish procedures for prioritizing
  6 24 disputes for inquiry.  The board may delegate all or part of
  6 25 any inquiry to two or more members, who shall make a report to
  6 26 the board as required by the board.
  6 27    3.  The board shall utilize its experience, technical
  6 28 competence, and specialized knowledge in the evaluation of the
  6 29 evidence concerning a dispute.
  6 30    4.  The board may consider ex parte communications,
  6 31 including communications offered by either party to the
  6 32 dispute, witnesses, experts, or departmental officials.  The
  6 33 board may conduct or request that another person conduct an
  6 34 examination or analysis of seeds, or perform tests or
  6 35 experiments involving the seeds.  The department of
  7  1 agriculture and land stewardship and Iowa state university
  7  2 shall cooperate in carrying out this subsection.
  7  3    Sec. 11.  NEW SECTION.  199.31  INFORMAL SETTLEMENT.
  7  4    Informal settlements of disputes that may culminate in an
  7  5 inquiry proceeding are encouraged.  The department may adopt
  7  6 rules providing specific procedures for attempting informal
  7  7 settlements prior to, during, or after the end of the inquiry
  7  8 period.  This section shall not be construed to require either
  7  9 party to utilize informal procedures or settle a dispute
  7 10 pursuant to informal procedures.  An informal disposition may
  7 11 be made of any dispute by stipulation, agreed settlement,
  7 12 consent order, default, or by another method agreed upon by
  7 13 the parties in writing.
  7 14    Sec. 12.  NEW SECTION.  199.32  INQUIRY HEARINGS.
  7 15    1.  The board shall conduct inquiry hearings as provided by
  7 16 rules adopted by the department.  The board must conduct an
  7 17 inquiry hearing if an answer is filed as provided in section
  7 18 199.28.  The parties to a dispute may, by written stipulation
  7 19 representing an informed mutual consent, waive any provision
  7 20 of this section relating to inquiry proceedings, upon consent
  7 21 of the board.
  7 22    2.  If a party fails to appear at an inquiry hearing after
  7 23 proper service of a hearing notice, the board may, if
  7 24 adjournment is not granted, proceed with the hearing and
  7 25 continue the inquiry hearing in the absence of the party.
  7 26    3.  An opportunity shall be afforded all parties to respond
  7 27 and present evidence and argument on all issues involved and
  7 28 to be represented by counsel at their own expense.  Witnesses
  7 29 at the hearing, or persons whose testimony has been submitted
  7 30 in written form if available, shall be subject to cross-
  7 31 examination by a party as necessary for a full and true
  7 32 disclosure of the facts.
  7 33    4.  Except as provided in section 199.33, inquiry hearings
  7 34 shall be open to the public and shall be recorded either by
  7 35 mechanized means or by certified shorthand reporters.
  8  1    5.  In conducting a hearing, the board shall have all the
  8  2 powers of the department in hearing a contested case
  8  3 proceeding under chapter 17A.  The board may summon before it
  8  4 and enforce the attendance of witnesses; of administer oaths;
  8  5 and require witnesses to give evidence, produce books, papers,
  8  6 and other documents or things as the board may deem requisite
  8  7 to the full investigation of the matters into which it is
  8  8 inquiring.  The board shall exclude irrelevant, immaterial, or
  8  9 unduly repetitious evidence.  A finding shall be based upon
  8 10 the kind of evidence on which reasonably prudent persons are
  8 11 accustomed to rely for the conduct of their serious affairs,
  8 12 and may be based upon such evidence even if it would be
  8 13 inadmissible in a jury trial.
  8 14    Sec. 13.  NEW SECTION.  199.33  RECORD – CONFIDENTIALITY
  8 15 – CLOSED SESSION.
  8 16    The board shall maintain a record of its inquiry
  8 17 proceeding, including evidence received by the board and the
  8 18 record of each inquiry hearing as provided in section 199.32.
  8 19 Chapter 22 shall apply to information received by the board.
  8 20 However, verbal or written information relating to an inquiry
  8 21 during any stage of the inquiry proceeding, whether reflected
  8 22 in notes, memoranda, or other work products in the inquiry
  8 23 files, is confidential communication, until the conclusion of
  8 24 the inquiry as provided in section 199.34.  Notwithstanding
  8 25 section 21.5, the board may conduct a closed session after a
  8 26 majority vote of the members present approve closing the
  8 27 session.  The closed session must be necessary for any reason
  8 28 provided in section 22.5 or to consider information which is
  8 29 confidential as provided in section 22.7.
  8 30    Members shall not be examined in any judicial or
  8 31 administrative proceeding regarding confidential
  8 32 communications and are not subject to judicial or
  8 33 administrative process requiring the disclosure of
  8 34 communications which are confidential under section 22.7.
  8 35    Sec. 14.  NEW SECTION.  199.34  CONCLUSION OF THE INQUIRY
  9  1 PERIOD – MASTER'S REPORT.
  9  2    The board shall issue a release within sixty days following
  9  3 the conclusion of the inquiry period.  The release shall
  9  4 include a master's report.  The report shall contain findings
  9  5 of fact regarding the dispute and opinions regarding the
  9  6 issues in dispute.  The board shall file the record of the
  9  7 inquiry proceedings with the department including original
  9  8 exhibits, a transcript of the proceedings, and evidence
  9  9 received by the board.  The release shall include the date
  9 10 when the release was issued by the board and the signature of
  9 11 the secretary of the board.
  9 12    Sec. 15.  NEW SECTION.  199.35  LIMITATION ON LIABILITY –
  9 13 IMMUNITY FROM SPECIAL ACTIONS.
  9 14    1.  A member of the board is not liable for civil damages
  9 15 for a statement or opinion made during the inquiry period,
  9 16 unless the member acts in bad faith, with malicious purpose,
  9 17 or in a manner exhibiting willful and wanton disregard of
  9 18 human rights, safety, or property.
  9 19    2.  A judicial action which seeks an injunction, mandamus,
  9 20 or similar equitable relief shall not be brought against the
  9 21 board until conclusion of the inquiry as provided in section
  9 22 199.34.
  9 23    Sec. 16.  NEW SECTION.  199.36  FEES.
  9 24    1.  A purchaser filing an inquiry petition and a seller who
  9 25 submits an answer as provided in section 199.28 shall submit a
  9 26 filing fee with the department.  The fees shall be submitted
  9 27 in a manner and according to requirements established by the
  9 28 board.  The board shall establish the amount of the fee which
  9 29 shall not exceed fifty dollars.  The board may waive the fee
  9 30 for any party demonstrating financial hardship.
  9 31    2.  The fees collected by the department shall be deposited
  9 32 in the general fund of the state.  An amount of money equal to
  9 33 the amount collected in fees shall be credited to and used
  9 34 only by the department for the administration or enforcement
  9 35 of this chapter in the same manner as moneys provided to
 10  1 departments under section 8.60.
 10  2    Sec. 17.  NEW SECTION.  199.37  COURTS.
 10  3    Any case involving a claim which was subject to an inquiry
 10  4 shall be tried de novo.  However, the court trying an issue of
 10  5 fact without a jury, whether by equitable or ordinary
 10  6 proceedings, may adopt the findings of the board as a report
 10  7 filed by a master.  In a case in which the trier of facts is a
 10  8 jury, either party in a case arising from a dispute may offer
 10  9 the record of the inquiry proceeding as evidence of facts
 10 10 alleged by the party.  A party may offer the report as
 10 11 evidence of facts alleged by the party or as expert opinion.  
 10 12                           EXPLANATION
 10 13    This bill establishes an agricultural seed masters board
 10 14 within the department of agriculture and land stewardship.
 10 15 The purpose of the board is to hear and investigate disputes,
 10 16 collect and analyze evidence, and prepare findings of fact and
 10 17 opinions, involving controversy between a purchaser and a
 10 18 seller which is based on a claim that the seed failed to
 10 19 perform as promised, or due to negligence or malfeasance
 10 20 attributable to the seller.
 10 21    The board is composed of the secretary of agriculture, or
 10 22 the secretary's designee; the dean of the college of
 10 23 agriculture of the Iowa state university of science and
 10 24 technology, or the dean's designee; a person appointed by the
 10 25 president of Iowa state university who shall be an expert in
 10 26 seed science; and two persons appointed by the governor, one
 10 27 person representing persons selling seed and one person
 10 28 representing grain producers or oil seed producers.
 10 29    The bill provides that a purchaser consents to an inquiry
 10 30 as provided in the bill by purchasing seed subject to the
 10 31 procedures for dispute if the requirement for dispute inquiry
 10 32 is provided on a label, placard for the sale of bulk seed, or
 10 33 a sales agreement.
 10 34    The purpose of the board is to function as a special
 10 35 master.  The board is required to investigate a dispute and
 11  1 prepare a report containing findings of fact regarding the
 11  2 dispute, including opinions determined relevant by the board.
 11  3    A person who is a purchaser under the bill who desires to
 11  4 initiate a civil proceeding to resolve a dispute must file an
 11  5 inquiry petition with the department.  The purchaser cannot
 11  6 begin the civil proceeding until the parties to the dispute
 11  7 receive a release from the board, or until ordered by a court.
 11  8 The board shall issue a release based upon a number of
 11  9 factors, including the conclusion of the inquiry period.  The
 11 10 board must send an inquiry notice to all parties to the
 11 11 dispute and may call an inquiry hearing within a time certain.
 11 12 The board is charged to utilize its experience, technical
 11 13 competence, and specialized knowledge in the evaluation of the
 11 14 evidence concerning a dispute.  The bill provides for
 11 15 collecting evidence including testimony from interested
 11 16 persons, or conducting an examination or analysis of seeds, or
 11 17 perform tests or experiments involving the seeds.
 11 18    The bill provides that informal settlements of disputes
 11 19 that may culminate in an inquiry proceeding are encouraged.
 11 20 The board may conduct inquiry hearings.  The bill provides
 11 21 procedures for the conduct of those hearings.  The bill
 11 22 provides for maintaining a record of its inquiry, including
 11 23 evidence received by the board and the record of each inquiry
 11 24 hearing.  The bill provides for the confidentiality of
 11 25 information received by the board, and for closed sessions.
 11 26    At the conclusion of the inquiry period, the board is
 11 27 required to issue a release, which includes a master's report.
 11 28 The report must contain findings of fact regarding the
 11 29 dispute, including opinions regarding the issues in dispute.
 11 30 The board must also file a record of the inquiry proceeding
 11 31 with the department.  The record includes original exhibits, a
 11 32 transcript of the proceedings, and evidence received by the
 11 33 board.
 11 34    The bill provides that a member of the board is not liable
 11 35 for civil damages for a statement or opinion made during the
 12  1 inquiry period, unless the member acts in bad faith.  The bill
 12  2 provides that a judicial action which seeks an injunction,
 12  3 mandamus, or similar equitable relief cannot be brought
 12  4 against the board until conclusion of the inquiry.
 12  5    The bill provides that a purchaser filing an inquiry
 12  6 petition and a seller who submits an answer shall submit a
 12  7 filing fee with the department.  The fees collected by the
 12  8 department must be used for the administration or enforcement
 12  9 of the chapter.
 12 10    The bill provides that in any case involving a claim which
 12 11 was subject to a dispute, the court trying an issue of fact
 12 12 without a jury, may adopt the findings of the board as a
 12 13 report filed by a master.  In a case in which the trier of
 12 14 facts is a jury, either party in a case arising from a dispute
 12 15 may offer the report or the record as evidence of facts
 12 16 alleged by the party or as expert opinion.  
 12 17 LSB 3532YC 77
 12 18 da/cf/24
     

Text: HSB00673                          Text: HSB00675
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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