‘‘(1) IN
GENERAL.—Subject to subsection 
(b)(3)(A) and paragraph (3), an official establish-
ment or other person shall not be considered to have 
violated the requirements of this section with respect 
to the labeling of a poultry product if the official es-
tablishment or other person (referred to in this sub-
section as the ‘recipient’) establishes a guaranty or 
undertaking signed by, and containing the name and 
address of, the person residing in the United States 
from whom the recipient received in good faith the 
poultry product or the poultry from which the poul-
try product was derived, or received in good faith 
food intended to be fed to poultry, to the effect that 
the poultry product, poultry, or such food, respec-
tively, does not contain genetically engineered mate-
rial or was not produced with a genetically engi-
neered material. 
‘‘(2) SCOPE OF GUARANTY.—In the case of a 
recipient who establishes a guaranty or undertaking 
in accordance with paragraph (1), the exclusion 
under such paragraph from being subject to pen-
alties applies to the recipient without regard to the 
use of the poultry product by the recipient (or the 
use by the recipient of the poultry from which the 
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poultry product was derived, or of food intended to 
be fed to such poultry), including— 
‘‘(A) processing the poultry; 
‘‘(B) using the poultry product as an in-
gredient in another food product; 
‘‘(C) packing or repacking the poultry 
product; or 
‘‘(D) raising the poultry from which the 
poultry product was derived. 
‘‘(3) TESTING.—In the case of recipients who 
establish guaranties or undertakings in accordance 
with paragraph (1), regulations under subsection 
(b)(3)(A) may exempt the recipients from the re-
quirement under such subsection regarding testing 
of the poultry product involved (relating to the accu-
racy of labels regarding genetically engineered mate-
rial). In determining whether to establish such ex-
emptions, the Secretary shall, with respect to the 
poultry product involved, take into account the num-
ber of times the product has been transferred from 
one recipient to another, the number of recipients 
who took any of the actions described in paragraph 
(2), and such other factors as the Secretary deter-
mines to be appropriate. 
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‘‘(4) FALSE GUARANTY.—It is a violation of 
this Act for a person to give a guaranty or under-
taking in accordance with paragraph (1) that the 
person knows or has reason to know is false. 
‘‘(f) CIVIL PENALTIES.— 
‘‘(1) IN GENERAL.—The Secretary may assess 
a civil penalty against a person that violates sub-
section (b) or (c)(2) in an amount not to exceed 
$100,000 for each such violation. 
‘‘(2) NOTICE
AND
OPPORTUNITY
FOR
HEAR-
ING.—A civil penalty under paragraph (1) shall be 
assessed by the Secretary by an order made on the 
record after opportunity for a hearing provided in 
accordance with this subparagraph and section 554 
of title 5, United States Code. Before issuing such 
an order, the Secretary shall give written notice to 
the person to be assessed a civil penalty under such 
order of the Secretary’s proposal to issue such order 
and provide such person an opportunity for a hear-
ing on the order. In the course of any investigation, 
the Secretary may issue subpoenas requiring the at-
tendance and testimony of witnesses and the produc-
tion of evidence that relates to the matter under in-
vestigation. 
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