encapsulation, macroencapsulation, gene deletion 
and doubling, introducing a foreign gene, and chang-
ing the positions of genes), other than a means con-
sisting exclusively of breeding, conjugation, fer-
mentation, hybridization, in vitro fertilization, tissue 
culture, or mutagenesis. 
(5) BIOTECH
COMPANY.—The term ‘‘biotech 
company’’ means a person engaged in the business 
of creating genetically engineered material or obtain-
ing the patent rights to that material for the pur-
poses of commercial exploitation of that material. 
The term does not include the employees of such 
person. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
SEC. 3. INFORMATION REQUIREMENTS REGARDING SALE 
OF 
GENETICALLY 
ENGINEERED 
SEEDS, 
PLANTS, AND ANIMALS. 
(a) FULL DISCLOSURE OF RISKS OF USE.—A biotech 
company that sells any genetically engineered animal, ge-
netically engineered plant, or genetically engineered seed 
that the biotech company knows, or has reason to believe, 
will be used by the purchaser in the United States to 
produce an agricultural commodity shall provide written 
notice to the purchaser that fully and clearly discloses the 
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possible legal and environmental risks that the use of the 
genetically engineered animal, genetically engineered 
plant, or genetically engineered seed may pose to the pur-
chaser. 
(b) EFFECT OF DISCLOSURE.—The provision of writ-
ten notice under subsection (a) regarding the risks of 
using a genetically engineered animal, genetically engi-
neered plant, or genetically engineered seed does not re-
lieve the biotech company from any liability that may re-
sult from the release of genetically engineered material 
into the environment. The receipt of the written notice by 
the purchaser shall not be construed to create any liability 
on the purchaser. 
(c) RULEMAKING.—The Secretary shall issue such 
rules as may be necessary to implement and enforce this 
section. 
SEC. 4. CONTRACT LIMITATIONS REGARDING SALE OF GE-
NETICALLY ENGINEERED SEEDS, PLANTS, 
AND ANIMALS. 
(a) CERTAIN CONTRACT TERMS AND LIMITATIONS 
UNENFORCEABLE.—If a contract for the sale of a geneti-
cally engineered animal, genetically engineered plant, or 
genetically engineered seed to a purchaser for use in agri-
cultural production contains a provision described in sub-
section (b), the provision is hereby declared to be against 
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public policy and therefore void and unenforceable as a 
matter of law. 
(b) PROHIBITED TERMS
AND LIMITATIONS.—The 
provisions referred to in subsection (a) are any of the fol-
lowing: 
(1) In the case of a sale of genetically engi-
neered plants or genetically engineered seeds, a pro-
vision that prohibits the purchaser from retaining a 
portion of the harvested crop for future crop plant-
ing by the purchaser or that charges a fee to retain 
a portion of the harvested crop for future crop 
planting. 
(2) A provision that limits the ability of the 
purchaser to recover damages from the biotech com-
pany for a genetically engineered animal, genetically 
engineered plant, or genetically engineered seed that 
does not perform as advertised. 
(3) A provision that shifts any liability from the 
biotech company to the purchaser. 
(4) A provision that requires the purchaser to 
grant agents of the seller access to the purchaser’s 
property. 
(5) A provision that mandates arbitration of 
any disputes between the biotech company and the 
purchaser. 
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