Farmer Protection Act

AN ACT RELATING TO LIABILITY RESULTING FROM THE USE OF GENETICALLY
ENGINEERED SEEDS AND PLANT PARTS

BILL AS INTRODUCED 2005-2006

S.18

Introduced by Senator Campbell of Windsor District, Senator Illuzzi of
Essex-Orleans District, Senator Ayer of Addison District, Senator Bartlett
of Lamoille District, Senator Cummings of Washington District, Senator Dunne
of Windsor District, Senator Flanagan of Chittenden District, Senator Gander
of Windham District, Senator Giard of Addison District, Senator Kittell of
Franklin District, Senator Leddy of Chittenden District, Senator Lyons of
Chittenden District, Senator MacDonald of Orange District, Senator Miller of
Chittenden District, Senator Sears of Bennington District, Senator Starr of
Essex-Orleans District and Senator White of Windham District

Referred to Committee on
Date:

Subject: Agriculture; genetically engineered seeds and plant parts;
agricultural inputs; liability

Statement of purpose: This bill proposes to place on the manufacturer the
liability for claims and damages resulting from the use, according to the
label and directions for use, of genetically engineered seeds and plant
parts.

AN ACT RELATING TO LIABILITY RESULTING FROM THE USE OF GENETICALLY
ENGINEERED SEEDS AND PLANT PARTS

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. SHORT TITLE

This act shall be known and may be cited as the Farmer Protection Act.

Sec. 2. FINDINGS; PURPOSE

The general assembly finds that agriculture is a central and vital component
of our state's economy. Vermont has a unique, national reputation for
producing high quality crops, and its agricultural heritage is dependent on
maintaining this reputation. Vermont is a leading producer of organic
crops. Vermont‚s economy is also dependent on tourism that results from
maintaining the state‚s reputation as a state with a pure and preserved
natural environment. Genetically engineered crops have been shown to be
dispersed into the environment, including through pollen drift, seed
mix?ups, inadvertent transfer of seeds by humans and animals, and extreme
weather events. The liability for the effects of genetically engineered
crops has unfairly fallen on farmers who do not plant genetically engineered
crops as well as farmers who do plant genetically engineered crops, and it
can be expected that the liabilities associated with the growing of
genetically engineered crops in Vermont will be passed by the manufacturer
to the grower of the crop and farmers who do not plant genetically
engineered crops. Genetically engineered crops cannot be successfully
segregated from crops that are not genetically engineered in current
agronomic science, agricultural practices, and agricultural infrastructure.
Therefore, it is the purpose of this act to ensure that farmers are not
harmed by this technology and to place the liability for any harm on the
manufacturer of the genetically engineered crops.

Sec. 3. 6 V.S.A. chapter 35, subchapter 3 is added to read:

Subchapter 3. Liability Resulting from the Use of

Genetically Engineered Seeds and Plant Parts

§ 650. DEFINITIONS

As used in this subchapter:

(1) „Genetically engineered crop‰ means a crop grown from genetically
engineered seed as defined in subdivision 641(9) of this title or
genetically engineered plant part as defined in subdivision 641(10).

(2) „Injury‰ includes:

(A) loss of any price premium that would have accrued to a farmer by
contract or other marketing arrangement or that would have been otherwise
reasonably available to the farmer through ordinary commercial channels;

(B) any additional transportation, storage, handling, or related charges or
costs incurred by the farmer that would not have been incurred in the
absence of crop contamination;

(C) any judgment, charge, or penalty for which the farmer of nongenetically
engineered products is liable because of breach of contract, including loss
of organic certification for failure to deliver a crop or shipment free of
genetically engineered material or for delivering a crop or shipment
exceeding any contractually agreed tolerances for the presence of
genetically engineered material;

(D) market price reductions incurred by farmers resulting from loss of crop
exports, including foreign and domestic markets; and

(E) a farmer‚s loss of livelihood or reputation caused by genetically
engineered crops.

(3) „Manufacturer‰ means a person producing and commercializing genetically
engineered seeds or plant parts.

§ 651. LIABILITY FOR DAMAGES RESULTING FROM GENETICALLY

ENGINEERED CROPS

(a) The manufacturer of a genetically engineered seed or plant part is
liable to any person injured by the release into Vermont of a genetically
engineered crop produced from such seed or plant part. The prevailing
plaintiff in an action under this subsection may recover compensable
damages, reasonable attorney‚s fees, and other litigation expenses as a part
of the costs. The proper venue for an action under this subsection is in
the county where the injury is alleged to have occurred.

(b) The liability created by this section may not be waived or otherwise
avoided by contract or other means.

(c) A farmer who is not in breach of a contract for the purchase or use of
genetically engineered seed or plant parts and unknowingly comes into
possession or uses such seeds or plant parts as a result of natural
reproduction, cross-pollination, or other contamination shall not be liable
under this subchapter for any injuries, claims, losses, and expenses,
including attorney‚s fees, caused by the use of a genetically engineered
seed or plant part, including damages for patent infringement.

(d) A manufacturer shall have an affirmative defense to liability under
this section if:

(1) the farmer or other third party acted in gross negligence to cause the
release of the genetically engineered crop that resulted in contamination;

(2) the farmer had received and signed a contract with the manufacturer;

(3) the farmer had received a training manual from the manufacturer; and

(4) by following the manufacturer‚s contract and training manual, the
farmer would not have caused injury through the use of the genetically
engineered crop.

§ 652. SEED CONTRACTS GOVERNED BY VERMONT LAW

(a) A seed contract for the purchase of seeds or plant parts in Vermont is
governed by the laws of Vermont. If a seed contract purports to choose the
laws of a jurisdiction other than Vermont to govern the contract, such
provisions of the contract are void and unenforceable.

(b) A provision of a seed contract to purchase seed or plant parts that
purports to waive the provisions of this section, to choose the laws of a
jurisdiction other than Vermont, or to choose a forum that would not
otherwise have jurisdiction over the purchaser is void.

Sec. 4. SEVERABILITY

If any provision of this act or its application to any person or
circumstance is held invalid or in violation of the constitution or laws of
the United States, the invalidity or the violation shall not affect other
provisions of this act which can be given effect without the invalid
provision or application, and to this end, the provisions of this act are
severable.

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Published by:
The Vermont General Assembly
115 State Street
Montpelier, Vermont