Genetically Modified Food and Producer Liability (No. 2) Bill - continued        House of Commons

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Indemnities.     5. - (1) A potential defendant shall indemnify-
    (a) any other person who deliberately releases or markets a genetically modified organism;
    (b) any person who manufactures, processes or markets food, food ingredients or animal feed containing or derived from a genetically modified organism
       against any civil liability where the genetically modified organism in question was first deliberately released or marketed by the potential defendant.
      (2) A potential defendant shall indemnify against any civil liability any person who fails to label seeds, food, a food ingredient, or animal feed containing or derived from a genetically modified organism, but where the potential defendant can show that he took all reasonable steps to prevent such failure the indemnity shall not apply.
Requirement to insure against liability.     6. - (1) A potential defendant shall take out a policy of insurance against liability to pay compensation for damage.
      (2) A person who fails to comply with the requirements of subsection (1) shall be guilty of an offence and shall be liable-
    (a) on summary conviction, to a fine not exceeding level 3 on the standard scale;
    (b) on conviction on indictment, to a fine not exceeding level 5 on the standard scale or to a term of imprisonment not exceeding 3 months or to both.
Genetically modified organism compensation fund.     7. - (1) The Secretary of State shall within twelve months of the passing of this Act make a scheme providing for the payment of compensation in respect of damage caused by the deliberate release or marketing of a genetically modified organism.
      (2) A scheme under this section shall provide for compensation to be paid where liability for damage cannot be attributed to an identifiable potential defendant.
      (3) Without prejudice to the generality, a scheme under this section may include provision-
    (a) establishing a compensation fund and arrangements for the administration of the fund;
    (b) defining those who shall be required to make payments into the fund and the basis on which such payments shall be calculated; and
    (c) without prejudice to subsection (2), setting out the circumstances in which payments shall or shall not be made out of the fund.
      (4) The power to make a scheme under this section includes the power to amend a scheme so made and shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Short title.     8. This Act may be cited as the Genetically Modified Food and Producer Liability Act 2000.
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