or State, or area of production, grade of the potatoes contained therein, as shown by an official certificate of an inspector: Provided, That the State, or area of production, shall not be designated for any potatoes in the absence of such evidence of the State of production of such potatoes as the Secretary may require.

SEC. 5. Every person packing potatoes for commerce, or processing, or manufacturing previously uninspected potatoes for market, shall have such potatoes inspected and certified by an authorized inspector or inspectors that they (a) meet the requirements for the minimum grade prescribed pursuant to the provisions of section 3 of this Act, and (b) are of the grade designated on the container or bulk load when required to be specified in section 4 of this Act. The cost of such inspection and certification shall be borne by the person making request therefor.

Certifications made pursuant to this Act shall be receivable in any court of the United States as prima facie evidence of the truth of the statements contained therein.

SEC. 6. The provisions of this Act shall not be applicable to the following categories of potatoes. The Secretary may prescribe such regulations as he may deem necessary to effectuate the provisions of this section:

(a) Potatoes officially certified as seed potatoes and tagged or otherwise appropriately identified by and under the supervision of an official State seed potato certifying agency or other certifying agency approved by the Secretary. (b) Potatoes for animal feed without further processing, or for manufacture into nonfood products, or into starch, flour, and derivatives thereof.

(c) Potatoes for grading, storage, or preparation for market within the general production or storage area, as determined by the Secretary,

(d) Potatoes repacked in an individual retail store for sale in such store directly to consumers.

SEC. 7. The Secretary by regulation or order may exempt potatoes from the specific provisions of this Act in the circumstances hereinafter specified:

(a) Potatoes which the Secretary finds cannot be inspected at reasonable costs from the provisions of section 5.

(b) Potatoes for packing or repacking from any or all provisions to the extent that the Secretary finds that their application would be inequitable and result in unnecessary duplication of inspection and certification.

(c) Potatoes to which the Secretary finds that the application of the provisions of section 3 or 4 would be inequitable or result in unnecessary hardship as follows:

(1) Potatoes for canning from (i) the provisions of section 3 if they meet the minimum quality requirements, except for size and (ii) the provisions of section 4. The term "canning" means the process of packing potatoes (in a liquid medium) in a hermetically sealed container, which hermetic sealing is necessary for preservation; and

(2) Potatoes for conversion into processed or manufactured products, other than those specified in sections 6 (b) and 7 (c) (1), from the provisions of section 4.

SEC. 8. The Secretary is hereby authorized to detain any lot of potatoes which is found, upon inspection, not to meet the requirements of this Act or the rules and regulations issued thereunder. In case of detention, the Secretary shall issue a detention notice in duplicate in a form to be prescribed by him, one of which shall be securely affixed in a prominent place on the lot and the other of which shall be mailed or otherwise delivered to the person who then has possession or control of such lot. The detention notice form shall contain a statement that it shall be unlawful for anyone to sell or otherwise dispose of the detained lot without first obtaining written authorization from the Secretary. Such authorizations shall be granted to permit the potatoes to be brought into compliance under such conditions as the Secretary may prescribe and to permit the potatoes to move into commerce after compliance has been achieved.

SEC. 9. The Secretary may promulgate such other rules and regulations as he may deem necessary for the administration of this Act.

SEC. 10. It shall be unlawful for any person to

(a) make, issue, or alter, without authority, or forge or counterfeit any certificate, tag, label, or other writing purporting to be written or authorized under this Act, or to assist in or be a party to such an action;

(b) substitute, or attempt to substitute, following an inspection and certification under this Act, other potatoes for the inspected and graded potatoes;

or

(c) remove any notice of detention placed on any container of potatoes by the Secretary, or sell or otherwise dispose of, or remove, any potatoes which have been detained unless such person has received a written notice of the release of such potatoes issued by the Secretary.

SEC. 11. Any person violating any provision of this Act or the rules and regulations issued thereunder shall be deemed to be guilty of a misdemeanor, and, upon conviction, shall be fined not more than $1,000 or imprisoned not more than one year, or both, for each offense.

SEC. 12. There is hereby constituted a National Potato Committee, the members and alternate members of which shall be persons engaged in the production of potatoes for market selected by the Secretary, in his discretion, after giving due consideration to recommendations submitted by persons engaged in the production of potatoes for market and their organizations, so that as adequate representation as is feasible is given to potato producing areas in the continental United States. Of the members and alternate members selected hereunder approximately onehalf shall be selected for a term ending on July 1 of the calendar year following the calendar year in which this Act becomes effective, and the remaining one-half shall be selected for a term ending on July 1 of the second calendar year after this Act becomes effective. Subsequent selections for each of said member and alternate member positions shall be made for a period of two years following the termination of the term of office of the respective predecessors and so that future selections will be made on a staggered basis as indicated. In making these selections, the Secretary shall designate a particular alternate for each member, and such alternate shall serve in the place and stead of such member during the absence of the member or in the event of the removal, resignation, disqualification, or death of the member until a successor for such member's unexpired term has been selected and has assumed the duties of the office. A person shall be deemed to be disqualified for selection or service on the Committee if or when he has ceased to produce potatoes or he has been convicted of any violation of this Act. In the event of a vacancy in any position occurring prior to the end of the term for which the appointment was made, a successor shall be appointed by the Secretary subject to the conditions for appointments specified above. Said members and alternate members shall serve without compensation, except that they shall be paid travel expenses and not to exceed $15 per diem in lieu of subsistence when performing functions and duties authorized by the Secretary. Members of the National Potato Committee and alternates shall meet at such times and places as may be necessary, subject to the approval of the Secretary, for the exercise of its duties and functions. The functions and duties of the Committee shall consist of considering and making recommendations to the Secretary with respect to such matters involved in the operation of this Act as it deems proper or as the Secretary may request.

SEC. 13. This Act is not intended, nor shall it be construed, to modify, supersede, or repeal any marketing agreement or marketing order heretofore or hereaftr issued pursuant to the Agricultural Marketing Agreement Act of 1937, as amended (7 U. S. C. 601 and the following), and nothing contained herein shall be construed as prohibiting the imposition of more stringent restrictions on potatoes pursuant to any such marketing agreement or order: Provided, however, That, except as authorized pursuant to section 6 or 7 of this Act, no such marketing agreement or order shall permit the handling of potatoes which are below the minimum grade or quality standards which are prescribed in or pursuant to seetion 3 of this Act.

SEC. 14. There are hereby authorized to be appropriated such sums as may be necessary for the administration of this Act. Transfer of program funds made available under section 32 of the Act of August 18, 1935, as amended, is authorized for this purpose.

SEC. 15. If any provision of this Act or the application thereof is held invalid, the remainder of this Act or other application of such provision shall be considered as continuing in full force and effect.

SEC. 16. This Act may be cited as the "National Potato Grade Labeling Act."

[H. R. 6409, 85th Cong., 1st sess.]

A BILL To authorize the National Potato Grade Labeling Act, which provides quality requirements for, and the inspection, certification, and labeling of Irish potatoes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, when used in this Act

(a) The term "person" means an individual, partnership, corporation, association, or any other business unit.

(b) The term "Secretary" means the Secretary of Agriculture of the United States, or any other officer or employee of the United States Department of Agriculture to the extent that such officer or employee is authorized by the Secretary to exercise the powers or to perform the duties of the Secretary under this Act.

(c) The term "inspector" means any person who is authorized or licensed by the Secretary to inspect and certify the grade, quality, and condition of potatoes.

(d) The term "United States grade" means any one of the official grade standards for potatoes which have been or may hereafter issued by the United States Department of Agriculture.

(e) The term "State grade" means any one of the official grade standards for potatoes which have been or may be hereafter issued under applicable State laws or regulations.

(f) The term "potato producer" means any person who, during a representative period prescribed by the Secretary, produced potatoes for commerce in a proprietary capacity within any of the States of the United States or the District of Columbia.

(g) The term "commerce" means to sell, ship, transport, handle, consign, process, or manufacture potatoes for market in any States of the United States or the District of Columbia, it being hereby found and determined that, with respect to potatoes, all such transactions are either in the current of interstate or foreign commerce, or directly burden, affect, or obstruct such commerce. (h) The term "potatoes" means all varieties of Irish potatoes in fresh or unprocessed form included in the species Solanum tuberosum.

(i) The term "to pack" means to place potatoes or cause potatoes to be placed into bags, crates, or other types of containers, or loaded in bulk into railroad cars, trucks, or any type of conveyance whatsoever, including repacking in any type of container or conveyance, for commerce.

SEC. 2. As soon as is reasonably practicable after the effective date of this Act, the Secretary shall conduct a referendum, by secret ballot, of potato producers to determine whether such producers are in favor of or opposed to the imposition of the provisions and restrictions which are set forth in section 3 and subsequent sections of this Act. Subsequent referendums may be conducted in the discretion of the Secretary or at the request of a substantial number of potato producers representing several producing areas. To be eligible to vote in a referendum under this Act, a person must qualify as a "potato producer" within the meaning of section 1 (f) of this Act. The restrictions which are set forth in section 3 and subsequent sections of this Act shall not become effective unless the Secretary determines that at least two-thirds of the producers participating in a referendum are in favor of the imposition of such restrictions. If the referendum is unfavorable, the Secretary shall, within thirty days after its completion, proclaim the results. If the referendum vote is favorable, the Secretary shall, within thirty days after its completion, proclaim such result and order that the provisions of section 3 and subsequent sections of this Act shall, effective as of such time as he may prescribe, be in full force and effect. The determinations of the Secretary with respect to producer approval or disapproval shall be final.

SEC. 3. No person shall engage in commerce in any potatoes (a) packed by him for shipment to market in fresh form which are of a grade lower than U. S. No. 2 grade, or (b) use any potatoes for processing or manufacturing into a food product unless such potatoes consist of at least 85 per centum potential U. S. No. 2 quality potatoes or better: Provided, That the Secretary may suspend the requirements of this section for any period for which he finds that the available supply of potatoes of U. S. No. 2 and higher grade will not be sufficient to meet the normal market requirements for potatoes.

SEC. 4. No person shall engage in commerce in any potatoes packed by him which do not have affixed to each container or bulk load an appropriate tag, label, imprint, or other appropriate marking designating correctly the State, or area of production, name and address of the packer, and the United States grade or State, or area of production, grade of the potatoes contained therein, as shown by an official certificate of an inspector: Provided, That the State, or area of production, shall not be designated for any potatoes in the absence of such evidence of the State of production of such potatoes as the Secretary may require.

SEC. 5. Every person packing potatoes for commerce, or processing, or manufacturing previously uninspected potatoes for market, shall have such potatoes inspected and certified by an authorized inspector or inspectors that they (a) meet the requirements for the minimum grade prescribed pursuant to the provisions of section 3 of this Act, and (b) are of the grade designated on the container or bulk load when required to be specified in section 4 of this Act. The cost of such inspection and certification shall be borne by the person making request therefor.

Certifications made pursuant to this Act shall be receivable in any court of the United States as prima facie evidence of the truth of the statements contained therein.

SEC. 6. The provisions of this Act shall not be applicable to the following categories of potatoes. The Secretary may prescribe such regulations as he may deem necessary to effectuate the provisions of this section:

(a) Potatoes officially certified as seed potatoes and tagged or otherwise appropriately identified by and under the supervision of an official State seed potato certifying agency or other certifying agency approved by the Secretary.

(b) Potatoes for animal feed without further processing, or for manufacture into nonfood products, or into starch, flour, and derivatives thereof.

(c) Potatoes for grading, storage, or preparation for market within the general production or storage area, as determined by the Secretary.

(d) Potatoes repacked in an individual retail store for sale in such store directly to consumers.

SEC. 7. The Secretary by regulation or order may exempt potatoes from the specific provisions of this Act in the circumstances hereinafter specified :

(a) Potatoes which the Secretary finds cannot be inspected at reasonable costs from the provisions of section 5.

(b) Potatoes for packing or repacking from any or all provisions to the extent that the Secretary finds that their application would be inequitable and result in unnecessary duplication of inspection and certification.

(c) Potatoes to which the Secretary finds that the application of the provisions of section 3 or 4 would be inequitable or result in unnecessary hardship as follows:

(1) Potatoes for canning from (i) the provisions of section 3 if they meet the minimum quality requirements, except for size and (ii) the provisions of section 4. The term "canning" means the process of packing potatoes (in a liquid medium) in a hermetically sealed container, which hermetic sealing is necessary for preservation; and

(2) Potatoes for conversion into processed or manufactured products, other than those specified in sections 6 (b) and 7 (c) (1), from the provisions of section 4.

SEC. 8. The Secretary is hereby authorized to detain any lot of potatoes which is found, upon inspection, not to meet the requirements of this Act or the rules and regulations issued thereunder. In case of detention, the Secretary shall issue a detention notice in duplicate in a form to be prescribed by him, one of which shall be securely affixed in a prominent place on the lot and the other of which shall be mailed or otherwise delivered to the person who then has possession or control of such lot. The detention notice form shall contain a statement that it shall be unlawful for anyone to sell or otherwise dispose of the detained lot without first obtaining written authorization from the Secretary. Such authorizations shall be granted to permit the potatoes to be brought into compliance under such conditions as the Secretary may prescribe and to permit the potatoes to move into commerce after compliance has been achieved.

SEC. 9. The Secretary may promulgate such other rules and regulations as he may deem necessary for the administration of this Act.

SEC. 10. It shall be unlawful for any person to

(a) make, issue, or alter, without authority, or forge or counterfeit any certificate, tag, label, or other writing purporting to be written or authorized under this Act, or to assist in or be a party to such an action;

(b) substitute, or attempt to substitute, following an inspection and certification under this Act, other potatoes for the inspected and graded potatoes; or

(c) remove any notice of detention placed on any container of potatoes by the Secretary, or sell or otherwise dispose of, or remove, any potatoes which have been detained unless such person has received a written notice of the release of such potatoes issued by the Secretary.

SEC. 11. Any person violating any provision of this Act or the rules and regulations issued thereunder shall be deemed to be guilty of a misdemeanor, and,

upon conviction, shall be fined not more than $1,000 or imprisoned not more than one year, or both, for each offense.

SEC. 12. There is hereby constituted a National Potato Committee, the members and alternate members of which shall be persons engaged in the production of potatoes for market selected by the Secretary, in his discretion, after giving due consideration to recommendations submitted by persons engaged in the production of potatoes for market and their organizations, so that as adequate representation as is feasible is given to potato producing areas in the continental United States. Of the members and alternate members selected hereunder approximately one-half shall be selected for a term ending on July 1 of the calendar year following the calendar year in which this Act becomes effective, and the remaining one-half shall be selected for a term ending on July 1 of the second calendar year after this Act becomes effective. Subsequent selections for each of said member and alternate member positions shall be made for a period of two years following the termination of the term of office of the respective predecessors and so that future selections will be made on a staggered basis as indicated. In making these selections, the Secretary shall designate a particular alternate for each member, and such alternate shall serve in the place and stead of such member during the absence of the member or in the event of the removal, resignation, disqualification, or death of the member until a successor for such member's unexpired term has been selected and has assumed the duties of the office. A person shall be deemed to be disqualified for selection or service on the Committee if or when he has ceased to produce potatoes or he has been convicted of any violation of this Act. In the event of a vacancy in any position occurring prior to the end of the term for which the appointment was made, a successor shall be appointed by the Secretary subject to the conditions for appointments specified above. Said members and alternate members shall serve without compensation, except that they shall be paid travel expenses and not to exceed $15 per diem in lieu of subsistence when performing functions and duties authorized by the Secretary. Members of the National Potato Committee and alternates shall meet at such times and places as may be necessary, subject to the approval of the Secretary, for the exercise of its duties and functions. The functions and duties of the Committee shall consist of considering and making recommendations to the Secretary with respect to such matters involved in the operation of this Act as it deems proper or as the Secretary may request.

SEC. 13. This Act is not intended, nor shall it be construed, to modify, supercede, or repeal any marketing agreement or marketing order heretofore or hereafter issued pursuant to the laws of any State or pursuant to the Agricultual Marketing Agreement Act of 1937, as amended (7 U. S. C. 601 and the following), and nothing contained herein shall be construed as prohibiting the imposition of more stringent restrictions on potatoes pursuant to any such marketing agreement or order: Provided, however, That, except as authorized pursuant to section 6 or 7 of this Act, no such marketing agreement or order shall permit the handling of potatoes which are below the minimum grade or quality standards which are prescribed in or pursuant to section 3 of this Act.

SEC. 14. There are hereby authorized to be appropriated such sums as may be necessary for the administration of this Act. Transfer of program funds made available under section 32 of the Act of August 18, 1935, as amended, is authorized for this purpose.

SEC. 15. If any provision of this Act or the application thereof is held invalid, the remainder of this Act or other application of such provision shall be considered as continuing in full force and effect.

SEC. 16. This Act may be cited as the "National Potato Grade Labeling Act.” Mr. GRANT. The first witnesses this morning are Mr. Grange and Mr. Hedlund, of the United States Department of Agriculture.

STATEMENT OF FLOYD F. HEDLUND, DEPUTY DIRECTOR; ACCOMPANIED BY GEORGE R. GRANGE, DEPUTY DIRECTOR, FRUIT AND VEGETABLE DIVISION, AGRICULTURAL MARKETING SERVICE, UNITED STATES DEPARTMENT OF AGRICULTURE

Mr. HEDLUND. Mr. Chairman, my name is Floyd Hedlund, and with me is George R. Grange. We have a prepared statement on the position of the Department.