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SANITATION OF PREMISES, FACILITIES, AND EQUIPMENT

SEC. 12. On and after January 1, 1957, each establishment engaged in processing poultry or poultry products for commerce shall construct, remodel, maintain, and operate its premises, facilities, and equipment pursuant to rules and regulations prescribed by the Secretary, to avoid rendering the poultry and poultry products therein handled unsound, unhealthful, diseased, unwholesome, adulterated, or otherwise unfit for human food.

SANITARY PROCESSING PRACTICES

SEC. 13. On and after January 1, 1957, each establishment engaged in processing poultry or poultry products for commerce shall carry out such processing with constant application of sanitary practices, pursuant to rules and regulations prescribed by the Secretary, to avoid rendering the poultry and poultry products therein handled unsound, unhealthful, diseased, unwholesome, adulterated, or otherwise unfit for human food.

EFFECT OF FAILURE TO MAINTAIN STANDARDS OR PROCESSING PRACTICES

SEC. 14. On and after January 1, 1957, the maintenance, operations, and practices required under sections 12 and 13 shall be supervised by inspectors and upon the failure, neglect, or refusal of any establishment engaged in processing for commerce to adhere to required standards the inspectors, conformably to rules and regulations prescribed by the Secretary, shall refuse to allow the use of the official inspection mark upon any poultry and poultry products handled in such establishment, during the period of such failure, neglect, or refusal.

EXEMPTIONS

SEC. 15. (a) The Secretary is authorized, under such regulations as he may prescribe, to issue certificates of exemption to any poultry producer for poultry of his own raising on his own farm which he sells directly to household consumers only and who does not engage in buying or selling poultry products other than those produced on his own farm.

(b) For two years following the date of enactment of this Act certificates of exemption may be issued in cases where the Secretary is unable to provide inspection. The Secretary shall require that any person as a condition to the receipt of an exemption certificate shall comply with the sanitation standards, practices, and procedures promulgated by the Secretary in rules and regulations. No such exemptions shall be effective after the expiration of two years from the date of enactment of this Act.

(c) The Secretary may terminate exemption certifcates at any time.

IMPORTED POULTRY AND POULTRY PRODUCTS

SEC. 16. No poultry or poultry products of any kind shall be imported into the United States unless such poultry or poultry products is healthful, wholesome, and fit for human food and contains no dye, chemical, preservative, or ingredients which renders such poultry or poultry products unhealthful, unwholesome, or unfit for human food, and unless such poultry or poultry products also complies with the rules and regulations prescribed by the Secretary of Agriculture. All imported poultry or poultry products shall, after entry into the United States, be subject to the provisions of this Act.

ESTABLISHMENT OF A POULTRY INSPECTION SECTION

SEC. 17. There is hereby created in the Department of Agriculture, as a part of the Meat Inspection Branch, a Poultry Inspection Section. The Secretary shall have the power to appoint, remove, and fix the compensation, in accordance with existing laws, of such officers, inspectors, and employees of the Poultry Inspection Section as he deems necessary, including expenditures for rent outside the District of Columbia, travel, supplies, books, equipment, and such other expenditures as may be necessary to the administration of this Act.

RELATIONSHIP TO OTHER ACTS

SEC. 18. This Act shall not be construed as (1) superseding or limiting the functions, under any other law, of the Secretary of Health, Education, and Welfare or the Department of Health, Education, and Welfare, the Food and Drug Administration, the Surgeon General of the Public Health Service, or the Public Health Service, or of any other officer or agency of the United States, or (2) affecting or impairing the provisions of any treaty of the United States.

PROMULGATION OF ORDERS, RULES AND REGULATIONS

SEC. 19. The Secretary shall promulgate such orders, rules and regulations as he deems necessary to carry out the provisions of this Act.

SEPARABILITY

SEC. 20. If any provision of this Act is declared unconstitutional, or the applicability thereof to any person or circumstances is held invalid, the constitutionality of the remainder of the Act and the applicability thereof to other persons and circumstances shall not be affected thereby.

DEPARTMENT OF AGRICULTURE,
Washington, D. C., June 18, 1956.

Hon. ALLEN J. ELLENDER,

Chairman, Committee on Agriculture and Forestry,

United States Senate.

DEAR SENATOR ELLENDER: This is in response to your request for a report on S. 3588, a bill to provide for the compulsory inspection by the United States Department of Agriculture of poultry and poultry products.

This bill provides for the compulsory inspection by the United States Department of Agriculture of poultry and poultry products in order to prevent the movement in interstate or foreign commerce, or in a designated city or area, of poultry products which are unwholesome or otherwise unfit for food. The bill requires that on and after July 1, 1958, the Secretary shall, whenever processing operations are being conducted, make such examination, inspection (ante mortem, post mortem, or both) and reinspection as he determines necessary of poultry and poultry products in order to assure their wholesomeness and fitness for food.

The Department recommends the enactment of S. 3588 with the modifications hereinafter indicated.

This Department has long been sympathetic to the general objectives sought by the bill. For more than 25 years this Department has conducted a poultry inspection program on a voluntary basis. At present there are about 290 poultry processing plants availing themselves of this service, and paying about $2.4 million a year for its use. In addition, there is an appropriation of about $153,000 a year. Approximately 450 Department employees are engaged in the poultry inspection work. The core of this personnel consists of about 300 graduates from accredited veterinary schools. The subject of compulsory poultry inspection has been considered by many segments of the poultry industry and there is now general agreement that such legislation is desirable and should be administered by the United States Department of Agriculture as an extension of the voluntary program already in operation. There are several provisions of the bill deserving of comment.

(1) Section 4: This section authorizes the Secretary of Agriculture to designate cities or areas where all poultry handled and sold will be subject to the provisions of the bill. Under this provision all slaughtered poultry and poultry products handled or sold in such a designated city or area would be subject to the inspection requirements even though they did not move in interstate commerce. We favor this provision because (a) it would make it possible for the Secretary of Agriculture, in cooperation with local public-health groups, to establish such a program in a designated city or area, thereby coordinating all poultry-inspection activities and contributing to orderly marketing, and (b) this provision would make it possible for the Secretary to take such action to prevent circumvention of the purposes of the bill on the part of individuals 80695-56--2

who may seek means whereby poultry may be moved in live form across State lines to be processed and sold in major metropolitan areas. It is contemplated that this authority would be used only to designate large consuming centers, rather than production areas or areas where interstate poultry products are handled in relatively minor quantities.

(2) Section 5: This section requires the Secretary to provide for such examination, inspection (ante mortem, post mortem, or both) and reinspection of poultry and poultry products, as he deems necesssary, in official establishments processing such poultry products whenever processing operations are being conducted. We would suggest that the language contained within the parentheses on lines 6 and 7, page 4, of the bill, be amended to read (ante mortem and post mortem).

This language would make it clear that the Secretary would require by regulation that both ante mortem and post mortem inspections be made. We would also suggest that the words "adulterated or misbranded" be added following "unwholesome" on line 4, page 4; and that the word "poultry" be added on line 11, page 4, between "all" and "carcasses."

(3) Section 7: This section provides authority for the Department of Agriculture to control proper identification of poultry products subject to the bill, and this provision, together with section 18 (a), gives exclusive authority over this activity to the Department by divesting the Food and Drug Administration of such authority. This avoids conflicts which otherwise might arise by placing responsibility over the same activity in two separate Federal agencies. (4) Section 8: Subsections (a) and (b) provide for different restrictions applicable to transactions in commerce and transactions in designated cities and areas, the principal difference being that no poultry products can be handled in commerce unless the shipping container and the individual package are marked in accordance with section 6, whereas no requirement as to marking is made applicable to transactions in designated cities or areas. The only apparent reason for the differentiation is to provide for the packaging of poultry products in individual retail stores for sale directly to consumers. If such is the purpose,

it should be achieved by an exception specifically providing therefor, rather than by a blanket exemption which would discriminate against poultry products moving in commerce and those handled in designated areas. Moreover, such a broad exemption would unduly complicate enforcement of labeling requirements with respect to poultry products moving in commerce in designated areas.

Subsection (d) of section 8 prohibits counterfeiting and other specified activities with respect to inspection certificates, marks, and devices and other matters, and is apparently patterned after Public Law 272, 84th Congress. The subsection does not cover inspection memoranda and other identifications as does Public Law 272. These should be covered as they frequently contain basic data upon which certificates are issued.

In subsection (i) of section 8. the comma after the word "courts" at the end of line 10 should be deleted. This comma may cause the subsection to be construed as permitting the disclosure of information to authorized representatives of the Government only "when relevant in a judicial proceeding under this act." Subsection (j) of section 8 would prohibit the sale or movement of so-called dressed poulty, i. e., slaughtered poultry which fails to conform with the definition of "poultry products," except that dressed poultry may be transported between official establishments and to foreign countries pursuant to rules and regulations prescribed by the Secretary. This prohibition is deemed necessary as it is impossible to ascertain the wholesomeness of poultry with any degree of certainty without an examination of the internal organs.

(5) Section 10: This section requires carriers and persons shipping or receiving poultry slaughtered for human consumption to make available to duly authorized representatives of the Secretary, and to permit the copying of, all records showing the movement of poultry slaughtered for human consumption, or poultry products. This section does not, however, impose any requirements that records be kept. Further, it applies only to carriers or to persons who ship or receive poultry or poultry products and does not apply to processors of poultry and poultry products who are chiefly subject to the act. Moreover, immunity from prosecution is given to all persons whose records are inspected. For such a provision to be of value for enforcement purposes it should (1) be made applicable also to processors; (2) require the keeping of adequate records showing the receipt, sale, movement, or disposition of poultry and poultry products, and (3) eliminate the immunity from prosecution where records are inspected. It also is

to be noted that carriers are not subject to the provisions of the act, except with respect to making records available. A requirement that carriers be prohibited from transporting poultry or poultry products which have not been inspected and certified as to wholesomeness would not be unreasonable, and would prevent the evasion of responsibility for violations of the act. Such a prohibition is contained in the Meat Inspection Act.

(6) Section 12: This section sets forth the penalties for violations of specific sections of the bill, including section 17. Section 17 governs the procedure applicable to importations of poultry products but contains no specific prohibitions. The reference to section 17 in section 12 should either be omitted or prohibitory provisions be included in section 17.

(7) Section 13: This section requires that before any violation is reported to any United States attorney for institution of a criminal proceeding, the person against whom the proceeding is contemplated shall be given reasonable notice of the alleged violation and opportunity to present his views orally and in writing with regard to such contemplated proceeding. The compulsory requirement of opportunity to present views orally would be unduly burdensome upon the Department, cause undue delays in prosecutions, and serve no purpose which could not be achieved by the submission of written views. The manner of the presentation of views should be left to the discretion of the Secretary. The word "or" should, therefore, be substituted for the word "and" in line 21 on page 11.

(8) Section 15: Subsection (b) provides for the issuance of exemption certificates for a period of 2 years after the effective date of the act where the Secretary determines that it would be impractical or he is unable to provide inspection. In view of our recommendation that the act be made effective immediately (discussed hereinafter in connection with sec. 22), it is suggested that this subsection specify July 1, 1960, as the time within which the Secretary would be authorized to issue certificates of exemption under the subsection.

(9) Section 18: Under the provisions of subsection 18 (a), the provisions of the Federal Food, Drug, and Cosmetic Act would not apply to poultry and poultry products to the extent of the application of this act under the regulations promulgated by the Secretary of Agriculture. This would avoid duplication of jurisdiction of the two acts and would, therefore, prevent needless duplication of effort. At the same time it would provide that the provisions of the Federal Food, Drug, and Cosmetic Act would apply to any circumstances beyond the application of this act and therefore would prevent any gaps in the application of the two acts. The Department believes that this would provide the kind of complete coverage that is appropriate.

We would suggest that the three words "in the fields" on line 19, page 14, be deleted.

(10) Section 19: This section authorizes appropriations to carry out the provisions of the act, including the cost of furnishing inspections. Section 5 requires inspections "whenever processing operations are being conducted." This would indicate that the cost of inspection is to be borne from appropriated funds at all times when processing operations are being conducted, irrespective of whether the inspections require overtime and holiday time. Under the meatinspection program, processors are provided inspection from public funds during regular hours but must reimburse the Department for overtime or holiday time. It is difficult to estimate the amount of overtime or holiday time that may be required to perform inspections, as a basis for requesting appropriations. Moreover, if overtime and holiday-time inspections are paid for out of public funds, processors will not have as great an incentive to schedule their operations within regular hours. Accordingly, it is recommended that all overtime and holiday times costs be borne by the processors.

(11) Section 21: Subsection (g) defines the terms "unwholesome" to mean five specific things, including "unsound, injurious to health, and otherwise unfit for human food." This appears to be broad enough to include products containing any dyes, chemicals, preservatives, or other ingredients that render products unfit for human food. However, it should be made clear that since the Secretary would have authority under the bill to prescribe regulations to carry out its provisions, he could by regulation control the ingredients in products to the extent necessary to assure that the products would not be unwholesome. This section 21 should also include a definition of "misbranded" if our suggestion concerning section 5 is accepted.

(12) Section 22: This section provides that the act is not to take effect until July 1, 1958, but provides for certain activities with respect to the issuance of regulations and the furnishing of inspection upon application of processors who

voluntarily submit to the provisions of the act prior thereto. The purpose of the section is to provide an orderly transition from the present voluntary program to the mandatory inspection program by July 1, 1958. A transition period is necessary to provide time to promulgate the necessary rules and regulations, to survey the scope of the activity on a national basis, and to secure and train the necessary additional inspection personnel. An interim period is also necessary for the equipment of plants that will be subject to the bill and for adjustments in their operations in order that they may be able to comply with requirements set forth in implementing regulations. It is believed that, except in the unusual circumstances for which exemptions are provided in section 15 (b) of the bill, plants should be able to comply with such requirements without undue hardship by July 1, 1958.

To obviate what appears to be an inconsistency, however, i. e., stated effective date of July 1, 1958, with authority for operations under the act prior thereto, it is recommended that the bill become effective immediately upon its enactment with a provision that no person shall be subject to any of its provisions prior to July 1, 1958, unless he applies for and receives inspection for poultry and poultry products in accordance with the provisions of the act in any establishment processing poultry or poultry products in commerce or in a designated city or area. Any person who voluntarily applies for and receives such inspection prior to July 1, 1958, should be subject to all of the provisions and penalties provided for in the act on the date he commences to receive such inspection and at all times thereafter.

The proposed bill authorizes an apporopriation to carry out the provisions of the bill. The bill further provides that plants may apply, after enactment of the law and prior to July 1, 1958, for the service and such plants will be subject to all provisions of the act.

It is expected that as a minimum most plants now covered in the voluntary program will immediately upon the promulgation and the implementation of regulations apply for and have to be granted inspection under the act. This will require an appropriation before any substantive action can be taken under the act.

Since it may not be possible to present a request for an appropriation for this item for 1957 prior to January 1957, and in view of the time which will necessarily be consumed in preparing and promulgating the new regulations under the requirements of the Administrative Procedures Act, it will be necessary to continue operating for some months under the present program and authorities.

Based on the facts currently available, an estimated 650 to 700 plants are expected to be subject to the provisions of the act. At current cost rates, it is estimated that the program, on an annual basis, will cost $4.75 million in 1957 and $7.75 million in 1958. After 1958, the program is expected to reach the full level reflected above, and will approximate 8 to 10 million dollars annually. A survey will be made, however, early after enactment of the legislation to determine more precisely the potential scope and cost of the program.

The Bureau of the Budget advises that there is no objection to the submission of this report.

Sincerely yours,

E. T. BENSON. Secretary.

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE,
Washington, June 22, 1956.

Hon. ALLEN J. ELLENDER,
Chairman, Committee on Agriculture and Forestry,
United States Senate, Washington 25, D. C.

DEAR MR. CHAIRMAN: This letter is in response to your request of April 13, 1956, for a report on S. 3588, a bill to provide for the compulsory inspection by the United States Department of Agriculture of poultry and poultry products. The bill would authorize the Secretary of Agriculture to provide for such inspection of poultry for wholesomeness and fitness for food, by ante mortem and post mortem inspection of the birds as he deems necessary and to require sanitary practices and facilities. In addition to providing for mandatory inspection of poultry and poultry products which are distributed in interstate commerce, the bill provides for inspection of intrastate poultry and poultry products in designated areas of large consumption.

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