[Congressional Record Volume 145, Number 165 (Friday, November 19, 1999)]
[Senate]
[Pages S15098-S15102]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for himself, Mr. Hatch, Mr. Brownback, Mr. 
        Harkin, Mr. Johnson, Mr. Dorgan, Mr. Baucus, Mr. Conrad, Mr. 
        Bingaman, Mr. Voinovich, and Mr. Burns):
  S. 1988. A bill to reform the State inspection of meat and poultry in 
the United States, and for other purposes; to the Committee on 
Agriculture, Nutrition, and Forestry.


            new markets for state-inspected meat act of 1999

  Mr. DASCHLE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1988

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``New 
     Markets for State-Inspected Meat Act of 1999''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Review of State meat and poultry inspection programs.

                        TITLE I--MEAT INSPECTION

Sec. 101. Federal and State cooperation on meat inspection for 
              intrastate distribution.
Sec. 102. State meat inspection programs.

                      TITLE II--POULTRY INSPECTION

Sec. 201. Federal and State cooperation on poultry inspection for 
              intrastate distribution.
Sec. 202. State poultry inspection programs.

                     TITLE III--GENERAL PROVISIONS

Sec. 301. Regulations.
Sec. 302. Termination of authority to establish interstate inspection 
              programs.

     SEC. 2. REVIEW OF STATE MEAT AND POULTRY INSPECTION PROGRAMS.

       (a) In General.--Not later than September 30, 2001, the 
     Secretary of Agriculture shall conduct a comprehensive review 
     of each State meat and poultry inspection program, which 
     shall include--
       (1) a determination of the effectiveness of the State 
     program; and
       (2) identification of changes that are necessary to enable 
     future transition to a State program of enforcing Federal 
     inspection requirements as described in the amendments made 
     by sections 102 and 202.
       (b) Comment From Interested Parties.--In designing the 
     review described in subsection (a), the Secretary of 
     Agriculture shall, to the maximum extent practicable, obtain 
     comment from interested parties.
       (c) Funding.--
       (1) In general.--There are authorized to be appropriated 
     such sums as are necessary to carry out this section.

[[Page S15099]]

       (2) Available funds.--Notwithstanding any other provision 
     of law, only funds specifically appropriated under paragraph 
     (1) may be used to carry out this section.
                        TITLE I--MEAT INSPECTION

     SEC. 101. FEDERAL AND STATE COOPERATION ON MEAT INSPECTION 
                   FOR INTRASTATE DISTRIBUTION.

       (a) Redesignation.--
       (1) In general.--The Federal Meat Inspection Act is 
     amended--
       (A) by redesignating title III (21 U.S.C. 661 et seq.) as 
     title V and moving that title to the end of that Act;
       (B) by redesignating section 301 (21 U.S.C. 661) as section 
     501;
       (C) in title V (as redesignated by subparagraph (A)), by 
     striking the title heading and inserting the following:
    ``TITLE V--FEDERAL AND STATE COOPERATION ON MEAT INSPECTION FOR 
                       INTRASTATE DISTRIBUTION'';
     and
       (D) in the fourth sentence of section 501(c)(1) (as 
     redesignated by subparagraph (B)), by striking ``section 301 
     of the Act'' and inserting ``subsection (a)(4)''.
       (2) Conforming amendments.--
       (A) Section 7(c) of the Federal Meat Inspection Act (21 
     U.S.C. 607(c)) is amended in the second sentence by striking 
     ``section 301 of this Act'' and inserting ``section 
     501(a)(4)''.
       (B) Section 24 of the Federal Meat Inspection Act (21 
     U.S.C. 624) is amended in the last sentence by striking 
     ``section 301 of this Act'' and inserting ``section 
     501(a)(4)''.
       (C) Section 205 of the Federal Meat Inspection Act (21 
     U.S.C. 645) is amended by striking ``section 301 of this 
     Act'' and inserting ``section 501(a)(4)''.
       (3) Effective date.--This subsection takes effect on 
     October 1, 2001.
       (b) Repeal.--
       (1) In general.--Title V of the Federal Meat Inspection Act 
     (as amended by subsection (a)(1)) is repealed.
       (2) Conforming amendments.--
       (A) Section 7(c) of the Federal Meat Inspection Act (21 
     U.S.C. 607(c)) (as amended by subsection (a)(2)(A)) is 
     amended in the second sentence by striking ``section 
     501(a)(4)'' and inserting ``section 413''.
       (B) Section 24 of the Federal Meat Inspection Act (21 
     U.S.C. 624) (as amended by subsection (a)(2)(B)) is amended 
     in the last sentence by striking ``section 501(a)(4)'' and 
     inserting ``section 413''.
       (C) Section 205 of the Federal Meat Inspection Act (21 
     U.S.C. 645) (as amended by subsection (a)(2)(C)) is amended 
     by striking ``section 501(a)(4)'' and inserting ``section 
     413''.
       (3) Effective date.--Except as provided in section 302, 
     this subsection takes effect on October 1, 2002.

     SEC. 102. STATE MEAT INSPECTION PROGRAMS.

       (a) In General.--The Federal Meat Inspection Act (as 
     amended by section 101(a)(1)(A)) is amended by inserting 
     after title II (21 U.S.C. 641 et seq.) the following:
              ``TITLE III--STATE MEAT INSPECTION PROGRAMS

     ``SEC. 301. POLICY AND FINDINGS.

       ``(a) Policy.--It is the policy of Congress to protect the 
     public from meat and meat food products that are adulterated 
     or misbranded and to assist in efforts by State and other 
     government agencies to accomplish that policy.
       ``(b) Findings.--Congress finds that--
       ``(1) the goal of a safe and wholesome supply of meat and 
     meat food products throughout the United States would be 
     better served if a consistent set of requirements, 
     established by the Federal Government, were applied to all 
     meat and meat food products, whether produced under State 
     inspection or Federal inspection;
       ``(2) under such a system, State and Federal meat 
     inspection programs would function together to create a 
     seamless inspection system to ensure food safety and inspire 
     consumer confidence in the food supply in interstate 
     commerce; and
       ``(3) such a system would ensure the viability of State 
     meat inspection programs, which should help to foster the 
     viability of small establishments.

     ``SEC. 302. APPROVAL OF STATE MEAT INSPECTION PROGRAMS.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, the Secretary may approve a State meat inspection 
     program and allow the shipment in commerce of carcasses, 
     parts of carcasses, meat, and meat food products inspected 
     under the State meat inspection program in accordance with 
     this title.
       ``(b) Eligibility.--
       ``(1) In general.--To receive or maintain approval from the 
     Secretary for a State meat inspection program in accordance 
     with subsection (a), a State shall--
       ``(A) implement a State meat inspection program that 
     enforces the mandatory antemortem and postmortem inspection, 
     reinspection, sanitation, and related Federal requirements of 
     titles I, II, and IV (including the regulations issued under 
     those titles); and
       ``(B) enter into a cooperative agreement with the Secretary 
     in accordance with subsection (c).
       ``(2) Additional requirements.--
       ``(A) In general.--In addition to the requirements 
     specified in paragraph (1), a State meat inspection program 
     reviewed in accordance with section 2 of the Federal Meat and 
     Poultry State Inspection Requirements Act of 1999 shall 
     implement, not later than October 1, 2002, all 
     recommendations from the review, in a manner approved by the 
     Secretary.
       ``(B) Review of new state meat inspection programs.--
       ``(i) Definition of new state meat inspection program.--In 
     this subparagraph, the term `new State meat inspection 
     program' means a State meat inspection program that is not 
     approved in accordance with subsection (a) between October 1, 
     2001, and September 30, 2002.
       ``(ii) Review requirement.--Not later than 1 year after the 
     date on which the Secretary approves a new State meat 
     inspection program, the Secretary shall conduct a 
     comprehensive review of the new State meat inspection 
     program, which shall include--

       ``(I) a determination of the effectiveness of the new State 
     meat inspection program; and
       ``(II) identification of changes necessary to ensure 
     enforcement of Federal inspection requirements.

       ``(iii) Implementation requirements.--In addition to the 
     requirements specified in paragraph (1), to continue to be an 
     approved State meat inspection program, a new State meat 
     inspection program shall implement all recommendations from 
     the review conducted in accordance with this subparagraph, in 
     a manner approved by the Secretary.
       ``(c) Cooperative Agreement.--Notwithstanding chapter 63 of 
     title 31, United States Code, the Secretary may enter into a 
     cooperative agreement with a State that establishes the terms 
     governing the relationship between the Secretary and the 
     State meat inspection program and provides for the following:
       ``(1) Provisions consistent with this act.--The State will 
     adopt (including adoption by reference) provisions identical 
     to titles I, II, and IV (including the regulations issued 
     under those titles).
       ``(2) Marking of product.--
       ``(A) Official marks.--State-inspected and passed meat and 
     meat food products will be marked under the supervision of a 
     State inspector with the official mark and be deemed to have 
     been inspected by the Secretary for the purposes of this Act 
     and to have passed the inspection.
       ``(B) Additional marks.--In addition to the official mark, 
     State-inspected and passed meat and meat food products may be 
     marked with the mark of State inspection, in accordance with 
     requirements issued by the Secretary.
       ``(3) Labeling requirements.--The State will comply with 
     all labeling requirements issued by the Secretary governing 
     meat and meat food products inspected under the State meat 
     inspection program.
       ``(4) Authority of the secretary.--The Secretary shall have 
     authority--
       ``(A) to detain and seize livestock, carcasses, parts of 
     carcasses, meat, and meat food products under the State meat 
     inspection program;
       ``(B) to obtain access to facilities, records, livestock, 
     carcasses, parts of carcasses, meat, and meat food products 
     of any person, firm, or corporation that slaughters, 
     processes, handles, stores, transports, or sells meat or meat 
     food products inspected under the State meat inspection 
     program to determine compliance with this Act (including the 
     regulations issued under this Act); and
       ``(C) to direct the State to conduct any activity 
     authorized to be conducted by the Secretary under this Act 
     (including the regulations issued under this Act).
       ``(5) Other terms.--The cooperative agreement shall include 
     such other terms as the Secretary determines to be necessary 
     to ensure that the actions of the State and the State meat 
     inspection program are consistent with this Act (including 
     the regulations issued under this Act).
       ``(d) Additional Requirements.--
       ``(1) In general.--A State may impose additional 
     requirements on establishments under the State meat 
     inspection program, as approved by the Secretary.
       ``(2) Restriction on establishment size.--The Secretary 
     shall authorize a State to establish the maximum size of 
     establishments that the State will accept into the State meat 
     inspection program.
       ``(e) Reimbursement of State Costs.--The Secretary may 
     reimburse the State for not more than 60 percent of the 
     State's costs of meeting the Federal requirements for the 
     State meat inspection program.
       ``(f) Sampling.--
       ``(1) Salmonella sampling and testing.--To the extent that 
     the Secretary requires establishments to meet microbiological 
     performance standards for Salmonella, the Secretary shall 
     sample and test for Salmonella in establishments subject to 
     inspection under the State meat inspection program.
       ``(2) Other sampling and testing.--In addition to the 
     activities described in paragraph (1), the Secretary may 
     perform other sampling and testing of meat and meat food 
     products in establishments described in that paragraph.
       ``(g) Noncompliance.--If the Secretary determines that a 
     State meat inspection program does not comply with this title 
     or the cooperative agreement under subsection (c), the 
     Secretary shall take such action as the Secretary determines 
     to be necessary to ensure that the carcasses, parts of 
     carcasses, meat, and meat food products in the State are 
     inspected in a manner that effectuates this Act (including 
     the regulations issued under this Act).

[[Page S15100]]

     ``SEC. 303. AUTHORITY TO TAKE OVER STATE MEAT INSPECTION 
                   PROGRAMS.

       ``(a) Notification.--If the Secretary has reason to believe 
     that a State is not in compliance with this Act (including 
     the regulations issued under this Act) or the cooperative 
     agreement under section 302(c) and is considering the 
     revocation or temporary suspension of the approval of the 
     State meat inspection program, the Secretary shall promptly 
     notify and consult with the Governor of the State.
       ``(b) Suspension and Revocation.--
       ``(1) In general.--The Secretary may revoke or temporarily 
     suspend the approval of a State meat inspection program and 
     take over a State meat inspection program if the Secretary 
     determines that the State meat inspection program is not in 
     compliance with this Act (including the regulations issued 
     under this Act) or the cooperative agreement.
       ``(2) Procedures for reinstatement.--A State meat 
     inspection program that has been the subject of a revocation 
     may be reinstated as an approved State meat inspection 
     program under this Act only in accordance with the procedures 
     under section 302(b)(2)(B).
       ``(c) Publication.--If the Secretary revokes or temporarily 
     suspends the approval of a State meat inspection program in 
     accordance with subsection (b), the Secretary shall publish 
     the determination under that subsection in the Federal 
     Register.
       ``(d) Inspection of Establishments.--Upon the expiration of 
     30 days after the date of publication of a determination 
     under subsection (c), an establishment subject to a State 
     meat inspection program with respect to which the Secretary 
     makes a determination under subsection (b) shall be inspected 
     by the Secretary.

     ``SEC. 304. EXPEDITED AUTHORITY TO TAKE OVER INSPECTION OF 
                   STATE-INSPECTED ESTABLISHMENTS.

       ``Notwithstanding any other provision of this title, if the 
     Secretary determines that an establishment operating under a 
     State meat inspection program is not operating in accordance 
     with this Act (including the regulations issued under this 
     Act) or the cooperative agreement under section 302(c), and 
     the State, after notification by the Secretary to the 
     Governor, has not taken appropriate action within a 
     reasonable time as determined by the Secretary, the Secretary 
     may immediately determine that the establishment is an 
     establishment that shall be inspected by the Secretary, until 
     such time as the Secretary determines that the State will 
     meet the requirements of this Act (including the regulations) 
     and the cooperative agreement with respect to the 
     establishment.

     ``SEC. 305. ANNUAL REVIEW.

       ``(a) In General.--The Secretary shall develop and 
     implement a process to review annually each State meat 
     inspection program approved under this title and to certify 
     the State meat inspection programs that comply with the 
     cooperative agreement entered into with the State under 
     section 302(c).
       ``(b) Comment From Interested Parties.--In designing the 
     review process described in subsection (a), the Secretary 
     shall solicit comment from interested parties.

     ``SEC. 306. FEDERAL INSPECTION OPTION.

       ``(a) In General.--An establishment that operates in a 
     State with an approved State meat inspection program may 
     apply for inspection under the State meat inspection program 
     or for Federal inspection.
       ``(b) Limitation.--An establishment shall not make an 
     application under subsection (a) more than once every 4 
     years.''.
       (b) Restaurants and Retail Stores.--Title IV of the Federal 
     Meat Inspection Act is amended--
       (1) by redesignating section 411 (21 U.S.C. 681) as section 
     414; and
       (2) by inserting after section 410 (21 U.S.C. 680) the 
     following:

     ``SEC. 411. RESTAURANTS AND RETAIL STORES.

       ``(a) Limitation on Applicability of Inspection 
     Requirements.--The provisions of this Act requiring 
     inspection of the slaughter of animals and the preparation of 
     carcasses, parts of carcasses, meat, and meat food products 
     shall not apply to operations of types traditionally and 
     usually conducted at retail stores and restaurants, if the 
     operations are conducted at a retail store, restaurant, or 
     similar retail establishment for sale of such prepared 
     articles in normal retail quantities or for service of the 
     articles to consumers at such an establishment.
       ``(b) Central Kitchen Facilities.--
       ``(1) In general.--For the purposes of this section, 
     operations conducted at a central kitchen facility of a 
     restaurant shall be considered to be conducted at a 
     restaurant if the central kitchen of the restaurant prepares 
     meat or meat food products that are ready to eat when they 
     leave the facility and are served in meals or as entrees only 
     to customers at restaurants owned or operated by the same 
     person, firm, or corporation that owns or operates the 
     facility.
       ``(2) Exception.--A facility described in paragraph (1) 
     shall be subject to section 202 and may be subject to the 
     inspection requirements of title I for as long as the 
     Secretary determines to be necessary, if the Secretary 
     determines that the sanitary conditions or practices of the 
     facility or the processing procedures or methods at the 
     facility are such that any of the meat or meat food products 
     of the facility are rendered adulterated.

     ``SEC. 412. ACCEPTANCE OF INTERSTATE SHIPMENTS OF MEAT AND 
                   MEAT FOOD PRODUCTS.

       ``Notwithstanding any provision of State law, a State or 
     local government shall not prohibit or restrict the movement 
     or sale of meat or meat food products that have been 
     inspected and passed in accordance with this Act for 
     interstate commerce.

     ``SEC. 413. ADVISORY COMMITTEES FOR FEDERAL AND STATE 
                   PROGRAMS.

       ``The Secretary may appoint advisory committees consisting 
     of such representatives of appropriate State agencies as the 
     Secretary and the State agencies may designate to consult 
     with the Secretary concerning State and Federal programs with 
     respect to meat inspection and other matters within the scope 
     of this Act.''.
       (c) Effective Date.--This section takes effect on October 
     1, 2001.
                      TITLE II--POULTRY INSPECTION

     SEC. 201. FEDERAL AND STATE COOPERATION ON POULTRY INSPECTION 
                   FOR INTRASTATE DISTRIBUTION.

       (a) Redesignation.--
       (1) In general.--Section 5 of the Poultry Products 
     Inspection Act (21 U.S.C. 454) is redesignated as section 34 
     and moved to the end of that Act.
       (2) Intrastate program.--Section 34 of the Poultry Products 
     Inspection Act (as redesignated by paragraph (1)) is amended 
     by striking the section heading and inserting the following:

     ``SEC. 34. FEDERAL AND STATE COOPERATION ON POULTRY 
                   INSPECTION FOR INTRASTATE DISTRIBUTION.''.

       (3) Conforming amendments.--
       (A) Section 8(b) of the Poultry Products Inspection Act (21 
     U.S.C. 457(b)) is amended in the second sentence by striking 
     ``section 5 of this Act'' and inserting ``section 34(a)(4)''.
       (B) Section 11(e) of the Poultry Products Inspection Act 
     (21 U.S.C. 460(e)) is amended by striking ``section 5 of this 
     Act'' and inserting ``section 34(a)(4)''.
       (4) Effective date.--This subsection takes effect on 
     October 1, 2001.
       (b) Repeal.--
       (1) In general.--Section 34 of the Poultry Products 
     Inspection Act (as redesignated by subsection (a)(1)) is 
     repealed.
       (2) Conforming amendments.--
       (A) Section 8(b) of the Poultry Products Inspection Act (21 
     U.S.C. 457(b)) (as amended by subsection (a)(3)(A)) is 
     amended in the second sentence by striking ``section 
     34(a)(4)'' and inserting ``section 33''.
       (B) Section 11(e) of the Poultry Products Inspection Act 
     (21 U.S.C. 460(e)) (as amended by subsection (a)(3)(B)) is 
     amended by striking ``section 34(a)(4)'' and inserting 
     ``section 33''.
       (3) Effective date.--Except as provided in section 302, 
     this subsection takes effect on October 1, 2002.

     SEC. 202. STATE POULTRY INSPECTION PROGRAMS.

       (a) In General.--The Poultry Products Inspection Act (21 
     U.S.C. 451 et seq.) (as amended by section 201(a)(1)) is 
     amended by inserting after section 4 the following:

     ``SEC. 5. STATE POULTRY INSPECTION PROGRAMS.

       ``(a) Policy.--It is the policy of Congress to protect the 
     public from poultry products that are adulterated or 
     misbranded and to assist in efforts by State and other 
     government agencies to accomplish that policy.
       ``(b) Findings.--Congress finds that--
       ``(1) the goal of a safe and wholesome supply of poultry 
     products throughout the United States would be better served 
     if a consistent set of requirements, established by the 
     Federal Government, were applied to all poultry products, 
     whether produced under State inspection or Federal 
     inspection;
       ``(2) under such a system, State and Federal poultry 
     inspection programs would function together to create a 
     seamless inspection system to ensure food safety and inspire 
     consumer confidence in the food supply in interstate 
     commerce; and
       ``(3) such a system would ensure the viability of State 
     poultry inspection programs, which should help to foster the 
     viability of small official establishments.
       ``(c) Approval of State Poultry Inspection Programs.--
       ``(1) In general.--Notwithstanding any other provision of 
     this Act, the Secretary may approve a State poultry 
     inspection program and allow the shipment in commerce of 
     poultry products inspected under the State poultry inspection 
     program in accordance with this section and section 5A.
       ``(2) Eligibility.--
       ``(A) In general.--To receive or maintain approval from the 
     Secretary for a State poultry inspection program in 
     accordance with paragraph (1), a State shall--
       ``(i) implement a State poultry inspection program that 
     enforces the mandatory antemortem and postmortem inspection, 
     reinspection, sanitation, and related Federal requirements of 
     sections 1 through 4 and 6 through 33 (including the 
     regulations issued under those sections); and
       ``(ii) enter into a cooperative agreement with the 
     Secretary in accordance with paragraph (3).
       ``(B) Additional requirements.--
       ``(i) In general.--In addition to the requirements 
     specified in subparagraph (A), a State poultry inspection 
     program reviewed in accordance with section 2 of the Federal 
     Meat and Poultry State Inspection Requirements Act of 1999 
     shall implement, not later than October 1, 2002, all 
     recommendations from the review, in a manner approved by the 
     Secretary.
       ``(ii) Review of new state poultry inspection programs.--

[[Page S15101]]

       ``(I) Definition of new state poultry inspection program.--
     In this clause, the term `new State poultry inspection 
     program' means a State poultry inspection program that is not 
     approved in accordance with paragraph (1) between October 1, 
     2001, and September 30, 2002.
       ``(II) Review requirement.--Not later than 1 year after the 
     date on which the Secretary approves a new State poultry 
     inspection program, the Secretary shall conduct a 
     comprehensive review of the new State poultry inspection 
     program, which shall include--

       ``(aa) a determination of the effectiveness of the new 
     State poultry inspection program; and
       ``(bb) identification of changes necessary to ensure 
     enforcement under the new State poultry inspection program of 
     Federal inspection requirements.

       ``(III) Implementation requirements.--In addition to the 
     requirements specified in subparagraph (A), to continue to be 
     an approved State poultry inspection program, a new State 
     poultry inspection program shall implement all 
     recommendations from the review conducted in accordance with 
     this clause, in a manner approved by the Secretary.

       ``(3) Cooperative agreement.--Notwithstanding chapter 63 of 
     title 31, United States Code, the Secretary may enter into a 
     cooperative agreement with a State that establishes the terms 
     governing the relationship between the Secretary and the 
     State poultry inspection program and provides for the 
     following:
       ``(A) Provisions consistent with this act.--The State will 
     adopt (including adoption by reference) provisions identical 
     to sections 1 through 4 and 6 through 33 (including the 
     regulations issued under those sections).
       ``(B) Marking of product.--
       ``(i) Official marks.--State-inspected and passed poultry 
     products will be marked under the supervision of a State 
     inspector with the official mark and be deemed to have been 
     inspected by the Secretary for the purposes of this Act and 
     to have passed the inspection.
       ``(ii) Additional marks.--In addition to the official mark, 
     State-inspected and passed poultry products may be marked 
     with the mark of State inspection, in accordance with 
     requirements issued by the Secretary.
       ``(C) Labeling requirements.--The State will comply with 
     all labeling requirements issued by the Secretary governing 
     poultry products inspected under the State poultry inspection 
     program.
       ``(D) Authority of the secretary.--The Secretary shall have 
     authority--
       ``(i) to detain and seize poultry and poultry products 
     under the State poultry inspection program;
       ``(ii) to obtain access to facilities, records, and poultry 
     products of any person that slaughters, processes, handles, 
     stores, transports, or sells poultry products inspected under 
     the State poultry inspection program to determine compliance 
     with this Act (including the regulations issued under this 
     Act); and
       ``(iii) to direct the State to conduct any activity 
     authorized to be conducted by the Secretary under this Act 
     (including the regulations issued under this Act).
       ``(E) Other terms.--The cooperative agreement shall include 
     such other terms as the Secretary determines to be necessary 
     to ensure that the actions of the State and the State poultry 
     inspection program are consistent with this Act (including 
     the regulations issued under this Act).
       ``(4) Additional requirements.--
       ``(A) In general.--A State may impose additional 
     requirements on official establishments under the State 
     poultry inspection program, as approved by the Secretary.
       ``(B) Restriction on establishment size.--The Secretary 
     shall authorize a State to establish the maximum size of 
     official establishments that the State will accept into the 
     State poultry inspection program.
       ``(5) Reimbursement of state costs.--The Secretary may 
     reimburse the State for not more than 60 percent of the 
     State's costs of meeting the Federal requirements for the 
     State poultry inspection program.
       ``(6) Sampling.--
       ``(A) Salmonella sampling and testing.--To the extent that 
     the Secretary requires official establishments to meet 
     microbiological performance standards for Salmonella, the 
     Secretary shall sample and test for Salmonella in official 
     establishments subject to inspection under the State poultry 
     inspection program.
       ``(B) Other sampling and testing.--In addition to the 
     activities described in subparagraph (A), the Secretary may 
     perform other sampling and testing of poultry products in 
     official establishments described in that subparagraph.
       ``(7) Noncompliance.--If the Secretary determines that a 
     State poultry inspection program does not comply with this 
     section, section 5A, or the cooperative agreement under 
     paragraph (3), the Secretary shall take such action as the 
     Secretary determines to be necessary to ensure that the 
     poultry products in the State are inspected in a manner that 
     effectuates this Act (including the regulations issued under 
     this Act).
       ``(d) Annual Review.--
       ``(1) In general.--The Secretary shall develop and 
     implement a process to review annually each State poultry 
     inspection program approved under this section and to certify 
     the State poultry inspection programs that comply with the 
     cooperative agreement entered into with the State under 
     subsection (c)(3).
       ``(2) Comment from interested parties.--In designing the 
     review process described in paragraph (1), the Secretary 
     shall solicit comment from interested parties.
       ``(e) Federal Inspection Option.--
       ``(1) In general.--An official establishment that operates 
     in a State with an approved State poultry inspection program 
     may apply for inspection under the State poultry inspection 
     program or for Federal inspection.
       ``(2) Limitation.--An official establishment shall not make 
     an application under paragraph (1) more than once every 4 
     years.

     ``SEC. 5A. AUTHORITY TO TAKE OVER STATE POULTRY INSPECTION 
                   ACTIVITIES.

       ``(a) Authority To Take Over State Poultry Inspection 
     Programs.--
       ``(1) Notification.--If the Secretary has reason to believe 
     that a State is not in compliance with this Act (including 
     the regulations issued under this Act) or the cooperative 
     agreement under section 5(c)(3) and is considering the 
     revocation or temporary suspension of the approval of the 
     State poultry inspection program, the Secretary shall 
     promptly notify and consult with the Governor of the State.
       ``(2) Suspension and revocation.--
       ``(A) In general.--The Secretary may revoke or temporarily 
     suspend the approval of a State poultry inspection program 
     and take over a State poultry inspection program if the 
     Secretary determines that the State poultry inspection 
     program is not in compliance with this Act (including the 
     regulations issued under this Act) or the cooperative 
     agreement.
       ``(B) Procedures for reinstatement.--A State poultry 
     inspection program that has been the subject of a revocation 
     may be reinstated as an approved State poultry inspection 
     program under this Act only in accordance with the procedures 
     under section 5(c)(2)(B)(ii).
       ``(3) Publication.--If the Secretary revokes or temporarily 
     suspends the approval of a State poultry inspection program 
     in accordance with paragraph (2), the Secretary shall publish 
     the determination under that paragraph in the Federal 
     Register.
       ``(4) Inspection of establishments.--Upon the expiration of 
     30 days after the date of publication of a determination 
     under paragraph (3), an official establishment subject to a 
     State poultry inspection program with respect to which the 
     Secretary makes a determination under paragraph (2) shall be 
     inspected by the Secretary.
       ``(b) Expedited Authority To Take Over Inspection of State-
     Inspected Official Establishments.--Notwithstanding any other 
     provision of this title, if the Secretary determines that an 
     official establishment operating under a State poultry 
     inspection program is not operating in accordance with this 
     Act (including the regulations issued under this Act) or the 
     cooperative agreement under section 5(c)(3), and the State, 
     after notification by the Secretary to the Governor, has not 
     taken appropriate action within a reasonable time as 
     determined by the Secretary, the Secretary may immediately 
     determine that the official establishment is an establishment 
     that shall be inspected by the Secretary, until such time as 
     the Secretary determines that the State will meet the 
     requirements of this Act (including the regulations) and the 
     cooperative agreement with respect to the official 
     establishment.''.
       (b) Restaurants and Retail Stores, Acceptance of Interstate 
     Shipments of Poultry Products, and Advisory Committees for 
     Federal and State Programs.--The Poultry Products Inspection 
     Act (21 U.S.C. 451 et seq.) is amended by inserting after 
     section 30 the following:

     ``SEC. 31. RESTAURANTS AND RETAIL STORES.

       ``(a) Limitation on Applicability of Inspection 
     Requirements.--The provisions of this Act requiring 
     inspection of the slaughter of poultry and the processing of 
     poultry products shall not apply to operations of types 
     traditionally and usually conducted at retail stores and 
     restaurants, if the operations are conducted at a retail 
     store, restaurant, or similar retail establishment for sale 
     of such prepared articles in normal retail quantities or for 
     service of the articles to consumers at such an 
     establishment.
       ``(b) Central Kitchen Facilities.--
       ``(1) In general.--For the purposes of this section, 
     operations conducted at a central kitchen facility of a 
     restaurant shall be considered to be conducted at a 
     restaurant if the central kitchen of the restaurant prepares 
     poultry products that are ready to eat when they leave the 
     facility and are served in meals or as entrees only to 
     customers at restaurants owned or operated by the same person 
     that owns or operates the facility.
       ``(2) Exception.--A facility described in paragraph (1) 
     shall be subject to section 11(b) and may be subject to the 
     inspection requirements of this Act for as long as the 
     Secretary determines to be necessary, if the Secretary 
     determines that the sanitary conditions or practices of the 
     facility or the processing procedures or methods at the 
     facility are such that any of the poultry products of the 
     facility are rendered adulterated.

     ``SEC. 32. ACCEPTANCE OF INTERSTATE SHIPMENTS OF POULTRY 
                   PRODUCTS.

       ``Notwithstanding any provision of State law, a State or 
     local government shall not prohibit or restrict the movement 
     or sale of poultry products that have been inspected and 
     passed in accordance with this Act for interstate commerce.

[[Page S15102]]

     ``SEC. 33. ADVISORY COMMITTEES FOR FEDERAL AND STATE 
                   PROGRAMS.

       ``The Secretary may appoint advisory committees consisting 
     of such representatives of appropriate State agencies as the 
     Secretary and the State agencies may designate to consult 
     with the Secretary concerning State and Federal programs with 
     respect to poultry product inspection and other matters 
     within the scope of this Act.''.
       (c) Effective Date.--This section takes effect on October 
     1, 2001.
                     TITLE III--GENERAL PROVISIONS

     SEC. 301. REGULATIONS.

       Not later than October 1, 2001, the Secretary of 
     Agriculture may promulgate such regulations as are necessary 
     to implement the amendments made by sections 102 and 202.

     SEC. 302. TERMINATION OF AUTHORITY TO ESTABLISH AN INTERSTATE 
                   INSPECTION PROGRAMS.

       If the Secretary of Agriculture has not approved any State 
     meat inspection program or State poultry inspection program 
     by entering into a cooperative agreement under title III of 
     the Federal Meat Inspection Act and sections 5 and 5A of the 
     Poultry Products Inspection Act (as amended by this Act) by 
     September 30, 2002, sections 101(b), 102, 201(b), and 202, 
     and the amendments made by those sections, are repealed 
     effective as of that date.
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