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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1988 Introduced in Senate (IS)]

106th CONGRESS
  1st Session
                                S. 1988

   To reform the State inspection of meat and poultry in the United 
                    States, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 19, 1999

  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) introduced the following bill; which was read 
  twice and referred to the Committee on Agriculture, Nutrition, and 
                                Forestry

_______________________________________________________________________

                                 A BILL

 
   To reform the State inspection of meat and poultry in the United 
                    States, and for other purposes.

    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.
            (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).

``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.--
                                    ``(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.

``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 PROGRAM.

    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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