Strengthening Local Processing Act of 2023

Subjects: Agriculture and Food


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 354 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 354

   To amend the Poultry Products Inspection Act and the Federal Meat 
    Inspection Act to support small and very small meat and poultry 
           processing establishments, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 9, 2023

Mr. Thune (for himself, Mr. Brown, Mr. Merkley, Mr. Rounds, Mr. Cramer, 
Ms. Smith, and Mr. King) introduced the following bill; which was read 
  twice and referred to the Committee on Agriculture, Nutrition, and 
                                Forestry

_______________________________________________________________________

                                 A BILL


 
   To amend the Poultry Products Inspection Act and the Federal Meat 
    Inspection Act to support small and very small meat and poultry 
           processing establishments, 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.

    This Act may be cited as the ``Strengthening Local Processing Act 
of 2023''.

SEC. 2. HACCP GUIDANCE AND RESOURCES FOR SMALLER AND VERY SMALL POULTRY 
              AND MEAT ESTABLISHMENTS.

    (a) Poultry Establishments.--The Poultry Products Inspection Act is 
amended by inserting after section 14 (21 U.S.C. 463) the following:

``SEC. 14A. SMALLER AND VERY SMALL ESTABLISHMENT GUIDANCE AND 
              RESOURCES.

    ``(a) Definitions of Smaller Establishment and Very Small 
Establishment.--In this section, the terms `smaller establishment' and 
`very small establishment' have the meanings given those terms in the 
final rule entitled `Pathogen Reduction; Hazard Analysis and Critical 
Control Point (HACCP) Systems' (61 Fed. Reg. 38806 (July 25, 1996)).
    ``(b) Database of Studies; Model Plans.--Not later than 18 months 
after the date of enactment of this section, the Secretary shall--
            ``(1) establish a free, searchable database of approved 
        peer-reviewed validation studies accessible to smaller 
        establishments and very small establishments subject to 
        inspection under this Act for use in developing a Hazard 
        Analysis and Critical Control Points plan; and
            ``(2) publish online scale-appropriate model Hazard 
        Analysis and Critical Control Points plans for smaller 
        establishments and very small establishments, including model 
        plans for--
                    ``(A) slaughter-only establishments;
                    ``(B) processing-only establishments; and
                    ``(C) slaughter and processing establishments.
    ``(c) Guidance.--Not later than 2 years after the date of enactment 
of this section, the Secretary shall publish a guidance document, after 
notice and an opportunity for public comment, providing information on 
the requirements that need to be met for smaller establishments and 
very small establishments to receive approval for a Hazard Analysis and 
Critical Control Points plan pursuant to this Act.
    ``(d) Data Confidentiality.--In carrying out subsections (b) and 
(c), the Secretary shall not publish confidential business information, 
including a Hazard Analysis and Critical Control Points plan of an 
establishment.''.
    (b) Meat Establishments.--The Federal Meat Inspection Act is 
amended by inserting after section 25 (21 U.S.C. 625) the following:

``SEC. 26. SMALLER AND VERY SMALL ESTABLISHMENT GUIDANCE AND RESOURCES.

    ``(a) Definitions of Smaller Establishment and Very Small 
Establishment.--In this section, the terms `smaller establishment' and 
`very small establishment' have the meanings given those terms in the 
final rule entitled `Pathogen Reduction; Hazard Analysis and Critical 
Control Point (HACCP) Systems' (61 Fed. Reg. 38806 (July 25, 1996)).
    ``(b) Database of Studies; Model Plans.--Not later than 18 months 
after the date of enactment of this section, the Secretary shall--
            ``(1) establish a free, searchable database of approved 
        peer-reviewed validation studies accessible to smaller 
        establishments and very small establishments subject to 
        inspection under this Act for use in developing a Hazard 
        Analysis and Critical Control Points plan; and
            ``(2) publish online scale-appropriate model Hazard 
        Analysis and Critical Control Points plans for smaller 
        establishments and very small establishments, including model 
        plans for--
                    ``(A) slaughter-only establishments;
                    ``(B) processing-only establishments; and
                    ``(C) slaughter and processing establishments.
    ``(c) Guidance.--Not later than 2 years after the date of enactment 
of this section, the Secretary shall publish a guidance document, after 
notice and an opportunity for public comment, providing information on 
the requirements that need to be met for smaller establishments and 
very small establishments to receive approval for a Hazard Analysis and 
Critical Control Points plan pursuant to this Act.
    ``(d) Data Confidentiality.--In carrying out subsections (b) and 
(c), the Secretary shall not publish confidential business information, 
including a Hazard Analysis and Critical Control Points plan of an 
establishment.''.

SEC. 3. INCREASING MAXIMUM FEDERAL SHARE FOR EXPENSES OF STATE 
              INSPECTION.

    (a) Poultry Products.--Section 5(a)(3) of the Poultry Products 
Inspection Act (21 U.S.C. 454(a)(3)) is amended in the second sentence 
by striking ``50 per centum'' and inserting ``65 percent''.
    (b) Meat and Meat Food Products.--Section 301(a)(3) of the Federal 
Meat Inspection Act (21 U.S.C. 661(a)(3)) is amended in the second 
sentence by striking ``50 per centum'' and inserting ``65 percent''.

SEC. 4. COOPERATIVE INTERSTATE SHIPMENT OF POULTRY AND MEAT.

    (a) Poultry Products.--Section 31 of the Poultry Products 
Inspection Act (21 U.S.C. 472) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2), by striking ``25 employees'' 
                each place it appears and inserting ``50 employees''; 
                and
                    (B) in paragraph (3)--
                            (i) in the paragraph heading, by striking 
                        ``25'' and inserting ``50'';
                            (ii) in subparagraph (A), by striking 
                        ``25'' and inserting ``50''; and
                            (iii) in subparagraph (B)--
                                    (I) in clause (i), by striking 
                                ``more than 25 employees but less than 
                                35 employees'' and inserting ``more 
                                than 50 employees but less than 70 
                                employees''; and
                                    (II) in clause (ii), by striking 
                                ``subsection (i)'' and inserting 
                                ``subsection (j)'';
            (2) in subsection (c), by striking ``60 percent'' and 
        inserting ``80 percent'';
            (3) in subsection (e)(1), by striking ``subsection (i)'' 
        and inserting ``subsection (j)'';
            (4) by redesignating subsections (f) through (i) as 
        subsections (g) through (j), respectively; and
            (5) by inserting after subsection (e) the following:
    ``(f) Federal Outreach.--
            ``(1) In general.--In each of fiscal years 2023 through 
        2028, for the purpose of State participation in the Cooperative 
        Interstate Shipment program, the Secretary shall conduct 
        outreach to, and, as appropriate, subsequent negotiation with, 
        not fewer than 25 percent of the States that--
                    ``(A) have a State poultry product inspection 
                program pursuant to section 5; but
                    ``(B) do not have a selected establishment.
            ``(2) Report.--At the conclusion of each of fiscal years 
        2023 through 2028, the Secretary shall submit a report 
        detailing the activities and results of the outreach conducted 
        during that fiscal year under paragraph (1) to--
                    ``(A) the Committee on Agriculture of the House of 
                Representatives;
                    ``(B) the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate;
                    ``(C) the Subcommittee on Agriculture, Rural 
                Development, Food and Drug Administration, and Related 
                Agencies of the Committee on Appropriations of the 
                House of Representatives; and
                    ``(D) the Subcommittee on Agriculture, Rural 
                Development, Food and Drug Administration, and Related 
                Agencies of the Committee on Appropriations of the 
                Senate.''.
    (b) Meat and Meat Food Products.--Section 501 of the Federal Meat 
Inspection Act (21 U.S.C. 683) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2), by striking ``25 employees'' 
                each place it appears and inserting ``50 employees''; 
                and
                    (B) in paragraph (3)--
                            (i) in the paragraph heading, by striking 
                        ``25'' and inserting ``50'';
                            (ii) in subparagraph (A), by striking 
                        ``25'' and inserting ``50''; and
                            (iii) in subparagraph (B)(i), by striking 
                        ``more than 25 employees but less than 35 
                        employees'' and inserting ``more than 50 
                        employees but less than 70 employees'';
            (2) in subsection (c), by striking ``60 percent'' and 
        inserting ``80 percent''; and
            (3) in subsection (f), by adding at the end the following:
            ``(3) Federal outreach.--
                    ``(A) In general.--In each of fiscal years 2023 
                through 2028, for the purpose of State participation in 
                the Cooperative Interstate Shipment program, the 
                Secretary shall conduct outreach to, and, as 
                appropriate, subsequent negotiation with, not fewer 
                than 25 percent of the States that--
                            ``(i) have a State meat inspection program 
                        pursuant to section 301; but
                            ``(ii) do not have a selected 
                        establishment.
                    ``(B) Report.--At the conclusion of each of fiscal 
                years 2023 through 2028, the Secretary shall submit a 
                report detailing the activities and results of the 
                outreach conducted during that fiscal year under 
                paragraph (1) to--
                            ``(i) the Committee on Agriculture of the 
                        House of Representatives;
                            ``(ii) the Committee on Agriculture, 
                        Nutrition, and Forestry of the Senate;
                            ``(iii) the Subcommittee on Agriculture, 
                        Rural Development, Food and Drug 
                        Administration, and Related Agencies of the 
                        Committee on Appropriations of the House of 
                        Representatives; and
                            ``(iv) the Subcommittee on Agriculture, 
                        Rural Development, Food and Drug 
                        Administration, and Related Agencies of the 
                        Committee on Appropriations of the Senate.''.

SEC. 5. PROCESSING RESILIENCE GRANT PROGRAM.

    Subtitle A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 
et seq.) is amended by adding at the end the following:

``SEC. 210B. PROCESSING RESILIENCE GRANT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Business enterprise owned and controlled by socially 
        and economically disadvantaged individuals.--The term `business 
        enterprise owned and controlled by socially and economically 
        disadvantaged individuals' has the meaning given the term in 
        section 3002 of the State Small Business Credit Initiative Act 
        of 2010 (12 U.S.C. 5701).
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a smaller establishment or very small 
                establishment (as those terms are defined in the final 
                rule entitled `Pathogen Reduction; Hazard Analysis and 
                Critical Control Point (HACCP) Systems' (61 Fed. Reg. 
                33806 (July 25, 1996)));
                    ``(B) a slaughtering or processing establishment 
                subject to--
                            ``(i) a State meat inspection program 
                        pursuant to section 301 of the Federal Meat 
                        Inspection Act (21 U.S.C. 661); or
                            ``(ii) a State poultry product inspection 
                        program pursuant to section 5 of the Poultry 
                        Products Inspection Act (21 U.S.C. 454);
                    ``(C) a person engaging in custom operations that 
                is exempt from inspection under--
                            ``(i) section 23 of the Federal Meat 
                        Inspection Act (21 U.S.C. 623); or
                            ``(ii) section 15 of the Poultry Products 
                        Inspection Act (21 U.S.C. 464); and
                    ``(D) a person seeking--
                            ``(i) to establish and operate an 
                        establishment described in subparagraph (A) or 
                        (B); or
                            ``(ii) to engage in custom operations 
                        described in subparagraph (C).
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Administrator of the 
        Agricultural Marketing Service.
    ``(b) Grants.--
            ``(1) In general.--Not later than 60 days after the date of 
        enactment of this section, the Secretary shall award 
        competitive grants to eligible entities for activities to 
        increase resiliency and diversification of the meat processing 
        system, including activities that--
                    ``(A) support the health and safety of meat and 
                poultry plant employees, suppliers, and customers;
                    ``(B) support increased processing capacity; and
                    ``(C) otherwise support the resilience of the small 
                meat and poultry processing sector.
            ``(2) Maximum amount.--The maximum amount of a grant 
        awarded under this section shall not exceed $500,000.
            ``(3) Duration.--The term of a grant awarded under this 
        section shall not exceed 3 years.
    ``(c) Applications.--
            ``(1) In general.--An eligible entity desiring a grant 
        under this section shall submit to the Secretary an application 
        at such time, in such manner, and containing such information 
        as the Secretary may require.
            ``(2) Applications for small grants.--The Secretary shall 
        establish a separate, simplified application process for 
        eligible entities applying for a grant under this section of 
        not more than $100,000.
            ``(3) Requirements.--The Secretary shall ensure that any 
        application for a grant under this section is--
                    ``(A) simple and practicable;
                    ``(B) accessible online; and
                    ``(C) available through local staff of the 
                Department of Agriculture.
            ``(4) Notice.--Not later than 14 days before the date on 
        which the Secretary begins to accept applications under 
        paragraph (1), the Secretary shall publish a notice of funding 
        opportunity with respect to the grants available under this 
        section.
            ``(5) Reapplication.--If an application of an eligible 
        entity under this subsection is denied by the Secretary, the 
        eligible entity may submit a revised application.
            ``(6) Priority.--In reviewing applications submitted under 
        this subsection, the Secretary shall give priority to proposals 
        that will--
                    ``(A) increase farmer and rancher access to animal 
                slaughter options within a 200-mile radius of the 
                location of the farmer or rancher;
                    ``(B) support an eligible entity described in 
                subsection (a)(2)(A); or
                    ``(C) support an eligible entity that is a business 
                enterprise owned and controlled by socially and 
                economically disadvantaged individuals.
    ``(d) Use of Grant.--An eligible entity that receives a grant under 
this section shall use the grant funds to carry out activities in 
support of the purposes described in subsection (b)(1), including 
through--
            ``(1) the development and issuance of a Hazard Analysis and 
        Critical Control Points plan for the eligible entity, which may 
        be developed by a consultant;
            ``(2) the purchase or establishment, as applicable, of 
        facilities, equipment, processes, and operations necessary for 
        the eligible entity to comply with applicable requirements 
        under the Federal Meat Inspection Act (21 U.S.C. 601 et seq.) 
        or the Poultry Products Inspection Act (21 U.S.C. 451 et seq.);
            ``(3) the purchase of cold storage, equipment, or 
        transportation services;
            ``(4) the purchase of temperature screening supplies, 
        testing for communicable diseases, disinfectant, sanitation 
        systems, hand washing stations, and other sanitizing supplies;
            ``(5) the purchase and decontamination of personal 
        protective equipment;
            ``(6) the construction or purchase of humane handling 
        infrastructure, including holding space for livestock prior to 
        slaughter, shade structures, and knock box structures;
            ``(7)(A) the purchase of software and computer equipment 
        for record keeping, production data, Hazard Analysis and 
        Critical Control Points record review, and facilitation of 
        marketing and sales of products in a manner consistent with the 
        social distancing guidelines of the Centers for Disease Control 
        and Prevention; and
            ``(B) the provision of guidelines and training relating to 
        that software and computer equipment;
            ``(8) the provision of staff time and training for 
        implementing and monitoring health and safety procedures;
            ``(9) the development of a feasibility study or business 
        plan for, or the carrying out of any other activity associated 
        with, establishing or expanding a small meat or poultry 
        processing facility;
            ``(10) the purchase of equipment that enables the further 
        use or value-added sale of coproducts or byproducts, such as 
        organs, hides, and other relevant products; and
            ``(11) other activities associated with expanding or 
        establishing an eligible entity described in subsection 
        (a)(2)(A), as determined by the Secretary.
    ``(e) Outreach.--During the period beginning on the date on which 
the Secretary publishes the notice under subsection (c)(4) and ending 
on the date on which the Secretary begins to accept applications under 
subsection (c)(1), the Secretary shall perform outreach to States and 
eligible entities relating to grants under this section.
    ``(f) Federal Share.--
            ``(1) In general.--Subject to paragraph (2), the Federal 
        share of the activities carried out using a grant awarded under 
        this section shall not exceed--
                    ``(A) 90 percent in the case of a grant in the 
                amount of $100,000 or less; or
                    ``(B) 75 percent in the case of a grant in an 
                amount greater than $100,000.
            ``(2) Fiscal years 2023 and 2024.--An eligible entity 
        awarded a grant under this section during fiscal year 2023 or 
        2024 shall not be required to provide non-Federal matching 
        funds with respect to the grant.
    ``(g) Administration.--The promulgation of regulations under, and 
administration of, this section shall be made without regard to--
            ``(1) the notice and comment provisions of section 553 of 
        title 5, United States Code; and
            ``(2) chapter 35 of title 44, United States Code (commonly 
        known as the `Paperwork Reduction Act').
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Agriculture to carry out this section 
$20,000,000 for each of fiscal years 2023 through 2028.''.

SEC. 6. LOCAL MEAT AND POULTRY PROCESSING TRAINING PROGRAMS.

    Title IV of the Agricultural Research, Extension, and Education 
Reform Act of 1998 is amended by inserting before section 404 (7 U.S.C. 
7624) the following:

``SEC. 403. LOCAL MEAT AND POULTRY PROCESSING TRAINING PROGRAMS.

    ``(a) Institutional Career Training Programs.--
            ``(1) In general.--The Secretary shall provide competitive 
        grants to junior or community colleges, technical or vocational 
        schools, nonprofit organizations, worker training centers, and 
        land-grant colleges and universities (as defined in section 
        1404 of the National Agricultural Research, Extension, and 
        Teaching Policy Act of 1977 (7 U.S.C. 3103)) to establish or 
        expand career training programs relating to meat and poultry 
        processing.
            ``(2) Applications for small grants.--The Secretary shall 
        establish a separate, simplified application and reporting 
        process for entities described in paragraph (1) applying for a 
        grant under this subsection of not more than $100,000.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection $10,000,000 for each of fiscal years 2023 through 
        2028.
    ``(b) Processor Career Training Programs.--
            ``(1) In general.--The Secretary shall provide grants to 
        smaller establishments and very small establishments (as those 
        terms are defined in the final rule entitled `Pathogen 
        Reduction; Hazard Analysis and Critical Control Point (HACCP) 
        Systems' (61 Fed. Reg. 38806 (July 25, 1996))) and 
        nongovernmental organizations to offset the cost of training 
        new meat and poultry processors.
            ``(2) Applications for small grants.--The Secretary shall 
        establish a separate, simplified application and reporting 
        process for entities described in paragraph (1) applying for a 
        grant under this subsection of not more than $100,000.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection $10,000,000 for each of fiscal years 2023 through 
        2028.''.
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