Strengthening Local Processing Act of 2021

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. 1. Short title This Act may be cited as the Strengthening Local Processing Act of 2021 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 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 very small establishment (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. . (b) Meat establishments The Federal Meat Inspection Act is amended by inserting after section 25 ( 21 U.S.C. 625 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 very small establishment (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. . 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) 50 per centum 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) 50 per centum 65 percent 4. Cooperative interstate shipment of poultry and meat (a) Poultry products Section 31 of the Poultry Products Inspection Act ( 21 U.S.C. 472 (1) in subsection (b)— (A) in paragraph (2), by striking 25 employees 50 employees (B) in paragraph (3)— (i) in the paragraph heading, by striking 25 50 (ii) in subparagraph (A), by striking 25 50 (iii) in subparagraph (B)— (I) in clause (i), by striking more than 25 employees but less than 35 employees more than 50 employees but less than 70 employees (II) in clause (ii), by striking subsection (i) subsection (j) (2) in subsection (c), by striking 60 percent 80 percent (3) in subsection (e)(1), by striking subsection (i) 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 2021 through 2024, 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 2021 through 2024, 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 (1) in subsection (b)— (A) in paragraph (2), by striking 25 employees 50 employees (B) in paragraph (3)— (i) in the paragraph heading, by striking 25 50 (ii) in subparagraph (A), by striking 25 50 (iii) in subparagraph (B)(i), by striking more than 25 employees but less than 35 employees more than 50 employees but less than 70 employees (2) in subsection (c), by striking 60 percent 80 percent (3) in subsection (f), by adding at the end the following: (3) Federal outreach (A) In general In each of fiscal years 2021 through 2024, 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 2021 through 2024, 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. . 5. Processing resilience grant program Subtitle A of the Agricultural Marketing Act of 1946 ( 7 U.S.C. 1621 210B. Processing resilience grant program (a) Definitions In this section: (1) Eligible entity The term eligible entity (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 (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 (ii) section 15 of the Poultry Products Inspection Act ( 21 U.S.C. 464 (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). (2) Minority-owned business The term minority-owned business (3) Secretary The term Secretary (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 adapt production, processing, distribution, and sales systems to respond to and recover from the effects of the Coronavirus Disease 2019 (referred to in this section as COVID–19 (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)(1)(A); or (C) support an eligible entity that is a minority-owned business. (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 21 U.S.C. 451 (3) the purchase of cold storage, equipment, or transportation services or equipment needed to respond to COVID–19 demand; (4) the purchase of test kits for COVID–19, temperature screening supplies, 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; and (10) other activities associated with expanding or establishing an eligible entity described in subsection (a)(1)(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 2021 and 2022 An eligible entity awarded a grant under this section during fiscal year 2021 or 2022 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 Paperwork Reduction Act (h) Funding (1) Mandatory funding Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall use to carry out this section $10,000,000 for each of fiscal years 2021 through 2030. (2) Authorization of appropriations In addition to amounts made available under paragraph (1), there is authorized to be appropriated to the Secretary of Agriculture to carry out this section $15,000,000 for each of fiscal years 2021 through 2030. . 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 403. Local meat and poultry processing training programs (a) Higher education career training programs (1) In general The Secretary shall provide competitive grants to junior or community colleges, technical or vocational schools, 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 (2) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this subsection $10,000,000 for fiscal year 2021 and each fiscal year thereafter, to remain available until expended. (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 (2) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this subsection $10,000,000 for fiscal year 2021 and each fiscal year thereafter, to remain available until expended. .

Summary: Strengthening Local Processing Act of 2021 This bill revises provisions related to meat and poultry processing establishments, including smaller establishments (i.e., those with between 10 and 500 employees) and very small establishments (i.e., those with fewer than 10 employees or annual sales of less than $2.5 million). For example, the Department of Agriculture (USDA) must establish a searchable database of peer-reviewed validation studies for use in developing Hazard Analysis and Critical Control Points plans for smaller and very small establishments. The bill increases the maximum federal cost share from 50% to 65% that USDA may provide to assist states in creating meat and poultry inspection programs. Additionally, USDA must conduct outreach with states that have meat and poultry inspection programs, but that do not have Cooperative Interstate Shipment programs. The Cooperative Interstate Shipment program allows state-inspected facilities to operate as federally-inspected facilities and ship their products in interstate commerce and internationally. USDA must also award competitive grants for activities to adapt production, processing, distribution, and sales systems to respond to and recover from the effects of the COVID-19 pandemic, including activities that support (1) the health and safety of meat and poultry plant employees, suppliers, and customers; (2) increased processing capacity; and (3) the resilience of the small meat and poultry processing sector. Further, the bill establishes grant programs to (1) establish or expand career training programs at community colleges, vocational schools, and universities related to meat and poultry processing; and (2) support smaller and very small establishments by offsetting the cost of training new meat and poultry processors.