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SEC. 11014. SHARE OF RISK. 
(a) IN GENERAL.—Section 508(k)(3) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(k)(3)) is amended— 
(1) by striking ‘‘require the’’ and inserting ‘‘re-
quire— 
‘‘(A) the’’; 
(2) by striking the period at the end and insert-
ing ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(B)(i) the cumulative underwriting gain 
or loss, and the associated premium and losses 
with such amount, calculated under any rein-
surance agreement (except livestock) ceded to 
the Corporation by each approved insurance 
provider to be not less than 12.5 percent; and 
‘‘(ii) the Corporation to pay a ceding com-
mission to reinsured companies of 2 percent of 
the premium used to define the loss ratio for 
the approved insurance provider’s book of busi-
ness that is described in clause (i).’’. 
(b) CONFORMING AMENDMENTS.—Section 516(a)(2) 
of the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) 
is amended by adding at the end the following new sub-
paragraph: 
‘‘(E) Costs associated with the ceding com-
missions described in section 508(k)(3)(B)(ii).’’. 
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(c) EFFECTIVE DATE.—This section shall take effect 
on the first June 30th after the date of the enactment 
of this Act. 
SEC. 11015. LIVESTOCK ASSISTANCE. 
Notwithstanding any other provision of law, the pur-
chase of a Non-insured Assistance Program policy shall 
not be a requirement to receive any Federal livestock dis-
aster assistance. 
SEC. 11016. DETERMINATION OF CERTAIN SWEET POTATO 
PRODUCTION. 
In the case of sweet potatoes, Risk Management 
Agency Pilot Program data shall not be considered for 
purposes of determining production for the 2005–2006 
Farm Service Agency Crop Disaster Program. 
Subtitle B—Livestock and Poultry 
SEC. 
11101. 
SENSE 
OF 
CONGRESS 
REGARDING 
PSEUDORABIES ERADICATION PROGRAM. 
It is the sense of Congress that— 
(1) the Secretary should recognize the threat 
feral swine pose to the domestic swine population; 
(2) keeping the United States commercial swine 
herd free of pseudorabies is essential to maintaining 
and growing pork export markets; 
(3) the establishment of a swine surveillance 
system will assist the swine industry in the moni-
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toring, surveillance, and eradication of pseudorabies; 
and 
(4) pseudorabies eradication is a high priority 
that the Secretary should carry out under the au-
thorities of the Animal Health Protection Act. 
SEC. 11102. ARBITRATION OF LIVESTOCK AND POULTRY 
CONTRACTS. 
The Packers and Stockyards Act, 1921 (7 U.S.C. 181 
et seq.) is amended— 
(1) by redesignating section 416 as section 417; 
and 
(2) by inserting after section 415 the following 
new section: 
‘‘SEC. 416. ARBITRATION OF LIVESTOCK AND POULTRY 
CONTRACTS. 
‘‘(a) ISSUANCE OF REGULATIONS.—The Secretary of 
Agriculture shall promulgate regulations to establish 
standards related to the inclusion of arbitration provisions 
in livestock and poultry production contracts. 
‘‘(b) CONTENT.—Such regulations shall— 
‘‘(1) establish permissible agreements with re-
spect to venue of arbitration, allocation of arbitra-
tion costs, number and appointment of arbitrators, 
and any other element of an arbitration agreement 
that the Secretary determines to be necessary; 
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‘‘(2) permit a producer to seek relief in a small 
claims court in lieu of arbitration for disputes or 
claims within the jurisdiction of a small claims 
court, despite the existence of an arbitration agree-
ment; and 
‘‘(3) require any person appointed or to be ap-
pointed as an arbitrator to disclose any circumstance 
likely to raise doubt as to the arbitrator’s impar-
tiality.’’. 
SEC. 11103. STATE-INSPECTED MEAT AND POULTRY. 
(a) REVIEW OF STATE MEAT AND POULTRY INSPEC-
TION PROGRAMS.— 
(1) REPORT.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of 
Agriculture shall submit to Congress a report con-
taining the results of a review by the Secretary of 
each State meat and poultry inspection program. 
Such report shall include— 
(A) a determination of the effectiveness of 
each State meat and poultry inspection pro-
gram; and 
(B) an identification of changes that are 
necessary to enable future transition to a State 
program of enforcing Federal inspection re-
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quirements as described in the amendments 
made by subsections (b) and (c). 
(2) AUTHORIZATION OF APPROPRIATIONS.— 
(A) IN GENERAL.—There are authorized to 
be appropriated such sums as are necessary to 
carry out this section. 
(B) AVAILABLE FUNDS.—Notwithstanding 
any other provision of law, only funds specifi-
cally appropriated under subparagraph (A) may 
be used to carry out this subsection. 
(b) STATE MEAT INSPECTION PROGRAMS.— 
(1) IN
GENERAL.—Title III of the Federal 
Meat Inspection Act (21 U.S.C. 661 et seq.) is 
amended to read as follows: 
‘‘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 
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set of requirements, established by the Federal Gov-
ernment, 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 PRO-
GRAMS. 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision 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 prod-
ucts inspected under the State meat inspection program 
in accordance with this title. 
‘‘(b) ELIGIBILITY.— 
‘‘(1) IN GENERAL.—To receive or maintain ap-
proval from the Secretary for a State meat inspec-
tion program in accordance with subsection (a), a 
State shall— 
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‘‘(A) implement a State meat inspection 
program that enforces the mandatory ante-
mortem and postmortem inspection, reinspec-
tion, sanitation, and related Federal require-
ments of titles I, II, and IV (including the regu-
lations, directives, notices, policy memoranda, 
and other regulatory requirements issued under 
those titles); and 
‘‘(B) enter into a cooperative agreement 
with the Secretary in accordance with sub-
section (c). 
‘‘(2) ADDITIONAL REQUIREMENTS.— 
‘‘(A) IN GENERAL.—In addition to the re-
quirements described in paragraph (1), a State 
meat inspection program reviewed in accord-
ance with section 11103(a) of the Farm, Nutri-
tion, and Bioenergy Act of 2007 shall imple-
ment, not later than 180 days after the date on 
which the report is submitted under subsection 
(b) of such section, all recommendations from 
the review, in a manner approved by the Sec-
retary. 
‘‘(B) REVIEW OF NEW STATE MEAT IN-
SPECTION PROGRAMS.— 
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‘‘(i) 
REVIEW
REQUIREMENT.—Not 
later than one year after the date on which 
the Secretary approves a new State meat 
inspection program, the Secretary shall 
conduct a review of the new State meat in-
spection program, which shall include— 
‘‘(I) a determination of the effec-
tiveness of the new State meat inspec-
tion program; and 
‘‘(II) identification of changes 
necessary to ensure enforcement of 
Federal inspection requirements. 
‘‘(ii) 
IMPLEMENTATION
REQUIRE-
MENTS.—In addition to the requirements 
described in paragraph (1), to continue to 
be an approved State meat inspection pro-
gram, a new State meat inspection pro-
gram shall implement all recommendations 
from the review conducted in accordance 
with this subparagraph, in a manner ap-
proved by the Secretary. 
‘‘(iii) DEFINITION
OF
NEW
STATE 
MEAT INSPECTION PROGRAM.—In this sub-
paragraph, the term ‘new State meat in-
spection program’ means a State meat in-
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spection program that is not approved in 
accordance with subsection (a) between the 
effective date of the Farm, Nutrition, and 
Bioenergy Act of 2007 and the date that 
is one year after the effective date of such 
Act. 
‘‘(c) COOPERATIVE AGREEMENT.—Notwithstanding 
chapter 63 of title 31, United States Code, the Secretary 
may enter into a cooperative agreement with a State 
that— 
‘‘(1) establishes the terms governing the rela-
tionship between the Secretary and the State meat 
inspection program; 
‘‘(2) provides that the State will adopt (includ-
ing adoption by reference) provisions identical to ti-
tles I, II, and IV (including the regulations, direc-
tives, notices, policy memoranda, and other regu-
latory requirements issued under those titles); 
‘‘(3) provides that State-inspected and passed 
meat and meat food products shall be marked with 
a mark of State inspection, which shall be deemed 
to be an official mark, in accordance with require-
ments issued by the Secretary; 
‘‘(4) provides that the State will comply with all 
labeling requirements issued by the Secretary gov-
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erning meat and meat food products inspected under 
the State meat inspection program; 
‘‘(5) provides that the Secretary shall have au-
thority— 
‘‘(A) to detain and seize livestock, car-
casses, parts of carcasses, meat, and meat food 
products under the State meat inspection pro-
gram; 
‘‘(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 inspec-
tion program to determine compliance with this 
Act (including the regulations issued under this 
Act); and 
‘‘(C) to direct the State to conduct any ac-
tivity authorized to be conducted by the Sec-
retary under this Act (including the regulations 
issued under this Act); and 
‘‘(6) includes such other terms as the Secretary 
determines to be necessary to ensure that the ac-
tions of the State and the State meat inspection pro-
gram are consistent with this Act (including the reg-
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ulations, directives, notices, policy memoranda, and 
other regulatory requirements issued under this 
Act). 
‘‘(d) RESTRICTION ON ESTABLISHMENT SIZE.—After 
the date that is 90 days after the effective date of the 
Farm, Nutrition, and Bioenergy Act of 2007, establish-
ments with more than 50 employees may not be accepted 
into a State meat inspection program. Any establishment 
that is subject to state inspection on such date, may re-
main subject to State inspection. 
‘‘(e) REIMBURSEMENT OF STATE COSTS.—The Sec-
retary may reimburse a State for not more than 50 per-
cent of the State’s costs of meeting the Federal require-
ments for the State meat inspection program. 
‘‘(f) SAMPLING.—A duly authorized representative of 
the Secretary shall be afforded access to State inspected 
establishments to take reasonable samples of the inventory 
of such establishments upon payment of the fair market 
value therefor. 
‘‘(g) NONCOMPLIANCE.—If the Secretary determines 
that a State meat inspection program does not comply 
with this title or the cooperative agreement under sub-
section (c), the Secretary shall take such action as the Sec-
retary determines to be necessary to ensure that the car-
casses, parts of carcasses, meat, and meat food products 
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in the State are inspected in a manner that effectuates 
this Act (including the regulations, directives, notices, pol-
icy memoranda, and other regulatory requirements issued 
under this Act). 
‘‘SEC. 303. AUTHORITY TO TAKE OVER STATE MEAT INSPEC-
TION PROGRAMS. 
‘‘(a) NOTIFICATION.—If the Secretary has reason to 
believe that a State is not in compliance with this Act (in-
cluding the regulations, directives, notices, policy memo-
randa, and other regulatory requirements issued under 
this Act) or the cooperative agreement under section 
302(c) and is considering the revocation or temporary sus-
pension of the approval of the State meat inspection pro-
gram, 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 in-
spection program if the Secretary determines that 
the State meat inspection program is not in compli-
ance with this Act (including the regulations, direc-
tives, notices, policy memoranda, and other regu-
latory requirements issued under this Act) or the co-
operative agreement under section 302(c). 
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‘‘(2) PROCEDURES
FOR
REINSTATEMENT.—A 
State meat inspection program that has been the 
subject of a revocation may be reinstated as an ap-
proved 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 tem-
porarily suspends the approval of a State meat inspection 
program in accordance with subsection (b), the Secretary 
shall publish notice of the revocation or temporary suspen-
sion under that subsection in the Federal Register. 
‘‘(d) INSPECTION OF ESTABLISHMENTS.—Not later 
than 30 days after the date of publication of a determina-
tion 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 INSPEC-
TION 
OF 
STATE-INSPECTED 
ESTABLISH-
MENTS. 
‘‘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, di-
rectives, notices, policy memoranda, and other regulatory 
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requirements issued under this Act) or the cooperative 
agreement under section 302(c), and the State, after noti-
fication by the Secretary to the Governor, has not taken 
appropriate action within a reasonable time as determined 
by the Secretary, the Secretary may immediately deter-
mine that the establishment is an establishment that shall 
be inspected by the Secretary, until such time as the Sec-
retary determines that the State will meet the require-
ments of this Act (including the regulations, directives, no-
tices, policy memoranda, and other regulatory require-
ments) 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 annually review 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 
developing the review process described in subsection (a), 
the Secretary shall solicit comment from interested par-
ties. 
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‘‘SEC. 306. FEDERAL INSPECTION OPTION. 
‘‘(a) IN GENERAL.—An establishment that operates 
in a State with an approved State meat inspection pro-
gram may apply for inspection under the State meat in-
spection program or for Federal inspection. 
‘‘(b) LIMITATION.—An establishment shall not make 
an application under subsection (a) more than once every 
four years.’’. 
(2) RESTAURANTS AND RETAIL STORES.—Title 
IV of the Federal Meat Inspection Act is amended— 
(A) by redesignating section 411 (21 
U.S.C. 681) as section 414; and 
(B) 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 in-
spection of the slaughter of animals and the preparation 
of carcasses, parts of carcasses, meat, and meat food prod-
ucts shall not apply to operations of types traditionally 
and usually conducted at retail stores and restaurants, as 
determined by the Secretary, if the operations are con-
ducted at a retail store, restaurant, or similar retail estab-
lishment for sale of such prepared articles in normal retail 
quantities or for service of the articles to consumers at 
such an establishment. 
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‘‘(b) CENTRAL KITCHEN FACILITIES.— 
‘‘(1) IN GENERAL.—For the purposes of this 
section, operations conducted at a central kitchen fa-
cility of a restaurant shall be considered to be con-
ducted 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 facil-
ity. 
‘‘(2) EXCEPTION.—A facility described in para-
graph (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 nec-
essary, if the Secretary determines that the sanitary 
conditions or practices of the facility or the proc-
essing 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 move-
ment or sale of meat or meat food products that have been 
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inspected and passed in accordance with this Act for inter-
state 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 des-
ignate 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) STATE POULTRY INSPECTION PROGRAMS.— 
(1) IN GENERAL.—The Poultry Products In-
spection Act (21 U.S.C. 451 et seq.) is amended by 
striking section 5 and inserting 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 gov-
ernment 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 require-
ments, established by the Federal Government, were 
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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 establish-
ments. 
‘‘(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 ship-
ment in commerce of poultry products inspected 
under the State poultry inspection program in ac-
cordance with this section and section 5A. 
‘‘(2) ELIGIBILITY.— 
‘‘(A) IN GENERAL.—To receive or main-
tain approval from the Secretary for a State 
poultry inspection program in accordance with 
paragraph (1), a State shall— 
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‘‘(i) implement a State poultry inspec-
tion program that enforces the mandatory 
antemortem and postmortem inspection, 
reinspection, sanitation, and related Fed-
eral requirements of sections 1 through 4 
and 6 through 33 (including the regula-
tions, directives, notices, policy memo-
randa, and other regulatory requirements 
issued under those sections); and 
‘‘(ii) enter into a cooperative agree-
ment with the Secretary in accordance 
with paragraph (3). 
‘‘(B) ADDITIONAL REQUIREMENTS.— 
‘‘(i) IN GENERAL.—In addition to the 
requirements described in subparagraph 
(A), a State poultry inspection program re-
viewed in accordance with section 11103(a) 
of the Farm, Nutrition, and Bioenergy Act 
of 2007 shall implement, not later 180 
days after the date on which the report is 
submitted under subsection (b) of such 
section, all recommendations from the re-
view, in a manner approved by the Sec-
retary. 
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‘‘(ii) REVIEW OF NEW STATE POUL-
TRY INSPECTION PROGRAMS.— 
‘‘(I) REVIEW
REQUIREMENT.— 
Not later than one year after the date 
on which the Secretary approves a 
new State poultry inspection program, 
the Secretary shall conduct a 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 en-
forcement of Federal inspection 
requirements. 
‘‘(II) 
IMPLEMENTATION
RE-
QUIREMENTS.—In addition to the re-
quirements described 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 accord-
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ance with this clause, in a manner ap-
proved by the Secretary. 
‘‘(III) 
DEFINITION
OF
NEW 
STATE
POULTRY
INSPECTION
PRO-
GRAM.—In this clause, the term ‘new 
State poultry inspection program’ 
means a State poultry inspection pro-
gram that is not approved in accord-
ance with paragraph (1) between the 
effective date of the Farm, Nutrition, 
and Bioenergy Act of 2007 and the 
date that is one year after the effec-
tive date of such Act. 
‘‘(3) 
COOPERATIVE
AGREEMENT.—Notwith-
standing chapter 63 of title 31, United States Code, 
the Secretary may enter into a cooperative agree-
ment with a State that— 
‘‘(A) establishes the terms governing the 
relationship between the Secretary and the 
State poultry inspection program; 
‘‘(B) provides that the State will adopt (in-
cluding adoption by reference) provisions iden-
tical to sections 1 through 4 and 6 through 33 
(including the regulations, directives, notices, 
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policy memoranda, and other regulatory re-
quirements issued under those sections); 
‘‘(C) provides that State-inspected and 
passed poultry products may be marked with 
the mark of State inspection, which shall be 
deemed to be an official mark, in accordance 
with requirements issued by the Secretary; 
‘‘(D) provides that the State will comply 
with all labeling requirements issued by the 
Secretary governing poultry products inspected 
under the State poultry inspection program; 
‘‘(E) provides that 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 per-
son that slaughters, processes, handles, 
stores, transports, or sells poultry products 
inspected under the State poultry inspec-
tion program to determine compliance with 
this Act (including the regulations issued 
under this Act); and 
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‘‘(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); and 
‘‘(F) includes such other terms as the Sec-
retary 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, directives, 
notices, policy memoranda, and other regulatory 
requirements issued under this Act). 
‘‘(4) RESTRICTION ON ESTABLISHMENT SIZE.— 
After the date that is 90 days after the effective 
date of the Farm, Nutrition, and Bioenergy Act of 
2007, establishments with more than 50 employees 
may not be accepted into a State meat inspection 
program. Any establishment that is subject to state 
inspection on such date may remain subject to state 
inspection. 
‘‘(5) REIMBURSEMENT OF STATE COSTS.—The 
Secretary may reimburse a State for not more than 
60 percent of the State’s costs of meeting the Fed-
eral requirements for the State poultry inspection 
program. 
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‘‘(6) SAMPLING.—A duly authorized representa-
tive of the Secretary shall be afforded access to 
State inspected establishments to take reasonable 
samples of their inventory upon payment of the fair 
market value therefor. 
‘‘(7) NONCOMPLIANCE.—If the Secretary deter-
mines that a State poultry inspection program does 
not comply with this section, section 5A, or the co-
operative agreement under paragraph (3), the Sec-
retary shall take such action as the Secretary deter-
mines to be necessary to ensure that the poultry 
products in the State are inspected in a manner that 
effectuates this Act (including the regulations, direc-
tives, notices, policy memoranda, and other regu-
latory requirements issued under this Act). 
‘‘(d) ANNUAL REVIEW.— 
‘‘(1) IN GENERAL.—The Secretary shall develop 
and implement a process to annually review each 
State poultry inspection program approved under 
this section and to certify the State poultry inspec-
tion programs that comply with the cooperative 
agreement entered into with the State under sub-
section (c)(3). 
‘‘(2) COMMENT FROM INTERESTED PARTIES.— 
In developing the review process described in para-
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graph (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 IN-
SPECTION ACTIVITIES. 
‘‘(a) AUTHORITY TO TAKE OVER STATE POULTRY 
INSPECTION PROGRAMS.— 
‘‘(1) NOTIFICATION.—If the Secretary has rea-
son to believe that a State is not in compliance with 
this Act (including the regulations, directives, no-
tices, policy memoranda, and other regulatory re-
quirements issued under this Act) or the cooperative 
agreement under section 5(c)(3) and is considering 
the revocation or temporary suspension of the ap-
proval of the State poultry inspection program, the 
Secretary shall promptly notify and consult with the 
Governor of the State. 
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‘‘(2) SUSPENSION AND REVOCATION.— 
‘‘(A) IN GENERAL.—The Secretary may re-
voke or temporarily suspend the approval of a 
State poultry inspection program and take over 
a State poultry inspection program if the Sec-
retary determines that the State poultry inspec-
tion program is not in compliance with this Act 
(including the regulations, directives, notices, 
policy memoranda, and other regulatory re-
quirements issued under this Act) or the coop-
erative agreement. 
‘‘(B) 
PROCEDURES
FOR
REINSTATE-
MENT.—A State poultry inspection program 
that has been the subject of a revocation may 
be reinstated as an approved State poultry in-
spection program under this Act only in accord-
ance 
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 para-
graph (2), the Secretary shall publish notice of the 
revocation or temporary suspension under that para-
graph in the Federal Register. 
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‘‘(4) INSPECTION
OF
ESTABLISHMENTS.—Not 
later than 30 days after the date of publication of 
a determination under paragraph (3), an official es-
tablishment subject to a State poultry inspection 
program with respect to which the Secretary makes 
a determination under paragraph (2) shall be in-
spected by the Secretary. 
‘‘(b) EXPEDITED AUTHORITY TO TAKE OVER IN-
SPECTION OF STATE-INSPECTED OFFICIAL ESTABLISH-
MENTS.—Notwithstanding any other provision of this 
title, if the Secretary determines that an official establish-
ment operating under a State poultry inspection program 
is not operating in accordance with this Act (including the 
regulations, directives, notices, policy memoranda, and 
other regulatory requirements 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 imme-
diately determine that the official establishment is an es-
tablishment 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 regula-
tions, directives, notices, policy memoranda, and other reg-
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ulatory requirements) and the cooperative agreement with 
respect to the official establishment.’’. 
(2) RESTAURANTS
AND
RETAIL
STORES, AC-
CEPTANCE OF INTERSTATE SHIPMENTS OF POULTRY 
PRODUCTS, AND ADVISORY COMMITTEES FOR FED-
ERAL AND STATE PROGRAMS.—The Poultry Prod-
ucts 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 in-
spection of the slaughter of poultry and the processing of 
poultry products shall not apply to operations of types tra-
ditionally and usually conducted at retail stores and res-
taurants, 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 fa-
cility of a restaurant shall be considered to be con-
ducted 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 
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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 para-
graph (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 nec-
essary, if the Secretary determines that the sanitary 
conditions or practices of the facility or the proc-
essing 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 move-
ment or sale of poultry products that have been inspected 
and passed in accordance with this Act for interstate com-
merce. 
‘‘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 des-
ignate to consult with the Secretary concerning State and 
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Federal programs with respect to poultry product inspec-
tion and other matters within the scope of this Act.’’. 
(d) REGULATIONS.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Agriculture shall promulgate such regulations as are nec-
essary to implement the amendments made by subsections 
(b) and (c). 
(e) EFFECTIVE DATE.—The amendments made by 
subsections (b) and (c) of this Act shall take effect on the 
date that is 180 days after the date of the enactment of 
this Act. 
SEC. 11104. COUNTRY OF ORIGIN LABELING. 
Subtitle D of the Agricultural Marketing Act of 1946 
(7 U.S.C. 1638 et seq.) is amended— 
(1) in section 281(2)(A)— 
(A) in clause (v) by striking ‘‘and’’; 
(B) in clause (vi), by striking ‘‘peanuts.’’ 
and inserting ‘‘peanuts; and’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(vii) meat produced from goats.’’; 
(2) in section 282— 
(A) in subsection (a), by striking para-
graphs (2) and (3) and inserting the following: 
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‘‘(2) DESIGNATION
OF
COUNTRY
OF
ORIGIN 
FOR BEEF, LAMB, PORK, AND GOAT.— 
‘‘(A) UNITED STATES COUNTRY OF ORI-
GIN.—A retailer of a covered commodity that is 
beef, lamb, pork, or goat may designate the cov-
ered commodity as exclusively having a United 
States country of origin only if the covered 
commodity is derived from an animal that 
was— 
‘‘(i) exclusively born, raised, and 
slaughtered in the United States; 
‘‘(ii) born and raised in Alaska or Ha-
waii and transported for a period of not 
more than 60 days through Canada to the 
United States and slaughtered in the 
United States; or 
‘‘(iii) present in the United States on 
or before January 1, 2008. 
‘‘(B) MULTIPLE COUNTRIES OF ORIGIN.— 
A retailer of a covered commodity that is beef, 
lamb, pork, or goat that is derived from an ani-
mal that is— 
‘‘(i) not exclusively born, raised, and 
slaughtered in the United States, 
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‘‘(ii) born, raised, or slaughtered in 
the United States, and 
‘‘(iii) not imported into the United 
States for immediate slaughter, 
may designate the country of origin of such cov-
ered commodity as all of the countries in which 
the animal may have been born, raised, or 
slaughtered. 
‘‘(C) IMPORTED FOR IMMEDIATE SLAUGH-
TER.—A retailer of a covered commodity that is 
beef, lamb, pork, or goat that is derived from 
an animal that is imported into the United 
States for immediate slaughter must designate 
the origin of such covered commodity as— 
‘‘(i) the country from which the ani-
mal was imported; and 
‘‘(ii) the United States. 
‘‘(D) FOREIGN COUNTRY OF ORIGIN.—A 
retailer of a covered commodity that is beef, 
lamb, pork, or goat that is derived from an ani-
mal that is not born, raised, or slaughtered in 
the United States must designate a country 
other than the United States as the country of 
origin of such commodity. 
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‘‘(E) GROUND BEEF, PORK, AND LAMB.— 
The notice of country of origin for ground beef, 
ground pork, or ground lamb shall include— 
‘‘(i) a list of all countries of origin of 
such ground beef, ground pork, or ground 
lamb; or 
‘‘(ii) a list of all reasonably possible 
countries of origin of such ground beef, 
ground pork, or ground lamb. 
‘‘(3) DESIGNATION
OF
COUNTRY
OF
ORIGIN 
FOR FISH.— 
‘‘(A) IN GENERAL.—A retailer of a covered 
commodity that is farm-raised fish or wild fish 
may designate the covered commodity as having 
a United States country of origin only if the 
covered commodity— 
‘‘(i) in the case of farm-raised fish, is 
hatched, raised, harvested, and processed 
in the United States; and 
‘‘(ii) in the case of wild fish, is— 
‘‘(I) harvested in the United 
States, a territory of the United 
States, or a State, or by a vessel that 
is documented under chapter 121 of 
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title 46, United States Code, or reg-
istered in the United States; and 
‘‘(II) processed in the United 
States, a territory of the United 
States, or a State, including the wa-
ters thereof. 
‘‘(B) DESIGNATION
OF
WILD
FISH
AND 
FARM-RAISED FISH.—The notice of country of 
origin for wild fish and farm-raised fish shall 
distinguish between wild fish and farm-raised 
fish. 
‘‘(4) DESIGNATION
OF
COUNTRY
OF
ORIGIN 
FOR PERISHABLE AGRICULTURAL COMMODITIES AND 
PEANUTS.— 
‘‘(A) IN GENERAL.—A retailer of a covered 
commodity that is a perishable agricultural 
commodity or peanut may designate the covered 
commodity as having a United States country 
of origin only if the covered commodity is exclu-
sively produced in the United States. 
‘‘(B) STATE, REGION, LOCALITY OF THE 
UNITED
STATES.—With respect to a covered 
commodity that is a perishable agricultural 
commodity produced exclusively in the United 
States, designation by a retailer of the State, 
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region, or locality of the United States where 
such commodity was produced shall be suffi-
cient to identify the United States as the coun-
try of origin.’’; and 
(B) by striking subsection (d) and insert-
ing the following: 
‘‘(d) AUDIT VERIFICATION SYSTEM.— 
‘‘(1) IN GENERAL.—The Secretary may conduct 
an audit of any person that prepares, stores, han-
dles, or distributes a covered commodity for retail 
sale to verify compliance with this subtitle (including 
the regulations promulgated under section 284(b)). 
‘‘(2) RECORD REQUIREMENTS.— 
‘‘(A) IN GENERAL.—A person subject to 
an audit under paragraph (1) shall provide the 
Secretary with verification of the country of ori-
gin of covered commodities. Records maintained 
in the course of the normal conduct of the busi-
ness of such person, including animal health pa-
pers, import or customs documents, or producer 
affidavits, may serve as such verification. 
‘‘(B) PROHIBITION ON REQUIREMENT OF 
ADDITIONAL RECORDS.—The Secretary may not 
require a person that prepares, stores, handles, 
or distributes a covered commodity to maintain 
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a record of the country of origin of a covered 
commodity other than those maintained in the 
course of the normal conduct of the business of 
such person.’’; 
(3) in section 283— 
(A) by striking subsections (a) and (c); 
(B) by redesignating subsection (b) sub-
section (a); 
(C) in subsection (a) (as so redesignated), 
by striking ‘‘retailer’’ and inserting ‘‘retailer or 
person engaged in the business of supplying a 
covered commodity to a retailer’’; and 
(D) by adding at the end the following new 
subsection: 
‘‘(b) FINES.—If, on completion of the 30-day period 
described in subsection (a)(2), the Secretary determines 
that the retailer or person engaged in the business of sup-
plying a covered commodity to a retailer has— 
‘‘(1) not made a good faith effort to comply 
with section 282, and 
‘‘(2) continues to willfully violate section 282 
with respect to the violation about which the retailer 
or person received notification under subsection 
(a)(1), 
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after providing notice and an opportunity for a hearing 
before the Secretary with respect to the violation, the Sec-
retary may fine the retailer or person in an amount of 
not more than $1,000 for each violation.’’. 
SEC. 11105. SENSE OF CONGRESS REGARDING THE VOL-
UNTARY 
CONTROL 
PROGRAM 
FOR 
LOW 
PATHOGENIC AVIAN INFLUENZA. 
It is the sense of Congress that— 
(1) the voluntary control program for low path-
ogenic avian influenza is a critical component of the 
animal health protection system of the United 
States, as well as a safeguard against highly patho-
genic avian influenza; and 
(2) the Secretary of Agriculture has appro-
priately provided for the payment of compensation to 
owners of poultry and cooperating State agencies of 
100 percent of eligible costs, and the Secretary 
should continue to provide such payments at 100 
percent of such costs. 
SEC. 11106. SENSE OF CONGRESS REGARDING THE CATTLE 
FEVER TICK ERADICATION PROGRAM. 
It is the sense of Congress that— 
(1) the cattle fever tick and the southern cattle 
tick are vectors of the causal agent of babesiosis, a 
severe and often fatal disease of cattle; and 
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(2) implementing a national strategic plan for 
the cattle fever tick eradication program is a high 
priority that the secretary should carry out in order 
to— 
(A) prevent the entry of cattle fever ticks 
into the United States; 
(B) enhance and maintain an effective sur-
veillance program to rapidly detect any cattle 
fever tick incursions; and 
(C) research, identify, and procure the 
tools and knowledge necessary to prevent and 
eradicate cattle fever ticks in the United States. 
Subtitle C—Socially Disadvantaged 
Producers 
and 
Limited 
Re-
source Producers 
SEC. 11201. OUTREACH AND TECHNICAL ASSISTANCE FOR 
SOCIALLY DISADVANTAGED FARMERS AND 
RANCHERS AND LIMITED RESOURCE FARM-
ERS AND RANCHERS. 
Section 2501 of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279) is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (2) and insert-
ing the following new paragraph: 
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‘‘(2) REQUIREMENTS.—The outreach and tech-
nical assistance program under paragraph (1) shall 
be used— 
‘‘(A) to enhance coordination of the out-
reach, technical assistance, and education ef-
forts authorized under agriculture programs; 
and 
‘‘(B) to assist the Secretary in— 
‘‘(i) reaching socially disadvantaged or 
limited resource farmers and ranchers and 
prospective socially disadvantaged or lim-
ited resource farmers and ranchers in an 
appropriate manner; and 
‘‘(ii) improving the participation of 
those farmers and ranchers in Department 
programs, as determined under section 
2501A.’’; 
(B) in paragraph (3)— 
(i) in subparagraph (A), by striking 
‘‘entity to provide information’’ and insert-
ing ‘‘entity that has demonstrated an abil-
ity to carry out the requirements described 
in paragraph (2) to provide outreach’’; and 
(ii) by adding at the end the following 
new subparagraphs: 
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‘‘(D) ADDITIONAL CONTRACTING AUTHOR-
ITY.—Any agency of the Department of Agri-
culture may make grants and enter into con-
tracts and cooperative agreements with a com-
munity-based organization that meets the defi-
nition of an eligible entity under subsection (e) 
in order to utilize the community-based organi-
zation to provide outreach and technical assist-
ance. 
‘‘(E) REPORT.—The Secretary shall sub-
mit to the Committee on Agriculture of the 
House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the 
Senate, and make publicly available, an annual 
report that includes a list of the following: 
‘‘(i) The recipients of funds made 
available under the program. 
‘‘(ii) The activities undertaken and 
services provided. 
‘‘(iii) The number of producers served 
and outcomes of such service. 
‘‘(iv) The problems and barriers iden-
tified by entities in trying to increase par-
ticipation by socially disadvantaged farm-
ers and ranchers.’’; and 
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(C) in paragraph (4)— 
(i) by striking subparagraph (A), and 
inserting the following new subparagraph: 
‘‘(A) AVAILABILITY
OF
FUNDS.—Of the 
funds of the Commodity Credit Corporation, the 
Secretary shall make available $15,000,000 for 
each of the fiscal years 2008 through 2012 to 
carry out this subsection.’’; 
(ii) in subparagraph (B), by striking 
‘‘authorized to be appropriated under sub-
paragraph (A)’’ and inserting ‘‘made avail-
able under subparagraph (A)’’; and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(C) LIMITATION ON USE OF FUNDS FOR 
ADMINISTRATIVE EXPENSES.—Not more than 5 
percent of the amounts made available under 
subparagraph (A) for a fiscal year may be used 
for expenses related to administering the pro-
gram under this section.’’; and 
(2) in subsection (e)(5)(A)(ii)— 
(A) by inserting ‘‘and on behalf of’’ before 
‘‘socially’’; and 
(B) by striking ‘‘2-year’’ and inserting ‘‘3- 
year’’. 
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SEC. 11202. IMPROVED PROGRAM DELIVERY BY DEPART-
MENT OF AGRICULTURE ON INDIAN RES-
ERVATIONS. 
Section 2501(g)(1) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (7 U.S.C. 2279(g)(1)) 
is amended— 
(1) in the first sentence, by striking ‘‘where 
there is a demonstrated demand for service’’ after 
‘‘offices’’; and 
(2) by striking the second sentence. 
SEC. 11203. TRANSPARENCY AND ACCOUNTABILITY FOR SO-
CIALLY 
DISADVANTAGED 
FARMERS 
AND 
RANCHERS. 
Section 2501A of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (7 U.S.C. 2279–1) is amend-
ed by striking subsection (c) and inserting the following 
new subsections: 
‘‘(c) COMPILATION
OF PROGRAM PARTICIPATION 
DATA.— 
‘‘(1) ANNUAL REQUIREMENT.—For each county 
and State in the United States, the Secretary of Ag-
riculture (referred to in this section as the ‘Sec-
retary’) shall annually compile program application 
and participation rate data regarding socially dis-
advantaged farmers and ranchers by computing for 
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819 
HR 2419 PCS
each program of the Department of Agriculture that 
serves agricultural producers and landowners— 
‘‘(A) raw numbers of applicants and par-
ticipants by race, ethnicity, and gender, subject 
to appropriate privacy protections, as deter-
mined by the Secretary; and 
‘‘(B) the application and participation rate, 
by race, ethnicity, and gender, as a percentage 
of the total participation rate of all agricultural 
producers and landowners. 
‘‘(2) AUTHORITY
TO
COLLECT
DATA.—The 
heads of the agencies of the Department of Agri-
culture shall collect and transmit to the Secretary 
any data, including data on race, gender, and eth-
nicity, that the Secretary determines to be necessary 
to carry out paragraph (1). 
‘‘(3) REPORT.—Using the technologies and sys-
tems of the National Agricultural Statistics Service, 
the Secretary shall compile and present the data 
compiled under paragraph (1) for each program de-
scribed in that paragraph in a manner that includes 
the raw numbers and participation rates for— 
‘‘(A) the entire United States; 
‘‘(B) each State; and 
‘‘(C) each county in each State. 
VerDate Aug 31 2005 
00:40 Sep 06, 2007
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