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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.