Strengthening Local Processing Act of 2021
Bill: S.370 | Sponsor: Sen. Thune, John (R-SD)
Policy area: Agriculture and Food

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.

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 2021''.

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.''.
    (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.''.

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 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) 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 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.''.

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) 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).
            ``(2) Minority-owned business.--The term `minority-owned 
        business' means a for-profit business not less than 51 percent 
        of which is owned by 1 or more Black American, Native American, 
        Hispanic American, or Asian American individuals.
            ``(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 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') 
        pandemic, 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)(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 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 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 of title 44, United States Code (commonly 
        known as the `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.''.

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) 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)) to 
        establish or expand career training programs relating to meat 
        and poultry processing.
            ``(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' (61 Fed. Reg. 38806 (July 25, 1996))) and 
        nongovernmental organizations to offset the cost of training 
        new meat and poultry processors.
            ``(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.''.
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