Title: Strengthening Local Processing Act
Policy area: Agriculture and Food

Summary:
Strengthening Local Processing Act
This bill authorizes grants and other forms of assistance for small and very small meat and poultry processing establishments, including competitive grants for training programs and activities related to COVID-19 response and recovery.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8431 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 8431

      To support small and very small meat and poultry processing 
                establishments, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 29, 2020

Ms. Pingree (for herself and Mr. Fortenberry) introduced the following 
        bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
      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''.

SEC. 2. SCALE-APPROPRIATE HACCP GUIDANCE AND RESOURCES.

    (a) Small and Very Small Poultry Establishments.--The Poultry 
Products Inspection Act (21 U.S.C. 451 et seq.) is amended by inserting 
after section 14 (21 U.S.C. 463) the following new section:

   ``small and very small establishment haccp guidance and resources

    ``Sec. 14a.  (a) Not later than 18 months after the date of the 
enactment of this section, the Secretary shall--
            ``(1) establish a free, searchable database of approved 
        peer-reviewed validation studies accessible to small 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))) subject to inspection under this Act for use in 
        developing the Hazard Analysis and Critical Control Points 
        plans of such establishments; and
            ``(2) publish online, scale-appropriate model Hazard 
        Analysis and Critical Control Points plans, including model 
        Hazard Analysis and Critical Control Points plans for different 
        types of poultry products processed by--
                    ``(A) slaughter-only establishments;
                    ``(B) processing-only establishments; and
                    ``(C) establishments that conduct slaughtering and 
                processing.
    ``(b) Not later than 2 years after the date of the enactment of 
this section, the Secretary shall publish a guidance document, after 
notice and an opportunity for public comments, to provide small and 
very small establishments with information on the necessary steps such 
establishments must take to have a Hazard Analysis and Critical Control 
Points Plan approved under this Act.''.
    (b) Small and Very Small Meat Establishments.--The Federal Meat 
Inspection Act (21 U.S.C. 601 et seq.) is amended by inserting after 
section 25 (21 U.S.C. 625) the following new section:

   ``small and very small establishment haccp guidance and resources

    ``Sec. 26.  (a) Not later than 18 months after the date of the 
enactment of this section, the Secretary shall--
            ``(1) establish a free, searchable database of approved 
        peer-reviewed validation studies accessible to small 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))) subject to inspection under this Act for use in 
        developing the Hazard Analysis and Critical Control Points 
        plans of such establishments; and
            ``(2) publish online scale-appropriate model Hazard 
        Analysis and Critical Control Points plans, including model 
        Hazard Analysis and Critical Control Points plans for different 
        types of meat and meat food products processed by--
                    ``(A) slaughter-only establishments;
                    ``(B) processing-only establishments; and
                    ``(C) establishments that conduct slaughtering and 
                processing.
    ``(b) Not later than 2 years after the date of the enactment of 
this section, the Secretary shall publish a guidance document, after 
notice and an opportunity for public comments, to provide small and 
very small establishments with information on the necessary steps such 
establishments must take to have a Hazard Analysis and Critical Control 
Points Plan approved under 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.

    (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 in subparagraphs (A) and 
                (C)(iii)(I) and inserting ``50 employees''; and
                    (B) in paragraph (3)--
                            (i) in the paragraph heading, by striking 
                        ``25 employees'' and inserting ``50 
                        employees'';
                            (ii) in subparagraph (A), by striking ``25 
                        employees'' and inserting ``50 employees''; 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'';
            (3) by redesignating subsections (f) through (i) as 
        subsections (g) through (j); and
            (4) by inserting after subsection (e) the following:
    ``(f) Federal Outreach.--
            ``(1) In general.--For each of fiscal years 2021 through 
        2024, the Secretary shall conduct outreach to, and where 
        appropriate subsequent negotiation with, no fewer than 25 
        percent of the States which have a State poultry product 
        inspection program that meets the criteria specified under 
        section 5 but which does not yet have an establishment that has 
        been selected as a selected establishment under this section.
            ``(2) Report.--At the conclusion of each fiscal year 
        referred to in paragraph (1), the Secretary shall submit a 
        report detailing the activities and results of the outreach 
        conducted during that fiscal year 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 in subparagraphs (A) and 
                (C)(iii)(I) and inserting ``50 employees''; and
                    (B) in paragraph (3)--
                            (i) in the paragraph heading, by striking 
                        ``25 employees'' and inserting ``50 
                        employees'';
                            (ii) in subparagraph (A), by striking ``25 
                        employees'' and inserting ``50 employees''; 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.--For each of fiscal years 2021 
                through 2024, the Secretary shall conduct outreach to, 
                and where appropriate subsequent negotiation with, no 
                fewer than 25 percent of the States which have a State 
                meat and meat food product inspection program that 
                meets the criteria specified under section 301 but 
                which does not yet have an establishment that has been 
                selected as a selected establishment under this 
                section.
                    ``(B) Report.--At the conclusion of each fiscal 
                year referred to in subparagraph (A), the Secretary 
                shall submit a report detailing the activities and 
                results of the outreach conducted during that fiscal 
                year 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) Eligible Entity.--In this section, the term `eligible entity' 
means--
            ``(1) a small or very small establishment, as defined in 
        the final rule entitled `Pathogen Reduction; Hazard Analysis 
        and Critical Control Point (HACCP) Systems' (61 Fed. Reg. 33806 
        (July 25, 1996));
            ``(2) a slaughtering or processing establishment operating 
        under a State inspection program that meets the criteria 
        specified in section 301(a) of the Federal Meat Inspection Act 
        (21 U.S.C. 661) or section 5 of the Poultry Products Inspection 
        Act (21 U.S.C. 454);
            ``(3)(A) a person, firm, or corporation exempt from 
        inspection under the Federal Meat Inspection Act (21 U.S.C. 601 
        et seq.) pursuant to section 23 of such Act (21 U.S.C. 623); 
        and
            ``(B) a retail dealer, poultry producer, or person exempt 
        from inspection under the Poultry Products Inspection Act (21 
        U.S.C. 451 et seq.) pursuant to section 15 of such Act (21 
        U.S.C. 464); and
            ``(4) an entity seeking to establish and operate an 
        establishment that would meet the criteria specified in 
        paragraph (1), (2), or (3).
    ``(b) Grants.--The Secretary, acting through the Administrator of 
the Agricultural Marketing Service, shall provide competitive grants 
with a term of not more than three years to eligible entities for 
activities to adapt production, processing, distribution, and sales 
systems to respond to and recover from the effects of Coronavirus 
Disease 2019 (referred to in this section as `COVID-19') pandemic, 
including activities that--
            ``(1) support the health and safety of plant employees, 
        suppliers, and customers;
            ``(2) support increased processing capacity; or
            ``(3) otherwise support the resilience of the small meat 
        and poultry processing sector in the future.
    ``(c) Use of Funds.--An eligible entity selected to receive a grant 
under this section may use funds received through such grant for 
activities, including--
            ``(1) the cost of developing and issuing (other than the 
        cost of labor), directly incurred or incurred by a consultant, 
        a Hazard Analysis and Critical Control Points plan for the 
        eligible entity;
            ``(2) the actual costs of any facilities, equipment, 
        processes, or operations necessary for the establishment to 
        comply with the Federal Meat Inspection Act (21 U.S.C. 601 et 
        seq.) or Poultry Products Inspection Act (21 U.S.C. 451 et 
        seq.);
            ``(3) cold storage, equipment, or transportation services 
        or equipment needed to respond to COVID-19 demand;
            ``(4) purchasing test kits for the presence of COVID-19, 
        temperature screening supplies, disinfectant, sanitation 
        systems, hand washing stations, and other sanitizing supplies;
            ``(5) purchasing and decontaminating personal protective 
        equipment;
            ``(6) constructing or acquiring humane handling 
        infrastructure, including holding space for livestock holding 
        prior to slaughter, shade structures, and knock box structures;
            ``(7) purchasing software and computer equipment for record 
        keeping, production data, Hazard Analysis and Critical Control 
        Points record review, and facilitating marketing and sales of 
        products in a manner consistent with Center for Disease Control 
        and Prevention guidelines and training for using this software;
            ``(8) the costs of staff time and training for implementing 
        and monitoring healthy and safety procedures;
            ``(9) the development of a feasibility study or business 
        plan for those interested in expanding or starting a new small 
        establishment; and
            ``(10) other costs associated with expanding or 
        establishing a small establishment or very small establishment, 
        as determined by the Secretary.
    ``(d) Applications.--
            ``(1) In general.--An eligible entity seeking a grant under 
        this section shall submit to the Secretary an application in 
        accordance with an application process established by the 
        Secretary.
            ``(2) Simplified process.--In establishing the application 
        process under paragraph (1), the Secretary shall establish a 
        simplified, separate application process for eligible entities 
        requesting less than $100,000.
            ``(3) Requirements.--The Secretary shall ensure that the 
        application required under paragraph (1) is--
                    ``(A) as simple as is practicable;
                    ``(B) accessible online; and
                    ``(C) available through local staff of the 
                Department of Agriculture.
    ``(e) Maximum Amount.--The amount of a grant under this subsection 
shall be not more than $500,000.
    ``(f) Administration.--The administration of this subsection, 
including the promulgation of regulations to carry out this subsection, 
shall be 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.
    ``(g) Process.--
            ``(1) Availability.--Not later than 60 days after the date 
        of enactment of this Act, the Secretary shall provide grants 
        under this section.
            ``(2) 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 for grants under this section.
            ``(3) Outreach.--During the period beginning on the date on 
        which the Secretary publishes the notice under paragraph (2) 
        and ending on the date on which the Secretary begins to accept 
        applications under paragraph (1), the Secretary shall perform 
        outreach to States and eligible entities relating to grants 
        under this section.
            ``(4) Reapplication.--In the case of a denial of an 
        application under this section, the eligible entity submitting 
        such application may submit a revised application, as specified 
        by the Secretary in regulations.
            ``(5) Priority.--In reviewing applications submitted under 
        paragraph (1), the Secretary shall give priority to proposals 
        that would--
                    ``(A) increase farmer and rancher access to animal 
                slaughter options within a 200 mile radius;
                    ``(B) support a small or very small plant with less 
                than 150 employees; or
                    ``(C) support minority-owned businesses that are 
                defined as for-profit businesses where not less than 51 
                percent of such business is owned by 1 or more Black 
                American, Native American, Hispanic American, or Asian 
                American individuals.
    ``(h) Matching Funds Requirement.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        eligible entity selected to receive a grant under this section 
        shall provide non-Federal matching funds as follows:
                    ``(A) With respect to the first $100,000 awarded to 
                such entity, not less than 10 percent of such amount.
                    ``(B) With respect to any amounts received after 
                receipt of $100,000, not less than 25 percent of such 
                amount.
            ``(2) Fiscal year 2021.--An eligible entity selected to 
        receive a grant under this section shall not be required to 
        provide non-Federal matching funds with respect to a grant 
        awarded during fiscal year 2021.
    ``(i) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry out this 
        section $10,000,000 for each of fiscal years 2021 through 2030.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this section 
        $15,000,000 for each of fiscal years 2021 through 2030.''.

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

    Title IV of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7624 et seq.) is amended by adding at the 
end the following new section:

``SEC. 414. GRANTS FOR 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 on 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 
        small 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 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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