603-029-0020 Exemptions (1) The rules in this Division 29 do not apply to: (a) The slaughtering by any individual of meat animals of his own raising, and the preparation by him and transportation in commerce of the carcasses, parts thereof, meat and meat products of such meat animals exclusively for use by him and members of his household and his nonpaying guests and employees; (b) Custom slaughter or custom processing, provided that the following requirements are met: (A) If custom slaughter or custom processing are conducted in a state-inspected establishment, all of the provisions of OAR 603-029-2100 to 603-029-2175 of shall apply to that custom slaughter or custom processing; (B) If a custom slaughtering establishment or custom processing establishment prepares or handles any products for sale, they must be kept separate and apart from the custom products at all times while the latter are in the establishment’s custody; (C) If custom slaughter or custom processing is conducted in a state-inspected establishment, all facilities and equipment in the state-inspected establishment used for such custom slaughter or custom processing shall be thoroughly cleaned and sanitized before they are used for preparing any products for sale; and (D) The exempted custom products shall be prepared and handled in accordance with OAR chapter 603, division 28. (c) Custom slaughtering establishments and custom processing establishments claiming exemption under section (1)(b) of this rule shall keep records, in addition to records otherwise required by OAR 603-029-1300 to 603-029-1330, showing the numbers and kinds of meat animals slaughtered on a custom basis, the quantities and types of products prepared on a custom basis, and the names and addresses of the owners of the meat animals and products. (d) Articles capable of use as human food, resulting from exempted custom slaughter or exempted custom processing, shall be promptly denatured or otherwise identified in accordance with OAR 603-029-1440 and not removed from the establishment where the custom operations are conducted until so identified, unless they are delivered to the owner of the articles for use in accordance with subsection (1)(b) of this rule. (2)(a) The requirements of ORS 619 and this Division 29 for inspection of the preparation of products do not apply to operations of types traditionally and usually conducted at retail stores and restaurants, when conducted at any retail store or restaurant or similar retail-type establishment for sale in normal retail quantities, or service of such articles to consumers at such establishments. (b) For purposes of subsection (2)(a) of this rule: (A) Operations of types traditionally and usually conducted at retail stores are the following: (i) Cutting up, slicing, and trimming carcasses, halves, quarters, or wholesale cuts into retail cuts such as steaks, chops, and roasts, and freezing such cuts; (ii) Grinding and freezing products made from meat; (iii) Curing, cooking, smoking, rendering or refining of meat animal fat, or other preparation of products, except slaughtering or the retort processing of canned products; (iv) Breaking bulk shipments of products; (v) Wrapping or rewrapping products. (B) Any quantity or product purchased by a consumer from a particular retail supplier shall be deemed to be a normal retail quantity if the quantity so purchased does not in the aggregate exceed one-half carcass. The following amounts of product will be accepted as representing one-half carcass of the species identified: (i) Cattle 300 pounds (ii) Calves 37.5 pounds (iii) Sheep 27.5 pounds (iv) Swine 100 pounds (v) Goats 25 pounds (C) A retail store is any food establishment where: (i) The sales of product are made to consumers only; (ii) At least 75 percent, in terms of dollar value, of total sales of product represents sales to household consumers and the total dollar value of sales of product to consumers other than household consumers does not exceed $84,900. (iii) Only federally or State inspected and passed product is handled or used in the preparation of any product, except that product resulting from the custom slaughter or custom preparation of product may be handled or used in accordance with subsection (1)(b) and section (2) of this rule but not for sale; (iv) No sale of product is made in excess of a normal retail quantity as defined in paragraph (2)(b)(B) of this rule; (v) The preparation of products for sale to household consumers is limited to traditional and usual operations as defined in paragraph (2)(b)(A) of this rule; and (vi) The preparation of products for sale to other than household consumers is limited to traditional and usual operations as defined in subparagraphs (2)(b)(A) (i), (ii), (iv), and (v) of this rule. (A retail store at which custom slaughtering or preparation of products is conducted is not thereby disqualified from exemption as a retail store under this section (2).) (D) Restaurants. (i) A restaurant is any establishment where: (I) Product is prepared only for sale or service in meals or as entrees directly to individual consumers at such establishments; (II) Only federally or State inspected and passed product or such product prepared at a retail store exempted under paragraph (2)(b)(C) of this rule is handled or used in the preparation of any product; (III) No sale of product is made in excess of a normal retail quantity as defined in paragraph (2)(b)(B) of this rule; and (IV) The preparation of product is limited to traditional and usual operations as defined in paragraph (2)(b)(A) of this rule. (ii) The definition of a restaurant includes a caterer which delivers or serves product in meals, or as entrees, only to individual consumers and otherwise meets the requirements of this paragraph. (iii) For purposes of this paragraph, operations conducted at a restaurant central kitchen facility shall be considered as being conducted at a restaurant if the restaurant central kitchen prepares meat or meat food products that are ready to eat when they leave such facility (i.e., no further cooking or other preparation is needed, except that they may be reheated prior to serving if chilled during transportation), transported directly to a receiving restaurant by its own employees, without intervening transfer or storage, maintained in a safe, unadulterated condition during transportation, and served in meals or as entrees only to customers at restaurants, or through vending machines, owned or operated by the same person that owns or operates such facility, and which otherwise meets the requirements of this paragraph: Provided, That the requirements of OAR 603-029-1300 to 603-029-1315 apply to such facility. Provided further, That the exempted facility may be subject to inspection requirements under Division 29 for as long as the Department deems necessary, if the Department determines that the sanitary conditions or practices of the facility or the processing procedures or methods at the facility are such that any of its meat or meat products are rendered adulterated. When the Department has made such determination and subjected a restaurant central kitchen facility to such inspection requirements, the operator of such facility shall be afforded an opportunity to dispute the Department’s determination in a hearing pursuant to rules of practice which will be adopted for this proceeding. (E) Similar retail-type establishment: Any establishment which is a combination retail store and restaurant, and is regulated by the Department pursuant to the Memorandum of Understanding between the Department and the Oregon Health Authority; or other establishment as determined by the Department in specific cases. (F) Consumer: Any household consumer, hotel, restaurant, or similar institution as determined by the Department in specific cases. (c) Whenever any complaint is received by the Department from any person alleging that any retail store claiming exemption under this section (2) has been operated in violation of the conditions prescribed in OAR 603-029-0020 for exemption, and the Department, upon investigation of the complaint, has reason to believe that any such violation has occurred, it shall so notify the operator of the retail store and afford it reasonable opportunity to present its views informally with respect to the matter. Thereafter, if the Department still has reason to believe that such a violation has occurred, and that a requirement that the operator keep records concerning the operations of the retail store would effectuate the purposes of ORS chapter 603 and these Division 29 rules, the Department shall order the operator to maintain complete, accurate, and legible records of total monthly purchases and of total monthly sales of meat, meat byproducts, and meat products, in terms of dollar values of the products involved. Such records shall separately show total sales to household consumers and total sales to other consumers and shall be maintained for the period prescribed in OAR 603-029-1310. If the operator maintains copies of bills of lading, receiving and shipping invoices, warehouse receipts, or similar documents which give the information required herein, additional records are not required by this subsection. (4)(a) The Division 29 rules pertaining to inspection of the preparation of products do not apply to meat pizzas containing meat product ingredients which were prepared, inspected, and passed in a cured or cooked form as ready-to-eat (i.e., no further cooking or other preparation is needed) in compliance with the requirements of these Division 29 rules, if the meat pizzas are to be served in public institutions or private nonprofit institutions, provided that the meat pizzas are ready-to-eat (i.e., no further cooking or other preparation is needed, except that they may be reheated prior to serving if chilled during transportation), transported directly to the receiving institution by employees of the preparing firm, receiving institution, or a food service management company contracted to conduct food service at the public or private nonprofit institution, without intervening transfer or storage. The rules in OAR chapter 603, division 25, apply to any such institutions that are under the Department’s jurisdiction. (b) For purposes of this subsection, the term “private nonprofit institution” means “a corporation, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and which does not participate in, or intervene in (including the publishing or distribution of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.” (c)(A) The Department may withdraw or modify the exemption set forth in OAR 603-029-0020(4)(a) for a particular establishment when it determines that such action is necessary to ensure food safety and public health. Before such action is taken, the establishment shall be notified, in writing, of the reasons for the proposed action and shall be given an opportunity to respond, in writing, to the Department within 20 days after notification of the proposed action. The written notification shall be served on the owner or operator of the establishment either personally or by registered or certified mail. (B) If the establishment does not respond to the written notification regarding the withdrawal or modification of the exemption, or if the Department is not satisfied with the establishment’s response, the Department may issue a written Notice of Withdrawal or Modification of Exemption to the establishment. The Notice of Withdrawal or Modification of Exemption shall: (i) State the effective date of the action(s); (ii) Describe the reasons for the action(s); (iii) Identify the products or processes affected by the action(s); (iv) Advise the establishment that it may challenge the action by requesting that a supervisor review the propriety of the action; and (v) Comply with the requirements of ORS 183.415. (C) The establishment may file a written request for a hearing with the Department within 20 days of issuance of the Notice of Withdrawal or Modification of Exemption. If the establishment timely requests a hearing, such hearing will be conducted in accordance with the procedures for contested cases set forth in ORS chapter 183 and OAR chapter 137, division 3. (D) If the Department determines that the condition prompting the Notice of Withdrawal or Modification of Exemption poses a serious danger to the public health or safety, the Department may make the Notice of Withdrawal or Modification of Exemption effective immediately. In such circumstances, OAR 137-003-0560 is applicable. (5) The adulteration and misbranding provisions of these Division 29 rules, other than the requirement of the official inspection legend, apply to articles which are exempted from inspection or not required to be inspected under this rule. (6) The Department may in specific classes of cases waive for limited periods any provisions of these Division 29 rules in order to permit appropriate and necessary action in the event of a public health emergency or to permit experimentation so that new procedures, equipment, and/or processing techniques may be tested to facilitate definite improvements: Provided, That such waivers of the provisions of such rules are not in conflict with the purposes or provisions of ORS chapter 619. Statutory/Other Authority: ORS 603.085, ORS 619.042 & ORS 619.046 Statutes/Other Implemented: ORS 603.085, ORS 619.042 & ORS 619.046 History: DOA 19-2022, adopt filed 07/27/2022, effective 07/28/2022