Pilot program to support custom slaughter establishments

(a) In general (1) State operated pilot program Upon the receipt of an application from a custom exempt facility and subject to the requirements specified in subsection (c), a State department of agriculture may operate a pilot program to allow such custom facility to sell slaughtered meat and meat food products (referred to in this section as meat products) directly to consumers within the State in which the facility is located in accordance with the pilot program. (2) Lack of a state pilot program If a State department of agriculture does not elect to operate a pilot program, the Secretary shall, upon request from a custom exempt facility in such a State, operate a pilot program administered by the Secretary for that State in accordance with this section. (b) Allowable number of facilities (1) Initial approval Except as provided in paragraph (2)— (A) a State department of agriculture may approve not more than 5 facilities in such State for participation in a pilot program established under subsection (a)(1); and (B) the Secretary may approve not more than 10 facilities to participate in all pilot programs established under subsection (a)(2). (2) Subsequent approval of facilities Not less than 2 years after the establishment of a pilot program, a State department of agriculture or the Secretary may, if no product produced at a facility that was initially approved under paragraph (1) for participation in such pilot program has been subject to an emergency action under subsection (f) during the 2-year period following such establishment, approve— (A) in the case of a State department of agriculture, not more than 5 additional facilities in the respective State; and (B) in the case of the Secretary, not more than 10 additional facilities in all States. (c) Pilot program requirements A pilot program established under this section shall, at a minimum, require— (1) that meat products sold under the pilot program are— (A) sold directly to consumers within the State from— (i) the owner of the animals from which such meat products are derived; or (ii) the custom exempt facility at which the meat products were processed; (B) not eligible for re-sale; and (C) clearly labeled to indicate— (i) the name and address of the facility at which the meat products were processed; (ii) the name and address of the owner of the animals from which such meat products are derived; (iii) the location where animals from which such meat products are derived were raised; (iv) the date of slaughter of such animals and the period of time over which the owner raised such animals; (v) that such meat products were not subject to Federal inspection; and (vi) that such meat products shall not be resold; (2) that custom exempt facilities participating in the pilot program comply with— (A) Public Law 85–765 (7 U.S.C. 1901 et seq.; commonly known as the Humane Methods of Slaughter Act of 1958); (B) applicable State and local laws; (C) section 23(d) of the Federal Meat Inspection Act (21 U.S.C. 623(d)); and (D) Federal regulations pertaining to— (i) sanitation standards and record keeping record-keeping requirements for custom exempt facilities; and (ii) the handling and disposition of specified risk materials; (3) that custom exempt facilities participating in the pilot program be subject to onsite inspection by the Secretary to ensure compliance with the requirements specified in paragraphs (1) and (2); and (4) that custom exempt facilities participating in the pilot program be subject to onsite inspection at least annually by the local authority responsible for restaurant inspections or the State department of agriculture. (d) Implementation Not later than 90 days after the date of the enactment of this Act, the Secretary shall issue, and make publicly available, guidance for participation in a pilot program established pursuant to this section. (e) Ineligibility An establishment subject to inspection by the Secretary under the Federal Meat Inspection Act (21 U.S.C. 601 et seq.) or operating pursuant to a State meat inspection program authorized under section 301 of the Federal Meat Inspection Act (21 U.S.C. 661) shall not be eligible to participate in a pilot program established pursuant to this section. (f) Authority for emergency action If the Secretary has credible evidence that a meat product produced at a custom exempt facility participating in a pilot program established pursuant to this section is adulterated, the Secretary— (1) shall, pursuant to the Federal Meat Inspection Act (21 U.S.C. 601 et seq.), take such actions as may be necessary to address the risk to public health posed by such products; and (2) may terminate the participation of a custom exempt facility in a pilot program established pursuant to this section. (g) Report required (1) Reports by State departments of agriculture to Secretary Beginning September 30, 2026, and each fiscal year thereafter until September 30, 2031, each State department of agriculture operating a pilot program pursuant to this section shall submit to the Secretary a report detailing, with respect to each such pilot program within the relevant State for the preceding fiscal year— (A) the number and location of persons or custom exempt facilities selling meat products under each such pilot program; (B) the outcomes of each such pilot program; (C) any instances in which a meat product was subject to an emergency action under subsection (f); and (D) aggregated data on the volume of meat being processed under such pilot program. (2) Report by Secretary to Congress Not later than 2 years after initiating a pilot program under this section, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report detailing— (A) the information received from participating State departments of agriculture under paragraph (1); and (B) for any custom exempt facilities participating in a pilot program established by the Secretary pursuant to subsection (a)(2)— (i) the number and location of persons or custom exempt facilities selling products pursuant to such pilot program; (ii) the outcomes of such pilot program; and (iii) any instances in which a meat product was subject to an emergency action under subsection (f). (h) Custom exempt facility defined In this section, the term custom exempt facility means an establishment engaged in the slaughter of animals and the preparation of the carcasses, parts thereof, meat, and meat food products for commerce that is not subject to the Federal inspection requirements under title I of the Federal Meat Inspection Act (21 U.S.C. 601 et seq.). (i) Sunset A State and the Secretary may not operate a pilot program under this section on or after September 30, 2031, and no facility that is exempt from inspection under the Federal Meat Inspection Act (21 U.S.C. 601 et seq.) pursuant to this section shall be exempt from that inspection on or after September 30, 2031.