§161-29 Exemptions. (a) The provisions of this chapter requiring inspection of the slaughtering of poultry and the processing of carcasses, parts thereof, and poultry products at establishments conducting those operations shall not apply:

(1) To the slaughtering by any person of poultry of the person's own raising, and the processing by the person of the carcasses, parts thereof, and poultry products of the poultry exclusively for use by the person and members of the person's household and the person's nonpaying guests and employees;

(2) To the slaughtering or processing of poultry or poultry products which are wholesome, unadulterated, and fit for human consumption by a producer on the producer's own premises and of the producer's own raising for sale to a consumer and received directly by the consumer on the producer's premises for exclusive use by the consumer and members of the consumer's household, the consumer's nonpaying guests, and employees; or

(3) To the custom slaughter by any person of poultry delivered by the owner thereof or the owner's agent for slaughter, and the processing by the slaughterer of the carcasses, parts thereof, and poultry product of the poultry, exclusively for use in the household of the owner, by the owner, and members of the owner's household and the owner's nonpaying guests and employees; provided that the custom slaughterer does not engage in the business of buying or selling any carcasses, parts thereof, of poultry or poultry products, capable of use as human food; and provided further that the slaughter of poultry and processing of poultry or poultry products shall be conducted in accordance with the sanitary conditions, record keeping, registration, and disease control provisions specified by rule.

(b) The transportation by commercial carrier of carcasses, parts thereof, poultry, or poultry products produced without inspection under subsection (a) is prohibited, except under permit issued by the board.

(c) The provisions of this chapter requiring inspection of poultry or poultry products shall not apply to operations of a type traditionally and usually conducted at retail stores or restaurants, when conducted at any retail store or restaurant or similar retail-type establishment for sale at the establishments in normal retail quantities or service of poultry or poultry products to consumers; provided that:

(1) The poultry or poultry products have been inspected and passed previously in compliance with this chapter; and

(2) The processing, handling, and storage of poultry or poultry products shall be conducted in accordance with sanitary conditions the board may specify by rule.

(d) In order to accomplish the objectives of this chapter, the board may by rule exempt operations which the board determines would best be exempted to further the purposes of this chapter, to the extent that the exemptions conform to the Poultry Products Inspection Act and the regulations thereunder.

(e) A person conducting custom exempt operations shall register with the board as a custom exempt operator under this subsection and shall obtain a permit for exemption from the board to conduct those operations. In its discretion, the board may refuse, withdraw, or modify any permit for exemption under this subsection if it determines that the action is necessary to effectuate the purposes of this chapter.

(f) The adulteration and misbranding provisions of this chapter, other than the requirement of the inspection legend, shall apply to poultry or poultry products which are not required to be inspected under this section. [L 1969, c 212, §21; gen ch 1985; am L 1993, c 92, §6]