(a) The Secretary shall adopt rules and regulations exempting the following from the provisions of this subtitle pursuant to conditions he prescribes for sanitary standards, practices, and procedures:
(1) Any poultry products sold directly to consumers by any retail dealer in any retail store if the store does not perform processing operations other than cutting up poultry products on the premises;
(2) Any person who slaughters, processes, or otherwise handles any poultry or poultry product processed according to recognized religious dietary laws to the extent the Department determines necessary to avoid conflict with the laws while still effectuating the purposes of this subtitle;
(3) Any person who slaughters any poultry raised by him and processes and transports any poultry product exclusively for his use or for members of his household, or his nonpaying guests or employees;
(4) Custom slaughter by any person of any poultry delivered by the owner, if the poultry products are used exclusively by members of the owner’s household, his nonpaying guests, or employees, and if the custom slaughterer does not engage in the business of buying or selling poultry products capable of use as human food;
(5) Slaughtering and processing of poultry products by a poultry producer on his own premises if (i) the poultry is sound and healthy and raised on his premises, (ii) in lieu of any other labeling requirement, the poultry products are identified with the producer’s name and address, and (iii) they are not otherwise misbranded and are sound, clean, and fit for human food when distributed;
(6) Slaughtering of any sound, healthy poultry or processing of its poultry products by any person for direct distribution by him to household consumers, restaurants, hotels, and boarding houses for use in their dining rooms, or in preparation of meals for direct sale to consumers, if, in lieu of other labeling requirements, every distributed poultry product is identified with the processor’s name and address, and the poultry products are not otherwise misbranded and are sound, clean, and fit for human food when distributed;
(7) Small enterprises, including any poultry producer which slaughters or cuts up poultry for distribution in intrastate commerce as carcasses or parts of carcasses, if the Secretary determines that this exemption does not impair the protection of consumers from adulterated or misbranded poultry;
(8) Any operation of the type traditionally and usually conducted at any retail store, restaurant, or similar retail-type establishment, if it is conducted at one of these establishments for sale in normal retail quantities or service of these articles to consumers at the establishment, and if poultry or poultry products are not processed at the establishment for distribution in interstate commerce or are not subject to inspection under the federal Poultry Products Inspection Act; and
(9) Poultry raised by a poultry producer on his own farm if (i) he slaughters not more than 250 turkeys, or not more than an equivalent number of birds of other species during the calendar year for which this exemption is being determined (four birds of other species being deemed the equivalent of one turkey); (ii) he does not engage in buying or selling poultry products other than those produced from poultry raised on his own farm; and (iii) the poultry moves only in intrastate commerce.
(b) The exemptions in paragraphs (5) and (6), do not apply if the person, whose operation is exempted in the applicable paragraph, engages in the business of buying and selling poultry or poultry products other than those specified in this paragraph in the current calendar year. The exemptions of paragraphs (5), (6), and (7) also do not apply to any person who slaughters or processes a quantity of turkeys or birds of other species in the current calendar year which does not entitle an exemption under the federal Poultry Products Inspection Act.
(c) The adulteration and misbranding provisions of this subtitle, other than the requirement of the inspection legend, apply to articles which are exempted from inspection under this section, except as otherwise specified under subsections (a) and (b) of this section.
(d) The Secretary may suspend or terminate by order any exemption under this section with respect to any person if the Secretary finds that this action aids in effectuating the purposes of this subtitle.