(a) (1) The Director of the Department of Health shall, by regulation and under such conditions as to labeling, sanitary standards, practices, and procedures as he or she may prescribe, exempt from specific provisions of this subchapter:

(A) Livestock producers with respect to livestock carcasses and parts thereof, and meat food products, processed by them from livestock of their own raising on their own farms and used by them for personal or private consumption, but in no instance where the product is to be offered or used for public consumption;

(B) Any person engaged in slaughtering livestock or processing livestock carcasses or parts thereof or meat food products for intrastate commerce and the articles so processed by the person, whenever the director determines that it would be impracticable to provide inspection and that the exemption will aid in the effective administration of this subchapter;

(C) Persons slaughtering livestock or otherwise processing or handling livestock carcasses or parts thereof, or meat food products, which have been or are to be processed as required by recognized religious dietary laws, to the extent that the director determines is necessary to avoid conflict with the requirements while still effectuating the purposes of this subchapter; and

(D) Any establishment engaged in slaughtering livestock or processing livestock carcasses or parts thereof, or meat food products for intrastate commerce, and the articles so processed by the establishment when the establishment is subject to inspection under a city ordinance which sets standards in conformity with the minimum standards determined by the director.

(2) The director may, by order, suspend or terminate any exemption under this section with respect to any person whenever he or she finds that the action will aid in effectuating the purposes of this subchapter.

(b) This subchapter shall not apply to any act or transaction subject to regulation under the Federal Meat Inspection Act, where the standards required under the federal act are in conformity with the minimum standards determined by the director.

(c)

(1) This subchapter shall not apply to the custom slaughtering by any person, firm, or corporation of cattle, sheep, swine, or goats delivered by the owner thereof for the slaughter and the preparation by the slaughterer and transportation in commerce of the carcass parts thereof, meat, and food products of the animals, exclusively for use in the household of the owner by him or her and members of his or her household and his or her nonpaying guests and employees.

(2) However, the custom slaughterer or processor must not engage in the business of buying or selling any carcass, parts thereof, meat, or food products of any cattle, sheep, swine, goats, or equines capable of use as human food except those products which have been inspected and passed for wholesomeness under continuous state or federal board of agriculture inspection and are properly marked or labeled with the official inspection legends of the appropriate agency.

(3) To maintain entitlement for exemption:

(A) The custom establishment must comply with the regulations which the director is authorized to promulgate to assure that any carcasses, parts thereof, meat, or meat food products prepared or any containers or packages containing uninspected, exempted custom products are separated at all times from inspected carcasses, parts thereof, or meat, or meat food products prepared for sale;

(B) All uninspected products prepared on an exempted custom basis must be plainly marked "Not For Sale" immediately after being prepared and kept so identified until delivered to the owner;

(C) The establishment conducting the exempted custom operation must be maintained and operated in a sanitary manner; and

(D) The products so prepared must not be adulterated, mislabeled, or misbranded according to the provisions of this subchapter.

(d) This subchapter shall not affect any existing right of cities or towns to levy occupation taxes or license fees against establishments covered in this subchapter.