I think we need some context to answer the first one fully, but is it possible the person saying that works in a restaurant or some kind of place where they make food? If so, he's saying he's allowed to eat the product that is being made.

State of the art means that the technology or the methods are very current. State-of-the-art medical diagnostics might include that three-dimentional full body scan, for example. Using a wireless devise to stay in touch with your office while you are traveling is state of the art - having to pull into a parking lot to use a pay phone is not.