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Food Amendment (Kilojoule Labelling Scheme and Other Matters) Bill 2016

 Food Amendment (Kilojoule Labelling
  Scheme and Other Matters) Bill 2016

                          Introduction Print


                EXPLANATORY MEMORANDUM


                                 Clause Notes

                            Part 1--Preliminary
Clause 1     sets out the main purpose of the Bill, which is to amend the
             Food Act 1984--
               •       to provide for a kilojoule labelling scheme; and
               •       to make miscellaneous and technical amendments.

Clause 2     is the commencement provision. It provides that the Bill,
             except Parts 2 and 3, comes into operation on the day after Royal
             Assent. Parts 2 and 3, which provide for the kilojoule labelling
             scheme, come into operation on a day to be proclaimed or, if a
             provision of those Parts does not come into operation before
             1 July 2018, it comes into operation on that day.

Clause 3     states that in the Bill, the Food Act 1984 is called the Principal
             Act.

           Part 2--New Part IIA--Kilojoule labelling scheme
Clause 4     inserts new Part IIA--Kilojoule labelling scheme into the
             Principal Act.




581243                                  1      BILL LA INTRODUCTION 13/9/2016

 


 

Division 1--Definitions New section 18 sets out definitions of terms used in Part IIA. Key definitions include-- Floor area, in relation to a supermarket premises, means the continuous internal floor area that is used to display items available for sale and excludes any part available for consumption of food. For example, a cold storage area not accessible to consumers or an in-store café would be excluded in the calculation of floor area. This definition is key because the proprietor of an individual supermarket is only required to comply with the kilojoule labelling scheme if its premises has a floor area of over 1000 square metres (see section 18B(1)(b)). Menu means a list or other depiction of at least one standard food item (together with its name or price) that is printed or in electronic form, which may appear at the food premises where the food item is sold, or is visible at or before the point of sale at a drive-through facility, or is distributed or available other than at the food premises. For example, a menu which is available online or is distributed to letter boxes, which a customer may use to make a purchase electronically, by telephone or in person is included. However, an advertising board outside a food premises that is a general promotion for food items available inside without specifically naming or depicting a standard food item or its price (such as "pies sold here") is not a menu. Supermarket business means a food business which involves the sale of all of the 12 listed food items. Supermarket premises means a food premises at which a supermarket business operates, other than those parts that are a chain food premises. That means that if a chain food premises (within the meaning of section 18A) such as a coffee shop or sushi bar is located within a supermarket, the chain food premises is not considered part of the supermarket premises, and is not included in the floor area. However, the coffee shop or sushi bar will itself be required to comply with the kilojoule labelling scheme as applicable to chain food premises. New section 18A defines chain food premises for the purposes of Part IIA. Pursuant to subsection 18A(1), a chain food premises means a food premises (other than a supermarket premises) at which a food business sells at least one standard food item, and operates as part of a chain of food businesses. 2

 


 

Section 18A(2) sets out that a food business operates as part of a chain of food businesses if-- (a) the chain comprises of at least 20 food premises in Victoria, or 50 food premises in Australia, including at least one in Victoria; and (b) at least 2 of those premises sell the same standard food item; and (c) the food businesses operate under franchise agreements, the same trading name or brand or trademark, or are under common ownership or control. This is a key definition as a proprietor of a chain food premises is required to comply with the kilojoule labelling scheme. New section 18B defines chain supermarket for the purposes of Part IIA. Pursuant to section 18B(1), a chain supermarket means a supermarket premises at which a supermarket business sells at least one standard food item, operates as part of a chain of supermarket businesses and has a floor area of over 1000 square metres. Convenience-style stores (which often operate 24 hours a day and which may predominantly sell packaged food) will usually not be a chain supermarket for the purposes of the kilojoule labelling scheme. This may be because a particular convenience-style store does not sell all of the 12 items of food listed in the definition of supermarket business, or does not have a floor area of over 1000 square metres. Section 18B(2) sets out that a supermarket business operates as part of a chain of supermarket businesses if-- (a) the chain comprises of at least 20 supermarket premises in Victoria, or 50 supermarket premises in Australia, including at least one in Victoria; and (b) at least 2 of those premises sell the same standard food item; and (c) the supermarket businesses operate under franchise agreements, the same trading name or brand or trademark, or are under common ownership or control. This is a key definition as a proprietor of a chain supermarket is required to comply with the kilojoule labelling scheme. 3

 


 

New section 18C provides that a standard food item is an item of ready-to-eat food that is standardised for size and content and is for sale at either at least 2 chain food premises operating in the same chain, or 2 chain supermarkets operating in the same chain. Section 18C(2) sets out a list of foods which are not standard food items for the purposes of the kilojoule labelling scheme. These include certain nuts and fruit, alcoholic beverages, and food available for sale in a package containing a nutrition information panel. There is also an exception for a food item that is available for a period of 60 days or less at not more than 5 chain food premises or chain supermarkets in the same chain, and which has not been offered for sale previously. The purpose of this exception is to allow for trials of new items. Division 2--Requirement for proprietor of chain food premises to display kilojoule information Section 18D(1) requires a proprietor to display a statement about the average adult daily energy intake, and the average energy content of each standard food item sold at the chain food premises. This is an offence provision, with a penalty of 20 penalty units in the case of an individual and 100 penalty units in the case of a corporation. Section 18D(2) sets out how the average energy content of a standard food item is to be determined. Section 18D(3) provides that in any proceedings for an offence under this section, the defence of mistaken but reasonable belief as to the facts that constituted the offence is not available. This is consistent with the position in relation to the offences under Division 2 of Part II of the Principal Act, pursuant to section 17F. Section 18D(4) provides that, despite subsection (3), it is a defence if it is proved that the proprietor exercised all due diligence to prevent the commission of the offence. For example, a proprietor may be able to demonstrate due diligence if the proprietor displayed in good faith kilojoule labels provided by the head office of the chain food business that were later found to be incorrect. New section 18E sets out the detail about the manner and location of display of kilojoule information at a chain food premises. It includes a requirement to display the information in a prominent place in or on a display cabinet, stand or area. 4

 


 

Division 3--Requirement for proprietor of chain supermarket to display kilojoule information New section 18F requires the proprietor of a chain supermarket premises to display kilojoule information. Section 18F(1) sets out that the proprietor must display a statement about the average adult daily energy intake, and the average energy content of each standard food item or of 100g of the standard food item sold at the chain supermarket. This is an offence provision, with a penalty of 20 penalty units in the case of an individual and 100 penalty units in the case of a corporation. Section 18F(2) sets out how the average energy content of a standard food item is to be determined. Section 18F(3) provides that in any proceedings for an offence under this section, the defence of mistaken but reasonable belief as to the facts that constituted the offence is not available. This is consistent with the position in relation to the offences under Division 2 of Part II of the Principal Act, pursuant to section 17F. Section 18F(4) provides that, despite subsection (3), it is a defence if it is proved that the proprietor exercised all due diligence to prevent the commission of the offence. For example, a proprietor may be able to demonstrate due diligence if the proprietor displayed in good faith kilojoule labels provided by the head office of the chain supermarket business that were later found to be incorrect. New section 18G sets out the detail about the manner and location of display of kilojoule information at a chain supermarket. Chain supermarkets have the option of displaying the average energy content of each standard food item or per 100g of each standard food item. Division 4--Exemptions New section 18H provides for exemptions from the kilojoule labelling scheme. Standard food items sold by a cinema-run food business, such as a candy bar, are not subject to the scheme. Other exemptions include standard food items sold by catering businesses, vending machines, or temporary or mobile food premises such as a food van. 5

 


 

Part 3--Consequential amendments Clause 5 amends section 13 of the Principal Act. Section 13 prohibits false descriptions of food on a food label or packaging or in advertising during the course of promoting or selling the food. The effect of the amendment is that nothing in new Part IIA disturbs the operation of section 13. A proprietor who is subject to the kilojoule labelling scheme remains subject to section 13. A proprietor of a food premises who is not subject to the kilojoule labelling scheme but voluntarily displays kilojoule information also continues to be subject to section 13. Clause 6 amends section 17A of the Principal Act. Section 17A sets out instances of when food is falsely described. The effect of this amendment is that nothing in the new Part IIA disturbs the operation of section 17A. Clause 7 amends section 45A of the Principal Act, which provides that in any prosecution under the Act, the burden of proving the correctness of certain statements regarding food is on the person charged. The effect of the amendment is that section 45A does not apply to the offences in new Part IIA. Clause 8 inserts two new paragraphs into section 50AA of the Principal Act. This allows for a certificate signed by the Secretary relating to a matter which may be required to be proved in relation to the offences in new sections 18D and 18F to be evidence of the matter. Clause 9 inserts two new paragraphs into section 50AB of the Principal Act. This allows for a certificate signed by the Chief Executive Officer of a council relating to a matter which may be required to be proved in relation to the offences in new sections 18D and 18F to be evidence of the matter. Clause 10 amends section 51B of the Principal Act (which relates to the criminal liability of officers of bodies corporate) so that the section applies to new sections 18D and 18F. The effect of this amendment is that, if a body corporate commits one of the new offences, an officer of the body corporate also commits the offence. Section 51B provides for a defence of due diligence for an officer of a body corporate. 6

 


 

Clause 11 amends section 53B of the Principal Act to add a reference to new Part IIA in that section. The effect of this amendment is that a court is able to order corrective advertising if a person is found guilty of one of the new offences. Clause 12 amends Schedule 1 by inserting references to the new offences. The effect of this amendment is that the new offences are infringement offences within the meaning of the Infringements Act 2006, pursuant to section 56A of the Principal Act. The infringement penalties for the new offences are 2 penalty units for a natural person or 4 penalty units for a body corporate. Part 4--Other amendments and statute law revision Clause 13 amends section 20(5) of the Principal Act by removing the words "by or on behalf of the Crown". Section 20(5) currently prevents an authorised officer who is an environmental health officer from exercising powers or discharging functions under the Principal Act with respect to any food premises being operated by or on behalf of the Crown or on land that is not part of a municipal district, unless acting in accordance with a delegation from the Secretary. Since 2010, the Principal Act has provided that municipal councils are responsible for registration and monitoring of food premises operated by or on behalf of the Crown. The restriction in section 20(5) relating to a food premises that is operated by or on behalf of the Crown reflects the position prior to 2010, whereby the Secretary was responsible for the registration of such food premises. Clause 13 amends section 20(5) to reflect the changed position. Clause 14 corrects a cross-reference in section 28(b) of the Principal Act, so that the section will refer to an article destroyed or otherwise disposed of pursuant to section 26(5). Clause 15 amends item 1 of Schedule 1--Infringements of the Principal Act, to remove the reference to clause 24(1)(b) of Standard 3.2.2 of the Food Standards Code ("the Code"). Since Schedule 1 was inserted into the Principal Act, the Code has been amended. Clause 24(1)(b) of Standard 3.2.2 used to relate to assistance animals (such as guide dogs) and their presence in certain areas of a premises on which a food business 7

 


 

is in operation. It now refers to another matter that is not intended to be an infringement for the purposes of the Principal Act. The matters previously dealt with by clause 24(1)(b) of Standard 3.2.2 are now dealt with in clause 24(1)(a) of Standard 3.2.2, which is listed in column 2 of item 1 of the Schedule. Clause 16 makes amendments to the Principal Act to reflect recent changes to Department names that took effect on 1 January 2015. The effect of these changes is-- • "Department of Health and Human Services" is substituted for "Department of Health"; and • "Secretary DHHS" is substituted for "Secretary DH"; and • "Department of Economic Development, Jobs, Transport and Resources" is substituted for "Department of Primary Industries"; and • "Secretary DEDJTR" is substituted for "Secretary DPI". Part 5--Repeal of amending Act Clause 17 provides for the repeal of the amending Act on 1 July 2019. The repeal of the Act does not affect the continuing operation of the amendments made by this Act (see section 15(1) of the Interpretation of Legislation Act 1984). 8

 


 

 


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