103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1266 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED: 815 ILCS 338/5815 ILCS 338/25 new Amends the Fair Food and Retail Delivery Act. Provides that beginning January 1, 2024, no third-party delivery service may charge a merchant a fee, commission, or charge per order through a digital network that totals more than 15% of the purchase price of the order, unless: (1) the third-party delivery service offers all merchants the option to obtain core delivery services for a fee, commission, or charge not to exceed 15% of the purchase price of the order without requiring the purchase of additional services; and (2) no later than November 1, 2023, the third-party delivery service notifies all merchants that have an existing contract with the third-party delivery service of this option. Defines "core delivery service". Effective immediately. LRB103 25000 SPS 51334 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1266 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED: 815 ILCS 338/5815 ILCS 338/25 new 815 ILCS 338/5 815 ILCS 338/25 new Amends the Fair Food and Retail Delivery Act. Provides that beginning January 1, 2024, no third-party delivery service may charge a merchant a fee, commission, or charge per order through a digital network that totals more than 15% of the purchase price of the order, unless: (1) the third-party delivery service offers all merchants the option to obtain core delivery services for a fee, commission, or charge not to exceed 15% of the purchase price of the order without requiring the purchase of additional services; and (2) no later than November 1, 2023, the third-party delivery service notifies all merchants that have an existing contract with the third-party delivery service of this option. Defines "core delivery service". Effective immediately. LRB103 25000 SPS 51334 b LRB103 25000 SPS 51334 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1266 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED: 815 ILCS 338/5815 ILCS 338/25 new 815 ILCS 338/5 815 ILCS 338/25 new 815 ILCS 338/5 815 ILCS 338/25 new Amends the Fair Food and Retail Delivery Act. Provides that beginning January 1, 2024, no third-party delivery service may charge a merchant a fee, commission, or charge per order through a digital network that totals more than 15% of the purchase price of the order, unless: (1) the third-party delivery service offers all merchants the option to obtain core delivery services for a fee, commission, or charge not to exceed 15% of the purchase price of the order without requiring the purchase of additional services; and (2) no later than November 1, 2023, the third-party delivery service notifies all merchants that have an existing contract with the third-party delivery service of this option. Defines "core delivery service". Effective immediately. LRB103 25000 SPS 51334 b LRB103 25000 SPS 51334 b LRB103 25000 SPS 51334 b A BILL FOR HB1266LRB103 25000 SPS 51334 b HB1266 LRB103 25000 SPS 51334 b HB1266 LRB103 25000 SPS 51334 b 1 AN ACT concerning business. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Fair Food and Retail Delivery Act is 5 amended by changing Section 5 and by adding Section 25 as 6 follows: 7 (815 ILCS 338/5) 8 Sec. 5. Definitions. As used in this Act: 9 "Agreement" means a written agreement between a merchant 10 and a third-party delivery service. 11 "Core delivery services" means services provided by a 12 third-party delivery service that: (i) lists a merchant and 13 makes the merchant discoverable on all modalities or platforms 14 offered by the third-party delivery service, including, but 15 not limited to, a website, a mobile application, or other 16 Internet service where a third-party delivery service lists 17 merchants; and (ii) facilitates or performs the delivery of 18 food or beverages from merchants to customers through 19 employees or independent contractors of the third-party 20 delivery service or merchant. "Core delivery service" does not 21 include any other service that may be provided by a 22 third-party delivery service to a merchant, including, but not 23 limited to, advertising services, search engine optimization, 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1266 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED: 815 ILCS 338/5815 ILCS 338/25 new 815 ILCS 338/5 815 ILCS 338/25 new 815 ILCS 338/5 815 ILCS 338/25 new Amends the Fair Food and Retail Delivery Act. Provides that beginning January 1, 2024, no third-party delivery service may charge a merchant a fee, commission, or charge per order through a digital network that totals more than 15% of the purchase price of the order, unless: (1) the third-party delivery service offers all merchants the option to obtain core delivery services for a fee, commission, or charge not to exceed 15% of the purchase price of the order without requiring the purchase of additional services; and (2) no later than November 1, 2023, the third-party delivery service notifies all merchants that have an existing contract with the third-party delivery service of this option. Defines "core delivery service". Effective immediately. LRB103 25000 SPS 51334 b LRB103 25000 SPS 51334 b LRB103 25000 SPS 51334 b A BILL FOR 815 ILCS 338/5 815 ILCS 338/25 new LRB103 25000 SPS 51334 b HB1266 LRB103 25000 SPS 51334 b HB1266- 2 -LRB103 25000 SPS 51334 b HB1266 - 2 - LRB103 25000 SPS 51334 b HB1266 - 2 - LRB103 25000 SPS 51334 b 1 business consulting, or credit card processing. 2 "Customer" means the person, business, or other entity 3 that places an order for a merchant's products through a 4 digital network. 5 "Digital network" means a third-party delivery service's 6 Internet site or online-enabled application, software, or 7 system that allows a customer to view, search, and purchase 8 products for delivery by a third-party delivery service to a 9 customer. 10 "Likeness" means identifiable symbols attributed and 11 easily identified as belonging to a specific merchant or 12 retailer. 13 "Merchant" means a restaurant, bar, or other retail 14 entity. 15 "Third-party delivery service" means a company, 16 organization, person, or entity outside of the operation of 17 the merchant's business, not wholly owned by the merchant, 18 that provides delivery services to customers through a digital 19 network. 20 "Third-party delivery service driver" means an individual 21 that provides delivery services on behalf of a third-party 22 delivery service to customers. 23 (Source: P.A. 102-1056, eff. 1-1-23.) 24 (815 ILCS 338/25 new) 25 Sec. 25. Fee cap for core delivery services. Beginning HB1266 - 2 - LRB103 25000 SPS 51334 b HB1266- 3 -LRB103 25000 SPS 51334 b HB1266 - 3 - LRB103 25000 SPS 51334 b HB1266 - 3 - LRB103 25000 SPS 51334 b 1 January 1, 2024, no third-party delivery service may charge a 2 merchant a fee, commission, or charge per order through a 3 digital network that totals more than 15% of the purchase 4 price of the order, unless: 5 (1) the third-party delivery service offers all 6 merchants the option to obtain core delivery services for 7 a fee, commission, or charge not to exceed 15% of the 8 purchase price of the order without requiring the purchase 9 of additional services; and 10 (2) no later than November 1, 2023, the third-party 11 delivery service notifies all merchants that have an 12 existing contract with the third-party delivery service of 13 the option described in paragraph (1). 14 Section 99. Effective date. This Act takes effect upon 15 becoming law. HB1266 - 3 - LRB103 25000 SPS 51334 b