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| 2 | 2 | | HOUSE DOCKET, NO. 4004 FILED ON: 1/17/2025 |
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| 3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 3774 |
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| 4 | 4 | | The Commonwealth of Massachusetts |
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| 5 | 5 | | _________________ |
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| 6 | 6 | | PRESENTED BY: |
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| 7 | 7 | | Daniel J. Ryan |
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| 8 | 8 | | _________________ |
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| 9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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| 10 | 10 | | Court assembled: |
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| 11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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| 12 | 12 | | An Act relative to third party delivery fees. |
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| 13 | 13 | | _______________ |
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| 14 | 14 | | PETITION OF: |
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| 15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Daniel J. Ryan2nd Suffolk1/17/2025 1 of 3 |
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| 16 | 16 | | HOUSE DOCKET, NO. 4004 FILED ON: 1/17/2025 |
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| 17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 3774 |
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| 18 | 18 | | By Representative Ryan of Boston, a petition (accompanied by bill, House, No. 3774) of Daniel |
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| 19 | 19 | | J. Ryan relative to third party delivery fees and distributions to cities and towns for transportation |
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| 20 | 20 | | infrastructure. Transportation. |
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| 21 | 21 | | The Commonwealth of Massachusetts |
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| 22 | 22 | | _______________ |
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| 23 | 23 | | In the One Hundred and Ninety-Fourth General Court |
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| 24 | 24 | | (2025-2026) |
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| 25 | 25 | | _______________ |
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| 26 | 26 | | An Act relative to third party delivery fees. |
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| 27 | 27 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 28 | 28 | | of the same, as follows: |
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| 29 | 29 | | 1 SECTION 1. Section 1 of Mass General Laws Chapter 159B is amended by adding the |
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| 30 | 30 | | 2following definitions: |
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| 31 | 31 | | 3 "Covered establishment", a restaurant or other eating or drinking establishment offering |
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| 32 | 32 | | 4same-day food or drink for sale in a single commercial transaction through any third-party |
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| 33 | 33 | | 5delivery service platform. |
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| 34 | 34 | | 6 "Customer", an individual using a third-party delivery service platform to place an online |
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| 35 | 35 | | 7order. |
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| 36 | 36 | | 8 “Delivery -assessments”, the fee paid by the customer to the third party delivery service |
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| 37 | 37 | | 9company. |
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| 38 | 38 | | 10 ''Department'', the department of public utilities. 2 of 3 |
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| 39 | 39 | | 11 "Online order", an order for food or drinks placed by a customer through a third-party |
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| 40 | 40 | | 12delivery service platform provided by a third-party delivery service company for pickup or |
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| 41 | 41 | | 13delivery in the commonwealth. |
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| 42 | 42 | | 14 "Purchase price", the menu price publicly offered on the third-party delivery service |
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| 43 | 43 | | 15platform by a covered establishment. The purchase price shall not include any taxes, gratuities or |
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| 44 | 44 | | 16other fees that may make up the total cost charged to the customer for an online order. |
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| 45 | 45 | | 17 "Third-party delivery service company", a corporation, partnership, sole proprietorship or |
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| 46 | 46 | | 18other entity qualified to do business in the commonwealth that is engaged in facilitating same- |
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| 47 | 47 | | 19day delivery or pickup of food and beverages through a third-party delivery service platform for |
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| 48 | 48 | | 2020 or more separately owned and operated covered establishments. |
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| 49 | 49 | | 21 SECTION 2. Said chapter 159B is hereby further amended by adding the following |
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| 50 | 50 | | 22section:- |
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| 51 | 51 | | 23 SECTION 23. (a)Annually, not later than February 1, each third-party delivery service |
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| 52 | 52 | | 24company shall submit to the director of the number of deliveries from the previous calendar year |
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| 53 | 53 | | 25that originated in each city or town and the amount collected from delivery-assessments. |
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| 54 | 54 | | 26Notwithstanding any other law, a delivery assessment of no less than $.50 per order shall be |
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| 55 | 55 | | 27applied to orders. The delivery assessment shall not apply to items that are not subject to state |
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| 56 | 56 | | 28sales tax. |
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| 57 | 57 | | 29 (b) The department shall have the ability to adjust the delivery assessment no less than |
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| 58 | 58 | | 30every two years based on inflation. 3 of 3 |
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| 59 | 59 | | 31 (b) The division shall: (i) proportionately distribute ½ of the amount received from the |
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| 60 | 60 | | 32fund to a city or town based on the number of rides from the previous calendar year that |
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| 61 | 61 | | 33originated within that city or town to address the impact of transportation network services on |
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| 62 | 62 | | 34municipal roads, bridges and other transportation infrastructure or any other public purpose |
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| 63 | 63 | | 35substantially related to the operation of transportation network services in the city or town |
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| 64 | 64 | | 36including, but not limited to, the complete streets program established in section 1 of chapter 90I |
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| 65 | 65 | | 37of the General Laws and other programs that support alternative modes of transportation; |
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| 66 | 66 | | 38provided that, if the amount of the distribution to a city or town is $25,000 or less, the chief |
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| 67 | 67 | | 39executive officer as defined in section 7 of chapter 4 of the General Laws, may expend such |
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| 68 | 68 | | 40funds for these purposes without further appropriation; and (ii) distribute 1/2 of the amount |
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| 69 | 69 | | 41collected to the Commonwealth Transportation Fund established in section 2ZZZ of chapter 29 |
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| 70 | 70 | | 42of the General Laws. |
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