| 1 | 1 | | 87R1287 SRA-D |
|---|
| 2 | 2 | | By: Sherman, Sr. H.B. No. 598 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the fees charged by a third-party food delivery service |
|---|
| 8 | 8 | | to a food service establishment; authorizing a civil penalty. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
|---|
| 11 | 11 | | amended by adding Chapter 114 to read as follows: |
|---|
| 12 | 12 | | CHAPTER 114. FEES CHARGED BY THIRD-PARTY FOOD DELIVERY SERVICES |
|---|
| 13 | 13 | | Sec. 114.0001. DEFINITIONS. In this chapter: |
|---|
| 14 | 14 | | (1) "Delivery fee" means a fee charged to a food |
|---|
| 15 | 15 | | service establishment by a third-party food delivery service for |
|---|
| 16 | 16 | | providing the service of delivering food or beverages from the food |
|---|
| 17 | 17 | | service establishment to a consumer. The term does not include a |
|---|
| 18 | 18 | | fee for: |
|---|
| 19 | 19 | | (A) listing or advertising the food service |
|---|
| 20 | 20 | | establishment on the third-party food delivery service platform; or |
|---|
| 21 | 21 | | (B) processing an order that is not delivered by |
|---|
| 22 | 22 | | the third-party food delivery service. |
|---|
| 23 | 23 | | (2) "Food service establishment" means a place where |
|---|
| 24 | 24 | | food is provided for individual portion service directly to the |
|---|
| 25 | 25 | | consumer, regardless of whether: |
|---|
| 26 | 26 | | (A) the food is provided free of charge or sold; |
|---|
| 27 | 27 | | (B) consumption of the food occurs on or off the |
|---|
| 28 | 28 | | premises; or |
|---|
| 29 | 29 | | (C) the food is provided from a pushcart, stand, |
|---|
| 30 | 30 | | or vehicle. |
|---|
| 31 | 31 | | (3) "Price of an order" means the total price of the |
|---|
| 32 | 32 | | items contained in an order that are listed on the menu of the food |
|---|
| 33 | 33 | | service establishment where the order was placed. The term does not |
|---|
| 34 | 34 | | include taxes, gratuities, or any other fees that may make up the |
|---|
| 35 | 35 | | total cost to the consumer of an order. |
|---|
| 36 | 36 | | (4) "Third-party food delivery service" means a |
|---|
| 37 | 37 | | website, mobile application, or other Internet-based service that |
|---|
| 38 | 38 | | offers or arranges for the same-day delivery or same-day pickup of |
|---|
| 39 | 39 | | food or beverages from at least 20 food service establishments that |
|---|
| 40 | 40 | | are owned and operated by different persons. |
|---|
| 41 | 41 | | Sec. 114.0002. PROHIBITED FEES. A third-party food |
|---|
| 42 | 42 | | delivery service may not charge a food service establishment: |
|---|
| 43 | 43 | | (1) a delivery fee in an amount that is more than 15 |
|---|
| 44 | 44 | | percent of the price of an order placed through the third-party food |
|---|
| 45 | 45 | | delivery service; or |
|---|
| 46 | 46 | | (2) a fee other than a delivery fee in an amount that |
|---|
| 47 | 47 | | is more than five percent of the price of an order placed through |
|---|
| 48 | 48 | | the third-party food delivery service. |
|---|
| 49 | 49 | | Sec. 114.0003. CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A |
|---|
| 50 | 50 | | person who violates Section 114.0002 is liable to this state for a |
|---|
| 51 | 51 | | civil penalty not to exceed $1,000 for each violation. |
|---|
| 52 | 52 | | (b) The attorney general may bring an action in the name of |
|---|
| 53 | 53 | | the state to: |
|---|
| 54 | 54 | | (1) recover a civil penalty under this section; or |
|---|
| 55 | 55 | | (2) restrain or enjoin the person from violating |
|---|
| 56 | 56 | | Section 114.0002. |
|---|
| 57 | 57 | | (c) The action may be brought in a district court in: |
|---|
| 58 | 58 | | (1) Travis County; or |
|---|
| 59 | 59 | | (2) a county in which any part of the violation or |
|---|
| 60 | 60 | | threatened violation occurs. |
|---|
| 61 | 61 | | (d) A civil penalty collected under this section shall be |
|---|
| 62 | 62 | | deposited in the state treasury to the credit of the general revenue |
|---|
| 63 | 63 | | fund. |
|---|
| 64 | 64 | | SECTION 2. This Act takes effect September 1, 2021. |
|---|