87R1287 SRA-D
By: Sherman, Sr. H.B. No. 598
A BILL TO BE ENTITLED
AN ACT
relating to the fees charged by a third-party food delivery service
to a food service establishment; authorizing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 114 to read as follows:
CHAPTER 114. FEES CHARGED BY THIRD-PARTY FOOD DELIVERY SERVICES
Sec. 114.0001. DEFINITIONS. In this chapter:
(1) "Delivery fee" means a fee charged to a food
service establishment by a third-party food delivery service for
providing the service of delivering food or beverages from the food
service establishment to a consumer. The term does not include a
fee for:
(A) listing or advertising the food service
establishment on the third-party food delivery service platform; or
(B) processing an order that is not delivered by
the third-party food delivery service.
(2) "Food service establishment" means a place where
food is provided for individual portion service directly to the
consumer, regardless of whether:
(A) the food is provided free of charge or sold;
(B) consumption of the food occurs on or off the
premises; or
(C) the food is provided from a pushcart, stand,
or vehicle.
(3) "Price of an order" means the total price of the
items contained in an order that are listed on the menu of the food
service establishment where the order was placed. The term does not
include taxes, gratuities, or any other fees that may make up the
total cost to the consumer of an order.
(4) "Third-party food delivery service" means a
website, mobile application, or other Internet-based service that
offers or arranges for the same-day delivery or same-day pickup of
food or beverages from at least 20 food service establishments that
are owned and operated by different persons.
Sec. 114.0002. PROHIBITED FEES. A third-party food
delivery service may not charge a food service establishment:
(1) a delivery fee in an amount that is more than 15
percent of the price of an order placed through the third-party food
delivery service; or
(2) a fee other than a delivery fee in an amount that
is more than five percent of the price of an order placed through
the third-party food delivery service.
Sec. 114.0003. CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A
person who violates Section 114.0002 is liable to this state for a
civil penalty not to exceed $1,000 for each violation.
(b) The attorney general may bring an action in the name of
the state to:
(1) recover a civil penalty under this section; or
(2) restrain or enjoin the person from violating
Section 114.0002.
(c) The action may be brought in a district court in:
(1) Travis County; or
(2) a county in which any part of the violation or
threatened violation occurs.
(d) A civil penalty collected under this section shall be
deposited in the state treasury to the credit of the general revenue
fund.
SECTION 2. This Act takes effect September 1, 2021.