Texas 2021 - 87th Regular

Texas Senate Bill SB911 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 911
	1	+	By: Hancock S.B. No. 911
	2	+	(Burrows, Pacheco)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the regulation of restaurants and third-party food
6	8		delivery services, including the issuance of certain alcoholic
7	9		beverage certificates to restaurants.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. Section 1.04, Alcoholic Beverage Code, is
10	12		amended by adding Subdivision (29) to read as follows:
11	13		(29) "Restaurant" means a business that:
12	14		(A) operates its own permanent food service
13	15		facility with commercial cooking equipment on its premises; and
14	16		(B) prepares and offers to sell multiple entrees
15	17		for consumption on or off the premises.
16	18		SECTION 2. Section 25.13(a-1), Alcoholic Beverage Code, as
17	19		effective September 1, 2021, is amended to read as follows:
18	20		(a-1) A holder of a wine and malt beverage retailer's permit
19	21		may be issued a food and beverage certificate by the commission if:
20	22		(1) the permit holder is a restaurant; or
21	23		(2) the commission finds that the receipts from the
22	24		sale of alcoholic beverages by the permit holder at the location are
23	25		60 percent or less of the total receipts from the location.
24	26		SECTION 3. Section 28.18(a-1), Alcoholic Beverage Code, is
25	27		amended to read as follows:
26	28		(a-1) A holder of a mixed beverage permit may be issued a
27	29		food and beverage certificate by the commission if:
28	30		(1) the permit holder is a restaurant; or
29	31		(2) the commission finds that the receipts from the
30	32		sale of alcoholic beverages by the permit holder at the location are
31	33		60 percent or less of the total receipts from the location.
32	34		SECTION 4. Section 32.23(a-1), Alcoholic Beverage Code, is
33	35		amended to read as follows:
34	36		(a-1) A holder of a private club registration permit may be
35	37		issued a food and beverage certificate by the commission if:
36	38		(1) the permit holder is a restaurant; or
37	39		(2) the commission finds that the receipts from the
38	40		service of alcoholic beverages by the permit holder at the location
39	41		are 60 percent or less of the total receipts from the location.
40	42		SECTION 5. Section 69.16(a-1), Alcoholic Beverage Code, is
41	43		amended to read as follows:
42	44		(a-1) A holder of a retail dealer's on-premise license may
43	45		be issued a food and beverage certificate by the commission if:
44	46		(1) the license holder is a restaurant; or
45	47		(2) the commission finds that the receipts from the
46	48		sale of alcoholic beverages by the license holder at the location
47	49		are 60 percent or less of the total receipts from the location.
48	50		SECTION 6. Subtitle C, Title 5, Business & Commerce Code, is
49	51		amended by adding Chapter 114 to read as follows:
50	52		CHAPTER 114. THIRD-PARTY FOOD DELIVERY SERVICES
51	53		Sec. 114.0001. DEFINITIONS. In this chapter:
52	54		(1) "Mark" and "trade name" have the meanings assigned
53	55		by Section 16.001.
54	56		(2) "Restaurant" has the meaning assigned by Section
55	57		1.04, Alcoholic Beverage Code.
56	58		(3) "Third-party food delivery service" means a
57	59		website, mobile application, or other service that acts as an
58	60		intermediary between consumers and multiple restaurants not owned
59	61		or operated by the service to arrange for the delivery or pickup of
60	62		food or beverages from those restaurants.
61	63		Sec. 114.0002. PROHIBITED ACTS. A third-party food
62	64		delivery service may not:
63	65		(1) arrange for the delivery or pickup of food or
64	66		beverages from a restaurant in this state unless the service has
65	67		filed a certificate of formation or registration with the secretary
66	68		of state;
67	69		(2) use a restaurant's mark or trade name in connection
68	70		with the service in a misleading way that suggests the restaurant
69	71		sponsors or endorses the service;
70	72		(3) add a restaurant removed from the service under
71	73		Section 114.0003 to the service unless the service has received
72	74		written consent from the restaurant to add the restaurant to the
73	75		service; or
74	76		(4) charge a restaurant a fee or require the
75	77		restaurant to absorb a fee in connection with the service's
76	78		arrangement of an order from that restaurant unless the restaurant
77	79		has agreed to pay or absorb the fee under an agreement that meets
78	80		the requirements of Section 114.0004.
79	81		Sec. 114.0003. REQUIREMENTS FOR SERVICE. A third-party
80	82		food delivery service shall:
81	83		(1) provide a consumer a clearly identified mechanism
82	84		for the consumer to express concerns or complaints directly to the
83	85		service regarding an order arranged through the service; and
84	86		(2) remove a restaurant from the service not later
85	87		than the 10th day after the date the service receives a request from
86	88		the restaurant to be removed from the service if the service does
87	89		not have an agreement with the restaurant that meets the
88	90		requirements of Section 114.0004.
89	91		Sec. 114.0004. TERMS OF AGREEMENT WITH RESTAURANT. (a) An
90	92		agreement between a third-party food delivery service and a
91	93		restaurant must:
92	94		(1) be in writing;
93	95		(2) expressly authorize the service to arrange for the
94	96		delivery or pickup of food or beverages from that restaurant; and
95	97		(3) clearly state each fee, including a commission or
96	98		other charge, that the restaurant will be required to pay to the
97	99		service or absorb in connection with an order arranged through the
98	100		service.
99	101		(b) The agreement may not include any provision that
100	102		requires the restaurant to indemnify the third-party food delivery
101	103		service, including an employee or independent contractor of the
102	104		service, for claims or liabilities resulting from acts or omissions
103	105		of the service or of an employee or independent contractor of the
104	106		service.
105	107		(c) A provision in an agreement that violates Subsection (b)
106	108		is void and unenforceable.
107	109		Sec. 114.0005. PRIVATE CAUSE OF ACTION. (a) If a
108	110		third-party food delivery service violates this chapter, a
109	111		restaurant aggrieved by the violation may bring an action against
110	112		the service for:
111	113		(1) injunctive relief; and
112	114		(2) damages in an amount equal to:
113	115		(A) the restaurant's actual damages arising from
114	116		the violation; or
115	117		(B) the service's profits arising from the
116	118		violation.
117	119		(b) If the court finds that the defendant committed the
118	120		violation knowingly or in bad faith, the court may award the
119	121		plaintiff:
120	122		(1) exemplary damages in an amount that is not more
121	123		than three times the sum of:
122	124		(A) the plaintiff's actual damages; and
123	125		(B) the defendant's profits arising from the
124	126		violation; and
125	127		(2) the plaintiff's reasonable attorney's fees.
126	128		SECTION 7. Chapter 250, Local Government Code, is amended
127	129		by adding Section 250.011 to read as follows:
128	130		Sec. 250.011. THIRD-PARTY FOOD DELIVERY SERVICES. (a) In
129	131		this section, "third-party food delivery service" has the meaning
130	132		assigned by Section 114.0001, Business & Commerce Code.
131	133		(b) Notwithstanding any other law, a municipality or county
132	134		may not adopt or enforce an ordinance or regulation to the extent
133	135		that the ordinance or regulation affects the terms of agreements
134	136		between third-party food delivery services and restaurants that
135	137		meet the requirements of Section 114.0004(a), Business & Commerce
136	138		Code.
137	139		SECTION 8. Section 114.0004, Business & Commerce Code, as
138	140		added by this Act, applies only to an agreement entered into or
139	141		renewed on or after the effective date of this Act.
140	142		SECTION 9. This Act takes effect January 1, 2022.
141		-	______________________________ ______________________________
142		-	President of the Senate Speaker of the House
143		-	I hereby certify that S.B. No. 911 passed the Senate on
144		-	April 9, 2021, by the following vote: Yeas 31, Nays 0.
145		-	______________________________
146		-	Secretary of the Senate
147		-	I hereby certify that S.B. No. 911 passed the House on
148		-	May 19, 2021, by the following vote: Yeas 134, Nays 11, two
149		-	present not voting.
150		-	______________________________
151		-	Chief Clerk of the House
152		-	Approved:
153		-	______________________________
154		-	Date
155		-	______________________________
156		-	Governor