Bill Text: TX HB2119 | 2021-2022 | 87th Legislature | Comm Sub


Bill Title: Relating to the regulation of restaurants and third-party food delivery services, including the issuance of certain alcoholic beverage certificates to restaurants.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2021-04-27 - Considered in Calendars [HB2119 Detail]

Download: Texas-2021-HB2119-Comm_Sub.html
  87R14334 JES-F
 
  By: Burrows H.B. No. 2119
 
  Substitute the following for H.B. No. 2119:
 
  By:  Thompson of Harris C.S.H.B. No. 2119
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of restaurants and third-party food
  delivery services, including the issuance of certain alcoholic
  beverage certificates to restaurants.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1.04, Alcoholic Beverage Code, is
  amended by adding Subdivision (29) to read as follows:
               (29)  "Restaurant" means a business that:
                     (A)  operates its own permanent food service
  facility with commercial cooking equipment on its premises; and
                     (B)  prepares and offers to sell multiple entrees
  for consumption on or off the premises.
         SECTION 2.  Section 25.13(a-1), Alcoholic Beverage Code, as
  effective September 1, 2021, is amended to read as follows:
         (a-1)  A holder of a wine and malt beverage retailer's permit
  may be issued a food and beverage certificate by the commission if:
               (1)  the permit holder is a restaurant; or
               (2)  the commission finds that the receipts from the
  sale of alcoholic beverages by the permit holder at the location are
  60 percent or less of the total receipts from the location.
         SECTION 3.  Section 28.18(a-1), Alcoholic Beverage Code, is
  amended to read as follows:
         (a-1)  A holder of a mixed beverage permit may be issued a
  food and beverage certificate by the commission if:
               (1)  the permit holder is a restaurant; or
               (2)  the commission finds that the receipts from the
  sale of alcoholic beverages by the permit holder at the location are
  60 percent or less of the total receipts from the location.
         SECTION 4.  Section 32.23(a-1), Alcoholic Beverage Code, is
  amended to read as follows:
         (a-1)  A holder of a private club registration permit may be
  issued a food and beverage certificate by the commission if:
               (1)  the permit holder is a restaurant; or
               (2)  the commission finds that the receipts from the
  service of alcoholic beverages by the permit holder at the location
  are 60 percent or less of the total receipts from the location.
         SECTION 5.  Section 69.16(a-1), Alcoholic Beverage Code, is
  amended to read as follows:
         (a-1)  A holder of a retail dealer's on-premise license may
  be issued a food and beverage certificate by the commission if:
               (1)  the license holder is a restaurant; or
               (2)  the commission finds that the receipts from the
  sale of alcoholic beverages by the license holder at the location
  are 60 percent or less of the total receipts from the location.
         SECTION 6.  Subtitle C, Title 5, Business & Commerce Code, is
  amended by adding Chapter 114 to read as follows:
  CHAPTER 114. THIRD-PARTY FOOD DELIVERY SERVICES
         Sec. 114.0001.  DEFINITIONS. In this chapter:
               (1)  "Mark" and "trade name" have the meanings assigned
  by Section 16.001.
               (2)  "Restaurant" has the meaning assigned by Section
  1.04, Alcoholic Beverage Code.
               (3)  "Third-party food delivery service" means a
  website, mobile application, or other service that acts as an
  intermediary between consumers and multiple restaurants not owned
  or operated by the service to arrange for the delivery or pickup of
  food or beverages from those restaurants.
         Sec. 114.0002.  PROHIBITED ACTS. A third-party food
  delivery service may not:
               (1)  arrange for the delivery or pickup of food or
  beverages from a restaurant in this state unless the service has
  filed a certificate of formation or registration with the secretary
  of state;
               (2)  use a restaurant's mark or trade name in connection
  with the service in a misleading way that suggests the restaurant
  sponsors or endorses the service;
               (3)  add a restaurant removed from the service under
  Section 114.0003 to the service unless the service has received
  written consent from the restaurant to add the restaurant to the
  service; or
               (4)  charge a restaurant a fee or require the
  restaurant to absorb a fee in connection with the service's
  arrangement of an order from that restaurant unless the restaurant
  has agreed to pay or absorb the fee under an agreement that meets
  the requirements of Section 114.0004.
         Sec. 114.0003.  REQUIREMENTS FOR SERVICE. A third-party
  food delivery service shall:
               (1)  provide a consumer a clearly identified mechanism
  for the consumer to express concerns or complaints directly to the
  service regarding an order arranged through the service; and
               (2)  remove a restaurant from the service not later
  than the 10th day after the date the service receives a request from
  the restaurant to be removed from the service if the service does
  not have an agreement with the restaurant that meets the
  requirements of Section 114.0004.
         Sec. 114.0004.  TERMS OF AGREEMENT WITH RESTAURANT. (a) An
  agreement between a third-party food delivery service and a
  restaurant must:
               (1)  be in writing;
               (2)  expressly authorize the service to arrange for the
  delivery or pickup of food or beverages from that restaurant; and
               (3)  clearly state each fee, including a commission or
  other charge, that the restaurant will be required to pay to the
  service or absorb in connection with an order arranged through the
  service.
         (b)  The agreement may not include any provision that
  requires the restaurant to indemnify the third-party food delivery
  service, including an employee or independent contractor of the
  service, for claims or liabilities resulting from acts or omissions
  of the service or of an employee or independent contractor of the
  service.
         (c)  A provision in an agreement that violates Subsection (b)
  is void and unenforceable.
         Sec. 114.0005.  PRIVATE CAUSE OF ACTION. (a)  If a
  third-party food delivery service violates this chapter, a
  restaurant aggrieved by the violation may bring an action against
  the service for:
               (1)  injunctive relief; and
               (2)  damages in an amount equal to:
                     (A)  the restaurant's actual damages arising from
  the violation; or
                     (B)  the service's profits arising from the
  violation.
         (b)  If the court finds that the defendant committed the
  violation knowingly or in bad faith, the court may award the
  plaintiff:
               (1)  exemplary damages in an amount that is not more
  than three times the sum of:
                     (A)  the plaintiff's actual damages; and 
                     (B)  the defendant's profits arising from the
  violation; and
               (2)  the plaintiff's reasonable attorney's fees.
         SECTION 7.  Chapter 250, Local Government Code, is amended
  by adding Section 250.011 to read as follows:
         Sec. 250.011.  THIRD-PARTY FOOD DELIVERY SERVICES.  (a)  In
  this section, "third-party food delivery service" has the meaning
  assigned by Section 114.0001, Business & Commerce Code.
         (b)  Notwithstanding any other law, a municipality or county
  may not adopt or enforce an ordinance or regulation to the extent
  that the ordinance or regulation affects the terms of agreements
  between third-party food delivery services and restaurants that
  meet the requirements of Section 114.0004, Business & Commerce
  Code.
         SECTION 8.  Section 114.0004, Business & Commerce Code, as
  added by this Act, applies only to an agreement entered into or
  renewed on or after the effective date of this Act.
         SECTION 9.  This Act takes effect January 1, 2022.
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