Bill Text: TX HB598 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the fees charged by a third-party food delivery service to a food service establishment; authorizing a civil penalty.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-01 - Referred to Business & Industry [HB598 Detail]
Download: Texas-2021-HB598-Introduced.html
| 87R1287 SRA-D | ||
| By: Sherman, Sr. | H.B. No. 598 | |
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| 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. | ||
