Bill Text: TX SB911 | 2021-2022 | 87th Legislature | Enrolled
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: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2021-06-04 - Effective on 1/1/22 [SB911 Detail]
Download: Texas-2021-SB911-Enrolled.html
S.B. No. 911 |
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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(a), 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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 911 passed the Senate on | ||
April 9, 2021, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 911 passed the House on | ||
May 19, 2021, by the following vote: Yeas 134, Nays 11, two | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |