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BILL ANALYSIS

 

 

 

C.S.H.B. 5212

By: Phelan

Trade, Workforce & Economic Development

Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

The bill author has informed the committee that consumers at food service establishments are often misled by advertised food prices that do not reflect the full price they will ultimately pay, as mandatory fees and taxes are frequently not disclosed, which can lead to consumer confusion and frustration. C.S.H.B. 5212 seeks to address this lack of transparency in the advertising and display of prices for prepared food by providing for the disclosure of mandatory fees or surcharges charged to a consumer by a food service establishment, with the aim of ensuring that consumers are fully informed about the total cost before making a purchase.

 

CRIMINAL JUSTICE IMPACT

 

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

 

ANALYSIS

 

C.S.H.B. 5212 amends the Health and Safety Code to require a food service establishment that charges to a consumer dining in the establishment a mandatory fee or surcharge other than a tax or fee imposed by a governmental entity to disclose the fee or surcharge on the establishment's printed menu in a standard font type and size that is reasonably easy for a consumer to read. The bill requires a food service establishment that does not use a printed menu to provide the disclosure in the required manner on a menu board, online menu, sign at the entrance to the food service establishment's premises, or other place reasonably likely to be seen by a consumer. The bill authorizes the Department of State Health Services, a public health district, a county, or a municipality that regulates a food service establishment to impose an administrative penalty on an establishment for a violation of these requirements. The bill requires an entity imposing a penalty for such a violation to determine the amount of the penalty based on the seriousness of the violation.

 

C.S.H.B. 5212 establishes that its provisions may not be construed to create a private cause of action or change any common law or statutory duty.

 

EFFECTIVE DATE

 

September 1, 2025.

 

COMPARISON OF INTRODUCED AND SUBSTITUTE

 

While C.S.H.B. 5212 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

 

The substitute includes Health and Safety Code provisions absent from the introduced which do the following:

·       require a food service establishment that charges to a consumer dining in the establishment a mandatory fee or surcharge other than a tax or fee imposed by a governmental entity to disclose the fee or surcharge on the establishment's printed menu in a standard font type and size that is reasonably easy for a consumer to read;

·       require a food service establishment that does not use a printed menu to provide the disclosure in the required manner on a menu board, online menu, sign at the entrance to the food service establishment's premises, or other place reasonably likely to be seen by a consumer;

·       authorize the Department of State Health Services, a public health district, a county, or a municipality that regulates a food service establishment to impose an administrative penalty on an establishment for a violation of these requirements;

·       require an entity imposing a penalty for such a violation to determine the amount of the penalty based on the seriousness of the violation; and

·       establish that these provisions may not be construed to create a private cause of action or change any common law or statutory duty.

 

The substitute does not include any Business & Commerce Code provisions from the introduced, which did the following:

·       prohibited a person who sells prepared food from advertising, displaying, or offering a price for that food in a manner that does not indicate the full price to be paid by the consumer, including any mandatory fees or charges the person imposes and any taxes or fees imposed by a governmental entity;

·       required a person to ensure that the full price for that food is clearly and conspicuously displayed in a standard font type and size that is reasonably easy for a consumer to read;

·       authorized a consumer to bring a cause of action for a violation of these provisions seeking the following:

o   an injunction against further violation of these provisions;

o   damages in an amount equal to the lesser of actual damages incurred by the person bringing the cause of action or $1,000; and

o   reasonable attorney's fees; and

·       authorized the attorney general to seek to enjoin violations of these provisions and to seek damages and other relief allowed by law, including restitution available under applicable law and entitled the attorney general, in bringing such an action, to seek reasonable attorney's fees and costs.

The substitute omits the introduced version's provision establishing that the introduced applied only to the advertising, display, or offer of prepared food made on or after the bill's effective date.