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A BILL TO BE ENTITLED
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AN ACT
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relating to the fees charged by a third-party food delivery service |
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to a food service establishment; authorizing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 114 to read as follows: |
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CHAPTER 114. FEES CHARGED BY THIRD-PARTY FOOD DELIVERY SERVICES |
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Sec. 114.0001. DEFINITIONS. In this chapter: |
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(1) "Delivery fee" means a fee charged to a food |
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service establishment by a third-party food delivery service for |
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providing the service of delivering food or beverages from the food |
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service establishment to a consumer. The term does not include a |
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fee for: |
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(A) listing or advertising the food service |
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establishment on the third-party food delivery service platform; or |
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(B) processing an order that is not delivered by |
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the third-party food delivery service. |
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(2) "Food service establishment" means a place where |
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food is provided for individual portion service directly to the |
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consumer, regardless of whether: |
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(A) the food is provided free of charge or sold; |
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(B) consumption of the food occurs on or off the |
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premises; or |
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(C) the food is provided from a pushcart, stand, |
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or vehicle. |
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(3) "Price of an order" means the total price of the |
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items contained in an order that are listed on the menu of the food |
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service establishment where the order was placed. The term does not |
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include taxes, gratuities, or any other fees that may make up the |
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total cost to the consumer of an order. |
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(4) "Third-party food delivery service" means a |
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website, mobile application, or other Internet-based service that |
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offers or arranges for the same-day delivery or same-day pickup of |
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food or beverages from at least 20 food service establishments that |
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are owned and operated by different persons. |
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Sec. 114.0002. PROHIBITED FEES. A third-party food |
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delivery service may not charge a food service establishment: |
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(1) a delivery fee in an amount that is more than 15 |
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percent of the price of an order placed through the third-party food |
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delivery service; or |
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(2) a fee other than a delivery fee in an amount that |
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is more than five percent of the price of an order placed through |
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the third-party food delivery service. |
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Sec. 114.0003. CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A |
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person who violates Section 114.0002 is liable to this state for a |
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civil penalty not to exceed $1,000 for each violation. |
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(b) The attorney general may bring an action in the name of |
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the state to: |
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(1) recover a civil penalty under this section; or |
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(2) restrain or enjoin the person from violating |
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Section 114.0002. |
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(c) The action may be brought in a district court in: |
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(1) Travis County; or |
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(2) a county in which any part of the violation or |
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threatened violation occurs. |
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(d) A civil penalty collected under this section shall be |
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deposited in the state treasury to the credit of the general revenue |
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fund. |
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SECTION 2. This Act takes effect September 1, 2021. |