Senate File 2374 H-8356 Amend Senate File 2374, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. Page 71, after line 18 by inserting: 3 < DIVISION ___ 4 RESTAURANT FOOD DELIVERY 5 Sec. ___. NEW SECTION . 137G.1 Definitions. 6 As used in this chapter, unless the context otherwise 7 requires: 8 1. “Consent” means a mutual acknowledgment by a restaurant 9 and a food delivery platform, which may be obtained 10 electronically. 11 2. “Food delivery platform” or “platform” means a business 12 that acts as a third-party intermediary by taking and arranging 13 for the delivery or pickup of orders from multiple restaurants 14 for consumers, not including delivery or pickup orders placed 15 directly with, and fulfilled by, a restaurant. “Food delivery 16 platform” does not include websites, mobile applications, or 17 other electronic services that do not post restaurant menus, 18 logos, or pricing information on the platform. 19 3. “Likeness” means a mark or trade name. 20 4. “Mark” means a trademark or service mark, regardless of 21 whether the trademark or service mark is actually registered 22 with the state or other entity. 23 5. “Restaurant” means a business in the state that operates 24 its own permanent food service facilities with commercial 25 cooking equipment on its premises and prepares and offers to 26 sell multiple entrees for consumption on or off the premises. 27 6. “Trade name” means a name used by a person or entity to 28 identify a person or entity’s vocation. 29 Sec. ___. NEW SECTION . 137G.2 Restaurant and food delivery 30 platform —— requirements —— penalties. 31 1. A food delivery platform shall be prohibited from all of 32 the following: 33 a. Using a restaurant’s likeness without the consent of the 34 restaurant owner or the owner’s designee in a manner that could 35 -1- SF 2374.4321 (1) 89 ec/rn 1/ 4 #1.

be reasonably interpreted to falsely suggest sponsorship or 1 endorsement by the restaurant. 2 b. Taking and arranging for the delivery or pickup of an 3 order from a restaurant without the consent of the restaurant 4 owner or the owner’s designee. 5 c. Intentionally inflating or altering a restaurant’s 6 pricing without the consent of the restaurant owner or the 7 owner’s designee, except that a food delivery platform may 8 charge additional fees to the consumer if the fees are noted 9 separately to the consumer. 10 d. Attempting to charge a restaurant, or expecting the 11 restaurant to pay or absorb any fee, commission, or charge 12 without the consent of the restaurant owner or the owner’s 13 designee. 14 2. A food delivery platform shall do all of the following: 15 a. Clearly provide to the consumer a mechanism to express 16 concerns regarding an order directly to the food delivery 17 platform. 18 b. Remove a restaurant from the food delivery platform’s 19 services within ten days of receiving the restaurant’s request 20 for removal unless an agreement between the food delivery 21 platform and the restaurant states otherwise. 22 3. An agreement between a food delivery platform and a 23 restaurant to take and arrange for the delivery or pickup of 24 orders shall include all of the following: 25 a. Authorization for the food delivery platform to take 26 and arrange for the delivery and pickup of orders from the 27 restaurant. 28 b. Clear identification of any fee, commission, or charge 29 that the restaurant will be required to pay or absorb. 30 4. An agreement between a food delivery platform and a 31 restaurant to take and arrange for the delivery or pickup of 32 orders shall not include provisions, clauses, or covenants that 33 require a restaurant to indemnify a food delivery platform, 34 or any employee, independent contractor, or agent of the food 35 -2- SF 2374.4321 (1) 89 ec/rn 2/ 4

delivery platform, for any damages or harm caused by the 1 actions or omissions of the food delivery platform or any 2 employee, independent contractor, or agent of the food delivery 3 platform. 4 5. a. A provision of an agreement between a food delivery 5 platform and a restaurant, or the obtaining of consent, that is 6 contrary to this chapter is void and unenforceable. 7 b. An aggrieved restaurant or the attorney general may seek 8 judicial enforcement of the requirements of this chapter in an 9 action brought against a food delivery platform in the county 10 in which the violation occurred. The following civil penalties 11 shall be imposed for a violation of this chapter: 12 (1) A one thousand dollar penalty for a first violation. 13 (2) A two thousand five hundred dollar penalty for a second 14 violation. 15 (3) A ten thousand dollar penalty for a third and subsequent 16 violation. 17 6. a. The attorney general or a restaurant may, in addition 18 to penalties imposed pursuant to subsection 5, bring an action 19 to enjoin a violation of this chapter. If the court finds a 20 violation of this chapter, the court shall issue an injunction 21 against a food delivery platform and may require the platform 22 to pay to the injured restaurant all profits derived from, or 23 damages resulting from, the wrongful acts and order that the 24 wrongful acts be terminated. 25 b. If the court finds that the food delivery platform 26 committed a wrongful act in bad faith in violation of this 27 chapter by not entering into an agreement or obtaining consent, 28 the court, in the court’s discretion, shall: 29 (1) Enter a judgment in an amount not to exceed three times 30 the amount of profits and damages. 31 (2) Award reasonable attorney’s fees to the restaurant. 32 Sec. ___. NEW SECTION . 137G.3 Food safety —— liability. 33 1. Orders delivered through a food delivery platform shall 34 be transported in a manner that meets all of the following 35 -3- SF 2374.4321 (1) 89 ec/rn 3/ 4

requirements: 1 a. The order shall be maintained at a holding temperature 2 necessary to prevent spoilage. 3 b. All bags or containers in which orders are being 4 transported or delivered from a restaurant to a customer shall 5 be closed or sealed by the restaurant with a tamper-resistant 6 method. 7 c. The individual delivering orders shall not have any 8 passengers, including animals or children when orders for 9 delivery are being transported in the vehicle, except for 10 one adult passenger not engaging in payment for ride-share 11 services. 12 d. Smoking or vaping in the vehicle while orders are in the 13 vehicle shall be prohibited. 14 2. A food delivery platform transporting orders shall be 15 liable for any harm or injury caused by a failure by the food 16 delivery platform to meet the requirements of this chapter. 17 Sec. ___. APPLICABILITY. This division of this Act applies 18 to agreements entered into between a restaurant and a food 19 delivery platform on or after the effective date of this Act. > 20 2. Title page, line 1, after < Act > by inserting < concerning 21 the regulation of food and beverages, > 22 3. Title page, line 1, by striking < licensing, > and 23 inserting < delivery of restaurant food, > 24 4. Title page, line 2, after < fees > by inserting < and civil 25 penalties > 26 5. Title page, line 2, after < date > by inserting < and 27 applicability > 28 6. By renumbering as necessary. 29 ______________________________ LUNDGREN of Dubuque -4- SF 2374.4321 (1) 89 ec/rn 4/ 4 #2. #3. #4. #5. #6.