House Amendment to Senate File 2374 S-5124 Amend Senate File 2374, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. Page 67, by striking line 20 and inserting < special class 3 “C”, or class “D” liquor control , or > 4 2. Page 68, by striking line 14 and inserting < “C”, special 5 class “C”, or class “D” liquor control , > 6 3. Page 68, line 31, by striking < special class “C”, > and 7 inserting < special class “C” > 8 4. Page 68, line 32, by striking < class “E”, > 9 5. Page 70, line 7, by striking < special class “C”, > and 10 inserting < special class “C”, > 11 6. Page 70, line 8, by striking < class “E”, > 12 7. Page 70, line 21, by striking < special class “C”, > and 13 inserting < special class “C”, > 14 8. Page 70, line 22, by striking < class “E”, > 15 9. Page 71, after line 18 by inserting: 16 < DIVISION ___ 17 RESTAURANT FOOD DELIVERY 18 Sec. ___. NEW SECTION . 137G.1 Definitions. 19 As used in this chapter, unless the context otherwise 20 requires: 21 1. “Consent” means a mutual acknowledgment by a restaurant 22 and a food delivery platform, which may be obtained 23 electronically. 24 2. “Food delivery platform” or “platform” means a business 25 that acts as a third-party intermediary by taking and arranging 26 for the delivery or pickup of orders from multiple restaurants 27 for consumers, not including delivery or pickup orders placed 28 directly with, and fulfilled by, a restaurant. “Food delivery 29 platform” does not include websites, mobile applications, or 30 other electronic services that do not post restaurant menus, 31 logos, or pricing information on the platform. 32 3. “Likeness” means a mark or trade name. 33 4. “Mark” means a trademark or service mark, regardless of 34 whether the trademark or service mark is actually registered 35 -1- SF 2374.4371.H (1) 89 md 1/ 5 #1. #2. #3. #4. #5. #6. #7. #8. #9.
with the state or other entity. 1 5. “Restaurant” means a business in the state that operates 2 its own permanent food service facilities with commercial 3 cooking equipment on its premises and prepares and offers to 4 sell multiple entrees for consumption on or off the premises. 5 6. “Trade name” means a name used by a person or entity to 6 identify a person or entity’s vocation. 7 Sec. ___. NEW SECTION . 137G.2 Restaurant and food delivery 8 platform —— requirements —— penalties. 9 1. A food delivery platform shall be prohibited from all of 10 the following: 11 a. Using a restaurant’s likeness without the consent of the 12 restaurant owner or the owner’s designee in a manner that could 13 be reasonably interpreted to falsely suggest sponsorship or 14 endorsement by the restaurant. 15 b. Taking and arranging for the delivery or pickup of an 16 order from a restaurant without the consent of the restaurant 17 owner or the owner’s designee. 18 c. Intentionally inflating or altering a restaurant’s 19 pricing without the consent of the restaurant owner or the 20 owner’s designee, except that a food delivery platform may 21 charge additional fees to the consumer if the fees are noted 22 separately to the consumer. 23 d. Attempting to charge a restaurant, or expecting the 24 restaurant to pay or absorb any fee, commission, or charge 25 without the consent of the restaurant owner or the owner’s 26 designee. 27 2. A food delivery platform shall do all of the following: 28 a. Clearly provide to the consumer a mechanism to express 29 concerns regarding an order directly to the food delivery 30 platform. 31 b. Remove a restaurant from the food delivery platform’s 32 services within ten days of receiving the restaurant’s request 33 for removal unless an agreement between the food delivery 34 platform and the restaurant states otherwise. 35 -2- SF 2374.4371.H (1) 89 md 2/ 5
3. An agreement between a food delivery platform and a 1 restaurant to take and arrange for the delivery or pickup of 2 orders shall include all of the following: 3 a. Authorization for the food delivery platform to take 4 and arrange for the delivery and pickup of orders from the 5 restaurant. 6 b. Clear identification of any fee, commission, or charge 7 that the restaurant will be required to pay or absorb. 8 4. An agreement between a food delivery platform and a 9 restaurant to take and arrange for the delivery or pickup of 10 orders shall not include provisions, clauses, or covenants that 11 require a restaurant to indemnify a food delivery platform, 12 or any employee, independent contractor, or agent of the food 13 delivery platform, for any damages or harm caused by the 14 actions or omissions of the food delivery platform or any 15 employee, independent contractor, or agent of the food delivery 16 platform. 17 5. a. A provision of an agreement between a food delivery 18 platform and a restaurant, or the obtaining of consent, that is 19 contrary to this chapter is void and unenforceable. 20 b. An aggrieved restaurant or the attorney general may seek 21 judicial enforcement of the requirements of this chapter in an 22 action brought against a food delivery platform in the county 23 in which the violation occurred. The following civil penalties 24 shall be imposed for a violation of this chapter: 25 (1) A one thousand dollar penalty for a first violation. 26 (2) A two thousand five hundred dollar penalty for a second 27 violation. 28 (3) A ten thousand dollar penalty for a third and subsequent 29 violation. 30 6. a. The attorney general or a restaurant may, in addition 31 to penalties imposed pursuant to subsection 5, bring an action 32 to enjoin a violation of this chapter. If the court finds a 33 violation of this chapter, the court shall issue an injunction 34 against a food delivery platform and may require the platform 35 -3- SF 2374.4371.H (1) 89 md 3/ 5
to pay to the injured restaurant all profits derived from, or 1 damages resulting from, the wrongful acts and order that the 2 wrongful acts be terminated. 3 b. If the court finds that the food delivery platform 4 committed a wrongful act in bad faith in violation of this 5 chapter by not entering into an agreement or obtaining consent, 6 the court, in the court’s discretion, shall: 7 (1) Enter a judgment in an amount not to exceed three times 8 the amount of profits and damages. 9 (2) Award reasonable attorney’s fees to the restaurant. 10 Sec. ___. NEW SECTION . 137G.3 Food safety —— liability. 11 1. Orders delivered through a food delivery platform shall 12 be transported in a manner that meets all of the following 13 requirements: 14 a. The order shall be maintained at a holding temperature 15 necessary to prevent spoilage. 16 b. All bags or containers in which orders are being 17 transported or delivered from a restaurant to a customer shall 18 be closed or sealed by the restaurant with a tamper-resistant 19 method. 20 c. The individual delivering orders shall not have any 21 passengers, including animals or children when orders for 22 delivery are being transported in the vehicle, except for 23 one adult passenger not engaging in payment for ride-share 24 services. 25 d. Smoking or vaping in the vehicle while orders are in the 26 vehicle shall be prohibited. 27 2. A food delivery platform transporting orders shall be 28 liable for any harm or injury caused by a failure by the food 29 delivery platform to meet the requirements of this chapter. 30 Sec. ___. APPLICABILITY. This division of this Act applies 31 to agreements entered into between a restaurant and a food 32 delivery platform on or after the effective date of this Act. > 33 10. Title page, line 1, after < Act > by inserting < concerning 34 the regulation of food and beverages, > 35 -4- SF 2374.4371.H (1) 89 md 4/ 5
11. Title page, line 1, by striking < licensing, > and 1 inserting < delivery of restaurant food, > 2 12. Title page, line 2, after < fees > by inserting < and civil 3 penalties > 4 13. Title page, line 2, after < date > by inserting < and 5 applicability > 6 14. By renumbering as necessary. 7 -5- SF 2374.4371.H (1) 89 md 5/ 5 #11. #12. #13.