Bill Text: IA HF2502 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the operation of third-party food delivery platforms during a public health emergency and including applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-02-22 - Introduced, referred to Commerce. H.J. 325. [HF2502 Detail]
Download: Iowa-2021-HF2502-Introduced.html
House
File
2502
-
Introduced
HOUSE
FILE
2502
BY
BENNETT
A
BILL
FOR
An
Act
relating
to
the
operation
of
third-party
food
delivery
1
platforms
during
a
public
health
emergency
and
including
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
NEW
SECTION
.
137G.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Department”
means
the
department
of
inspections
and
4
appeals.
5
2.
“Online
order”
means
an
order
placed
by
a
customer
6
through
a
third-party
food
delivery
platform
for
delivery
or
7
pickup
within
the
state.
8
3.
“Public
health
disaster”
means
the
same
as
defined
in
9
section
135.140,
subsection
6.
10
4.
“Purchase
price”
means
the
menu
price
of
an
online
order,
11
excluding
taxes,
gratuities,
or
other
fees
that
comprise
the
12
total
cost
to
the
customer
of
an
online
order.
13
5.
“Restaurant”
means
the
same
as
defined
in
section
142D.2,
14
subsection
17.
15
6.
“Third-party
food
delivery
platform”
or
“platform”
means
16
a
website,
mobile
application,
or
internet
service
that
offers
17
or
arranges
for
the
sale
of
food
and
beverages
prepared
by
18
restaurants
for
same-day
delivery
or
pickup.
19
Sec.
2.
NEW
SECTION
.
137G.2
Fee
limits.
20
1.
A
third-party
food
delivery
platform
shall
not
charge
21
a
restaurant
a
commission
fee
for
the
use
of
the
platform’s
22
services
for
delivery
or
pickup
of
more
than
fifteen
percent
23
of
the
purchase
price
of
the
order
during
a
public
health
24
emergency
and
for
thirty
days
thereafter.
25
2.
A
third-party
food
delivery
platform
shall
not
reduce
the
26
compensation
rate
paid
to
a
delivery
service
driver
or
garnish
27
delivery
service
driver
gratuities
in
order
to
comply
with
this
28
section.
29
3.
A
third-party
food
delivery
platform
shall
disclose
to
30
the
customer
any
commission,
fee,
or
other
payment
imposed
31
by
the
third-party
food
delivery
platform
on
the
restaurant
32
as
a
term
of
a
contract
or
agreement
in
connection
with
the
33
restaurant’s
use
of
the
platform.
The
disclosure
shall
occur
34
at
the
time
a
final
price
is
disclosed
to
a
customer
for
the
35
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intended
purchase
and
delivery
of
food
in
plain
language
and
1
in
a
conspicuous
manner.
2
Sec.
3.
NEW
SECTION
.
137G.3
Penalty.
3
1.
A
person
who
violates
this
chapter
shall
be
subject
to
a
4
civil
penalty
of
not
less
than
two
hundred
fifty
dollars
and
5
not
more
than
one
thousand
dollars
for
each
violation.
6
2.
A
violation
of
this
chapter
by
a
third-party
food
7
delivery
platform
is
an
unlawful
practice
pursuant
to
section
8
714.16.
9
Sec.
4.
NEW
SECTION
.
137G.4
Rules.
10
The
department
shall
adopt
rules
to
administer
the
11
provisions
of
this
chapter.
12
Sec.
5.
APPLICABILITY.
This
Act
applies
to
third-party
13
service
delivery
platforms
operating
on
or
after
the
effective
14
date
of
this
Act.
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
This
bill
relates
to
the
operation
of
third-party
food
19
delivery
platforms
during
a
public
health
emergency.
20
The
bill
defines
“online
order”
to
mean
a
food
order
placed
21
by
a
customer
through
a
third-party
food
delivery
platform
for
22
pickup
or
delivery
in
the
state.
The
bill
defines
“purchase
23
price”
to
mean
the
menu
price
of
an
online
order,
excluding
24
additional
fees.
The
bill
defines
“third-party
food
delivery
25
platform”
or
“platform”
to
mean
a
website,
mobile
application,
26
or
internet
service
that
offers
or
arranges
for
the
sale
27
of
food
and
beverages
prepared
by
restaurants
for
same-day
28
delivery
or
pickup.
29
The
bill
provides
that
a
third-party
food
delivery
platform
30
shall
not
charge
commission
fees
to
a
restaurant
for
the
31
platform’s
services
totaling
more
than
15
percent
of
the
order
32
purchase
price
during
or
30
days
following
a
public
health
33
emergency.
A
platform
shall
not
garnish
delivery
driver
34
compensation
to
fulfill
the
requirements
of
the
bill.
The
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platform
shall
disclose
any
fees
charged
by
the
platform
to
1
a
restaurant
for
use
of
the
platform
prior
to
a
customer
2
completing
the
transaction.
3
The
bill
provides
that
a
violation
of
the
bill’s
provisions
4
shall
result
in
a
fine
between
$250
and
$1,000
per
violation.
5
A
violation
of
the
bill’s
provisions
constitutes
an
unlawful
6
practice
under
Code
section
714.16
(consumer
frauds).
Several
7
types
of
remedies
are
available
if
a
court
finds
that
a
person
8
has
committed
an
unlawful
practice,
including
injunctive
9
relief,
disgorgement
of
moneys
or
property,
and
a
civil
penalty
10
not
to
exceed
$40,000
per
violation.
11
The
bill
provides
that
the
department
of
inspections
and
12
appeals
shall
adopt
rules
to
administer
the
provisions
of
the
13
bill.
14
The
bill
applies
to
third-party
service
delivery
platforms
15
operating
on
or
after
the
effective
date
of
the
bill.
16
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