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File #: Int 2054-2020    Version: Name: Fees charged by third-party food delivery services while an emergency has been declared and food service establishments are prohibited from operating at the maximum indoor occupancy, and for 90 days thereafter.
Type: Introduction Status: Enacted
Committee: Committee on Small Business
On agenda: 8/27/2020
Enactment date: 9/14/2020 Law number: 2020/088
Title: A Local Law to amend the administrative code of the city of New York, in relation to fees charged by third-party food delivery services while an emergency has been declared and food service establishments are prohibited from operating at the maximum indoor occupancy, and for 90 days thereafter
Sponsors: Francisco P. Moya, Mark Gjonaj , Justin L. Brannan, Ben Kallos, Helen K. Rosenthal, Diana Ayala
Council Member Sponsors: 6
Summary: Third-party food delivery services are entities that provide restaurants with online order and delivery services. This bill would amend an existing law limiting third-party food delivery service fees under certain circumstances. Under the existing law, third-party food delivery services are prohibited from charging restaurants more than 15% per order for delivery and more than 5% per order for all other fees during states of emergency when on-premises dining is prohibited entirely, plus an additional 90 days thereafter. This bill would instead limit such fees during states of emergency when restaurants are restricted from operating at maximum indoor occupancy, plus an additional 90 days thereafter. In addition, this bill would exempt from the 5% limit on non-delivery fees, any fees incurred by the third-party delivery service for processing the customer transaction for which the third-party service acts as a “pass-through” by charging such fees to the restaurant.
Attachments: 1. Summary of Int. No. 2054-A, 2. Summary of Int. No. 2054, 3. Int. No. 2054, 4. Committee Report 8/13/20, 5. Hearing Testimony 8/13/20, 6. Hearing Testimony 8/13/20 (Con't), 7. Hearing Transcript 8/13/20, 8. Proposed Int. No. 2054-A - 9/2/20, 9. Committee Report 8/27/20, 10. Hearing Transcript 8/27/20, 11. Committee Report - Stated Meeting, 12. August 27, 2020 - Stated Meeting Agenda with Links to Files, 13. Hearing Transcript - Stated Meeting 8-27-20, 14. Minutes of the Stated Meeting - August 27, 2020, 15. Int. No. 2054-A (FINAL), 16. Fiscal Impact Statement, 17. Mayor's Letter, 18. Local Law 88
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
9/14/2020AFrancisco P. Moya City Council Recved from Mayor by Council  Action details Meeting details Not available
9/14/2020AFrancisco P. Moya Mayor Hearing Held by Mayor  Action details Meeting details Not available
9/14/2020AFrancisco P. Moya Mayor Signed Into Law by Mayor  Action details Meeting details Not available
8/27/2020AFrancisco P. Moya City Council Sent to Mayor by Council  Action details Meeting details Not available
8/27/2020AFrancisco P. Moya City Council Approved by CouncilPass Action details Meeting details Not available
8/27/2020*Francisco P. Moya City Council Introduced by Council  Action details Meeting details Not available
8/27/2020AFrancisco P. Moya City Council Referred to Comm by Council  Action details Meeting details Not available
8/27/2020*Francisco P. Moya Committee on Small Business Hearing on P-C Item by Comm  Action details Meeting details Not available
8/27/2020*Francisco P. Moya Committee on Small Business Amendment Proposed by Comm  Action details Meeting details Not available
8/27/2020*Francisco P. Moya Committee on Small Business Amended by Committee  Action details Meeting details Not available
8/27/2020AFrancisco P. Moya Committee on Small Business Approved by CommitteePass Action details Meeting details Not available
8/13/2020*Francisco P. Moya Committee on Small Business Hearing on P-C Item by Comm  Action details Meeting details Not available
8/13/2020*Francisco P. Moya Committee on Small Business P-C Item Laid Over by Comm  Action details Meeting details Not available

Preconsidered Int. No. 2054-A

 

By Council Members Moya, Gjonaj, Brannan, Kallos, Rosenthal and Ayala

 

A Local Law to amend the administrative code of the city of New York, in relation to fees charged by third-party food delivery services while an emergency has been declared and food service establishments are prohibited from operating at the maximum indoor occupancy, and for 90 days thereafter

 

Be it enacted by the Council as follows:

 

Section 1. The definition of “declared emergency” in section 20-845 of the administrative code of the city of New York, as added by local law number 52 for the year 2020, is REPEALED and subdivisions b and c of section 20-846, as added by local law number 52 for the year 2020, are amended to read as follows:

b. It shall be unlawful for a third-party food delivery service to charge a food service establishment any fee [or fees] other than a delivery fee for the use of their service greater than 5% of the purchase price of each online order, provided that such cap shall not apply to a credit card fee that is charged to the third-party food delivery service and is charged in the same amount by the third-party food delivery service to such food service establishment. [Any fees or other charges from a third-party food delivery service to a food service establishment beyond such maximum 5% fee per order, and a delivery fee collected pursuant to subdivision a of this section, are unlawful.]

c. The requirements of this section apply only during [a declared emergency] the period in which a state disaster emergency has been declared by the governor of the state of New York or a state of emergency has been declared by the mayor, such declaration is in effect in the city, and all food service establishments in the city are prohibited from operating at the maximum indoor occupancy and for a period of 90 days [after the end of a declared emergency] thereafter.

§ 2. This local law takes effect immediately.

 

 

 

 

SJ

LS #15591

8/19/20 9:40 AM