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A02411 Summary:

BILL NOA02411
 
SAME ASNo Same As
 
SPONSORFahy
 
COSPNSRWoerner, Buttenschon, Barron, Gottfried, Galef, Cusick, Englebright, Taylor, Lupardo
 
MLTSPNSR
 
Add 391-v, Gen Bus L
 
Prohibits third-party food delivery services from charging a food service establishment a delivery fee that totals more than a certain percent of the total purchase price of an online order.
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A02411 Actions:

BILL NOA02411
 
01/19/2021referred to consumer affairs and protection
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A02411 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2411
 
SPONSOR: Fahy
  TITLE OF BILL: An act to amend the general business law, in relation to third-party food delivery service charges   PURPOSE: The purpose of this bill is to cap the permissible fees third-party food delivery services may charge to restaurants for delivery services.   SUMMARY OF PROVISIONS: Section 1 (1) adds new section 391-v of the general business law, which sets definitions of terms.(2) Establishes that no third-party food delivery service shall charge a food service establishment a delivery fee that totals more than fifteen percent of the purchase price of each online order, and that no third-party delivery service shall charge any fee other than a delivery fee for the use of their service.(3) Sets terms for penalties for violations of this section. Section 2 is the effective date.   JUSTIFICATION: During the COVID-19 pandemic, third-party food delivery services have become a critical component of the business model for many New York restaurants. While this relationship has been beneficial for many restaurants, the fees charged by these third-party delivery services have significantly cut into the profits margin of these already-strug- gling businesses. These fees can typically range between 20-40% of any order's cost, with fees towards the higher end of that range significantly cutting into the ability of restaurateurs to turns a profit. With 90% of restaurants in New York City unable to pay full rent in September, and the economic picture not looking much better for these businesses statewide, New York must follow these lead of cities like New York City, Denver and Tucson to balance this relationship.   LEGISLATIVE HISTORY: A11158 2019-20   STATE AND LOCAL FISCAL IMPLICATIONS: TO BE DETERMINED.   EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
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