By: Hancock S.B. No. 911     (Burrows, Pacheco)           A BILL TO BE ENTITLED   AN ACT   relating to the regulation of restaurants and third-party food   delivery services, including the issuance of certain alcoholic   beverage certificates to restaurants.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1.04, Alcoholic Beverage Code, is   amended by adding Subdivision (29) to read as follows:                (29)  "Restaurant" means a business that:                      (A)  operates its own permanent food service   facility with commercial cooking equipment on its premises; and                      (B)  prepares and offers to sell multiple entrees   for consumption on or off the premises.          SECTION 2.  Section 25.13(a-1), Alcoholic Beverage Code, as   effective September 1, 2021, is amended to read as follows:          (a-1)  A holder of a wine and malt beverage retailer's permit   may be issued a food and beverage certificate by the commission if:                (1)  the permit holder is a restaurant; or                (2)  the commission finds that the receipts from the   sale of alcoholic beverages by the permit holder at the location are   60 percent or less of the total receipts from the location.          SECTION 3.  Section 28.18(a-1), Alcoholic Beverage Code, is   amended to read as follows:          (a-1)  A holder of a mixed beverage permit may be issued a   food and beverage certificate by the commission if:                (1)  the permit holder is a restaurant; or                (2)  the commission finds that the receipts from the   sale of alcoholic beverages by the permit holder at the location are   60 percent or less of the total receipts from the location.          SECTION 4.  Section 32.23(a-1), Alcoholic Beverage Code, is   amended to read as follows:          (a-1)  A holder of a private club registration permit may be   issued a food and beverage certificate by the commission if:                (1)  the permit holder is a restaurant; or                (2)  the commission finds that the receipts from the   service of alcoholic beverages by the permit holder at the location   are 60 percent or less of the total receipts from the location.          SECTION 5.  Section 69.16(a-1), Alcoholic Beverage Code, is   amended to read as follows:          (a-1)  A holder of a retail dealer's on-premise license may   be issued a food and beverage certificate by the commission if:                (1)  the license holder is a restaurant; or                (2)  the commission finds that the receipts from the   sale of alcoholic beverages by the license holder at the location   are 60 percent or less of the total receipts from the location.          SECTION 6.  Subtitle C, Title 5, Business & Commerce Code, is   amended by adding Chapter 114 to read as follows:   CHAPTER 114.  THIRD-PARTY FOOD DELIVERY SERVICES          Sec. 114.0001.  DEFINITIONS. In this chapter:                (1)  "Mark" and "trade name" have the meanings assigned   by Section 16.001.                (2)  "Restaurant" has the meaning assigned by Section   1.04, Alcoholic Beverage Code.                (3)  "Third-party food delivery service" means a   website, mobile application, or other service that acts as an   intermediary between consumers and multiple restaurants not owned   or operated by the service to arrange for the delivery or pickup of   food or beverages from those restaurants.          Sec. 114.0002.  PROHIBITED ACTS. A third-party food   delivery service may not:                (1)  arrange for the delivery or pickup of food or   beverages from a restaurant in this state unless the service has   filed a certificate of formation or registration with the secretary   of state;                (2)  use a restaurant's mark or trade name in connection   with the service in a misleading way that suggests the restaurant   sponsors or endorses the service;                (3)  add a restaurant removed from the service under   Section 114.0003 to the service unless the service has received   written consent from the restaurant to add the restaurant to the   service; or                (4)  charge a restaurant a fee or require the   restaurant to absorb a fee in connection with the service's   arrangement of an order from that restaurant unless the restaurant   has agreed to pay or absorb the fee under an agreement that meets   the requirements of Section 114.0004.          Sec. 114.0003.  REQUIREMENTS FOR SERVICE. A third-party   food delivery service shall:                (1)  provide a consumer a clearly identified mechanism   for the consumer to express concerns or complaints directly to the   service regarding an order arranged through the service; and                (2)  remove a restaurant from the service not later   than the 10th day after the date the service receives a request from   the restaurant to be removed from the service if the service does   not have an agreement with the restaurant that meets the   requirements of Section 114.0004.          Sec. 114.0004.  TERMS OF AGREEMENT WITH RESTAURANT. (a)  An   agreement between a third-party food delivery service and a   restaurant must:                (1)  be in writing;                (2)  expressly authorize the service to arrange for the   delivery or pickup of food or beverages from that restaurant; and                (3)  clearly state each fee, including a commission or   other charge, that the restaurant will be required to pay to the   service or absorb in connection with an order arranged through the   service.          (b)  The agreement may not include any provision that   requires the restaurant to indemnify the third-party food delivery   service, including an employee or independent contractor of the   service, for claims or liabilities resulting from acts or omissions   of the service or of an employee or independent contractor of the   service.          (c)  A provision in an agreement that violates Subsection (b)   is void and unenforceable.          Sec. 114.0005.  PRIVATE CAUSE OF ACTION. (a)  If a   third-party food delivery service violates this chapter, a   restaurant aggrieved by the violation may bring an action against   the service for:                (1)  injunctive relief; and                (2)  damages in an amount equal to:                      (A)  the restaurant's actual damages arising from   the violation; or                      (B)  the service's profits arising from the   violation.          (b)  If the court finds that the defendant committed the   violation knowingly or in bad faith, the court may award the   plaintiff:                (1)  exemplary damages in an amount that is not more   than three times the sum of:                      (A)  the plaintiff's actual damages; and                       (B)  the defendant's profits arising from the   violation; and                (2)  the plaintiff's reasonable attorney's fees.          SECTION 7.  Chapter 250, Local Government Code, is amended   by adding Section 250.011 to read as follows:          Sec. 250.011.  THIRD-PARTY FOOD DELIVERY SERVICES.  (a)  In   this section, "third-party food delivery service" has the meaning   assigned by Section 114.0001, Business & Commerce Code.          (b)  Notwithstanding any other law, a municipality or county   may not adopt or enforce an ordinance or regulation to the extent   that the ordinance or regulation affects the terms of agreements   between third-party food delivery services and restaurants that   meet the requirements of Section 114.0004(a), Business & Commerce   Code.          SECTION 8.  Section 114.0004, Business & Commerce Code, as   added by this Act, applies only to an agreement entered into or   renewed on or after the effective date of this Act.          SECTION 9.  This Act takes effect January 1, 2022.