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File #: Int 2359-2021    Version: Name: Extending the limitation on fees charged to food service establishments by third-party food delivery services.
Type: Introduction Status: Enacted
Committee: Committee on Small Business
On agenda: 6/30/2021
Enactment date: 8/29/2021 Law number: 2021/094
Title: A Local Law to amend the administrative code of the city of New York, in relation to extending the limitation on fees charged to food service establishments by third-party food delivery services
Sponsors: Francisco P. Moya, Mark Gjonaj
Council Member Sponsors: 2
Summary: This bill would amend an existing law that prohibits third-party food delivery services - entities that provide food service establishments with online order and delivery services - from charging such establishments more than 15% per order for delivery and more than 5% per order for all other fees only when certain conditions apply. This bill would instead prohibit such charges from the anticipated end date of those conditions until February 17, 2022. It would also clarify the types of transaction fees exempted from these limits on charges.
Attachments: 1. Summary of Int. No. 2359-A, 2. Summary of Int. No. 2359, 3. Int. No. 2359, 4. June 30, 2021 - Stated Meeting Agenda with Links to Files, 5. Hearing Transcript - Stated Meeting 6-30-21, 6. Minutes of the Stated Meeting - June 30, 2021, 7. Committee Report 7/1/21, 8. Hearing Testimony 7/1/21, 9. Hearing Transcript 7/1/21, 10. Proposed Int. No. 2359-A - 7/22/21, 11. Committee Report 7/29/21, 12. Hearing Transcript 7/29/21, 13. Committee Report - Stated Meeting, 14. July 29, 2021 - Stated Meeting Agenda with Links to Files, 15. Hearing Transcript - Stated Meeting 7-29-21, 16. Int. No. 2359-A (FINAL), 17. Fiscal Impact Statement, 18. Legislative Documents - Letter to the Mayor, 19. Local Law 94, 20. Minutes of the Stated Meeting - July 29, 2021
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
8/30/2021AFrancisco P. Moya City Council Returned Unsigned by Mayor  Action details Meeting details Not available
8/29/2021AFrancisco P. Moya Administration City Charter Rule Adopted  Action details Meeting details Not available
7/29/2021AFrancisco P. Moya City Council Sent to Mayor by Council  Action details Meeting details Not available
7/29/2021AFrancisco P. Moya City Council Approved by CouncilPass Action details Meeting details Not available
7/29/2021*Francisco P. Moya Committee on Small Business Hearing Held by Committee  Action details Meeting details Not available
7/29/2021*Francisco P. Moya Committee on Small Business Amendment Proposed by Comm  Action details Meeting details Not available
7/29/2021*Francisco P. Moya Committee on Small Business Amended by Committee  Action details Meeting details Not available
7/29/2021AFrancisco P. Moya Committee on Small Business Approved by CommitteePass Action details Meeting details Not available
7/1/2021*Francisco P. Moya Committee on Small Business Hearing Held by Committee  Action details Meeting details Not available
7/1/2021*Francisco P. Moya Committee on Small Business Laid Over by Committee  Action details Meeting details Not available
6/30/2021*Francisco P. Moya City Council Introduced by Council  Action details Meeting details Not available
6/30/2021*Francisco P. Moya City Council Referred to Comm by Council  Action details Meeting details Not available

Int. No. 2359-A

 

By Council Members Moya and Gjonaj

 

A Local Law to amend the administrative code of the city of New York, in relation to extending the limitation on fees charged to food service establishments by third-party food delivery services

 

Be it enacted by the Council as follows:

 

Section 1. Section 20-846 of the administrative code of the city of New York, as added by local law number 52 for the year 2020 and subdivisions b and c as amended by local law number 88 for the year 2020, is amended to read as follows:

§ 20-846 [Fee limits during declared emergencies] Fees. a. It shall be unlawful for a third-party food delivery service to charge a food service establishment a delivery fee that totals more than 15% of the purchase price of each online order.

b. It shall be unlawful for a third-party food delivery service to charge a food service establishment any fee 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 transaction fee imposed either by: (i) a credit card issuer or (ii) an internet-based payment system, when such  transaction 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.

c. The requirements of this section apply only [during 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 thereafter] until February 17, 2022.

d. Definitions. For purposes of this section, the following terms have the following meanings:

Credit card. The term “credit card” means any credit card, charge card, courtesy card, debit card, or other device issued by a person to another person which may be used to obtain a cash advance or a loan or credit, or to purchase or lease property or services on the credit of the person issuing the credit card or a person who has agreed with the issuer to pay obligations arising from the use of a credit card issued to another person.

Internet-based payment system. The term “internet-based payment system” means any mobile application or other internet service that facilitates electronic payments.

Transaction fee.  The term “transaction fee” means a charge for the processing of a payment for an online order.

§ 2. This local law takes effect immediately, except that if it becomes law after August 17, 2021, it shall be retroactive to and deemed to have been in effect on and after August 17, 2021.

 

 

 

 

 

 

 

SJ

LS #15934

7/21/21 8:15 PM