SB 320 — Enacts various provisions relating to food delivery service platforms. (BDR 52-591)

(ReprintedSenate withBill amendmentsNo. adopted on April 20, 2021) FIRST REPRINT S.B.

320320–Senator SENATENeal BILLCHAPTER.......... N O.

320–SENATOR NEAL M ARCH 22, 2021 ____________ Referred to Committee on Commerce and Labor SUMMARY—Enacts various provisions relating to food delivery service platforms.

(BDR 52-591) FISCAL NOTE:

Effect on Local Government:

Increases or Newly Provides for Term of Imprisonment in County or City Jail or Detention Facility.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

prohibiting a food delivery service platform provider from charging a food dispensing establishment any feescommission over a certain amount during any period in which a Declarationdeclaration of Emergencyemergency foris COVID-19in issuedeffect byin thecertain Governorcounties remains in effect;this State if certain conditions apply;

LegislativeLegiThis Counsel’sbill Digest:enacts various provisions relating to a food delivery service platform, which is defined in section 4 of this bill to mean an Internet website, online service or mobile application which allows users to purchase food from multiple food dispensing establishments and arrange for the same-day delivery or same-day pickup of such food.

ThisSection bill4 enactsfurther variousprovides provisionsthat relatingan toInternet awebsite, foodonline delivery service platform,or mobile application which isdoes definednot inpost sectioncertain 4information and does not of this bill todefines mean“food andelivery Internet website, online service orplatform mobileprovider” applicationas whicha allowsperson userswhotion to5 purchaseoperates fooda from multiple food pickupdelivery ofservice suchplatform. food.

Section 512 of this bill definesprohibits “fooda food delivery service platform provider”provider asfrom facilitating an online food order involving a personfood whodispensing operatesestablishment unless the provider has entered into a written agreement with the food deliverydispensing serviceestablishment platform.that expressly authorizes the provider to engage in such activities.

Section 12 of this bill prohibits a food delivery service platform provider from facilitating an online food order involving a food dispensing establishment unless the provider has entered into a written agreement with the food dispensing Section 13 of this bill requires a food delivery service platform provider to remove - *SB320_R1* – 2 – a food dispensing establishment from the food delivery service platform of the provider within 48 hours after the receipt of a written request from the foodfoode dispensing establishment.

Section 14 of this bill prohibits a food delivery service platform provider from using the likeness, registered trademark or intellectual property of a food dispensing establishment.establishment without first obtaining the written consent of the food provider that violates that prohibition is subject to a civil penalty of $500 per day of the violation.

Section 14 provides that a food delivery service platform provider that violates that prohibition is subject to a civil penalty of $500 per day of the violation.

Section 16 of this bill requires a food delivery service platform provider to discloseorder. certain information to a user of the platform who engages in an online food that indicates a commission is to be paid associated with the online food order.nt Section 3 of this bill defines “commission,” in general, to mean any fee charged by a food delivery service platform provider to a food dispensing establishment for the use of the services of the provider in effectuating online food orders.

SectionAmong 17the ofinformation thisrequired billto setsbe forthdisclosed theby proceduressection by16 whichis a foodstatementod delivery- service81st platformSession provider(2021) may– request2 an– alternativethat mannerindicates ina whichcommission allis requiredto informationbe maypaid beassociated disclosed.with the online food order.

EmergencySection due3 toof thethis outbreakbill ofdefines the“commission,” diseasein identifiedgeneral, to mean any fee charged by thea Centersfood fordelivery Diseaseservice Controlplatform andprovider Preventionto ofa food dispensing establishment for the Uniteduse Statesof Departmentthe services of Healththe andprovider Humanin Serviceseffectuating asonline COVID-19.food orders.

(Declaration of Emergency for COVID-19 (March 12, 2020)) Section 1917 of thisprovider billmay prohibits,request foran anyalternative periodmanner duringin which aall Declarationrequired ofinformation Emergencymay forbe COVID-19disclosed. declared by the Governor of this State remains in effect, a food delivery service platform provider from charging a food dispensing establishment any commission for an online food order that exceeds a certain amount.

thatSection constitute17.5 deceptiveof tradethis practices.bill prohibits, for any period during which a declaration of emergency is in effect in a county in this State and social distancing requirements and occupancy limitations on the capacity of food dispensing establishments apply, a food delivery service platform provider from charging a food dispensing amount.

(NRSSection 598.0915-598.0925)17.5 Ifprovides athat personsthis knowinglyprohibition engagesdoes not supersede or preempt an ordinance enacted in a deceptivecounty tradein practice,this State that places limits on the personmaximum maycommission bethat subjecta tofood restraintdelivery byservice injunctionplatform andprovider may charge a food dispensing establishment if the impositionordinance ofwas civilin andeffect criminalon penalties.or before April 30, 2021.

(NRSExisting 598.0979,law 598.0985,defines 598.0999)various Sectionsactivities 18involving businesses and 19occupations of this bill provide that aconstitute violation of the provisions of section 16, 17 or 19 of this bill constitutes a deceptive trade practice.practices.

(NRS 598.0915-598.0925) If a person restraint by injunction and the imposition of civil and criminal penalties.

(NRS 598.0979, 598.0985, 598.0999) Section 18 of this bill provides that a violation of the provisions of section 16, 17 or 17.5 of this bill constitutes a deceptive trade practice.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

- *SB320_R1* – 3 – Sec.

The term does include any fee that is charged by a food delivery service platform provider for services provided as a - 81st Session (2021) – 3 – general or indirect cost of doing business, including, without limitation, fees for the processing of credit cards or for advertising in a restaurant directory.

“Food1. delivery service platform” means an Internet website, online service or mobile application which allows users to purchase food from multiple food dispensing establishments and arrange for the same-day delivery or same-day pickup of such food.

“Food delivery service platform” means an usersnettoebpurchaselinefoodvicfrom momultiplelifoodon dispensingws establishments and arrange for the same-day delivery or same-day pickup of such food.

2.

The term does not include an Internet website, online service or mobile application which does not:

(a) Post the menu of, the amounts charged by or the likeness, registered trademark or intellectual property of a food dispensing establishment;

and (b) Charge a commission or other payment of money to a food dispensing establishment in effectuating online food orders.

(c)NRS “Grocery597.225.ery store” has the meaning ascribed to it in NRSSec. 597.225.

Sec.

- *SB320_R1*81st Session (2021) – 4 – Sec.

A food delivery service platform provider shall not facilitate an online food order involving a food dispensing establishment, including, without limitation, arranging for the same-day delivery or same-day pickup of food prepared by a food dispensing establishment, unless the food delivery service platform provider has entered into a written agreement with the food dispensing establishment that expressly authorizes the food delivery service platform provider to engage in such activities.