Legislation Introduced By City Council Today: What Should Restaurants Look Out For

1. Repealing the Tax on Beer and Liquor 

In control: Committee on Finance 

Sponsored by: Councilman Ben Kallos (D, New York) and Councilman Robert F Holden (D, Queens)

What to know: this Local Law would repeal the tax on beer and liquor.

Timeline: this Local Law would take effect immediately on July 1st, 2021. 

2. Reporting Violations of Fee Limits by Third-Party Food Delivery Services

In control: Committee on Small Business

Sponsored by: Councilman Mark Gjonaj (D, Bronx)

What to know: 1) this Local Law would require the Commissioner of Consumer and Worker Protection to publish all violations of fee limits at the hands of third-party food delivery services on the New York City Department of Consumer and Worker Protection website. 2) Retroactively, the Commissioner will also be required to publish any acts or omissions that would be considered violations that took place after June 2nd, 2020. 

• Included in the publication: name of the service, date of the violation, applicable section of all, all applicable penalties, and the borough where the violation occurred. 

Timeline: this Local Law would take effect 30 days after it becomes law. 

*Lorelei Salas has been Commissioner since 2016, but resigned April 30th. No announcements for her replacement have been made. 

3. Third-Party Food Delivery Services Estimated Arrival Times

In control: Committee on Small Business

Sponsored by: Councilman Mark Gjonaj (D, Bronx)

What to know: 1) this Local Law would require Third-Party Food Delivery Services to provide their exact estimated time of arrival for all deliveries as well as a window of anticipated times from 5 minutes before and after their estimated arrival. 2) Any changes to these estimated times would require the Service to notify the consumer with a new time as well as the previously anticipated arrival times. 3) The Service will also be required to state the delivery status and any updates in the order receipt as it pertains to the worker(s) carrying out said delivery. 

Penalties: 1,2,3) a civil penalty that shall not exceed $500 per violation. 

Timeline: this Local Law would take effect 30 days after it becomes law. 

4. Third-Party Food Delivery Services Online Order Changes

In control: Committee on Small Business

Sponsored by: Councilman Mark Gjonaj (D, Bronx)

What to know: 1) this Local Law would require Third-Party Food Delivery Services to inform the food service establishment of any changes to an online order, including the amount charged to the customer or owed to the establishment, and allow it to contest said changes. Once the establishment has been informed and has decided whether or not to contest, the Service must communicate the changes made to the establishment before it does so to the customer. 2) The Service will not be able to charge an establishment more than 50% of the total cost of refunding an online order unless it is not related to its provided services.  

Penalties: 1) a civil penalty that shall not exceed $50 per violation, 2) a civil penalty that shall not exceed $500 per violation

Timeline: this Local Law would take effect 30 days after it becomes law. 

5. Third-Party Food Delivery Services Gratuity Options

In control: Committee on Small Business

Sponsored by: Councilman Mark Gjonaj (D, Bronx)

What to know: 1) this Local Law would require Third-Party Food Delivery Services to provide customers with the option to confer a gratuity on employees of the food service establishment when they place an online order. The option must be made available before, or at the same time as, the customer is able to conclude the transaction. Should there be an option to confer separate gratuities by recipient, each gratuity must be clearly and conspicuously labeled with a description of the recipient by the service. 2) This would not apply for telephone orders. 

Penalties: 1) a civil penalty that shall not exceed $100 per violation

• Violations will accrue on a daily basis for each day for which the option is not provided. 

Timeline: this Local Law would take effect 30 days after it becomes law. 

6. Third-Party Food Delivery Services Unauthorized Deliveries and Listings

In control: Committee on Small Business

Sponsored by: Councilman Mark Gjonaj (D, Bronx)

What to know: 1) this Local Law would prohibit Third-Party Food Delivery Services from arranging online order deliveries from a food service establishment without first entering into a written agreement that expressly authorizes such deliveries. 2) It would also prohibit Third-Party Food Delivery Services from arranging listing a food service establishment on its application without first entering into a written agreement that expressly authorizes such deliveries. 

Penalties: 1,2) a civil penalty that shall not exceed $500 per violation

Timeline: this Local Law would take effect 90 days after it becomes law; *However, the Commissioner of Consumer and Worker Protection will have to take the necessary measures for implementation prior to this date. 

• *No more than 30 days after the effective date of the local law will the Commissioner of Consumer and Worker Protection, and relevant agencies and stakeholders, have to conduct culturally appropriate outreach to alert food service establishments and third-party food delivery services to this section. 
• Included in the outreach, but not limited to: posting information on relevant agency websites, and distributing information to food service establishments, third-party food delivery services and other relevant stakeholders. 

7. Third-Party Food Delivery Services Telephone Number Descriptions

In control: Committee on Small Business

Sponsored by: Councilman Mark Gjonaj (D, Bronx)

What to know: 1) this Local Law would require Third-Party Food Delivery Services to include the direct telephone number of the food service establishment and a prominent description of it as such wherever it lists or links said number. 2) The description must include, but is not limited to: the identification of the number as the direct telephone number, and any fee associated with use of such number for telephone orders, whether imposed on the food service establishment or the caller. 3) The Commissioner of Consumer and Worker Protection will have to adopt such rules and regulations necessary to effectuate this law including, but not limited to: defining the contents, size and location of the descriptions required by this section. 

Penalties: 1,2) a civil penalty that shall not exceed $500 per violation

Timeline: this Local Law would take effect 180 days after it becomes law; *However, the Commissioner of Consumer and Worker Protection will have to take the necessary measures for implementation prior to this date. 

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