Third-party food delivery service fee restrictions - definitions

(1) As used in this section, unless the context otherwise requires: (a) "Declared public health disaster emergency" means the declared public health disaster emergency to address the COVID-19 pandemic of 2020, as declared by the governor by executive order. (b) "Retail food establishment" means a retail food establishment, as defined in section 25-4-1602 (14), that pays an annual license fee as required by section 25-4-1607. "Retail food establishment" does not include grocery stores or convenience stores. (c) "Third-party food delivery service" means any person, company, website, mobile application, or other internet service that offers or arranges for the sale and the same-day delivery or same-day pickup of prepared food or beverages from a retail food establishment. (2) During a declared public health disaster emergency, the governing body of each municipality may adopt, administer, and enforce ordinances and resolutions that: (a) Limit the amount of the fee that a third-party food delivery service may charge to a retail food establishment, excluding fees related to credit card processing, within the municipality where indoor dining is prohibited and until indoor dining is again permitted in the municipality at a capacity of at least fifty percent or below at the discretion of the municipality; (b) Restrict the ability of a third-party food delivery service to reduce the compensation rate paid to a delivery service driver or withhold gratuities or tips to a retail food establishment, its staff, or any delivery service driver to offset revenue reductions resulting from any ordinance or resolution enacted pursuant to subsection (2)(a) of this section; (c) Require a third-party food delivery service to disclose to a consumer using the third-party food delivery service to make a purchase from a retail food establishment any commission, fee, or other monetary payment charged by the third-party food delivery service to the retail food establishment for a purchase from the retail food establishment; and (d) Restrict a third-party food delivery service's ability to perform a service for a retail food establishment without the retail food establishment's consent. (3) A governing body of a municipality that adopts an ordinance or resolution pursuant to subsection (2) of this section is immune from liability for all claims for injury resulting from any economic damage that a party may incur due to the ordinance or resolution except to the extent that the ordinance or resolution is held by a court of competent jurisdiction to constitute a taking of private property in violation of the United States or state constitution.