§ 31-15-904 — 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.

Legislative History

Source: L. 2020, 1st Ex. Sess.: Entire section added, (HB 20B-1005), ch. 4, p. 29, � 3, effective December 7. L. 2025: (1)(b) amended, (SB 25-285), ch. 296, p. 1518, � 8, effective August 6.