Budget Amendment ID: FY2021-S4-381
ECO 381
Distressed Restaurant COVID-19 Relief Trust Fund
Ms. DiZoglio, Messrs. O'Connor and Fattman moved that the proposed new text be amended by adding the following sections:-
SECTION XX. Chapter 29 of the General Laws is hereby amended by inserting after section 2FFFFF the following section:-
Section 2GGGGG. (a) There shall be a Distressed Restaurant COVID-19 Relief Trust Fund administered by the secretary of housing and economic development. The secretary of housing and economic development shall make expenditures from the fund in the form of grants to assist distressed restaurants covered under chapter 65 of the Acts of 2020 with recovery from the COVID-19 pandemic.
(b) The secretary shall establish eligibility requirements by which grants shall be awarded to both (i) qualifying distressed restaurants that have suffered demonstrable financial harm related to the COVID-19 pandemic, and (ii) landlords of qualifying distressed restaurants that have provided documented evidence of implementation of rent abatement programs for such distressed restaurant tenants. Such requirements shall, at a minimum, (i) prioritize minority-owned restaurants and Massachusetts independently owned and operated restaurants, and (ii) allow for up to one dollar of grant funding to a landlord of a qualifying distressed restaurant for every two dollars of documented rent abatement actually provided to such distressed restaurant tenant.
(c) The fund shall consist of: (i) revenue from appropriations or other monies authorized by the general court and specifically designated to be credited to the fund; and (ii) funds from public or private sources including, but not limited to, gifts, grants, donations, rebates and settlements received by the commonwealth that are specifically designated to be credited to the fund. Amounts credited to the fund shall not be subject to further appropriation and monies remaining in the fund at the end of a fiscal year shall not revert to the General Fund. The of secretary of housing and economic development shall report annually not later than October 1 to the house and senate committees on ways and means on the fund's activity. The report shall include, but not be limited to, revenue received by the fund, revenue and expenditure projections for the forthcoming fiscal year and details of all expenditures from the fund.
SECTION XX. Section 6 of chapter 65 of the Acts of 2020 is hereby amended by striking out the figure “120” each time it appears, and inserting in place thereof, in each instance, the following figure:- 270.
SECTION XX. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:-
“Covered establishment”, a restaurant or other eating or drinking establishment offering same-day food or drink for sale in a single commercial transaction through any third-party delivery service platform, from 1 or more retail locations within the commonwealth. “COVID-19 emergency”, the state of emergency declared by the governor on March 10, 2020 in order to address the outbreak of the 2019 novel coronavirus, also known as COVID-19.
“Customer”, an individual using a third-party delivery service platform to place an online order.
“Online order”, an order for food or drinks placed by a customer through a third-party delivery service platform provided by a third-party delivery service company for pickup or delivery in the commonwealth.
“Purchase price”, the menu price publicly offered on the third-party delivery service platform by a covered establishment. The purchase price shall not include any taxes, gratuities or other fees that may make up the total cost charged to the customer for an online order.
“Third-party delivery service company”, a corporation, partnership, sole proprietorship or other entity qualified to do business in the commonwealth that is engaged in facilitating same day delivery or pickup of food and beverages through a third-party delivery service platform for 20 or more separately owned and operated covered establishments.
“Third-party delivery service platform”, any online enabled application, software, website or system offered or utilized by a third-party delivery service company to facilitate the sale of food and beverages prepared by, and the same-day delivery or same-day pickup of food and beverages from, covered establishments.
(b) Notwithstanding any general or special law to the contrary, no third-party delivery service company, from the effective date of SECTIONS XX-XX and for a period of 45 days after the termination of the COVID-19 emergency, shall charge a covered establishment a fee per online order for the use of its services that totals more than 15 per cent of the purchase price of the online order.
(c) Notwithstanding any general or special law to the contrary, from the effective date of SECTION XX-XX and for a period of 45 days after the termination of the COVID-19 emergency, the commissioner of revenue shall collect a fee from third-party delivery service companies equal to 5 per cent of the purchase price of each online order. Such fees shall be deposited to the Distressed Restaurant COVID-19 Relief Trust Fund established in section XX of Chapter 29 of the General Laws.
(d) SECTIONS XX-XX shall preempt, supersede or nullify any inconsistent, contrary or conflicting local law, ordinance, rule or regulation relating to third-party delivery service platforms and third-party delivery service companies fees, including with respect to any agreements with covered establishments using third-party delivery service companies.
(e) A violation of this section shall be an unfair and deceptive trade practice in violation of chapter 93A of the General Laws.
SECTION XX. Notwithstanding any general or special law to the contrary, upon the receipt by the commonwealth of federal funding that is eligible for use for the purposes of the grant program funded by the trust fund established by SECTION XX, the comptroller shall transfer the first $80,000,000 of such funding to the Distressed Restaurant COVID-19 Relief Trust Fund established in section 2GGGGG of Chapter 29 of the General Laws.