WeVote
Log In

Bill

Bill

S 2356

Relates to requiring covered entities to publicly report on franchise fees, consumer complaints and denials of requests for service

2025 Regular Session Introduced by Kevin Parker

Imposes a minimum $0.50 per online delivery order to fund municipal transportation needs and the state transport fund, with annual reporting and inflation adjustments.

REFERRED TO ENERGY AND TELECOMMUNICATIONS
0
WeVote Research Nonpartisan
Bill Summary · S 2356

Summary — S.2356 (An Act relative to third party delivery fees for transportation infrastructure)

Status: Introduced in the Senate (Docket No. 2356). Referred to committee; hearing(s) scheduled. (See Procedural Notes below for inconsistent date/sponsor metadata.)

Short description
- Establishes a minimum per-order “delivery assessment” on same‑day online food and beverage orders placed through third‑party delivery platforms, requires annual reporting by those platforms, and directs how the collected funds are to be distributed between municipalities and the state transportation fund to address impacts on local transportation infrastructure.

Purpose / intent
- Generate dedicated revenue tied to third‑party food delivery activity to help cities/towns and the Commonwealth address wear, damage, and other municipal impacts from transportation network services and to support related transportation programs (for example, complete streets and alternative transportation).

Key provisions
- New definitions added to Mass. Gen. Laws, ch. 159B, including:
- “Covered establishment”: restaurant/eating or drinking establishment offering same‑day food/drink for sale via third‑party delivery.
- “Third‑party delivery service company”: an entity facilitating same‑day delivery or pickup for 20 or more separately owned covered establishments.
- “Delivery‑assessments”: the fee paid by the customer to the third‑party delivery company.
- “Purchase price”, “customer”, “online order”, and “department” (Department of Public Utilities, DPU) are also defined.

  • Minimum delivery assessment:

    • A delivery assessment of no less than $0.50 per order must be applied to online orders. The assessment does not apply to items that are not subject to state sales tax.

  • Reporting requirement:

    • Annually, not later than February 1, each third‑party delivery company must submit to the director (presumably of the DPU or another specified director) the number of deliveries in the previous calendar year originating in each city/town and the amount collected from delivery assessments.

  • Adjustment for inflation:

    • The department is given authority to adjust the delivery assessment based on inflation; the bill language indicates the department may make adjustments at intervals “no less than every two years” (i.e., periodic adjustments tied to inflation).

  • Distribution of proceeds:

    • Collected funds are split 50/50:
    • 50% distributed proportionately to cities/towns based on the number of deliveries originating there in the prior calendar year. Funds are to be used to address transportation network service impacts on municipal roads/bridges or other transportation‑related public purposes (including complete streets and alternative transportation programs). If a municipality’s distribution is $25,000 or less, the municipal chief executive may expend those funds without further appropriation.
    • 50% deposited into the Commonwealth Transportation Fund (per Mass. Gen. Laws ch. 29, §2ZZZ).

Who is affected
- Third‑party delivery platforms (e.g., those meeting the 20‑establishment threshold) — new reporting duties and obligation to collect/forward the assessment.
- Customers — will pay at least an extra $0.50 per qualifying online order (subject to inflation adjustments).
- Covered establishments (restaurants) — indirect impacts on pricing/ordering patterns; may be affected by platform policy changes in response.
- Municipalities and the Commonwealth Transportation Fund — recipients of new revenue intended to mitigate transportation impacts.

Fiscal and operational impacts (practical effects)
- Generates a dedicated revenue stream tied to delivery activity for municipal transportation needs and state transportation fund.
- Administrative compliance and reporting costs for third‑party platforms.
- Potential for increased consumer costs and possible changes in platform/restaurant pricing or service terms.
- Inflation indexing may raise the per‑order charge over time.

Procedural status & important notes
- The bill text is filed as Senate Docket No. 2356 (introduced by Sen. Brendan P. Crighton; petition names include Brendan P. Crighton and James B. Eldridge).
- Legislative action entries in the provided metadata contain inconsistent dates and sponsor listings (including federal names and conflicting introduction/hearing dates). These inconsistencies appear clerical; users should consult the official Massachusetts Legislature website or bill tracker for authoritative, up‑to‑date procedural status, hearing schedules, and final text.

If you want, I can:
- Retrieve the current official bill status/official text from the Massachusetts Legislature site and reconcile the procedural inconsistencies, or
- Draft a short stakeholder impact brief (for cities, platforms, or restaurants) summarizing compliance steps and likely financial effects.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.