Requires food service establishments disclose if they are operating out of another food service establishment's kitchen or in a location which is not operated exclusively as a kitchen for such establishment.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9461
SPONSOR: Jackson
 
TITLE OF BILL:
An act to amend the general business law, in relation to requiring food
service establishments disclose if they are operating out of another
food service establishment's kitchen or in a location which is not oper-
ated exclusively as a kitchen for such food service establishment
 
PURPOSE OR GENERAL IDEA OF BILL:
To establish more transparency between ghost kitchen establishments and
customers.
 
SUMMARY OF PROVISION:
Section 1: describes the definitions of "food service establishment",
"third-party food delivery service", and "third party delivery plat-
form." This section also explains that food service establishments shall
clearly and prominently disclose whether they are operating out of a
different food service establishment's kitchen or in a location which is
not operated exclusively as a kitchen for such service establishment.
Section 2: This act shall take effect on the ninetieth day after it
shall have become law.
 
JUSTIFICATION:
Ghost kitchens operate with less stringent health safety standards
compared to traditional brick-and-mortar restaurants. Additionally,
their health ratings are not displayed on online delivery platforms like
Uber Eats, Grubhub, and Postmates. Due to many delivery systems not
notifying customers that these businesses are strictly virtual or oper-
ating out of another kitchen establishment, ghost kitchens lack the same
level of transparency as traditional restaurants. This bill aims to
address these issues by requiring food service establishments to
disclose their virtual or shared kitchen status, enabling customers to
make more informed decisions about their meal purchases.
 
PRIOR LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
TBD.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become law.
STATE OF NEW YORK
________________________________________________________________________
9461
IN ASSEMBLY
March 14, 2024
___________
Introduced by M. of A. JACKSON -- read once and referred to the Commit-
tee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to requiring food
service establishments disclose if they are operating out of another
food service establishment's kitchen or in a location which is not
operated exclusively as a kitchen for such food service establishment
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general business law is amended by adding a new section
2 350-f-2 to read as follows:
3 § 350-f-2. Disclosures required for certain food service establish-
4 ments. 1. For purposes of this section:
5 (a) "Food service establishment" means a place where food is provided
6 for individual portion service directly to the consumer whether such
7 food is provided free of charge or sold, and whether consumption occurs
8 on or off the premises or is provided from a pushcart, stand or vehicle.
9 (b) "Third-party food delivery service" means any website, mobile
10 application or other internet service that offers or arranges for the
11 sale or delivery of food and beverages prepared by, and the same-day
12 delivery or same-day pickup of food and beverage from, a food service
13 establishment located in the state.
14 (c) "Third-party food delivery platform" means the online or mobile
15 platform of the third-party food delivery service on which a consumer
16 can view products available for sale and place an order for a food
17 service establishment's products.
18 2. Any food service establishment, in making representations for the
19 purposes of inducing, or which are likely to induce, directly or indi-
20 rectly, the purchase of food from such establishment, shall clearly and
21 prominently disclose, in any advertisement, on such establishment's
22 website, mobile application or other internet service, and on any third-
23 party food delivery platform, if such establishment is operating out of
24 a different food service establishment's kitchen or in a location which
25 is not operated exclusively as a kitchen for such food service estab-
26 lishment.
27 § 2. This act shall take effect on the ninetieth day after it shall
28 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14722-01-4