LEGISLATIVE ALERT!

Emergency Legislation to exempt restaurants from “Junk Fees” Law Passes Legislature and has been sent to Governor Newsom for Signature and Immediate Effect Before it Would Have Applied to Golf Course F/B Functions Monday

SB 1524 was originally a gambling bill but was “gutted and amended” late this week as the bill we suggested last week was in the offing to exempt restaurants and banquet facilities from the “junk fees” bill set to take effect Monday. “Gut and amend” is a process whereby the contents of a live bill are completely stripped and replaced by language usually completely unrelated.

SB 1524, passed 73-0 by the Assembly, now moves as an “urgency” action to Governor Newsom for his signature and enrollment into California law before last year’s SB 478 would have applied to restaurants and banquet functions per a late May Attorney General’s opinion that determined its applicability to California restaurants. When SB 478 was signed into law last year, neither the bill’s author (Dodd; D-Napa) nor the union (Unite Here) that represents restaurant workers across the state understood that it would apply to restaurants. Both worked in unison to craft this “gut and amend” bill and get it off to the Governor before SB 478 was set to take effect Monday.

The bill:

• Exempts from SB 478 mandatory fees or charges for individual food or beverage items sold directly to a customer by a restaurant, bar, food concession, grocery store, or grocery delivery service, or by means of a menu or contract for banquet or catering services that fully discloses the terms of service; and
• Requires mandatory fees or charges be clearly and conspicuously displayed, with an explanation of its purpose, on any advertisement, menu, or other display that contains the price of the food or beverage item.

Assuming that Governor Newsom signs the bill, which is as close to a sure thing as these things get, golf facilities will be able to continue with their past practices if they make sure that any and all fees and charges in addition to the base prices of their menu items are “clearly and conspicuously displayed” on menus and banquet agreements.

- SCGA Public Affairs Team