S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7318
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 17, 2023
                                ___________
 
 Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
   Committee on Insurance
 
 AN ACT to amend the general  business  law,  in  relation  to  insurance
   requirements for third-party food delivery apps
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 391-v of the general  business  law,  as  added  by
 chapter 693 of the laws of 2021, is amended to read as follows:
   §  391-v.  Third-party food delivery agreements AND INSURANCE REQUIRE-
 MENTS. 1. For the purposes of this section, the  following  terms  shall
 have the following meanings:
   (a)  "Agreement"  means a written contractual agreement between a food
 service establishment and a third-party food delivery service  authoriz-
 ing  the  inclusion  of the food service establishment's products on the
 third-party food delivery platform.
   (b) "Food service establishment" means a place where food is  provided
 for  individual  portion  service  directly to the consumer whether such
 food is provided free of charge or sold, and whether consumption  occurs
 on or off the premises or is provided from a pushcart, stand or vehicle.
   (c)  "Third-party  food  delivery  service"  means any website, mobile
 application or other internet service that offers or  arranges  for  the
 sale  or  delivery  of  food and beverages prepared by, and the same-day
 delivery or same-day pickup of food and beverage from,  a  food  service
 establishment located in the state.
   (d)  "Third-party  food  delivery platform" means the online or mobile
 platform of the third-party  food  delivery  service  on  which:  (I)  a
 consumer  can  view products available for sale and place an order for a
 food service establishment's products; OR (II)  A  DELIVERY  PERSON  CAN
 VIEW AND ACCEPT DELIVERY ASSIGNMENTS.
   (E)  "DELIVERY  PERSON" MEANS ANY INDEPENDENT CONTRACTOR OR REGISTERED
 AGENT ACTING ON BEHALF OF  A  THIRD-PARTY  FOOD  DELIVERY  SERVICE  THAT

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10975-01-3
              

 A. 7318                             2
 
 TRANSPORTS  FOOD  OR  BEVERAGES FROM A FOOD SERVICE ESTABLISHMENT TO THE
 CUSTOMER.
   2.  (a) A third-party food delivery service shall not list, advertise,
 promote, or sell a food service establishment's products, or arrange for
 the delivery of an order of such products, on a third-party food  deliv-
 ery  platform without a valid agreement with the food service establish-
 ment authorizing the inclusion of their products on such platform.
   (b) An agreement executed in accordance with this  section  shall  not
 include  a  provision,  clause, or covenant that requires a food service
 establishment to indemnify a  third-party  food  delivery  service,  any
 independent contractor acting on behalf of the third-party food delivery
 service,  or  any  registered  agent  of  the  third-party food delivery
 service, for any damages or harm by an act or omission  occurring  after
 the food service establishment's product leaves the place of business of
 the food service establishment. To the extent an agreement contains such
 a provision, such provision shall be deemed void and unenforceable.
   (c) A food service establishment included on a third-party food deliv-
 ery  platform in violation of this section shall have the right to bring
 an action in a court of competent jurisdiction for damages, penalties as
 set forth in this section, and injunctive relief.  Such  court,  in  its
 discretion, may also award reasonable court costs and attorneys' fees.
   [(d)]  3.  (A) A DELIVERY PERSON, OR A THIRD-PARTY DELIVERY SERVICE ON
 THE DELIVERY PERSON'S BEHALF THROUGH  A  GROUP  POLICY,  SHALL  MAINTAIN
 INSURANCE  THAT  RECOGNIZES THAT THE DELIVERY PERSON IS ACTING ON BEHALF
 OF THE THIRD-PARTY FOOD DELIVERY  SERVICE  AND  PROVIDES  RESPONSIBILITY
 COVERAGE:
   (I)  WHILE  THE  DELIVERY  PERSON  IS LOGGED ONTO THE THIRD-PARTY FOOD
 DELIVERY PLATFORM; AND
   (II) WHILE THE DELIVERY PERSON IS ENGAGED IN A  DELIVERY  ARRANGED  BY
 THE THIRD-PARTY FOOD DELIVERY PLATFORM.
   (B)  (I) THE FOLLOWING FINANCIAL RESPONSIBILITY INSURANCE REQUIREMENTS
 SHALL APPLY WHILE A DELIVERY PERSON IS LOGGED ONTO THE THIRD-PARTY  FOOD
 DELIVERY  PLATFORM  BUT  IS  NOT  ENGAGED  IN A DELIVERY ARRANGED BY THE
 THIRD-PARTY FOOD DELIVERY PLATFORM:  INSURANCE  AGAINST  LOSS  FROM  THE
 LIABILITY  IMPOSED  BY  LAW  FOR DAMAGES, INCLUDING DAMAGES FOR CARE AND
 LOSS OF SERVICES, BECAUSE OF BODILY INJURY TO OR DEATH  OF  ANY  PERSON,
 AND  INJURY  TO OR DESTRUCTION OF PROPERTY ARISING OUT OF THE OWNERSHIP,
 MAINTENANCE, USE OR OPERATION OF A PERSONAL VEHICLE OR VEHICLES, INCLUD-
 ING BICYCLES AND ELECTRIC BICYCLES, WITHIN THIS STATE, OR  ELSEWHERE  IN
 THE UNITED STATES IN NORTH AMERICA OR CANADA, SUBJECT TO A LIMIT, EXCLU-
 SIVE  OF INTEREST AND COSTS, WITH RESPECT TO EACH SUCH OCCURRENCE, OF AT
 LEAST SEVENTY-FIVE THOUSAND DOLLARS BECAUSE OF BODILY INJURY TO OR DEATH
 OF ONE PERSON IN ANY ONE ACCIDENT AND, SUBJECT TO  SAID  LIMIT  FOR  ONE
 PERSON,  TO  A  LIMIT  OF  AT  LEAST  ONE HUNDRED FIFTY THOUSAND DOLLARS
 BECAUSE OF BODILY INJURY TO OR DEATH OF TWO OR MORE PERSONS IN  ANY  ONE
 ACCIDENT,  AND  TO  A  LIMIT  OF  AT  LEAST TWENTY-FIVE THOUSAND DOLLARS
 BECAUSE OF INJURY TO OR DESTRUCTION OF PROPERTY OF  OTHERS  IN  ANY  ONE
 ACCIDENT,  PROVIDED  HOWEVER,  THAT SUCH POLICY NEED NOT BE FOR A PERIOD
 COTERMINOUS WITH THE REGISTRATION PERIOD, IF ANY, OF THE PERSONAL  VEHI-
 CLE  INSURED,  AND  COVERAGE,  IF  ANY, IN SATISFACTION OF THE FINANCIAL
 RESPONSIBILITY REQUIREMENTS SET FORTH IN  SECTION  THREE  THOUSAND  FOUR
 HUNDRED  TWENTY OF THE INSURANCE LAW, ARTICLE FIFTY-ONE OF THE INSURANCE
 LAW, AND SUCH OTHER REQUIREMENTS OR REGULATIONS THAT MAY APPLY  FOR  THE
 PURPOSES  OF  SATISFYING  THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH
 RESPECT TO THE USE OR OPERATION OF A MOTOR VEHICLE.
 A. 7318                             3
 
   (II) THE COVERAGE REQUIREMENTS OF SUBPARAGRAPH (I) OF  THIS  PARAGRAPH
 MAY BE SATISFIED BY ANY OF THE FOLLOWING:
   (A) INSURANCE MAINTAINED BY THE DELIVERY PERSON; OR
   (B) INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED BY THE THIRD-
 PARTY FOOD DELIVERY SERVICE; OR
   (C) A COMBINATION OF ITEMS (A) AND (B) OF THIS SUBPARAGRAPH.
   (C)  (I) THE FOLLOWING FINANCIAL RESPONSIBILITY INSURANCE REQUIREMENTS
 SHALL APPLY WHILE A DELIVERY PERSON IS ENGAGED IN A DELIVERY ARRANGED BY
 THE THIRD-PARTY FOOD DELIVERY PLATFORM: INSURANCE AGAINST LOSS FROM  THE
 LIABILITY  IMPOSED  BY  LAW  FOR DAMAGES, INCLUDING DAMAGES FOR CARE AND
 LOSS OF SERVICES, BECAUSE OF BODILY INJURY TO OR DEATH  OF  ANY  PERSON,
 AND  INJURY  TO OR DESTRUCTION OF PROPERTY ARISING OUT OF THE OWNERSHIP,
 MAINTENANCE, USE, OR OPERATION OF A SPECIFIC PERSONAL VEHICLE  OR  VEHI-
 CLES,  INCLUDING  BICYCLES  AND  ELECTRIC BICYCLES WITHIN THIS STATE, OR
 ELSEWHERE IN THE UNITED STATES IN NORTH AMERICA OR CANADA, SUBJECT TO  A
 LIMIT, EXCLUSIVE OF INTEREST AND COSTS, WITH RESPECT TO EACH SUCH OCCUR-
 RENCE,  OF  AT  LEAST  ONE  MILLION  TWO  HUNDRED FIFTY THOUSAND DOLLARS
 BECAUSE OF BODILY INJURY TO OR DEATH OF ANY PERSON,  AND  INJURY  TO  OR
 DESTRUCTION  OF PROPERTY, PROVIDED HOWEVER, THAT SUCH POLICY NEED NOT BE
 FOR A PERIOD COTERMINOUS WITH THE REGISTRATION PERIOD, IF  ANY,  OF  THE
 PERSONAL  VEHICLE  INSURED, AND COVERAGE, IF ANY, IN SATISFACTION OF THE
 FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN SECTION  THREE  THOU-
 SAND  FOUR HUNDRED TWENTY OF THE INSURANCE LAW, ARTICLE FIFTY-ONE OF THE
 INSURANCE LAW, COVERAGE PROVIDED IN ACCORDANCE WITH  SUBSECTION  (F)  OF
 SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THE INSURANCE LAW, PROVID-
 ING  SUPPLEMENTARY  UNINSURED/UNDERINSURED MOTORIST INSURANCE FOR BODILY
 INJURY, IN THE AMOUNT OF ONE MILLION TWO HUNDRED FIFTY THOUSAND  DOLLARS
 BECAUSE  OF BODILY INJURY TO OR DEATH OF ANY PERSON IN ANY ONE ACCIDENT;
 AND SUCH OTHER REQUIREMENTS  OR  REGULATIONS  THAT  MAY  APPLY  FOR  THE
 PURPOSES  OF  SATISFYING  THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH
 RESPECT TO THE USE OR OPERATION OF A MOTOR VEHICLE, BICYCLE OR  ELECTRIC
 BICYCLE.
   (II)  THE  COVERAGE REQUIREMENTS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH
 MAY BE SATISFIED BY ANY OF THE FOLLOWING:
   (A) INSURANCE MAINTAINED BY THE DELIVERY PERSON; OR
   (B) INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED BY THE THIRD-
 PARTY FOOD DELIVERY SERVICE; OR
   (C) A COMBINATION OF ITEMS (A) AND (B) OF THIS SUBPARAGRAPH.
   (D) A THIRD-PARTY FOOD DELIVERY SERVICE, UPON ENTERING INTO A CONTRAC-
 TUAL AGREEMENT WITH A DELIVERY PERSON, PROVIDE NOTICE  TO  THE  DELIVERY
 PERSON  THAT THEY MAY NEED ADDITIONAL INSURANCE COVERAGE INCLUDING MOTOR
 VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH  NINETEEN  OF
 SUBSECTION  (A)  OF  SECTION  ONE  THOUSAND  ONE HUNDRED THIRTEEN OF THE
 INSURANCE LAW IF THE VEHICLE  BEING  USED  BY  THE  DELIVERY  PERSON  IS
 SUBJECT  TO  A  LEASE OR LOAN. A THIRD-PARTY FOOD DELIVERY SERVICE SHALL
 ALSO POST THIS NOTICE ON ITS WEBSITE IN A PROMINENT PLACE,  AND  PROVIDE
 CONTACT INFORMATION FOR THE DEPARTMENT OF FINANCIAL SERVICES.
   (E)  IF  INSURANCE  MAINTAINED  BY A DELIVERY PERSON PURSUANT TO PARA-
 GRAPHS (B) AND (C) OF THIS SUBDIVISION HAS LAPSED OR  DOES  NOT  PROVIDE
 THE REQUIRED COVERAGE, THEN THE GROUP POLICY MAINTAINED BY A THIRD-PARTY
 FOOD  DELIVERY  SERVICE  SHALL  PROVIDE  THE  COVERAGE  REQUIRED BY THIS
 SECTION BEGINNING WITH THE FIRST DOLLAR OF A CLAIM AND HAVE THE DUTY  TO
 DEFEND SUCH CLAIM.
   (F)  COVERAGE  UNDER A GROUP POLICY MAINTAINED BY THE THIRD-PARTY FOOD
 DELIVERY SERVICE SHALL NOT BE DEPENDENT ON THE DENIAL OF A CLAIM BY  THE
 INSURER  THAT  ISSUED  THE  INSURANCE POLICY USED TO REGISTER A DELIVERY
 A. 7318                             4
 
 PERSON'S MOTOR VEHICLE, NOR SHALL THAT INSURER BE REQUIRED TO FIRST DENY
 A CLAIM.
   (G)  (I)  EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH, A
 GROUP POLICY MAINTAINED BY A THIRD-PARTY FOOD DELIVERY SERVICE  PURSUANT
 TO ITEM (B) OF SUBPARAGRAPH (II) OF PARAGRAPH (B) OR ITEM (B) OF SUBPAR-
 AGRAPH (II) OF PARAGRAPH (C) OF THIS SUBDIVISION SHALL BE PLACED WITH AN
 INSURER AUTHORIZED TO WRITE INSURANCE IN THIS STATE.
   (II)  IF  A  THIRD-PARTY FOOD DELIVERY SERVICE IS UNABLE TO PURCHASE A
 GROUP POLICY PURSUANT TO ITEM (B) OF SUBPARAGRAPH (II) OF PARAGRAPH  (B)
 OR  (C)  OF  THIS SUBDIVISION BECAUSE SUCH INSURANCE IS UNAVAILABLE FROM
 AUTHORIZED INSURERS, THE THIRD-PARTY FOOD DELIVERY SERVICE  MAY  ACQUIRE
 SUCH  GROUP INSURANCE WITH AN EXCESS LINE BROKER PURSUANT TO SECTION TWO
 THOUSAND ONE HUNDRED EIGHTEEN OF THE INSURANCE LAW.
   (III) THE OBLIGATION TO DETERMINE WHETHER THE  INSURANCE  REQUIRED  BY
 THIS  SECTION IS UNAVAILABLE FROM INSURERS AUTHORIZED TO WRITE INSURANCE
 IN THIS STATE SHALL BE MADE PRIOR TO THE INITIAL PLACEMENT AND  AT  EACH
 RENEWAL OF A POLICY.
   (H)  A  DELIVERY  PERSON  WHO,  WHILE OPERATING A VEHICLE, INCLUDING A
 BICYCLE OR ELECTRIC BICYCLE, WAS  LOGGED  ON  TO  THE  THIRD-PARTY  FOOD
 DELIVERY  PLATFORM  BUT NOT ENGAGED IN A DELIVERY ARRANGED BY THE THIRD-
 PARTY FOOD DELIVERY SERVICE OR WAS ENGAGED IN A DELIVERY ARRANGED BY THE
 THIRD-PARTY FOOD DELIVERY SERVICE,  AND  HAS  IN  EFFECT  THE  INSURANCE
 REQUIRED  PURSUANT  TO  THIS  SECTION,  SHALL  NOT  BE  DEEMED  TO BE IN
 VIOLATION OF ARTICLE SIX OF THE VEHICLE AND TRAFFIC LAW DURING SUCH TIME
 THAT HE OR SHE WAS LOGGED ONTO THE THIRD-PARTY  FOOD  DELIVERY  PLATFORM
 BUT  NOT ENGAGED IN A DELIVERY ARRANGED BY THE THIRD-PARTY FOOD DELIVERY
 SERVICE OR WAS ENGAGED IN A DELIVERY ARRANGED BY  THE  THIRD-PARTY  FOOD
 DELIVERY SERVICE.
   (I)  A  DELIVERY  PERSON  SHALL CARRY PROOF OF COVERAGE SATISFYING THE
 REQUIREMENTS OF PARAGRAPHS (B) AND (C) OF THIS SUBDIVISION WITH  HIM  OR
 HER  AT  ALL  TIMES  DURING  HIS  OR  HER USE OR OPERATION OF A VEHICLE,
 INCLUDING A BICYCLE OR ELECTRIC BICYCLE, IN CONNECTION WITH A THIRD-PAR-
 TY FOOD DELIVERY SERVICE. SUCH PROOF OF COVERAGE SHALL BE IN  SUCH  FORM
 AS THE COMMISSIONER OF THE DEPARTMENT OF MOTOR VEHICLES SHALL PRESCRIBE,
 WHICH  MAY BE IN THE FORM OF AN INSURANCE IDENTIFICATION CARD AS DEFINED
 IN SECTION THREE HUNDRED ELEVEN OF THE  VEHICLE  AND  TRAFFIC  LAW.  ANY
 INSURANCE  IDENTIFICATION CARD ISSUED PURSUANT TO THE PROVISIONS OF THIS
 SECTION SHALL BE  IN  ADDITION  TO  THE  INSURANCE  IDENTIFICATION  CARD
 REQUIRED  PURSUANT  TO  ARTICLE  SIX OF THE VEHICLE AND TRAFFIC LAW, AND
 NOTHING CONTAINED IN THIS ARTICLE  SHALL  BE  DEEMED  TO  SUPERSEDE  THE
 REQUIREMENTS  OF  SUCH ARTICLE SIX. WHENEVER THE PRODUCTION OF AN INSUR-
 ANCE IDENTIFICATION CARD IS REQUIRED BY LAW, A DELIVERY PERSON SHALL (I)
 PRODUCE THE INSURANCE IDENTIFICATION CARD ISSUED PURSUANT TO ARTICLE SIX
 OF THE VEHICLE AND TRAFFIC LAW, AND (II) IF SUCH DELIVERY PERSON (A) WAS
 LOGGED ONTO THE THIRD-PARTY FOOD DELIVERY PLATFORM BUT NOT ENGAGED IN  A
 DELIVERY  ARRANGED  BY THE THIRD-PARTY FOOD DELIVERY SERVICE; OR (B) WAS
 ENGAGED IN A DELIVERY ARRANGED BY THE THIRD-PARTY FOOD DELIVERY SERVICE,
 SUCH  DRIVER  SHALL  ALSO  PRODUCE  THE  INSURANCE  IDENTIFICATION  CARD
 REQUIRED PURSUANT TO THIS SECTION.
   (J)  THE  SUPERINTENDENT  OF FINANCIAL SERVICES IS AUTHORIZED TO ISSUE
 SUCH RULES AND REGULATIONS NECESSARY TO IMPLEMENT THIS SECTION.
   (K) THE SUPERINTENDENT OF  FINANCIAL  SERVICES  MAY  PROMULGATE  REGU-
 LATIONS TO ADDRESS INSURANCE COVERAGE UNDER THIS SECTION WHEN A DELIVERY
 PERSON  USES  MULTIPLE  THIRD-PARTY  FOOD DELIVERY SERVICES OR PLATFORMS
 SIMULTANEOUSLY.
 A. 7318                             5

   (L) AN INSURER SHALL NOT INCLUDE A MANDATORY ARBITRATION CLAUSE  IN  A
 POLICY  ISSUED  PURSUANT TO THIS SECTION. NOTHING IN THIS SECTION SUPER-
 SEDES THE MANDATORY ARBITRATION REQUIREMENTS CONTAINED IN  SECTION  FIVE
 THOUSAND ONE HUNDRED FIVE OF THE INSURANCE LAW.
   4.  Any  person  that  violates any provision of this section shall be
 subject to a civil penalty of up to one thousand dollars per  violation,
 EXCEPT  THAT  THE  THIRD-PARTY  FOOD  DELIVERY SERVICE SHALL BE THE SOLE
 LIABLE PARTY FOR VIOLATIONS OF SUBDIVISION THREE OF THIS SECTION.   Each
 day  a  food  service  establishment  is  included on a third-party food
 delivery platform and each food  service  establishment  included  on  a
 third-party  food  delivery  platform  shall  be  considered  a separate
 violation. EACH  DELIVERY  BEGUN  OR  COMPLETED  WITHOUT  THE  FINANCIAL
 RESPONSIBILITY  REQUIREMENTS  REQUIRED  BY  SUBDIVISION  THREE  OF  THIS
 SECTION SHALL BE CONSIDERED A SEPARATE VIOLATION.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.