SF 5378

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/09/2024 09:34am

A bill for an act
relating to commerce; prohibiting restaurant surcharges over five percent; requiring
disclosure of a surcharge; proposing coding for new law in Minnesota Statutes,
chapter 325E.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325E.85] RESTAURANT SURCHARGES.
new text end

new text begin (a) Restaurants must not charge a surcharge that exceeds five percent of the total cost
that a customer pays.
new text end

new text begin (b) For the purposes of this section, a surcharge does not include (1) a gratuity, as defined
in section 177.23, subdivision 9, or (2) taxes imposed by a government entity on the sale
or purchase of goods. If a restaurant charges an obligatory gratuity, the customer must be
provided the option to modify the gratuity amount charged.
new text end

new text begin (c) Prior to a customer placing an order, the restaurant must provide a clear and
conspicuous disclosure that a surcharge is applied to the total cost of the customer's purchase.
The disclosure must (1) be clearly printed, stamped, or written in bold type on the menu,
placard, or other printed material given to the customer, and (2) include the percentage that
is applied to the total cost.
new text end

new text begin (d) The penalties and remedies under section 8.31 apply to violations of this section.
new text end