SACRAMENTO, Calif. – In a move aimed at restoring transparency and fairness in dining experiences, California Senator Bill Dodd (D-Napa) has introduced a bill that could potentially reverse part of a contentious state law set to take effect in just three weeks.

Dodd’s proposed legislation, Senate Bill 1524, seeks to permit restaurants to levy service fees on diners, effectively overturning a provision in Senate Bill 478, dubbed the state’s junk fees law, which would otherwise render such fees illegal.

The impending law has sparked concerns among restaurateurs and diners alike, with fears that additional charges, often undisclosed until the bill arrives, could lead to confusion and dissatisfaction among patrons.

Aims of the Proposed Bill

Senator Dodd underscored the necessity for transparency in restaurant pricing, stating, Restaurant customers shouldn’t be surprised when they get their checks by a boatload of extra charges they’re not expecting. The proposed bill aims to level the playing field for all restaurants and mitigate confusion surrounding permissible fees under state law.

Key Provisions of SB 1524

If passed, SB 1524 would mandate that restaurants conspicuously disclose any additional charges, including automatic service fees, on menus or other displays, aligning with current industry practices observed by many food establishments.

Moreover, the bill emphasizes that any mandatory gratuity, service charge, or other fee must be clearly stated on restaurant menus, eliminating surprises upon bill receipt. This provision aims to enhance transparency and ensure that customers are fully informed about additional costs before placing their orders.

Co-Authors and Support

SB 1524 boasts bipartisan support, with Senator Scott Wiener (D-San Francisco) and Assembly members Jesse Gabriel (D-Encino), Cecilia Aguiar-Curry (D-Winters), and Matt Haney (D-San Francisco) co-authoring the bill.

The California Restaurant Association and the Unite Here labor union have also thrown their weight behind the proposed legislation, signaling broad industry and labor support for measures aimed at clarifying restaurant pricing practices.

Context: Understanding Senate Bill 478

Senate Bill 478, the junk fees law, passed last year, aims to curb deceptive pricing practices across various industries, including hospitality. It prohibits businesses from imposing hidden fees or obscuring additional costs to artificially lower prices, ensuring transparency for consumers.

While the California attorney general’s office clarified in April that the junk fees law encompasses surcharges at restaurants, Senator Dodd’s new legislation seeks to carve out an exemption for food and beverage establishments. This exemption would shield restaurants from the law’s provisions, provided that any mandatory fees are transparently disclosed.

Conclusion: Restoring Transparency in Dining

Senator Bill Dodd’s proposed Senate Bill 1524 represents a concerted effort to restore transparency and fairness in the dining landscape of California. By requiring restaurants to openly disclose service fees and other additional charges, the legislation aims to empower consumers with greater clarity and ensure a level playing field for all establishments.

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