HB 1386 Summary

• Allows restaurants to apply a 2% service surcharge on bills before taxes, with all revenue retained exclusively for COVID-19 economic recovery purposes.

• Requires restaurants implementing the surcharge to clearly disclose to customers before purchase that the surcharge is used solely for COVID-19 economic recovery.

• Authorizes Class 2 restaurant liquor license holders to allow liquor consumption anywhere on premises, including outdoor property.

• Permits Class 2 restaurant liquor license holders to sell liquors in original packages for off-premises consumption through pickup, delivery, or takeout.

• Restaurant service surcharge provisions take effect July 1, 2021, and automatically repeal on June 30, 2026; liquor license amendments take effect upon approval.