| 1 | 1 | | 89R3400 DRS-D |
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| 2 | 2 | | By: Gates H.B. No. 1227 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to municipal solid waste management services contracts; |
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| 10 | 10 | | limiting the amount of a fee. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter F, Chapter 363, Health and Safety |
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| 13 | 13 | | Code, is amended by adding Section 363.120 to read as follows: |
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| 14 | 14 | | Sec. 363.120. MUNICIPAL FRANCHISE FEES. A municipality may |
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| 15 | 15 | | not charge a person granted a franchise to provide solid waste |
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| 16 | 16 | | management services in the municipality franchise fees of more than |
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| 17 | 17 | | two percent of the gross receipts of the franchisee for the sale of |
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| 18 | 18 | | services in the municipality. |
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| 19 | 19 | | SECTION 2. Section 364.034(f), Health and Safety Code, is |
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| 20 | 20 | | amended to read as follows: |
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| 21 | 21 | | (f) Notwithstanding the other provisions of this section: |
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| 22 | 22 | | (1) [,] a political subdivision, including a county or |
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| 23 | 23 | | a municipality, may not restrict the right of an entity to contract |
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| 24 | 24 | | with a licensed waste hauler for the collection and removal of |
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| 25 | 25 | | domestic septage or of grease trap waste, grit trap waste, lint trap |
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| 26 | 26 | | waste, or sand trap waste; and |
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| 27 | 27 | | (2) a municipality may not restrict the right of an |
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| 28 | 28 | | entity to contract with a person other than the municipality or an |
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| 29 | 29 | | exclusive franchisee of the municipality for solid waste management |
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| 30 | 30 | | services for commercial, industrial, or multifamily residential |
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| 31 | 31 | | waste. |
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| 32 | 32 | | SECTION 3. Section 363.120, Health and Safety Code, as |
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| 33 | 33 | | added by this Act, applies only to a contract for solid waste |
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| 34 | 34 | | management services entered into on or after the effective date of |
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| 35 | 35 | | this Act. |
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| 36 | 36 | | SECTION 4. This Act takes effect September 1, 2025. |
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