| 2 | 4 | | |
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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to exclusive contracts for municipal solid waste |
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| 7 | 9 | | management services. |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. Subchapter F, Chapter 363, Health and Safety |
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| 10 | 12 | | Code, is amended by adding Section 363.120 to read as follows: |
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| 11 | 13 | | Sec. 363.120. EXCLUSIVE SOLID WASTE MANAGEMENT SERVICE |
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| 12 | 14 | | CONTRACTS. (a) In this section, "exclusive contract" means a |
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| 13 | 15 | | contract or franchise agreement between a public agency and a |
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| 14 | 16 | | privately owned solid waste management service provider that grants |
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| 15 | 17 | | to the service provider an exclusive right to provide certain solid |
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| 16 | 18 | | waste management services in the public agency's jurisdiction. |
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| 17 | 19 | | (b) A public agency that enters into an exclusive contract, |
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| 18 | 20 | | including by renewing or amending an existing contract in a manner |
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| 19 | 21 | | that grants a privately owned solid waste management service |
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| 20 | 22 | | provider an exclusive right to provide certain additional solid |
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| 21 | 23 | | waste services that was not contained in the contract before the |
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| 22 | 24 | | renewal or amendment, shall give notice containing: |
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| 23 | 25 | | (1) a summary of the purpose of the contract or |
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| 24 | 26 | | amendment; |
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| 25 | 27 | | (2) a description of the change made by the contract or |
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| 26 | 28 | | amendment; and |
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| 27 | 29 | | (3) a summary of the effect of the contract or |
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| 28 | 30 | | amendment and this section on the operations of a privately owned |
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| 29 | 31 | | solid waste management service provider that is operating in the |
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| 30 | 32 | | public agency's jurisdiction and is not a party to the contract. |
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| 31 | 33 | | (c) A public agency required by Subsection (b) to give |
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| 32 | 34 | | notice shall: |
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| 33 | 35 | | (1) publish the notice: |
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| 34 | 36 | | (A) in a newspaper of general circulation in the |
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| 35 | 37 | | jurisdiction of the public agency; and |
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| 36 | 38 | | (B) on a publicly available Internet website |
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| 37 | 39 | | maintained by the public agency; and |
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| 38 | 40 | | (2) if the public agency requires a privately owned |
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| 39 | 41 | | solid waste management service provider to register or obtain |
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| 40 | 42 | | approval to operate in the public agency's jurisdiction, give |
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| 41 | 43 | | notice to each provider registered with or approved by the public |
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| 42 | 44 | | agency to operate in the jurisdiction. |
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| 43 | 45 | | (d) A contract or amendment described by Subsection (b) |
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| 44 | 46 | | takes effect on publication of the notice required by this section. |
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| 45 | 47 | | (e) A privately owned solid waste management service |
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| 46 | 48 | | provider that has an existing contract with a person to provide |
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| 47 | 49 | | certain solid waste management services for which a public agency |
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| 48 | 50 | | enters into an exclusive contract with another service provider may |
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| 49 | 51 | | continue to provide those services in the public agency's |
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| 50 | 52 | | jurisdiction until the earlier of: |
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| 51 | 53 | | (1) the date the service provider's existing |
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| 52 | 54 | | nonexclusive contract expires; or |
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| 53 | 55 | | (2) the second anniversary of the date the public |
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| 54 | 56 | | agency publishes the notice required by Subsection (b). |
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| 55 | 57 | | (f) A privately owned solid waste management service |
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| 56 | 58 | | provider that provides solid waste management services to a person |
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| 57 | 59 | | in a public agency's jurisdiction and that does not have a contract |
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| 58 | 60 | | to provide the services may, if the public agency enters into an |
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| 59 | 61 | | exclusive contract with another service provider to provide those |
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| 60 | 62 | | services, continue to provide the services in the jurisdiction |
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| 61 | 63 | | until the 60th day after the date the public agency publishes the |
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| 62 | 64 | | notice required by Subsection (b). |
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| 63 | 65 | | (g) This section does not apply to the provision of solid |
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| 64 | 66 | | waste management services by a municipality to an annexed area as |
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| 65 | 67 | | provided by Section 43.0661, Local Government Code. |
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| 66 | 68 | | SECTION 2. Section 363.120, Health and Safety Code, as |
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| 67 | 69 | | added by this Act, applies only to a contract or franchise agreement |
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| 68 | 70 | | for solid waste management services entered into on or after the |
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| 69 | 71 | | effective date of this Act. |
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| 70 | 72 | | SECTION 3. This Act takes effect immediately if it receives |
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| 71 | 73 | | a vote of two-thirds of all the members elected to each house, as |
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| 72 | 74 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 73 | 75 | | Act does not receive the vote necessary for immediate effect, this |
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| 74 | 76 | | Act takes effect September 1, 2025. |
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