HB 1227
AN ACT relating to municipal solid waste management services contracts;
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Limits municipal franchise fees for solid waste management services to a maximum of 2% of gross receipts and prevents municipalities from restricting businesses' rights to contract with waste haulers and solid waste management service providers of their choice. The legislation specifically impacts municipalities, waste management companies, and commercial, industrial, and multifamily residential entities by giving them more flexibility in selecting waste management services and reducing potential fee burdens. The bill takes effect on September 1, 2025, and applies to new solid waste management service contracts entered into after that date.
Subject Areas
Bill Text
relating to municipal solid waste management services contracts; BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter F, Chapter 363, Health and Safety Code, is amended by adding Section 363.120 to read as follows: Sec. 363.120. MUNICIPAL FRANCHISE FEES. A municipality may not charge a person granted a franchise to provide solid waste management services in the municipality franchise fees of more than two percent of the gross receipts of the franchisee for the sale of SECTION 2. Section 364.034(f), Health and Safety Code, is (f) Notwithstanding the other provisions of this section: (1) [,] a political subdivision, including a county or a municipality, may not restrict the right of an entity to contract with a licensed waste hauler for the collection and removal of domestic septage or of grease trap waste, grit trap waste, lint trap (2) a municipality may not restrict the right of an entity to contract with a person other than the municipality or an exclusive franchisee of the municipality for solid waste management services for commercial, industrial, or multifamily residential SECTION 3. Section 363.120, Health and Safety Code, as added by this Act, applies only to a contract for solid waste management services entered into on or after the effective date of SECTION 4. This Act takes effect September 1, 2025.
Bill Sponsors
Legislators who authored or co-sponsored this bill.
Bill History
Bill filed: AN ACT relating to municipal solid waste management services contracts;
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