HB 5057

relating to exclusive contracts for municipal solid waste
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.  EXCLUSIVE SOLID WASTE MANAGEMENT SERVICE
CONTRACTS.  (a)  In this section, "exclusive contract" means a
contract or franchise agreement between a public agency and a
privately owned solid waste management service provider that grants
to the service provider an exclusive right to provide certain solid
waste management services in the public agency's jurisdiction.
(b)  A public agency that enters into an exclusive contract,
including by renewing or amending an existing contract in a manner
that grants a privately owned solid waste management service
provider an exclusive right to provide certain additional solid
waste services that was not contained in the contract before the
renewal or amendment, shall give notice containing:
(1)  a summary of the purpose of the contract or
(2)  a description of the change made by the contract or
(3)  a summary of the effect of the contract or
amendment and this section on the operations of a privately owned
solid waste  management service provider that is operating in the
public  agency's jurisdiction and is not a party to the contract.
(c)  A public agency required by Subsection (b) to give
(A)  in a newspaper of general circulation in the
jurisdiction of the public agency; and
(B)  on a publicly available Internet website
maintained by the public agency; and
(2)  if the public agency requires a privately owned
solid waste management service provider to register or obtain
approval to operate in the public agency's jurisdiction, give
notice to each provider registered with or approved by the public
agency to operate in the jurisdiction.
(d)  A contract or amendment described by Subsection (b)
takes effect on publication of the notice required by this section.
(e)  A privately owned solid waste management service
provider that has an existing contract with a person to provide
certain solid waste management services for which a public agency
enters into an exclusive contract with another service provider may
continue to provide those services in the public agency's
jurisdiction until the earlier of:
(1)  the date the service provider's existing
nonexclusive contract expires; or
(2)  the second anniversary of the date the public
agency publishes the notice required by Subsection (b).
(f)  A privately owned solid waste management service
provider that provides solid waste management services to a person
in a public agency's jurisdiction and that does not have a contract
to provide the services may, if the public agency enters into an
exclusive contract with another service provider to provide those
services, continue to provide the services in the jurisdiction
until the 60th day after the date the public agency publishes the
notice required by Subsection (b).
(g)  This section does not apply to the provision of solid
waste management services by a municipality to an annexed area as
provided by Section 43.0661, Local Government Code.
SECTION 2.  Section 363.120, Health and Safety Code, as
added by this Act, applies only to a contract or franchise agreement
for solid waste management services entered into on or after the
SECTION 3.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.