Bill Text: TX HB1227 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to municipal solid waste management services contracts; limiting the amount of a fee.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-11-12 - Filed [HB1227 Detail]

Download: Texas-2025-HB1227-Introduced.html

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89R3400 DRS-D
By: Gates H.B. No. 1227

A BILL TO BE ENTITLED
AN ACT
relating to municipal solid waste management services contracts;
limiting the amount of a fee.
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
services in the municipality.
SECTION 2. Section 364.034(f), Health and Safety Code, is
amended to read as follows:
(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
waste, or sand trap waste; and
(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
waste.
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
this Act.
SECTION 4. This Act takes effect September 1, 2025.