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.