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               A BILL TO BE ENTITLED
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               AN ACT
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            relating to municipal solid waste management services contracts;  | 
         
         
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            limiting the amount of a fee. | 
         
         
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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                   SECTION 1.  Subchapter F, Chapter 363, Health and Safety  | 
         
         
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            Code, is amended by adding Section 363.120 to read as follows: | 
         
         
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                   Sec. 363.120.  MUNICIPAL FRANCHISE FEES.  A municipality may  | 
         
         
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            not charge a person granted a franchise to provide solid waste  | 
         
         
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            management services in the municipality franchise fees of more than  | 
         
         
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            two percent of the gross receipts of the franchisee for the sale of  | 
         
         
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            services in the municipality. | 
         
         
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                   SECTION 2.  Section 364.034(f), Health and Safety Code, is  | 
         
         
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            amended to read as follows: | 
         
         
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                   (f)  Notwithstanding the other provisions of this section: | 
         
         
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                         (1)  [,] a political subdivision, including a county or  | 
         
         
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            a municipality, may not restrict the right of an entity to contract  | 
         
         
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            with a licensed waste hauler for the collection and removal of  | 
         
         
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            domestic septage or of grease trap waste, grit trap waste, lint trap  | 
         
         
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            waste, or sand trap waste; and | 
         
         
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                         (2)  a municipality may not restrict the right of an  | 
         
         
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            entity to contract with a person other than the municipality or an  | 
         
         
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            exclusive franchisee of the municipality for solid waste management  | 
         
         
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            services for commercial, industrial, or multifamily residential  | 
         
         
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            waste. | 
         
         
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                   SECTION 3.  Section 363.120, Health and Safety Code, as  | 
         
         
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            added by this Act, applies only to a contract for solid waste  | 
         
         
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            management services entered into on or after the effective date of  | 
         
         
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            this Act. | 
         
         
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                   SECTION 4.  This Act takes effect September 1, 2023. |