BILL ANALYSIS

Senate Research Center	H.B. 5057
89R25558 DRS-F	By: Landgraf (Nichols)
	Local Government
	5/18/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The bill author has informed the committee that many municipalities provide solid waste management services through contracts with private companies, that these contracts can include residential and commercial services or be limited to one or the other, and that open markets exist when one or more of these types of solid waste management services is not included in a municipal solid waste management services contract, which allows for individual accounts and businesses to be serviced by individual contracts with private service providers for those excluded services. The bill author has also informed the committee that significant disruptions can occur when a public agency renews or amends a contract that includes commercial accounts that were not previously included and that these agency decisions can result in substantial costs to the private service providers, which will essentially and immediately be evicted by such a decision. H.B. 5057 seeks to address this issue by allowing for a privately owned solid waste management service provider affected by an exclusive contract entered into by a public agency, such as a municipality, to continue to provide services for a limited time.

H.B. 5057 amends current law relating to exclusive contracts for municipal solid waste management services.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter F, Chapter 363, Health and Safety Code, by adding Section 363.120, as follows:

Sec. 363.120. EXCLUSIVE SOLID WASTE MANAGEMENT SERVICE CONTRACTS. (a) Defines "exclusive contract" and "solid waste management services."

(b) Requires 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, to give notice containing a summary of the purpose of the contract or amendment and a description of the change made by the contract or amendment.

(1) publish the notice:

(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, if the public agency maintains such a website; 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) Prohibits a contract or amendment described by Subsection (b) from taking effect before the date the notice required by that subsection is published in a newspaper as required by Subsection (c)(1)(A).

(e) Authorizes 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 to continue to provide those services in the public agency's jurisdiction until the earlier of the date the service provider's existing nonexclusive contract expires or the first anniversary of the date the public agency publishes the notice required by Subsection (b) in a newspaper as required by Subsection (c)(1)(A).

(f) Authorizes 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, if the public agency enters into an exclusive contract with another service provider to provide those services, to 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) in a newspaper as required by Subsection (c)(1)(A).

(g) Provides that 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 (Provision of Certain Services to Annexed Area), Local Government Code.

SECTION 2. Makes application of Section 363.120, Health and Safety Code, as added by this Act, prospective.

SECTION 3. Effective date: upon passage or September 1, 2025.