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