The bill, H.B. No. 1227, amends the Health and Safety Code to regulate municipal solid waste management services contracts by introducing a cap on franchise fees. Specifically, it adds Section 363.120, which stipulates that municipalities cannot charge more than two percent of the gross receipts of a franchisee for solid waste management services. This aims to provide financial relief to waste management service providers and ensure fair pricing for services rendered within municipalities.

Additionally, the bill modifies Section 364.034(f) to clarify that political subdivisions, including counties and municipalities, cannot restrict entities from contracting with licensed waste haulers for the collection of various types of waste, such as domestic septage and grease trap waste. It also ensures that municipalities cannot limit the right of entities to contract with providers other than the municipality or its exclusive franchisees for solid waste management services related to commercial, industrial, or multifamily residential waste. The provisions of this bill will take effect on September 1, 2025, and will apply only to contracts entered into after that date.

Statutes affected:
Introduced: Health and Safety Code 364.034 (Health and Safety Code 364)