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Committee hears bill to give displaced private solid‑waste providers a limited wind‑down period after municipal exclusive contracts
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Summary
House Bill 5057 would permit privately owned solid‑waste providers displaced by new municipal exclusive franchises to continue serving existing customers for a limited wind‑down period (the existing contract term or up to one year).
The committee heard House Bill 5057, a measure intended to protect private solid‑waste service providers when a municipality awards an exclusive franchise that displaces existing third‑party providers.
Senator Nichols, presenting the bill, described instances in which a municipality’s decision to grant exclusive residential service contracts later extended to commercial accounts, frustrating businesses that had made investments and contractual commitments. House Bill 5057 would allow a displaced provider to continue performing under the existing contract or operate under it for up to one year, whichever comes sooner, to complete operations and remove assets. The bill would not prevent local governments from awarding exclusive contracts; it would provide a limited wind‑down period.
Chris McComb, governmental affairs director for Waste Management of Texas, testified in support and said the legislation would “promote transparency” and add fair‑notice requirements while preserving municipal authority to contract. The Texas Commission on Environmental Quality (TCEQ) was mentioned as a potential resource; committee testimony closed with the bill left pending.
