Monitoring the Session

HB 1227

bill capping city solid waste franchise fees at two percent

Did not pass

Verdict: No flags

No flagsInitial review
Rep. Gary GatesRHouse 28

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to municipal solid waste management services contracts; limiting the amount of a fee.

Caption from analyzed text · version I.

Summary

Businesses and apartment complexes may pick their own hauler.

The bill caps the franchise fee a Texas city can charge a solid waste company at two percent of what that company earns selling services in the city. It also bars cities from stopping businesses, industrial sites and apartment complexes from hiring a waste hauler other than the city or the city's exclusive franchisee. Waste companies and the cities that grant them franchises are affected: new contracts starting September 1, 2025 face the fee cap, and commercial, industrial and multifamily customers gain the right to choose their own hauler.

Labels

Labels: ZOMBIE BILL. Died 2 times: 88R HB 4297 (Died in committee) and this bill (Did not pass). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 4297 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.STALLED AFTER COMMITTEE. Voted out of the House Environmental Regulation committee 5-1 on May 6, 2025. Placed on the General State Calendar on May 15, 2025. The bill died.

Receipt

The receipt

89R-HB1227 · 2024-11-12

SOLD BY

Rep. Gary GatesRHouse 28

ITEM

relating to municipal solid waste management services contracts; limiting the amount of a fee.

WHAT IT DOES

Businesses and apartment complexes may pick their own hauler.

The bill caps the franchise fee a Texas city can charge a solid waste company at two percent of what that company earns selling services in the city. It also bars cities from stopping businesses, industrial sites and apartment complexes from hiring a waste hauler other than the city or the city's exclusive franchisee. Waste companies and the cities that grant them franchises are affected: new contracts starting September 1, 2025 face the fee cap, and commercial, industrial and multifamily customers gain the right to choose their own hauler.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 16, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Environmental Regulation
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Testimony taken/registration(s) recorded in committee
  7. Left pending in committee
  8. Considered in formal meeting
  9. Reported favorably w/o amendment(s)
  10. Comte report filed with Committee Coordinator
  11. Committee report distributed
  12. Committee report sent to Calendars
  13. Considered in Calendars
  14. Placed on General State Calendar
FILED UNDER

No verified beat found.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Gary Gates

Donors

Texas Conservative Majority PAC$273KTexans for Lawsuit Reform PAC$224KTexans for Reasonable Solutions PAC$25K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 30, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Conservative Majority PAC$273,400.00

Texas Conservative Majority PAC

$273,400.00

Cash
$150,000.00
Paid by others
$123,400.00
Total
$273,400.00
canvassing $108,000.00polling $15,400.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 17, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223, 101071943.

Texans for Lawsuit Reform PAC$224,000.08

Texans for Lawsuit Reform PAC

$224,000.08

Cash
$35,000.00
Paid by others
$189,000.08
Total
$224,000.08
mail $87,600.08advertising $68,500.00polling $32,900.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Oct 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101010390, 101033067, 101068223, 101071943.

Texans for Reasonable Solutions PAC$25,000.00

Texans for Reasonable Solutions PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 81 other sitting lawmakers.

Derived recipient stock · Aug 23, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Jul 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Conservative Majority PAC

$273,400.00

Cash
$150,000.00
Paid by others
$123,400.00
Total
$273,400.00
canvassing $108,000.00polling $15,400.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 17, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223, 101071943.

×

Texans for Lawsuit Reform PAC

$224,000.08

Cash
$35,000.00
Paid by others
$189,000.08
Total
$224,000.08
mail $87,600.08advertising $68,500.00polling $32,900.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Oct 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101010390, 101033067, 101068223, 101071943.

×

Texans for Reasonable Solutions PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 81 other sitting lawmakers.

Derived recipient stock · Aug 23, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Jul 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223.

Votes

No floor vote loaded for this bill.

Witnesses20
For
3
Against
16
On
1
Names

For

  • Texas Apartment Association1 registration
  • Texas Association of Builders2 registrations

Against

  • City of Brownsville, Texas1 registration
  • City of Dallas1 registration
  • City of Del Rio1 registration
  • City of Denton1 registration
  • City of Edinburg1 registration
  • City of El Paso, Texas1 registration
  • City of Fort Worth1 registration
  • City of Garland, Texas1 registration
  • City of Georgetown1 registration
  • City of Houston1 registration
  • Republic Services1 registration
  • Self; Texas chapter of US Green Building Council1 registration
  • Self; Town of Poetry1 registration
  • TxSWANA (Lone Star Chapter of Solid Waste Association of North America)1 registration
  • Waste Connections, Inc.1 registration
  • Waste Management of Texas, Inc.1 registration

On

  • TCEQ1 registration
Sources

20 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 16, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 4297

by Rep. Gates, same lead author · Died in committee · same text

Introduced text

Last action, Mar 21, 2023: Referred to Environmental Regulation

Relating to municipal solid waste management services contracts; limiting the amount of a fee.

Caption, 88R bill history

Sources

Texas House · Filed Nov 12, 2024

05/15/2025 H Placed on General State Calendar

Texas Legislature Online · Introduced · House Committee Report

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Environmental Regulation · Committee vote 5 aye, 1 nay, 3 absent · Out of committee

Subjects

City Government--General

Environment--Solid Waste

Fees & Other Nontax Revenue--Local

CONTRACTORS & SUBCONTRACTORS

Text

The text as introduced · 264 words

89R3400 DRS-D

By: Gates
H.B. No. 1227

A BILL TO BE ENTITLED

AN ACT

relating to municipal solid waste management services contracts;

limiting the amount of a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter F, Chapter 363, Health and Safety

Code, is amended by adding Section 363.120 to read as follows:

Sec. 363.120. MUNICIPAL FRANCHISE FEES. A municipality may

not charge a person granted a franchise to provide solid waste

management services in the municipality franchise fees of more than

two percent of the gross receipts of the franchisee for the sale of

services in the municipality.

SECTION 2. Section 364.034(f), Health and Safety Code, is

amended to read as follows:

(f) Notwithstanding the other provisions of this section :

(1) [ , ] a political subdivision, including a county or

a municipality, may not restrict the right of an entity to contract

with a licensed waste hauler for the collection and removal of

domestic septage or of grease trap waste, grit trap waste, lint trap

waste, or sand trap waste ; and

(2) a municipality may not restrict the right of an

entity to contract with a person other than the municipality or an

exclusive franchisee of the municipality for solid waste management

services for commercial, industrial, or multifamily residential

waste .

SECTION 3. Section 363.120, Health and Safety Code, as

added by this Act, applies only to a contract for solid waste

management services entered into on or after the effective date of

this Act.

SECTION 4. This Act takes effect September 1, 2025.