• States that a city can’t prohibit a private entity from providing recycling or solid waste management services to commercial, industrial, or multifamily properties. This means that cities will no longer have the ability to have an exclusive contract with a private entity. This will also significantly impact, if not preclude, your city’s ability to self-provide these services using city-owned equipment and employees. 

• Allows cities to require private providers to obtain a permit, license, or non-exclusive franchise under an “open franchise” or open permit system, but caps all fees to the city’s administrative cost to issue the permit, license, or non-exclusive franchise.

• Protects contracts or franchises in place as of January 2023 until the date of expiration, but the bill prohibits renewals.

• DOES NOT directly impact any arrangements you have for services to single-family residential properties, but may indirectly impact these properties through higher fees for service.

• Solid waste service is an essential municipal function – a basic public health and safety issue.

• This legislation could lead to trash sitting for collection for extended periods of time, or not being collected at all.

• Illegal dumping will increase because it will be harder for cities to ensure all properties have waste collection arrangements. Some people may cut corners and dump their garbage to avoid paying for service, or dump the garbage if their hauler fails to collect consistently.

• With exclusive franchises, a local government can require the hauler to handle multiple components of the waste stream (residential waste, residential curbside recycling, and commercial) instead of cherry-picking commercial, which is the most cost-efficient for the hauler.

• Elimination of exclusive franchises may result in an immediate rate increase for residential customers and could lead to many local governments abandoning curbside residential recycling programs.

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