Senate Bill 1370

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    Florida Senate - 1999                                  SB 1370

    By Senator Gutman





    35-928-99

  1                      A bill to be entitled

  2         An act relating to solid waste; requiring local

  3         governments providing solid-waste-management

  4         services to be subject to the same requirements

  5         as private companies; providing for the

  6         applicability of the Florida Antitrust Act;

  7         providing procedures for the displacement of

  8         private solid-waste-management companies;

  9         amending s. 171.062, F.S.; providing for the

10         disposition of solid-waste franchises or

11         contracts in areas that are annexed; providing

12         an effective date.

13

14  Be It Enacted by the Legislature of the State of Florida:

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16         Section 1.  Solid-waste-management services.--A

17  municipality, county or other local government that provides

18  solid-waste-management services must:

19         (1)  Separately account for revenues, expenses,

20  property, and source of investment dollars associated with the

21  provision of the services;

22         (2)  Comply, without exemption, with local requirements

23  applicable to any private firm that provides

24  solid-waste-management services.

25         Section 2.  Exemptions from antitrust laws not

26  applicable.--Notwithstanding any other law, a local government

27  that provides solid-waste-management services outside its

28  jurisdiction is not exempt from the provisions of chapter 542,

29  Florida Statutes, relating to combinations restricting trade

30  or commerce.

31         Section 3.  Displacement of private waste companies.--

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    Florida Senate - 1999                                  SB 1370
    35-928-99




  1         (1)  A local government or combination of local

  2  governments may not displace a private company that provides

  3  garbage, trash, or refuse collection service without first:

  4         (a)  Holding at least one public hearing seeking

  5  comment on the advisability of the locality or combination of

  6  localities providing the service;

  7         (b)  Providing at least 45 days' written notice of the

  8  hearing, delivered by first class mail to all private

  9  companies that provide the service within the jurisdiction;

10  and

11         (c)  Providing public notice of the hearing.

12         (2)  Following the final public hearing held under

13  subsection (1) but not later than 1 year after the hearing,

14  the local government may proceed to take measures necessary to

15  provide the service. A local government shall provide 5 years

16  notice to a private company before it engages in the actual

17  provision of the service that displaces the company. As an

18  alternative to delaying displacement 5 years, a local

19  government may pay a displaced company an amount equal to the

20  company's preceding 12 months' gross receipts for the

21  displaced service in the displacement area. The 5-year period

22  shall lapse as to any private company being displaced when the

23  company ceases to provide service within the displacement

24  area.

25         (3)  As used in this section, the term "displacement"

26  means a local government's provision of a service which

27  prohibits a private company from continuing to provide the

28  same service that it was providing when the decision to

29  displace was made. The term does not include:

30         (a)  Competition between the public sector and private

31  companies for individual contracts;

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    Florida Senate - 1999                                  SB 1370
    35-928-99




  1         (b)  Actions by which a local government, at the end of

  2  a contract with a private company, refuses to renew the

  3  contract and either awards the contract to another private

  4  company or, following a competitive process, decides for any

  5  reason to provide the collection service itself;

  6         (c)  Actions taken against a private company because

  7  the company has acted in a manner threatening to the public

  8  health or safety or resulting in a substantial public

  9  nuisance;

10         (d)  Actions taken against a private company because

11  the company has materially breached its contract with the

12  local government;

13         (e)  Refusal by a private company to continue

14  operations under the terms and conditions of its existing

15  agreement during the 5-year notice period;

16         (f)  Entering into a contract with a private company to

17  provide garbage, trash or refuse collection which contract is

18  not entered into under an ordinance that displaces or

19  authorizes the displacement of another private company

20  providing garbage, trash, or refuse collection; or

21         (g)  Situations in which at least 55 percent of the

22  property owners in the displacement area petition the

23  governing body to take over the collection service.

24         Section 4.  Subsection (4) of section 171.062, Florida

25  Statutes, is amended to read:

26         171.062  Effects of annexations or contractions.--

27         (4)(a)  A party that has a an exclusive franchise or

28  contract that which was in effect for at least 6 months prior

29  to the initiation of an annexation to provide solid waste

30  collection services in an unincorporated area may continue to

31  provide such services to an annexed area for 5 years or the

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    Florida Senate - 1999                                  SB 1370
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  1  remainder of the franchise or contract term, whichever is

  2  shorter, if:

  3         1.  The party franchisee provides, if the annexing

  4  municipality requires, a level of quality and frequency of

  5  service which is equivalent to that required by the

  6  municipality in other areas of the municipality not served by

  7  the party franchisee, and

  8         2.  The party franchisee provides such service to the

  9  annexed area at a reasonable cost.  The cost must include the

10  following as related to providing services to the annexed

11  area:

12         a.  Capital costs for land, structures, vehicles,

13  equipment, and other items used for solid waste management;

14         b.  Operating and maintenance costs for solid waste

15  management;

16         c.  Costs to comply with applicable statutes, rules,

17  permit conditions, and insurance requirements;

18         d.  Disposal costs; and

19         e.  A reasonable profit.

20

21  If the municipality and the party franchisee  cannot enter

22  into an agreement as to such cost, they shall submit the

23  matter of cost to arbitration.

24         (b)  A municipality, at its option, may allow the party

25  franchisee to continue providing services pursuant to the

26  existing franchise agreement.

27         (c)  A municipality may terminate any franchise or

28  contract if the party franchisee does not agree to comply with

29  the requirements of paragraph (a) within 90 days after the

30  effective date of the proposed annexation.

31         Section 5.  This act shall take effect October 1, 1999.

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    Florida Senate - 1999                                  SB 1370
    35-928-99




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  2                          SENATE SUMMARY

  3    Provides for the regulation of solid-waste-management
      services provided by local governments and private
  4    companies.

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