House Bill 2033
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Florida House of Representatives - 1999 HB 2033
By Representative Garcia
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 providing a definition; providing exclusions;
10 amending s. 171.062, F.S.; providing for the
11 disposition of solid-waste franchises or
12 contracts in areas that are annexed; providing
13 an effective date.
14
15 Be It Enacted by the Legislature of the State of Florida:
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17 Section 1. Solid-waste-management services.--A
18 municipality, county or other local government that provides
19 solid-waste-management services must:
20 (1) Separately account for revenues, expenses,
21 property, and source of investment dollars associated with the
22 provision of the services.
23 (2) Comply, without exemption, with local requirements
24 applicable to any private firm that provides
25 solid-waste-management services.
26 (3) Provide solid-waste-management services to its
27 customers without using other public monies to subsidize such
28 services when in competition with private companies.
29 Section 2. Exemptions from antitrust laws not
30 applicable.--Notwithstanding any other law, a local government
31 that provides solid-waste-management services outside its
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1 jurisdiction is not exempt from the provisions of chapter 542,
2 Florida Statutes, relating to combinations restricting trade
3 or commerce.
4 Section 3. Displacement of private waste companies.--
5 (1) A local government or combination of local
6 governments may not displace a private company that provides
7 garbage, trash, or refuse collection service without first:
8 (a) Holding at least one public hearing seeking
9 comment on the advisability of the locality or combination of
10 localities providing the service;
11 (b) Providing at least 45 days' written notice of the
12 hearing, delivered by first class mail to all private
13 companies that provide the service within the jurisdiction;
14 and
15 (c) Providing public notice of the hearing.
16 (2) Following the final public hearing held under
17 subsection (1) but not later than 1 year after the hearing,
18 the local government may proceed to take measures necessary to
19 provide the service. A local government shall provide 5 years
20 notice to a private company before it engages in the actual
21 provision of the service that displaces the company. As an
22 alternative to delaying displacement 5 years, a local
23 government may pay a displaced company an amount equal to the
24 company's preceding 24 months' gross receipts for the
25 displaced service in the displacement area. The 5-year period
26 shall lapse as to any private company being displaced when the
27 company ceases to provide service within the displacement
28 area.
29 (3) As used in this section, the term "displacement"
30 means a local government's provision of a service which
31 prohibits a private company from continuing to provide the
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1 same service that it was providing when the decision to
2 displace was made. The term does not include:
3 (a) Competition between the public sector and private
4 companies for individual contracts;
5 (b) Actions by which a local government, at the end of
6 a contract with a private company, refuses to renew the
7 contract and either awards the contract to another private
8 company or, following a competitive process, decides for any
9 reason to provide the collection service itself;
10 (c) Actions taken against a private company because
11 the company has acted in a manner threatening to the public
12 health or safety or resulting in a substantial public
13 nuisance;
14 (d) Actions taken against a private company because
15 the company has materially breached its contract with the
16 local government;
17 (e) Refusal by a private company to continue
18 operations under the terms and conditions of its existing
19 agreement during the 5-year notice period;
20 (f) Entering into a contract with a private company to
21 provide garbage, trash or refuse collection which contract is
22 not entered into under an ordinance that displaces or
23 authorizes the displacement of another private company
24 providing garbage, trash, or refuse collection;
25 (g) Situations in which at least 55 percent of the
26 property owners in the displacement area petition the
27 governing body to take over the collection service; or
28 (h) Situations in which the private companies are
29 licensed or permitted to do business within the local
30 government for a limited time and such license or permit
31 expires and is not renewed by the local government; however,
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1 the local government shall have enacted its licensing or
2 permiting process as of May 1, 1999, for this paragraph to
3 apply. This paragraph does not apply to occupational licenses.
4 Section 4. Subsection (4) of section 171.062, Florida
5 Statutes, is amended to read:
6 171.062 Effects of annexations or contractions.--
7 (4)(a) A party that has a an exclusive franchise or
8 contract that which was in effect for at least 6 months prior
9 to the initiation of an annexation to provide solid waste
10 collection services in an unincorporated area may continue to
11 provide such services to an annexed area for 5 years or the
12 remainder of the franchise or contract term, whichever is
13 shorter, if:
14 1. The party franchisee provides, if the annexing
15 municipality requires, a level of quality and frequency of
16 service which is equivalent to that required by the
17 municipality in other areas of the municipality not served by
18 the party franchisee, and
19 2. The party franchisee provides such service to the
20 annexed area at a reasonable cost. The cost must include the
21 following as related to providing services to the annexed
22 area:
23 a. Capital costs for land, structures, vehicles,
24 equipment, and other items used for solid waste management;
25 b. Operating and maintenance costs for solid waste
26 management;
27 c. Costs to comply with applicable statutes, rules,
28 permit conditions, and insurance requirements;
29 d. Disposal costs; and
30 e. A reasonable profit.
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1 If the municipality and the party franchisee cannot enter
2 into an agreement as to such cost, they shall submit the
3 matter of cost to arbitration.
4 (b) A municipality, at its option, may allow the party
5 franchisee to continue providing services pursuant to the
6 existing franchise agreement.
7 (c) A municipality may terminate any franchise or
8 contract if the party franchisee does not agree to comply with
9 the requirements of paragraph (a) within 90 days after the
10 effective date of the proposed annexation.
11 Section 5. This act shall take effect October 1, 1999.
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14 LEGISLATIVE SUMMARY
15 Provides for the regulation of solid-waste-management
services provided by local governments and private
16 companies.
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