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2006 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 15.2-934 of the Code of Virginia is amended and reenacted as follows:
§ 15.2-934. Displacement of private waste companies.
No locality or combination of localities shall displace a
private company providing garbage, trash or refuse collection service without
first: (i) holding at least one public hearing seeking comment on the
advisability of the locality or combination of localities providing such
service; (ii) providing at least forty-five 45 days' written
notice of the hearing, delivered by first class mail to all private companies
which that provide the service in the locality or localities and
which that the locality or localities are able to identify through local
government records; and (iii) providing public notice of the hearing;
and (iv) making a written finding of at least one of the following: (a) adequate
or sufficient privately-owned refuse collection and disposal services
are not available; (b) the use of privately-owned and operated services has
substantially endangered the public health or created a public nuisance; (c)
privately-owned services, although available, are not able to provide needed
services in a reasonable and cost-efficient manner; or (d) displacement is
necessary to provide for the development or operation of a regional system of
refuse collection or disposal for two or more localities. Following the
final public hearing held pursuant to the preceding sentence, but in no event After
making the findings required by this section, and not longer than one year
after the final public hearing, the locality or combination of
localities may proceed to take measures necessary to provide such service. A
locality or combination of localities shall provide five years' notice to a
private company before the locality or combination of localities engages in the
actual provision of the service that displaces the company. As an alternative
to delaying displacement five years, a locality or combination of localities
may pay a displaced company an amount equal to the company's preceding
twelve 12 months' gross receipts for the displaced service in the
displacement area. Such five-year period shall lapse as to any private company
being displaced when such company ceases to provide service within the
displacement area.
For purposes of this section, "displace" or
"displacement" means a locality's or a combination of localities'
provision of a service which prohibits a private company from providing the
same service and which the company is providing at the time the decision to
displace is made. Displace or displacement does not mean: (i) competition
between the public sector and private companies for individual contracts; (ii)
situations where a locality or combination of localities, at the end of a
contract with a private company, does not renew the contract and either awards
the contract to another private company or, following a competitive process
conducted in accordance with the Virginia Public Procurement Act, decides for
any reason to contract with a public service authority established pursuant to
the Virginia Water and Waste Authorities Act, or, following such competitive
process, decides for any reason to provide such collection service itself;
(iii) situations where action is taken against a private company because the
company has acted in a manner threatening to the health and safety of a
locality's citizens or resulting in a substantial public nuisance; (iv)
situations where action is taken against a private company because the company
has materially breached its contract with the locality or combination of
localities; (v) situations where a private company refuses to continue
operations under the terms and conditions of its existing agreement during the
five-year notice period; (vi) entering into a contract with a private company
to provide garbage, trash or refuse collection so long as such contract is not
entered into pursuant to an ordinance which displaces or authorizes the
displacement of another private company providing garbage, trash or refuse
collection; or (vii) situations where at least fifty-five percent 55%
of the property owners in the displacement area petition the governing body to
take over such collection service.