NWRA’s Florida chapter lobbyist Keyna Cory testified in favor of House Bill 331 sponsored by Rep. Lawrence McClure (R-58) relating to the displacement of private waste companies. The bill was approved by the State Affairs Committee on March 24 by a vote of 19 to 1. Currently, counties and municipalities must provide and regulate waste disposal services but may contract some or all of these services to others. To displace, or prohibit the continued provision of service by, a private company engaged in providing solid waste collection services in areas not presently served by the local government, the law requires the local government to hold at least one public hearing giving 45 days’ notice to all affected private companies.
Before providing any actual service, a local government must provide three years’ notice to the displaced private company or pay the company an amount equal to the company’s gross receipts for the preceding 15 months. The law allows a local government to negotiate a different notice period and buyout price if so desired. The notice period lapses when the private company stops providing services in the displacement area. HB 331 removes the discretion for the local government to pay a displaced company in lieu of providing a three-year notice period. The bill makes the three years’ notice to a private company mandatory and requires a local government to pay a displaced private waste company an amount equal to the company’s preceding 18 months’ gross receipts after the notice period ends.
“Imagine you are the owner of a small waste company that has been in business for many years, and the local government informs you that they decided to take over providing the solid waste service and you are out of business,” said Cory. “You are going to need time to decide if you can move equipment or sell it. You may have purchased special containers to comply with local government ordinance so you will need the funds to pay for them. House Bill 331 will help companies being displaced.”