15.2-934 - Displacement of private waste companies.
§ 15.2-934. Displacement of private waste companies.
No locality or combination of localities shall displace a private companyproviding garbage, trash or refuse collection service without first: (i)holding at least one public hearing seeking comment on the advisability ofthe locality or combination of localities providing such service; (ii)providing at least 45 days' written notice of the hearing, delivered by firstclass mail to all private companies that provide the service in the localityor localities and that the locality or localities are able to identifythrough local government records; (iii) providing public notice of thehearing; and (iv) making a written finding of at least one of the following:(a) adequate or sufficient privately-owned refuse collection and disposalservices are not available; (b) the use of privately-owned and operatedservices has substantially endangered the public health or created a publicnuisance; (c) privately-owned services, although available, are not able toprovide needed services in a reasonable and cost-efficient manner; or (d)displacement is necessary to provide for the development or operation of aregional system of refuse collection or disposal for two or more localities.After making the findings required by this section, and not longer than oneyear after the final public hearing, the locality or combination oflocalities may proceed to take measures necessary to provide such service. Alocality or combination of localities shall provide five years' notice to aprivate company before the locality or combination of localities engages inthe actual provision of the service that displaces the company. As analternative to delaying displacement five years, a locality or combination oflocalities may pay a displaced company an amount equal to the company'spreceding 12 months' gross receipts for the displaced service in thedisplacement area. Such five-year period shall lapse as to any privatecompany being displaced when such company ceases to provide service withinthe displacement area.
For purposes of this section, "displace" or "displacement" means alocality's or a combination of localities' provision of a service whichprohibits a private company from providing the same service and which thecompany is providing at the time the decision to displace is made. Displaceor displacement does not mean: (i) competition between the public sector andprivate companies for individual contracts; (ii) situations where a localityor combination of localities, at the end of a contract with a privatecompany, does not renew the contract and either awards the contract toanother private company or, following a competitive process conducted inaccordance with the Virginia Public Procurement Act, decides for any reasonto contract with a public service authority established pursuant to theVirginia Water and Waste Authorities Act, or, following such competitiveprocess, decides for any reason to provide such collection service itself;(iii) situations where action is taken against a private company because thecompany has acted in a manner threatening to the health and safety of alocality's citizens or resulting in a substantial public nuisance; (iv)situations where action is taken against a private company because thecompany has materially breached its contract with the locality or combinationof localities; (v) situations where a private company refuses to continueoperations under the terms and conditions of its existing agreement duringthe five-year notice period; (vi) entering into a contract with a privatecompany to provide garbage, trash or refuse collection so long as suchcontract is not entered into pursuant to an ordinance which displaces orauthorizes the displacement of another private company providing garbage,trash or refuse collection; or (vii) situations where at least 55% of theproperty owners in the displacement area petition the governing body to takeover such collection service.
(1995, c. 660, § 15.1-28.04; 1997, c. 587; 2006, c. 74.)