Senate Bill No. 216

(By Senator Dittmar)

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[Introduced January 26, 1998; referred to the Committee
on Natural Resources.]
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A BILL to amend chapter twenty-four-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article nine, relating to findings and declarations; prohibiting local government entities from competing with private solid waste haulers unless first meeting certain requirements; providing for public notice and hearing; requiring five years' notice to be given to private solid waste haulers before local government entities may begin competing in solid waste hauling or the payment of a sum representing three years of gross revenue lost by the private solid waste hauler; defining competition; and making certain exceptions.

Be it enacted by the Legislature of West Virginia:
That chapter twenty-four-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article nine, to read as follows.
ARTICLE 9. WASTE HAULING BY LOCAL GOVERNMENTS.
§24A-9-1. Prevention of unduly burdensome rates to residential, commercial, and industrial consumers of solid waste hauling or collection services; notice and public hearing about the provision of certain solid waste hauling or collection services by local government entities; and the creation of an option on the part of local government entities.

(a) The Legislature finds that residential, commercial and industrial solid waste customers should pay substantially the same rates for solid waste hauling services in the same geographical areas. The Legislature further finds that a local government entity, defined as a "county, municipality, county solid waste authority, regional solid waste authority or combination thereof" may wish to provide solid waste hauling or collection services within or outside its geographical boundary. When a local government entity does provide such solid waste hauling or collection services it may compete with an existing private waste hauler in the same area. Such competition is not on even terms. A private solid waste hauler is regulated by the public service commission of West Virginia and has a duty to serve all the customers within the private solid waste haulers area. A local government entity is not regulated by the public service commission of West Virginia and is not under such an obligation. A local government has the ability to choose which customers it will serve. A local government entity often chooses to serve only the easiest to reach and most profitable customers. As the local government entity obtains customers the existing private solid waste hauler must charge higher rates to its remaining customers in order to make up for the customers lost to the local government entity. This raise in rates is unfair to those remaining customers. In order to protect solid waste customers from such rate increases, the Legislature has enacted this section.
(b) No local government entity shall compete with a private solid waste hauler authorized, pursuant to either section five or three, article two, chapter twenty-four-a of this code, to provide solid waste hauling or collection services without first: (i) Holding at least one public hearing seeking comment on the advisability of the local government entity providing such service; (ii) providing at least ninety days written notice of the hearing by a Class II legal advertisement and by first class mail to private solid waste haulers which provide the service in the prospective local government entity service area; and (iii) providing public notice of the hearing. Following the public hearing, but in no event more than six months after the hearing, the local government entity may decide to provide such service if it has satisfactorily demonstrated that it is more cost effective to the affected customers to provide the service than to not provide the service.
(c) After a local government entity decides to provide such service it shall give five years' notice to any private solid waste hauler who will be affected before the local government entity engages in the actual provision of solid waste hauling or collection services that compete with a private solid waste hauler. As an alternative to the required five years' notice, the local government entity may pay any private solid waste hauler with which it intends to compete an amount equal to the gross revenues lost in three years by the affected private solid waste hauler or haulers because of such competition.
(d) For the purposes of this section, "compete" or "competition" means a local government entity's provision of a service which seeks to or does take customers from the existing private solid waste hauler providing service in the prospective area.
(e) No provision of this section shall alter or change the rights that a municipality may exercise within its municipal boundaries. This section shall apply prospectively. This section applies only to the provision of solid waste hauling or collection services. Where a private solid waste hauler is not providing solid waste hauling or collection services, or is not providing a particular kind of solid waste hauling or collection service this section shall not apply.


NOTE: The purpose of this bill is to prohibit local government entities from competing with private waste haulers unless first meeting certain requirements.

This article is new; therefore, strike-throughs and underscoring have been omitted.