                                 CODE OF VIRGINIA

OPERATION OF REFUSE COLLECTION SYSTEMS; DISPLACEMENT OF PRIVATE COMPANIES (§
15.2-5121)

A. No authority shall operate or contract for the operation of a refuse
collection and disposal system for any political subdivision, or collect service
charges therefor, unless the authority, and subsequently the locality&#8217;s
governing body find: (i) that privately owned and operated refuse collection and
disposal services are not available on a voluntary basis by contract or
otherwise, (ii) that the use of such privately owned services has substantially
endangered the public health or has resulted in substantial public nuisance,
(iii) that the privately owned refuse collection and disposal service is not
able to perform the service in a reasonable and cost-efficient manner, or (iv)
that operation by such authority or the contract for such operation, in spite of
any potential anti-competitive effect, is important in order to provide for the
development and/or operation of a regional system of refuse collection and
disposal for two or more units.

B. Notwithstanding the provisions of subsection A, an authority formed under
this chapter shall not operate or contract for the operation of a refuse
collection and disposal system which displaces a private company engaged in the
provision of refuse collection and disposal unless it provides the company with
five years&#8217; notice of its decision to operate such a system. As an
alternative to delaying displacement five years, the governing body or authority
may pay a displaced company an amount equal to the company&#8217;s preceding
twelve months&#8217; 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.

C. For purposes of this section, &#8220;displace&#8221; or
&#8220;displacement&#8221; means an authority&#8217;s provision of a system
which prohibits a private company from providing the same service and which it
is providing at the time the decision that will result in the displacement is
made. Displace or displacement does not mean: (i) competition between the public
sector and private companies for individual contracts; (ii) situations in which
an authority, 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 provide such service itself; (iii)
situations in which action is taken against a private company because the
company has acted in a manner threatening to the public health and safety or
resulting in a substantial public nuisance; (iv) situations in which action is
taken against a private company because the company has materially breached its
contract with the political subdivision; (v) entering into a contract with a
private company to provide refuse collection and disposal so long as such
contract is not entered into pursuant to an ordinance which displaces or
authorizes the displacement of another private company providing refuse
collection and disposal; or (vi) situations in which a private company refuses
to continue operations under the terms and conditions of its existing agreement
during the five-year notice period.

D. An authority shall not make the findings required by subsection A or proceed
to seek to operate a refuse collection and disposal system for any political
subdivision that would displace a private company pursuant to subsection B until
it has provided (i) public notice; (ii) a public hearing; and (iii) no less than
forty-five days prior to the public hearing, written notice mailed first class
to all private companies providing a refuse collection and disposal system in
the political subdivision that can be identified through the political
subdivision&#8217;s records.

E. The requirements and restrictions of this section shall not apply in any
political subdivision wherein refuse collection and disposal services are being
operated or contracted for by any sanitary district located therein, as of July
1, 1983.

F. Notwithstanding the provisions of this section, a political subdivision need
not comply with the requirements of this section if:

   1. The authority proposes to contract with the private sector for services or
   systems involving discarded or waste materials removed from the nonhazardous
   solid waste stream for recycling; or

   2. The authority proposes to contract with the private sector for services or
   systems involving collection and disposal of nonhazardous solid waste and (i)
   the collected waste will be disposed of in a state-permitted waste management
   facility; (ii) the authority has a contract for services which shall be paid
   for through a supporting financial agreement approved by the participating
   locality&#8217;s governing body; and (iii) such action will not displace a
   private company engaged in refuse collection and disposal. For purposes of
   this section, &#8220;recycling&#8221; means the process of separating a
   particular nonhazardous waste material from the waste stream and processing it
   so that it may be used again as a new material.

HISTORY: 1983, c. 155, § 15.1-1250.01; 1992, c. 247; 1993, c. 497; 1994, c.
190; 1995, c. 660; 1997, c. 587.