NY State Senate Bill 2009-S8138

Senate Bill S8138

2009-2010 Legislative Session

Prohibits the displacement of a private company providing subscription garbage, trash or refuse collection and recycling service

download bill text pdf

Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 11, 2010	referred to local government

2009-S8138 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Add §97-a, Gen Muni L
Versions Introduced in 2011-2012 Legislative Session:: S4312

2009-S8138 (ACTIVE) - Summary

Prohibits the displacement of a private company providing subscription garbage, trash or refuse collection and recycling service without a public hearing and written findings; defines displacement.

2009-S8138 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S8138

TITLE OF BILL:
An act to amend the general municipal law, in relation to subscription
garbage, trash or refuse collection and recycling service

PURPOSE OF THE BILL:
To provide protections to an organization providing subscription waste
and recycling service when a municipality decides to give one private
firm an exclusive franchise or contract; or decides to begin providing
solid waste collection service itself, displacing all other firms with
solid waste collection arrangements and without compensation.

SUMMARY OF PROVISIONS:
Section 1. Amends the general municipal law by adding a new section
97-a.

Section 2. Effective date.

JUSTIFICATION:
When private firms are displaced, significant business losses can occur.
These include years of building a competitive business. Easily quantifi-
able losses include investment in trucks, equipment, and physical plant.
Equipment purchased to honor contracts and franchises become surplus,
lowering their market value often below indebted worth. There also are
less quantifiable losses such as the value of goodwill with a customer

base and the loss of expertise when personnel are laid off. For small
waste service firms, these losses may cause bankruptcy. For a large
firm, the sizable debt can jeopardize operations in other communities.

Although the Fifth Amendment states, "Nor shall private property be
taken for public use without just compensation," how much compensation
is just? In U.S. vs. Reynolds [397 U.S. 14 (1970)], just compensation
was defined as the full monetary equivalent of the property taken and
considered the cost of reproducing the property, its market value and
resulting damages to the owner's remaining property.

The likelihood of displacement occurring has increased with the growth
of special districts, regional authorities, and county waste management
plans. Twelve states have recognized the importance of rectifying the
taking of property rights of waste haulers and implemented "just compen-
sation" initiatives.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None to the State.

EFFECTIVE DATE:
This act shall take effect immediately.

2009-S8138 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8138

                            I N  S E N A T E

                              June 11, 2010
                               ___________

Introduced  by  Sen.  C. JOHNSON  -- read twice and ordered printed, and
  when printed to be committed to the Committee on Local Government

AN ACT to amend the general municipal law, in relation  to  subscription
  garbage, trash or refuse collection and recycling service

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general municipal  law  is  amended  by  adding  a  new
section 97-a to read as follows:
  S  97-A. DISPLACEMENT OF SUBSCRIPTION OF TRASH COLLECTION SERVICES. 1.
NO MUNICIPALITY SHALL DISPLACE A PRIVATE COMPANY PROVIDING  SUBSCRIPTION
GARBAGE,  TRASH  OR  REFUSE COLLECTION AND RECYCLING SERVICE WITHIN SUCH
MUNICIPALITY WITHOUT FIRST:
  (A) HOLDING AT LEAST ONE PUBLIC HEARING SEEKING COMMENT ON THE  ADVIS-
ABILITY OF THE MUNICIPALITY PROVIDING SUCH SERVICE;
  (B)  PROVIDING AT LEAST FORTY-FIVE DAYS WRITTEN NOTICE OF THE HEARING,
DELIVERED BY FIRST CLASS MAIL TO ALL PRIVATE COMPANIES THAT PROVIDE SUCH
SUBSCRIPTION SERVICE IN THE MUNICIPALITY AND THAT  THE  MUNICIPALITY  IS
ABLE TO IDENTIFY THROUGH LOCAL GOVERNMENT RECORDS;
  (C) PROVIDING PUBLIC NOTICE OF THE HEARING; AND
  (D) MAKING A WRITTEN FINDING OF AT LEAST ONE OF THE FOLLOWING:
  (I)  THE USE OF PRIVATELY-OWNED AND OPERATED SUBSCRIPTION SERVICES HAS
SUBSTANTIALLY ENDANGERED THE PUBLIC HEALTH; OR
  (II) PRIVATELY-OWNED SERVICES, ALTHOUGH AVAILABLE,  ARE  NOT  ABLE  TO
PROVIDE NEEDED SERVICES IN A REASONABLE AND COST-EFFICIENT MANNER.
  2.  AFTER MAKING THE FINDINGS REQUIRED BY THIS SECTION, AND NOT LONGER
THAN ONE YEAR AFTER THE  FINAL  PUBLIC  HEARING,  THE  MUNICIPALITY  MAY
PROCEED TO TAKE MEASURES NECESSARY TO PROVIDE SUCH SERVICE.
  3.  (A)  A  MUNICIPALITY  SHALL PROVIDE FIVE YEARS NOTICE TO A PRIVATE
COMPANY BEFORE IT ENGAGES IN THE ACTUAL PROVISION OF  THE  SERVICE  THAT
DISPLACES THE COMPANY.
  (B)  AS  AN ALTERNATIVE TO DELAYING DISPLACEMENT FIVE YEARS, A MUNICI-
PALITY MAY PAY A DISPLACED COMPANY AN  AMOUNT  EQUAL  TO  THE  COMPANY'S
PRECEDING  TWELVE  MONTHS  GROSS RECEIPTS FOR THE DISPLACED SUBSCRIPTION
SERVICE IN THE DISPLACEMENT AREA. SUCH FIVE-YEAR PERIOD SHALL  LAPSE  AS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD17684-01-0

S. 8138                             2

TO  ANY  PRIVATE  COMPANY  BEING  DISPLACED  WHEN SUCH COMPANY CEASES TO
PROVIDE SERVICE WITHIN THE DISPLACEMENT AREA.
  4.  (A)  FOR  PURPOSES  OF  THIS SECTION, "DISPLACE" OR "DISPLACEMENT"
MEANS A MUNICIPALITY'S  ASSIGNMENT  OF  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.
  (B) DISPLACE OR DISPLACEMENT SHALL NOT MEAN:
  (I) COMPETITION BETWEEN THE PUBLIC SECTOR AND  PRIVATE  COMPANIES  FOR
INDIVIDUAL CONTRACTS; OR
  (II)  SITUATIONS WHERE A MUNICIPALITY, 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.
  S 2. This act shall take effect immediately.

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