This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0975a.LFS
DATE: 3/20/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 975 Solid Waste Management
SPONSOR(S): Local Administration, Federal Affairs & Special Districts Subcommittee, Holcomb
TIED BILLS: IDEN./SIM. BILLS: SB 798
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration, Federal Affairs & Special
Districts Subcommittee
11 Y, 5 N, As CS Burgess Darden
2) Civil Justice Subcommittee
3) State Affairs Committee
SUMMARY ANALYSIS
Counties have the authority and responsibility to provide and regulate solid waste collection and disposal.
Counties are responsible for operating solid waste disposal facilities in order to meet the needs of the
incorporated and unincorporated areas of the county and may contract with other persons to fulfill some or all
of these solid waste responsibilities. Each county must also ensure that municipalities within its boundaries
participate in the preparation and implementation of recycling and solid waste management programs through
interlocal agreements or other means. In providing solid waste management services or programs, local
governments are encouraged to use the most cost-effective means and contract with private entities for such
services or programs to assure that the services or programs are provided on the most cost-effective basis.
Local governments are expressly prohibited from discriminating against privately owned solid waste
management facilities solely because they are privately owned.
Local governments providing specific solid waste collection services in direct competition with a private
company must comply with local environmental, health, and safety standards applicable to private companies
providing competitive collection services. In addition, local governments may not enact or enforce any license,
permit, registration procedure, or associated fee that does not apply to the local government and for which
there is not a similar requirement that applies to the local government; and provides the local government with
a material advantage in its ability to compete with a private company in terms of cost or ability to promptly or
efficiently provide such collection services, excluding zoning, land use, or comprehensive plan requirements.
The bill prevents municipalities or counties from prohibiting private entities from providing recycling or solid
waste management services to commercial, industrial, or multifamily residential properties, including
condominiums, within the municipality or county. A municipality or county may require the private entity to
obtain a permit, license, or nonexclusive franchise equivalent, but the permit, license or nonexclusive franchise
equivalent may not cost more than the administrative cost to issue the permit, license, or nonexclusive
franchise equivalent. The bill requires a county or municipality to change a uniform franchise fee to all permit,
license, or nonexclusive franchise equivalent holders. Contracts or franchises in place as of January 1, 2023,
will be recognized and protected until the contract expires. A municipality or county may recognize a renewal
option on an existing contract during 2023, but may not recognize an evergreen contract or an additional
renewal or extension of a contract. For the duration of any existing contract (including any authorized renewal
period), a municipality or county may charge a franchise fee in excess of administrative costs, as long that
franchise fee is uniform among all service providers.
The provisions of the bill do not apply to a municipality or county that is the sole provider of solid waste
collection services in its jurisdiction performed by employees of municipality or county using municipal or
county-owned equipment.
FULL ANALYSIS STORAGE NAME: h0975a.LFS PAGE: 2
DATE: 3/20/2023
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Home Rule Authority
The Florida Constitution grants local governments broad home rule authority. Specifically, non-charter
county governments may exercise those powers of self-government that are provided by general or
special law.
1
Counties operating under a county charter have all powers of self-government not
inconsistent with general law or special law approved by the vote of the electors.
2
Likewise,
municipalities have governmental, corporate, and proprietary powers that enable them to conduct
municipal government, perform municipal functions and provide services, and exercise any power for
municipal purposes except when expressly prohibited by law.
3
Solid Waste
Counties have the authority to provide and regulate waste and sewage collection and disposal.
4
A
county may require any person within the county to demonstrate the existence of some arrangement or
contract by which the person’s solid waste will be disposed of in a manner consistent with county
ordinance or state or federal law.
5
Counties also have authority to adopt ordinances that govern the
disposal of solid waste generated outside the county at the county’s solid waste disposal facility.
6
The Department of Environmental Protection (DEP) is responsible for developing a state solid waste
management program, which provides guidelines for the storage, separation, processing, recovery,
recycling, and disposal of solid waste.
7
Counties are responsible for operating solid waste disposal
facilities, which are permitted through DEP, in order to meet the needs of the incorporated and
unincorporated areas of the county and may contract with other persons to fulfill some or all of its solid
waste responsibilities.
8
Each county must ensure that municipalities within its boundaries participate in
the preparation and implementation of recycling and solid waste management programs through
interlocal agreements or other means.
9
In providing services or programs for solid waste management, local governments are encouraged to
use the most cost-effective means for providing services and are encouraged to contract with private
entities for any or all such services or programs to assure that those services are provided on the most
cost-effective basis.
10
Local governments are expressly prohibited from discriminating against privately
owned solid waste management facilities solely because they are privately owned.
11
Competition with Private Companies
Current law addresses competition between private waste management companies and local
government solid waste departments for third party service contracts.
12
Private companies have had
1
Art. VIII, s. 1(f), Fla. Const.
2
Art. VIII, s. 1(g), Fla. Const.
3
Art VIII, s. 2(b). See also s. 166.021(1), F.S.
4
S. 125.01(1)(k)1., F.S.
5
S. 125.01(1)(k)2., F.S. “Solid waste” is defined as sludge unregulated under the federal Clean Water Act or Clean Air Act, sludge
from a waste treatment works, water supply treatment plant, or air pollution control facility, or garbage, rubbish, refuse, special waste, or
other discarded material, including solid, liquid, semisolid, or contained gaseous material resulting from domestic, industrial,
commercial, mining, agricultural, or governmental operations. S. 403.703(35), F.S.
6
S. 403.706(1), F.S.
7
See s. 403.705, F.S.
8
Ss. 403.706(1), (8), F.S. R. 62-701, F.A.C.
9
S. 403.706(3), F.S.
10
S. 403.7063, F.S.
11
S. 403.7063, F.S.
12
S. 403.70605, F.S. See ch. 2000-304, s. 1, Laws of Fla. STORAGE NAME: h0975a.LFS PAGE: 3
DATE: 3/20/2023
concerns that public entities were able to subsidize their costs with funds from other government
operations, allowing the public entities to unfairly compete for contracts.
13
To address those concerns,
the law provides that local governments providing specific solid waste collection services in direct
competition with a private company must comply with local environmental, health, and safety standards
applicable to private companies providing competitive collection services.
14
In addition, local
governments may not enact or enforce any license, permit, registration procedure, or associated fee
that:
Does not apply to the local government and for which there is not a substantially similar
requirement that applies to the local government; and
Provides the local government with a material advantage in its ability to compete with a private
company in terms of cost or ability to promptly or efficiently provide such collection services,
excluding zoning, land use, or comprehensive plan requirements.
15
When providing solid waste collection services outside of its jurisdiction in competition with private
companies, a local government is prohibited from instituting predatory pricing schemes.
16
The law
provides private companies with legal remedies against local governments that violate these statutory
prohibitions.
17
Displacement of Private Garbage, Trash, and Refuse Collection Services
A local government, or group of local governments, may not displace a private company that provides
garbage, trash, or refuse collection without following certain statutory requirements. The term
“displacement” refers to a local government deciding to provide a collection service and prohibiting a
private company from continuing to provide the same service it was providing at the time the local
government decision was made.
18
Displacement does not include situations such as public and private sector competition for individual
contracts; a local government refusing to renew an expiring contract with a private company; local
government action in response to any act by a private company that is a threat to public health or
safety or a substantial public nuisance; contracts between local governments and private companies
absent an ordinance that displaces another private company; a majority of property owners in the
displacement area petitioning for the local governing body to take over collection services; municipal
annexations honoring existing solid waste contracts pursuant to law; or a private company licensed to
provide service for a limited time whose license expires and is not renewed by the local government.
19
Before displacing a private company, a local government must first hold at least one public hearing,
publicly noticed, with separate notice to private companies providing service in the jurisdiction by mail
at least 45 days before the hearing.
20
The local government must take measures to provide services
within 1 year of the final public hearing, and provide 3 years’ notice to a private company before it
engages in the actual provision of the service that displaces the company. At the end of the three years
notice period, the local government must pay the displaced company an amount equal to the
company’s preceding 18 months’ gross receipts for the displaced service in the displacement area.
21
The local government and the private company are not prohibited from agreeing to a different notice
period or compensation amount.
22
If a private company refuses to continue operations under the terms and conditions of its existing
agreement during the 3-year notice period, the company no longer falls within the definition of
13
CS/HB 1425 (2000) Final Bill Analysis, available at
https://flsenate.gov/Session/Bill/2000/1425/Analyses/20001425HCA_HB1425S1Z.CA.pdf (last visited Mar. 15, 2023).
14
S. 403.70605(1)(a), F.S.
15
S. 403.70605(1)(a)2., F.S.
16
S. 403.70605(2), F.S.; see also ss. 542.18 and 542.19, F.S.
17
S. 403.70605(1)(b) and (2)(c), F.S.; see also ss. 542.18 and 542.19, F.S.
18
S. 403.70605(3)(a), F.S.
19
S. 403.70605(3)(a), F.S.
20
S. 403.70605(3), F.S.
21
S. 403.70605(3)(c), F.S.
22
S. 403.70605(3)(c), F.S. STORAGE NAME: h0975a.LFS PAGE: 4
DATE: 3/20/2023
displaced.
23
In addition, the notice period is deemed to have run as of the date the private company
stops providing services within the displacement area.
24
Other Restrictions on Terminating Private Solid Waste Collection Services
A newly-formed municipality must honor any existing solid waste contracts for five years or the
remainder of the contract term, whichever is shorter.
25
Similarly, municipalities cannot annex additional
land subject to existing solid waste contracts without honoring the existing contracts for five years or
the remainder of the contract term, whichever is shorter.
26
If an exclusive franchisee has provided
services in an area to be annexed for at least the preceding six months, the franchisee may continue to
provide service in the area for the shorter of five years or the expiration of its service contract as long
as it meets certain conditions including providing the service at a reasonable cost.
27
Effect of Proposed Changes
The bill prevents municipalities or counties from prohibiting private entities from providing recycling or
solid waste management services to commercial, industrial, or multifamily residential properties,
including condominiums, within the municipality or county. A municipality or county may require the
private entity to obtain a permit, license, or nonexclusive franchise equivalent, but such permit, license
or nonexclusive franchise equivalent may not cost more than the administrative cost to issue the
permit, license, or nonexclusive franchise equivalent. The cost of the fees should be commensurate to
fees charged to other industries.
The bill requires any franchise fee to be paid by all permit, license, or nonexclusive franchise equivalent
holders. Contracts or franchises in place as of January 1, 2023, will be recognized and protected until
the contract expires. A municipality or county may recognize a renewal option during 2023 on an
existing contract, but may not recognize an evergreen contract or an additional renewal or extension of
a contract. For the duration of any existing contract (including any authorized renewal period), a
municipality or county may charge a franchise fee in excess of administrative costs, as long that
franchise fee is uniform among all service providers.
The provisions of the bill do not apply to a municipality or county that is the sole provider of solid waste
collection services in its jurisdiction performed by employees of the municipality or county using
municipal or county-owned equipment.
B. SECTION DIRECTORY:
Section 1: Amends s. 403.706, F.S., relating to local government solid waste responsibilities.
Section 2: Provides an effective date of July 1, 2023.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
23
S. 403.70605(3)(a)5., F.S.
24
S. 403.70605(3)(c), F.S.
25
See s. 165.061(1)(f), F.S.; see also art. I, s.10, Fla. Const.
26
See s. 171.062(4), F.S.; see also art. I, s.10, Fla. Const.
27
Id. STORAGE NAME: h0975a.LFS PAGE: 5
DATE: 3/20/2023
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The bill may have a negative impact on the local government revenues to the extent those local
governments currently charge a franchise fee in excess of administrative costs.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have an indeterminate positive impact on solid waste companies to the extent franchise
fees may be reduced to comply with the bill. The bill may also have an indeterminate positive impact on
all private entities to the extent increased competition for solid waste services results in lower costs.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill neither provides authority for nor requires rulemaking by executive branch agencies.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On March 20, 2023, the Local Administration, Federal Affairs & Special Districts Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute. The amendment allows a
municipality or county to charge a franchise fee in excess of administrative costs for the duration of any
existing contract (including any authorized renewal period), as long the franchise fee is uniform among all
service providers. The amendment also provides the bill does not apply to a municipality or county that is
the sole provider of solid waste collection services in its jurisdiction performed by employees of municipality
or county using municipal or county-owned equipment.
The analysis is drafted to the committee substitute adopted by the Local Administration, Federal Affairs &
Special Districts Subcommittee.