SENATE, No. 1130

STATE OF NEW JERSEY

INTRODUCED MAY 9, 1996

By Senator MARTIN

An Act concerning regulatory reform of the solid waste collection industry, and amending, supplementing and repealing parts of the statutory law.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 14 of P.L.1991, c.381 (C.48:13A-7.14) is amended to read as follows:

    14. a. The Board of Public Utilities shall, [within 30 months of the effective date of this amendatory and supplementary act] no later than October 14, 1994, submit a preliminary report to the Governor and the Legislature concerning the implementation of P.L.1991, c.381 (C.48:13A-7.1 et al.).

    The board shall provide interested parties and the general public with an opportunity to submit written comments on the contents of the preliminary report in a manner to be determined by the board.

    b. The board shall, [within 36 months of the effective date of this amendatory and supplementary act] no later than April 14, 1995, submit a final report to the Governor and the Legislature concerning the implementation of P.L.1991, c.381 (C.48:13A-7.1 et al.).

    The final report shall include, but need not be limited to:

    (1) An evaluation of the success of solid waste collection rate bands in promoting competition within the solid waste collection industry while at the same time ensuring safe, adequate and proper solid waste collection services at competitive rates;

    (2) An evaluation of the success of solid waste collection rate bands in eliminating predatory pricing and other anticompetitive activities within the solid waste collection industry;

    (3) An evaluation of the success of uniform specifications for municipal solid waste collection contracts in promoting competition within the solid waste collection industry while at the same time ensuring safe, adequate and proper municipal solid waste collection services at competitive rates;

    (4) An assessment of the economic viability and competitiveness of the solid waste collection industry and a recommendation, as warranted by the circumstances, as to whether the termination of rate regulation of the solid waste collection industry by the board will promote meaningful competition and ensure efficient solid waste collection services at competitive rates; and

    (5) A summary of any written comments submitted by interested parties or the general public on the contents of the preliminary report required pursuant to subsection a. of this section.

(cf: P.L.1991, c.381, s.14)

    2. (New section) a. There is established, in but not of the Department of Environmental Protection, the Solid Waste Collection Reform Study Commission (hereinafter designated as the "study commission").

    The study commission shall consist of five members as follows: the Commissioner of Environmental Protection or his designee, who shall serve ex officio; two citizen members to be appointed by the Governor, with the advice and consent of the Senate, one of whom shall be employed by, and be a representative of, county government and one of whom shall be employed in, and be a representative of, the solid waste collection industry; and two members of the Legislature, one of whom shall be a member of the Senate to be appointed by the President of the Senate and one of whom shall be a member of the General Assembly to be appointed by the Speaker of the General Assembly.

    b. Members of the study commission shall be appointed within 30 days of the effective date of P.L.1996, c. (pending in the Legislature as this bill). The study commission shall organize as soon as practicable after the appointment of all of its members. The Governor shall designate one of the members as chairperson of the study commission. Members of the study commission shall serve without compensation but may be reimbursed for reasonable expenses necessarily incurred in the performance of their duties.

    c. The study commission shall, within 6 months of the effective date of P.L.1996, c. (pending in the Legislature as this bill), submit a report to the Governor and the Legislature containing recommendations as to: (1) the extent the State should retain supervision over the solid waste collection industry; and (2) the authority the State should exercise with respect to the regulation of rates or charges for solid waste collection services following the expiration of the solid waste collection rate bands on October 14, 1996.

    In developing its recommendations, the study commission shall review the preliminary and final reports prepared pursuant to section 14 of P.L.1991, c.381 (C.48:13A-7.14) and any other reports or data as it deems necessary.

    3. Section 52 of P.L.1991, c.381 is amended to read as follows:

    52. This act shall take effect on [the 90th day after enactment, except that section 15 shall take effect 48 months thereafter] April 14, 1992. Sections 5 through 10 and sections 12, 13 and 23 of [this act] P.L.1991, c.381 (C.48:13A-7.5 through 48:13A-7.10 and 48:13A-7.12, 48:13A-7.13 and 48:13A-7.23) shall expire on [the effective date of section 15] October 14, 1996.

    4. Section 15 of P.L.1991, c.381 (C.48:13A-7.15) is repealed.

    5. This act shall take effect immediately.

STATEMENT

    This bill would establish a five-member Solid Waste Collection Reform Study Commission, in but not of the Department of Environmental Protection (DEP), to reassess the impending termination of public utility rate regulation of the solid waste collection industry.

    The Study Commission would consist of the Commissioner of DEP or his designee, ex officio; two citizen members to be appointed by the Governor, with the advice and consent of the Senate, one of whom must be employed by and represent county government and one of whom must be employed in and represent the solid waste collection industry; and two members of the Legislature, one from each House.

    The members of the Study Commission must be appointed within 30 days of the bill's effective date. The Governor would designate one of the members as chairperson of the Study Commission. Members of the Study Commission would serve without compensation but could be reimbursed for reasonable expenses necessarily incurred in the performance of their duties.

    The Study Commission would be required to submit a report to the Governor and the Legislature within 6 months of the bill's effective date. This report would contain recommendations as to: (1) the extent the State should retain supervision over the solid waste collection industry; and (2) the authority the State should exercise with respect to the regulation of rates or charges for solid waste collection services following the expiration of the solid waste collection rate bands on October 14, 1996.

    In developing its recommendations, the Study Commission would review the preliminary and final reports prepared by the DEP pursuant to section 14 of P.L.1991, c.381 (C.48:13A-7.14) and any other reports or data as it deems necessary.

    Pending the completion of the Study Commission's report, this bill would also: (1) repeal the statutory termination of public utility rate regulation of solid waste collection services provided in section 15 of P.L.1991, c.381 (C.48:13A-7.15); and (2) extend the expiration date for the solid waste collection rate bands governing the rates or charges that may be imposed by solid waste collectors for solid waste collection services from April 14, 1996 to October 14, 1996.

Establishes the "Solid Waste Collection Reform Study Commission."