Franchises and Solid

Waste Finance in NC

By Richard Whisnant

UNC School of Government

What do you think of when you hear the word

“franchise”?

What does “franchise” have to do with

government ?

Boston, MA 1842

Charles River Bridge case, U.S. Supreme Court 1640 - 1837

What does “franchise” have to do with solid

waste contracting and financing in NC?

• Local government must grant a franchise for private operation of a public enterprise (case law)(statutes say “may,” courts said “must”, apparently this covers “storage, collection, transportation, use, disposal, and other disposition of solid wastes” GS 153A-136).

• Franchise created by ordinance, requires two meetings of the governing board (GS 153A-146; 160A-76).

• Local franchise a pre-requisite for State sanitary landfill permit (GS 130A-294). There are special requirements for landfill franchises in 130A-294, including a public hearing and the possibility of a “preliminary franchise.”

• Franchise award made on any non-arbitrary, non-discriminatory basis (award is not subject to normal contract and bidding rules). Government must retain oversight and ultimately control, including fees; term limited to 30 years (no exclusive monopolies). GS 153A-136, 160A-319.

• Displacing existing waste collection franchisees requires special procedures, possibly compensation. GS 160A-327