Agreements and Contracts with Customers; Service to Customers.
17 RCNY § 5-05
in effect§ 5-05 Agreements and Contracts with Customers; Service to Customers.
(a) Term and form of contract; requirements; service and discontinuation of service; increase of rates.
(1) An oral agreement for the collection, removal, or disposal of trade waste shall be terminable at will by the customer and upon fourteen (14) days' written notice by the licensee. A contract for the collection, removal, or disposal of trade waste shall not exceed two (2) years in duration. A written contract for the removal, collection, or disposal of trade waste that contains no provision regarding duration shall be terminable at will by the customer and upon fourteen (14) days' written notice by the licensee. A written contract must provide that the licensee must remove the customer's waste from the location designated by the customer. A sample standard contract form must be submitted to the Commission when an application for a license is submitted, and a licensee must submit any subsequent changes in the standard form to the Commission thirty (30) days' prior to implementing such change. Nothing in this provision shall be construed to prevent a licensee from negotiating terms at variance with the standard form contract, except that a licensee must not vary such contract in any manner identified by the Commission as inconsistent with the purposes of Chapter 1 of Title 16-A of the Code by the Commission after review of such standard form. Upon the final implementation date for a particular commercial waste zone, licensees who are designated carters will not be subject to the requirements of this paragraph in such zone. Licensees who operate in any zones that have not been implemented will continue to be subject to the requirements of this paragraph.
(2) A licensee must comply with the service and other terms set forth in the written contract or oral agreement with the customer, including the agreed-upon frequency and schedule for the collection of waste. A schedule agreed to in writing must not be altered without the written agreement of the customer's owner or authorized representative. When a licensee offers to provide a commercial establishment with trade waste services, the licensee must provide such customer with a copy of the Commission's informational notice to customers. The licensee must provide the customer with such additional informational notices as the Commission shall require throughout the term of service to the customer by the licensee. Upon the final implementation date for a particular commercial waste zone, licensees who are designated carters will not be subject to the requirements of this paragraph in such zone. Licensees who operate in any zones that have not been implemented will continue to be subject to the requirements of this paragraph.
(3) A licensee must not discontinue service to any customer, or raise the rates charged to such customer, unless at least fourteen (14) days' written notice to the customer is given. No contract for the removal, collection, or disposal of waste shall provide that a licensee may discontinue service upon shorter notice. Upon the final implementation date for a particular commercial waste zone, licensees who are designated carters will not be subject to the requirements of this paragraph in such zone. Licensees who operate in any zones that have not been implemented will continue to be subject to the requirements of this paragraph.
(4) A written contract that does not meet the requirements of Federal, State, or Local Law is voidable by either party.
(b) Subcontracting, assignment of contracts, Mergers, and Acquisitions.
(1) A licensee must apply for review by the Commission before subcontracting or assigning a contract and must seek such review by the Commission thirty (30) days before such subcontract or assignment is proposed to take effect. The Commission may issue any order with respect to the transaction consistent with the purposes of Local Law 42. An assignee or subcontractor of contracts for the removal, collection, or disposal of trade waste notify, within fifteen (15) days of the effective date of such assignment or subcontract, each party to a contract so assigned of such assignment or subcontract and of the right of such party to terminate such contract upon thirty (30) days' notice during the three (3) months after receiving notice of such assignment or subcontract. Such notification must be by certified mail with the receipt of delivery retained by the assignee or subcontractor and must be upon a form approved by the Commission. Where no written contract exists with a customer for the removal, collection, or disposal of trade waste, a company that assumes such trade waste removal from another company must provide such customer with notification within fifteen (15) days of such assignment or subcontract, on a form approved by the Commission by certified mail with the receipt for delivery retained by the assignee or subcontractor, that a new company will be providing such trade waste removal, and that the customer has the right to terminate such service. A licensee must not enter into a subcontract before receiving express approval for the subcontracting arrangement from the Commission. Upon the final implementation date for a particular commercial waste zone, licensees who are designated carters will not be subject to the requirements of this paragraph in such zone. Licensees who operate in any zones that have not been implemented will continue to be subject to the requirements of this paragraph.
(2) A licensee must apply for review by the Commission before acquiring, selling, or merging with another trade waste removal, collection, or disposal business and must seek such review by the Commission no later than thirty (30) days before such acquisition, sale, or merger is to take effect. The Commission may issue any order with respect to the intended transaction consistent with the purposes of Local Law 42. The Commission may, in its discretion, require that either the purchaser or seller post a bond or place money in escrow with the Commission in an amount that the Commission believes, in its discretion, is needed to cover any outstanding or potential fines or penalties owed or that may be owed to the Commission, any customer complaints that have been heard, pursuant to 17 RCNY § 1-03 in regard to which a final determination has not been rendered, and any restitution ordered by the Commission which the selling or dissolving licensee has failed to make to the customer. If the seller fails to post such bond or place money in escrow as set forth in this paragraph, the Commission may seek from the purchaser any and all outstanding fines or penalties for violations of Chapter 1 of Title 16-A of the Code and this chapter and any outstanding ordered customer restitution.
(3) Investigation, inspection, and evaluation fee. The fee for investigation and review of any proposed transaction described in Paragraphs (1) and (2) of this subdivision shall be four thousand and five hundred dollars ($4,500) per entity involved and one thousand and two hundred dollars ($1,200) per principal involved. After submission to the Commission of an appropriate request for review of such a transaction, the Commission shall notify the parties to the transaction of the total fee amount due and owing, which must be paid in full within ten (10) days after such notification. The Commission, in its discretion, may waive or reduce fees upon written request in light of one (1) or more of the following reason(s):
(i) specified persons or entities have recently undergone completed background investigations by the Commission;
(ii) the value of the transaction under review is minimal;
(iii) specified persons or entities need not undergo background investigations because of their attenuated connection to the transaction;
(iv) the transaction does not involve the sale, assignment, or other transfer of any accounts or customer contracts (e.g., trucks or other non-customer assets);
(v) the transaction involves less than five (5) customers;
(vi) the transaction involves unique characteristics or other mitigating factors that would warrant a reduction or waiver of fees.
(4) Requests for authorization of subcontracting, assignment, and other such arrangements. All trade waste subcontracting, assignment, and similar arrangements must be submitted to the Commission for authorization. Requests for approval of such an arrangement must be submitted in writing to the Commission, and the arrangement must not go forward unless and until it has been approved in advance by the Commission. The request must identify the customer(s) involved (including name, address, contact person, and contract terms), state the requested length of the arrangement, and describe the business justification for the arrangement. Copies of all affected contracts or proposed contracts must be submitted with the request.
(5) Customer's thirty (30) day termination right during ninety (90) day post-assignment period. During the ninety (90) day period following the assignment or other transfer of a customer contract to another trade waste removal business, the customer has the right to terminate its carting contract on thirty (30) days' notice. All contracts signed by affected customers during the ninety (90) day period subsequent to contract assignment or transfer remain terminable on thirty (30) days' notice throughout the ninety (90) day period, and any such contract signed during that ninety (90) day period must contain prominent notice of this fact.
(c) Customer's contract termination right after denial of license application or revocation of license. During the ninety (90) day period following the effective date of the denial of the license application of a trade waste removal business or the revocation of the license of such a business, the customers of that business have the right to terminate any contracts for trade waste removal entered into during that period, on thirty (30) days' written notice to the other contracting party. Any contract for trade waste removal entered into by any such customer during the ninety (90) day post-denial period shall be terminable at will by the customer throughout that period on said written notice. Any such contract must contain prominent notice of the customer's right to terminate the contract at any time within such period upon such notice.
(d) Written contract. When service to a customer is commenced, the licensee must take all steps necessary to attempt to reach an agreement with the customer on the terms and conditions of the service to be provided and within forty (40) days of the commencement of service, must prepare a written contract that clearly and legibly sets forth the terms and conditions of the agreement negotiated by the licensee and the customer and deliver such contract to the customer. Such contract must provide that it shall be effective only upon being dated and signed by the licensee and the customer's owner or authorized representative and that a change of any term or condition of such contract must be made in writing, dated, and signed by both the licensee and the customer's owner or authorized representative before such term or condition takes effect. The proposed contract offered by the licensee be accompanied by a notice stating: "You are not required to sign this contract. If you have any questions or complaints, call the Business Integrity Commission at (212) 437-0600." One (1) copy of such signed and dated contract and a copy of any signed and dated amendments must be provided to the customer's owner or authorized representative by the licensee. Upon the final implementation date for a particular commercial waste zone, licensees who are designated carters will not be subject to the requirements of this subdivision in such zone. Licensees who operate in any zones that have not been implemented will continue to be subject to the requirements of this subdivision.
(e) Customer's decision not to sign a contract. A customer is not required to sign a contract. If a customer fails or refuses to sign a contract that has been tendered to the customer, pursuant to Subdivision (d) of this section, a licensee will be deemed to have complied with such subdivision if the licensee complies with the requirements in Paragraphs (1) through (3) of this subdivision provided, however, that a licensee must not discontinue service to such a customer, or raise the rates charged such a customer, unless at least fourteen (14) days' written notice of such discontinuance or rate increase was given to such customer. Where a written contract with a customer has not been obtained by the licensee, the licensee must:
(1) demonstrate that a contract has been tendered to the customer in accordance with Subdivision (d) of this section, within forty (40) days of the commencement of service; and
(2) keep a copy of the contract tendered on file along with the signed returned postal receipt for a period of one (1) year after the eventual discontinuance of service to the customer; and
(3) make available to the Commission upon its request a copy of the contract and the return receipt.
Upon the final implementation date for a particular commercial waste zone, licensees who are designated carters will not be subject to the requirements of this subdivision in such zone. Licensees who operate in any zones that have not been implemented will continue to be subject to the requirements of this subdivision.
(f) Liability for negligence. No contract or contract amendment shall provide that the licensee is exempt from liability for damage caused by its negligence or the negligence of any of its agents.
(g) Standard bills, statements, invoices. A licensee must provide a written bill, statement, or invoice at least once every month to each and every customer to which such licensee provides services. Such bill, statement, or invoice must conspicuously contain all of the following:
(1) the licensee's name, address, telephone number, license number;
(2) the customer's name and complete address;
(3) a notice to customers as follows: NOTICE TO CUSTOMERS – The maximum rate that may be charged by your trade waste removal business is regulated by the New York City Business Integrity Commission. If you should have a question or a complaint concerning waste removal, contact the New York City Business Integrity Commission; and
(4) the maximum rates in effect with a statement indicating that the rates so identified are maximum legal rates and that lower rates may be lawfully charged;
(5) the negotiated rate per cubic yard or per one hundred (100) pounds on which the invoice is based;
(6) an itemized list of charges detailing the cubic yards or weight of putrescible waste removed, recyclables removed, and any additional charges;
(7) where the customer is being charged on a "flat" or "average" billing basis,
a. the total charges for waste removal for the billing period;
b. an itemized statement of the estimated volume or weight of the putrescible waste removed and the charge for the removal of such waste;
c. an itemized statement of the estimated volume or weight, if any, of the recyclable waste removed and the charge for the removal of such waste;
d. a statement as to the method by which the estimated volume or weight was determined; and
(8) a separate statement of sales tax collected.
Such bill must be on a form approved by the Commission. Upon the final implementation date for a particular commercial waste zone, licensees who are designated carters will not be subject to the requirements of this subdivision in such zone. Licensees who operate in any zones that have not been implemented will continue to be subject to the requirements of this subdivision.
(Amended City Record 3/6/2018, eff. 4/5/2018; amended City Record 8/1/2024, eff. 8/31/2024)
Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-129308Fetched: 10/24/2026