§ 5-05 Agreements and Contracts with Customers; Service to Customers.
RCNY § 5-05
(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.
(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)
