Press Release Archives - 244-96 - Reform Private Carters

Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Date: June 3, 1996

Release #244-96

Contact: Colleen Roche (212) 788-2958
or Dwight Williams (212) 788-2972

MAYOR GIULIANI SIGNS SWEEPING LEGISLATION DESIGNED TO REFORM THE CITY'S PRIVATE CARTING INDUSTRY

Mayor Rudolph W. Giuliani, joined by several of the City's elected public officials, today signed a bill that would dramatically regulate the private carting industry.

City Council Bill # 676-A establishes a New York City Trade Waste Commission to license on "fitness" standards and regulate the several hundred carting firms that serve over 250,000 businesses in New York Cityand to authorize the commission to establish a pilot program in districts in two different boroghs in which private carting services would be subject to competitive bidding.

The legislation was also supported by Public Advocate Mark Green and sponsored by Council Speaker Peter F. Vallone, Councilmembers Kenneth Fisher, Jeremy O'Donovan, Karen Koslowitz, Kathryn Freed, Stanley Michels, Martin Malave-Dilan, Lloyd Henry, Noach Dear, and Andrew Eristoff.

"For more than four decades, the private carting industry in New York City has been corrupted by organized crime," said Mayor Giuliani. "This has established a cartel system under which carters do not compete with each other and customers are forced to accept carters not of their own choosing at prices which are inconscionably high."

The Mayor added, "The licensing standards, rules of conduct and enforcement mechanisms in this local law will, for the first time, provide the City with the tools needed to address the problems that for too long have plagued the private carting industry. With implementation of this legislation, we can increase competition in this industry, improve service delivery and reduce consumer price."

The proposed New York City Trade Waste Commission would be made up of the commissioners of the Departments of ConsuMer Affairs, Sanitation, Investigation, and Business Services, and one public member who will be appointed by the Mayor and serve as chair. Although the commission's chairperson will serve full-time and receive salaried compensation, the commission's anticipated staffing level of more than 80 people would be accomplished at no additional cost to city taxpayers through the redeployment of existing staff from the Departments of Consumer Affairs, Business Services, Investigation, Sanitation, Transportaion, Health, Finance, Environmental Protection, and Police.

Under this new legislation the Commission will be authorized to:

issue, and establish new standards for the issuance, suspension, and revocation of licenses and registrations for private carting firms;
examine applicants (firms and their employees) for licenses by conducting full background investigations, including fingerprinting of key personnel, and requesting any information the Commission deems necessary to determine the good character, honesty, and integrity of private carting firms;
establish the maximum rates for collection, removal, and disposal of waste and to adjust such rates as necessary after a public hearing;
establish tougher standards for service and for the regulation and conduct of licensed carters in areas such as contract terms, customer relations, records, insurance, and compliance with safety and health measures;
conduct public education and outreach campaigns to inform business consumers about their rights when dealing with carters, and how to measure their waste to determine whether they are being charged correctly for carting services;
assume the financial auditing, and the business consumer complaint investigation and resolution functions currently performed by the Department of Consumer Affairs;
require certain carters to retain independent auditors and monitors selected or approved by the commission;
and impose significantly higher penalties and fines for violations of the law than are currently provided for under the jurisdiction of the Department of Consumer Affairs.

The legislation will also authorize the commission to establish a pilot program aimed at reducing carting costs through increased competition and honest business practices. Under the bill, the commission may designate up to two competition zones in different boroughs to become special trade waste removal districts where qualified carters would competitively bid to provide improved and lower cost carting services to business consumers in each district. In addition to encouraging lower carting rates for small businesses who possess little bargaining power to negotiate with carters, the commission would also be able to regulate the performance, customer service record, and recycling services provided by qualified carters servicing businesses. In the pilot zones, large commercial properties with floor areas of 200,000 square feet or more with a greater ability to negotiate lower carting charges will retain the option to "opt-out" of the pilot project and contract with a licensed carter other than those designated to provide service in the pilot zones.

Mayor Giuliani has previously announced that the Department of Consumer Affairs will initiate a public education and enforcement campaign to inform business consumers of their rights when dealing with private carting services. The campaign -- Measure and Save -- will include the distribution of a free guide by city licensing agencies that detail the rights and obligations of business consumers and private carters, and easily explains how business consumers can accurately measure their waste to determine whether they are being appropriately charged for carting services. The guide is available in English, Spanish, Chinese and Korean. The Department of Business Services will also commence an initiative to encourage established carting firms outside of the New York metropolitan area to enter the New York market.