Amendment of Rules Regulating Commercial Laundries

Adopted Rules: Closed to Comments

Effective Date: 
Friday, July 20, 2018
Agency:
Keywords:
Download Copy of Adopted Rule (.pdf): 

 

Statement of Basis and Purpose of Rule

The City Council enacted Local Law 87 for the year 2016, adding subchapter 14.1 to chapter 2 of title 20 of the Administrative Code (“Code”) and repealing, effective December 31, 2017, subchapter 14, in relation to the Department’s regulation of laundries.  As of January 1, 2018, Subchapter 14.1 is the only subchapter in effect.  These rules repeal Rule 2-131, which was promulgated under Subchapter 14, and implement the requirements of Subchapter 14.1 by:

  • Clarifying application requirements, describing insurance and other requirements, and making certain violation cures consistent with existing requirements.  The rules incorporate laundries’ obligation to post a price list; compliance with this rule will satisfy section 20-750(a) of the Code and Rule 5-70(a).  Pursuant to further review by the Department, the letter size requirement for the price list sign is modified from the proposed rules published on December 14, 2017.  Specifically, the Department has reduced the letter size requirement from two inches to one inch.
  • Clarifying that a licensed Industrial Laundry is prohibited from engaging in laundry delivery services until it has submitted to the Department information required by Code section 20-297.3(b)(11) and obtained an amended license authorizing it to engage in “industrial laundry delivery.”  It will not have to pay an additional Biennial License Fee for the amended license.  A licensee authorized to engage in “industrial laundry delivery” must comply with section 20-297.5 (General provisions) and section 20-297.6 (Additional provisions for industrial laundries and industrial laundry delivery) of the Code.

These rules also establish a schedule of penalties for violations of the laundries law and rules.  The schedule is modified from the proposed rules published on December 14, 2017, which included a single set of financial penalties applicable to any violation of Rule 2-133. The penalty schedule now includes specific penalties for violations of:

  • Rule 2-133(b), Rule 2-133(c), and Rule 2-133(d). Specifically, the financial penalties for each such violation are the same as in the proposed rule, but a license suspension has been added for first and second violations, and license revocation for third violations of these subdivisions, pursuant to the Department’s authority under Code Section 20-104(e).
  • Rule 2-135. The specified, non-default penalties for violations of Rule 2-135 are: $375 for first violations; $450 for second violations; and $500 for third and subsequent violations.  Pursuant to section 2203(h)(1) of the New York City Charter and Code Section 20-104(e), violations of that section are subject to civil penalties of up to $500; the final rule sets penalty amounts within that required range.  

Additionally, working with the City’s rulemaking agencies, the Law Department, the Mayor’s Office of Operations, and the Mayor’s Office of Management and Budget conducted a retrospective review of the City’s existing rules, identifying those rules that will be repealed or modified to reduce regulatory burdens, increase equity, support small business, and simplify and update content to help support public understanding and compliance.  The repeal of subdivision (k) of Rule 2-131 is responsive to this review.