Los Angeles has adopted a zone franchise system to collect waste from businesses and large apartment buildings.

City Mayor Eric Garcetti signed the law that divides Los Angeles in 11 zones with haulers bidding on contracts to collect waste in each area. To win the bid, haulers will have to provide bins for recycling and use clean fuel vehicles, as well as meet other environmental requirements, according to information confirmed by the city.

Garcetti said that 70 percent of the city’s waste sent to landfills comes from commercial and large apartment buildings (five or more units). The recycling rate for those properties is 19 percent compared with 75 percent for residential properties, he said.

Previously, businesses and apartments have selected their own haulers for waste collection that resulted in excessive traffic, Garcetti said. The $250 million market comprises about 63,000 properties.

The Los Angeles Alliance for a New Economy was a driving force behind approval of the law, which it says will create 20,000 jobs in the next 10 years.

The city will begin soliciting proposals from haulers in late June, said Enrique Zalvidar, director of sanitation. The city expects the program to fully launch in January 2017.