BIC Amendment of Maximum Rates for Trade Waste Removal
Proposed Rules: Closed to Comments
Statement of Basis and Purpose of Proposed Rule
Under section 2101 of the New York City Charter, the Commission is authorized to regulate the trade waste industry and ensure businesses are able to operate in an honest and competitive environment free from the influences of organized crime and criminality. BIC is also authorized under sections 16-504(b) and (i) and 16-519 of the Administrative Code to set by rule the maximum rates by weight and by volume that trade waste haulers can charge for the removal of putrescible and recyclable commercial waste. Rates were last adjusted in 2013.
In accordance with section 16-519 of the Administrative Code, any change that BIC proposes to the maximum rates must be based upon a fair and reasonable return to the licensees who provide waste removal services to commercial establishments in New York City while also protecting those using these services from excessive or unreasonable charges. To achieve this balance, BIC established an administrative procedure that provides more transparency, standardization and regularity in the rate-setting process. Pursuant to Title 17, Chapter 1, § 5-02 (f) of the New York City Rules and Regulations (“NYCRR”), BIC held a hearing on October 30, 2015, relating to the maximum rates charged by a licensee for the collection, removal, disposal, or recycling of trade waste. The hearing was attended by representatives of the trade waste industry and other interested parties, some of whom testified at the hearing and submitted written testimony.
The Commission has carefully evaluated the evidence provided throughout the process including the oral statements made at the October 30, 2015 hearing and the written statements provided both prior to and after the hearing. Having reviewed the Producer Price Index as well as the other factors enumerated in NYCRR Title 17, Chapter 1, § 5-02(g), BIC proposes an increase to the current maximum rate allowed to be charged by the trade waste haulers of 3.3%. This increase would result in maximum rates of:
$18.87 per cubic yard
$12.38 per 100 pounds
“Shall” and “must” denote mandatory requirements and may be used interchangeably in the text below, unless otherwise specified or unless the context clearly indicates otherwise.
New text is underlined; deleted text is in [ ] brackets.
Section 1. Subdivision (a) of section 5-02 of subchapter E of Chapter 1 of Title 17 of the Rules of the City of New York is amended to read as follows:
(a) A trade waste removal business shall not demand, charge, exact, or accept rates for the collection, removal, disposal, or recycling of trade waste greater than the following maximum rates:
(1) [$18.27] $18.87 per cubic yard.
(2) [$11.98] $12.38 per 100 pounds.
(3) Exempt Waste. This subdivision shall not apply to the removal of construction and demolition debris, infectious medical waste, covered electronic equipment as defined in § 421 of chapter 16 of the Code, waste from grease interceptors as defined in § 19-119(a) of title 15 of the Rules of the City of New York and paper that is collected for the purpose of shredding or destruction by the licensee.