Increase in the Rate Cap for trade waste haulers

Statement of Basis and Purpose of Proposed Rule

Under section §2101 of the New York City Charter, the Business Integrity Commission (BIC) 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 has the authority pursuant to §§ 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.

In accordance with § 16-519 of the Administrative Code, these proposed rule amendments are designed to ensure that licensed trade waste haulers subject to rate-setting by BIC are able to collect a fair and reasonable return to licensees for waste removal services provided to commercial establishments in New York City, while protecting those using these services from excessive or unreasonable charges. Rates were last adjusted in 2008. The proposed increase reflects a 15% increase over current rates and is based on an analysis of costs and revenues, and of inflation in the regulated portion of the industry.

Specifically, the proposed amendments will require trade waste businesses to set rates at or below the following values:

•       $18.97 per cubic yard

•       $11.89 per 100 lbs

In addition, these rule amendments establish an administrative procedure to provide greater transparency, standardization and regularity in the rate-setting process, which does not currently exist and is of benefit to the regulated industry, their customers and BIC. BIC will now conduct a formal review every odd year to ensure that rates are in line with changes and trends in the market. As rates are set also to preserve and protect the interests of commercial establishments, the proposed amendments will place the burden on haulers to demonstrate why the current rates should be changed.