Trade Waste Brokers and Sales fees

Proposed Rules: Closed to Comments

Comment By: 
Friday, March 8, 2013
Download Copy of Proposed Rule (.pdf): 



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. To ensure trade waste businesses operate free of organized crime and corruption, BIC regulates both the providers of trade waste collection services and the trade waste brokers. As provided in Administrative Code Title 16-A, § 16-504(a), BIC regulates the issuance, suspension and revocation of registrations for trade waste brokers. Under § 16-504(i), BIC is authorized to promulgate rules the Commission deems necessary and appropriate to effectively regulate the waste removal industry, including the regulation of trade waste brokers.


These proposed rule amendments are designed to improve BIC’s capacity to properly regulate the trade waste broker community and to ensure trade waste brokers are operating fairly and free of corruption. The proposed amendments will also ensure BIC’s rules are fair across the trade waste industry, by making rules and requirements for trade waste brokers more consistent with those of licensed providers of trade waste removal collection or disposal services, as enumerated in Title 17 Subchapter E of the Rules of the City of New York.


Specifically, the proposed amendments will require trade waste brokers to follow BIC rules whether they are working with licensees or registrants.


The amendments will also require trade waste brokers to follow record keeping and record reporting requirements comparable to the requirements of licensees, including:


  • Maintenance and production of accounting records, including cash receivable and cash disbursement journals, payroll records, general ledgers, customer subsidiary ledgers, accounts payable ledgers and other accounting records;
  • Maintenance and production of customer information;
  • Maintenance and production of annual financial statements;
  • Maintenance and production of an annual report;
  • Maintenance and production of the broker’s Customer Register; and
  • Maintenance and production of complaints made against the broker.


The amendments also define the requirements for agreements and contracts with customers for broker services. The proposed amendments address the information that must be included in contracts between brokers and customers, as well as the duration of such contracts. Specifically, contracts entered into after the effective date of this rule may not exceed two years in duration. Contracts entered into prior to the effective date of the rule will be deemed to terminate no later than two years following the rule’s effective date. Additionally, any written contracts without a termination date will be deemed terminable at will by either party upon fourteen days written notice. Oral agreements between customers and a trade waste brokers must be deemed terminable at will by either party upon fourteen days written notice to the other party. In no instance may a broker terminate services or raise rates without at least fourteen days written notice to the customer.


Under the amendments, Commission approval will now be required before subcontracting or assigning broker services and before any sales, mergers or acquisitions of trade waste brokerages involving other businesses under BIC’s jurisdiction.



In this proposed rulemaking, the Business Integrity Commission is also amending the fee for Commission review of any proposed asset sale, assignment of contract, merger, acquisition, or similar transaction by a licensee to reflect the most recent user cost analysis. The same fee structure will now be applied to transactions by registered trade waste brokers to ensure the marketplace is run fairly and free from criminal influence.


Nothing in these proposed amendments to subchapter F relating to trade waste brokers is intended to alter or affect the meaning or application of the requirements for licensees as provided in subchapter E of these rules as interpreted by the Commission.



Public Hearing

Opportunity to comment on the proposed amendment by the Business Integrity Commission of rules relating to trade waste broker regulations.

Public Hearing Date: 
Monday, March 11, 2013 - 10:00am

Joanna Weiss
Chief Program Officer
(212) 676-6292

New York City Business Integrity Commission
100 Church Street, 20th Floor, Conference Room 1
New York, NY 10007