Trade Waste Brokers and Sales Fees

Adopted Rules: Closed to Comments

Effective Date: 
Monday, May 20, 2013
Download Copy of Adopted Rule (.pdf): 



Statement of Basis and Purpose of Final 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 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 new 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 new 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 new amendments also define the requirements for agreements and contracts with customers for broker services. The 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, BIC 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 final rulemaking, BIC is also amending the fee for 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.


This rule will go into effect on May 20, 2013. However, provisions requiring new record keeping or invoicing will go into effect on August 19, 2013. Brokers will need to file customer registers on July 31, 2014 and every six months thereafter. Brokers will need to file financial statements six months after the close of the broker’s first fiscal year that ends on or after August 20, 2014, and then on an annual basis thereafter.


Nothing in these 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 BIC.