Title 17: Business Integrity Commission

Chapter 1: Trade Waste

Subchapter A: General Provisions

§ 1-01 Definitions.

For the purposes of this chapter, the following terms have the following meanings:

Applicant. The term “applicant” means, if a business entity submitting an application for a license, or for exemption from the licensing requirement of section 16-505 of the Code, or for registration pursuant to this chapter, the entity and each principal thereof.

Code. The term “Code” means the Administrative Code of the City of New York.

Commission. The term “Commission” means the Business Integrity Commission as established by § 16-502 of the Code and section 2100 of the New York City Charter. Except in regard to a determination to refuse to issue a license pursuant to § 16-509 of the Code, the term “Commission” shall also refer to an action of the Chair of the Commission, taken under delegation from the Commission pursuant to § 16-504 of the Code.

Container. The term “container” means any receptacle that is used to collect waste or recyclables for disposal and which generally is not disposed of after such use.

Crash. The term “crash” means a traffic incident involving the impact of a vehicle with another vehicle, person or property. A crash includes, but is not limited to, those events referenced as “incidents” and “accidents” by the Vehicle and Traffic Law.

Designated Covered Establishment. The term “Designated Covered Establishment” means any commercial establishment identified by the Department of Sanitation in Subdivision (a) of 16 RCNY § 1-11 as being a “designated covered establishment” pursuant to Section 16-306.1(b) of the Code.

Exempt business. The term “exempt business” means a business granted an exemption from the licensing requirements of subdivision a of section 16-505 of the Code and issued a registration pursuant to subdivision b of such section.

Former principal. The term “former principal” means a person or entity which was formerly a principal of the applicant business at any time during the ten year period preceding the filing of an application or registration pursuant to this chapter.

Labor union or labor organization. “Labor union” or “labor organization” shall mean a union or organization that represents or seeks to represent for purposes of collective bargaining employees directly involved in the collection, removal, transportation or disposal of trade waste.

Licensee. The term “licensee” means a business issued a license by the Commission.

Material change. The term “material change” means a change in any information provided in response to an item identified by an asterisk on an application or disclosure form submitted to the Commission.

Officer. “Officer” shall mean any person holding an elected position or any other position involving participation in the management or control of a labor union or labor organization required to register pursuant to § 16-505 of the Code.

Organic Waste. The term “Organic Waste” has the same meaning as set forth in section 16-303 of the Administrative Code of the City of New York, except that organic waste does not include food that is donated to a third party, food that is sold to farmers for feedstock, or meat byproducts that are sold to a rendering company.

Position. The term “position” in a trade association means an officer, member of the board of directors, partner, trustee, shareholder holding ten percent (10%) or more of the outstanding shares of stock in such association, or administrator, business agent or other status involving participation directly or indirectly in the management or control of such association.

Principal. The term “principal” means, of a sole proprietorship, the proprietor; of a corporation, every officer and director and every stockholder holding ten percent or more of the outstanding shares of the corporation; of a partnership, all the partners; if another type of business entity, the chief operating officer or chief executive officer, irrespective of organizational title, and all persons or entities having an ownership interest of ten percent (10%) or more; and with respect to all business entities, all other persons participating directly or indirectly in the control of such business entity. Where a partner or stockholder holding ten percent (10%) or more of the outstanding shares of a corporation is itself a partnership, or a corporation, a “principal” also includes the partners of such partnership or the officers, directors and stockholders holding ten percent (10%) or more of the outstanding shares of such corporation, as is appropriate. For the purposes of this chapter (1) an individual is considered to hold stock in a corporation where such stock is owned directly or indirectly by or for (i) such individual; (ii) the spouse of such individual (other than a spouse who is legally separated from such individual pursuant to a judicial decree or an agreement cognizable under the laws of the state in which such individual is domiciled); (iii) the children, grandchildren and parents of such individual; and (iv) a corporation in which any of such individual, the spouse, children, grandchildren or parents of such individual in the aggregate own fifty percent (50%) or more in value of the stock of such corporation; (2) a partnership is considered to hold stock in a corporation where such stock is owned, directly or indirectly, by or for a partner in such partnership; and (3) a corporation is considered to hold stock in a corporation that is an applicant as defined in this section where such corporation holds fifty percent (50%) or more in value of the stock of a third corporation that holds stock in the applicant corporation.

Recyclables. The term “recyclables” means those materials defined in subdivision i of section 16-303 of the Code.

Registrant. The term “registrant” means a business, labor union, or labor organization required to be registered with the Commission or issued a registration from the Commission. “Class 1 Registrant” means a business required to register pursuant to subdivision b of section 16-505 of the Code in order to remove, collect or dispose of trade waste that is generated in the course of operation of such business. “Class 2 Registrant” means a trade waste broker required to register with the Commission and an exempt business issued a registration by the Commission pursuant to such subdivision. “Class 3 Registrant” means a labor union or labor organization required to register pursuant to subdivision c of section 16-505 of the Code.

Special trade waste district. The term “special trade waste district” means a district established by the Commission pursuant to section 16-523 of the Code.

Trade association. The term “trade association” means an entity having as a primary purpose the promotion, advancement or self-regulation of businesses that remove, collect or dispose of trade waste, including but not limited to a corporation, unincorporated association, partnership, trust or limited liability company, whether or not such entity is organized for profit, not-for-profit, business or non-business purposes.

Trade waste or waste. The term “trade waste” or “waste” means:

   (1) all putrescible and non-putrescible materials or substances, except as described in paragraph (2) of this subdivision, that are discarded or rejected by a commercial establishment required to provide for the removal of its waste pursuant to section 16-116 of the Code as being spent, useless, worthless or in excess to the owners at the time of such discard or rejection, including but not limited to garbage, refuse, street sweepings, rubbish, tires, ashes, contained gaseous material, incinerator residue, construction and demolition debris, medical waste, offal and any other offensive or noxious material. Such term shall also include recyclable materials and organic waste as defined in section 16-303 of the Code that are generated by such commercial establishments.

   (2) The following are not “trade waste” or “waste” for purposes of this chapter: sewage; industrial wastewater discharges; irrigation return flows; radioactive materials that are source, special nuclear or by-product material as defined by the Atomic Energy Act of 1954, as amended, 41 U.S.C. §§ 2011 et seq.; materials subject to in-situ mining techniques which are not removed from the ground as part of the extraction process; and hazardous waste as defined in section 27-0901 of the Environmental Conservation Law.

Trade waste broker. The term “trade waste broker” means a person or entity who for a fee brokers agreements between consumers and providers of trade waste removal, collection or disposal services or who conducts evaluations or analyses of the waste stream of such consumers in order to recommend cost efficient means of waste disposal or other changes in related business practices.

§ 1-02 Notice.

Unless otherwise provided, all notice, pursuant to this chapter, including but not limited to notice related to hearings, violations, summonses, and subpoenae, may be served by first class mail addressed to the business address. All such notice served on an employee or agent may be served by first class mail. Such notice may also be served by personal service or in any other manner reasonably calculated to achieve actual notice, including but not limited to any method authorized in the Civil Practice Law and Rules.

§ 1-03 Hearings.

(a) A hearing conducted pursuant to this chapter may be conducted by the Commission or, in the discretion of the Commission, by an administrative law judge employed or designated by the Commission, by the Office of Administrative Trials and Hearings (OATH) or by other administrative tribunal of competent jurisdiction. All such hearings shall be conducted following the procedures set forth in the rules of OATH (48 RCNY §§ 1-01 et seq.). If a hearing is conducted by an administrative law judge employed or designated by the Commission, by OATH, or by other administrative tribunal, such administrative law judge shall make recommended findings of fact and a recommended decision to the Commission, which shall make the final determination.
  1. Any person who appears for a licensee or registrant at a hearing pursuant to this chapter must present evidence that he or she is authorized to act as the representative of such licensee or registrant for all purposes related to the conduct of the hearing and the disposition of the matter adjudicated in the hearing.

§ 1-04 Penalties.

In addition to any other penalty provided by law:

  1. Except as otherwise provided in subdivision b or subdivision c of this section, any person who violates any provision of 17 RCNY §§ 2-05 or 2-06 or any provision of subchapters E, F or G of this chapter shall be liable for a civil penalty which shall not exceed ten thousand dollars ($10,000) for each such violation. Such civil penalty may be recovered in a civil action or pursuant to the provisions of subdivision a of 17 RCNY § 1-03.
    1. Any person who violates subdivision a of section 16-505 or section 16-524 of the Code shall, upon conviction thereof, be punished for each violation by a criminal fine of not more than ten thousand dollars for each day of such violation or by imprisonment not exceeding six months, or both; and any such person shall be subject to a civil penalty of not more than five thousand dollars ($5,000) for each day of such violation which may be recovered in a civil action or pursuant to the provisions of subdivision a of 17 RCNY § 1-03; and
  2. Any person who violates subdivision b of section 16-505 of the Code or any rule pertaining thereto, including rules pertaining to the display of license plates issued by the Commission, shall, upon conviction thereof, be punished by a civil penalty not to exceed one thousand dollars ($1,000) for each such violation which may be recovered in a civil action or pursuant to the provisions of subdivision a of 17 RCNY § 1-03 of this chapter.
  3. The corporation counsel is authorized to commence a civil action on behalf of the city for injunctive relief to restrain or enjoin any activity in violation of this chapter and for civil penalties.
    1. In addition to any other penalty prescribed in this section for the violation of subdivisions a or b of section 16-505 or subdivision a of section 16-524 of the Code, or when there have been three or more violations of the provisions herein within a three year period, the Commission shall, after notice and the opportunity to be heard have been provided, be authorized: to order any person in violation of such provisions immediately to discontinue the operation of such activity at the premises from which such activity is operated; to order that any premises from which activity in violation of such provisions is operated shall be sealed, provided that such premises are used primarily for such activity; and to order that any vehicles or other devices or instrumentalities utilized in the violation of such provisions shall be removed, sealed, or otherwise made inoperable. An order pursuant to this paragraph shall be mailed to and posted at the premises from which activity in violation of such provisions occurs.

   (2) Ten days after the posting of an order issued pursuant to paragraph (1) of this subdivision, this order may be enforced by any person so authorized by section 16-517 of the Code.

   (3) Any vehicle or other device or instrumentality removed pursuant to the provisions of this section shall be stored in a garage, pound or other place of safety and the owner or other person lawfully entitled to the possession of such item may be charged with reasonable costs for removal and storage payable prior to the release of such item.

   (4) A premise ordered sealed or a vehicle or other device or instrumentality removed pursuant to this section shall be unsealed or released upon payment of all outstanding fines and all reasonable costs for removal and storage and, where the underlying violation is for unlicensed or unregistered activity or unauthorized activity in a special trade waste district, that a license has been obtained or a business registered or proof satisfactory to the Commission that such premise or item will not be used in violation of subdivision a or b of section 16-505 or subdivision a of section 16-524 of the Code.

   (5) It shall be a misdemeanor for any person to remove the seal from any premises or remove the seal from or make operable any vehicle or other device or instrumentality sealed or otherwise made inoperable in accordance with an order of the Commission.

   (6) A vehicle or other device or instrumentality removed pursuant to this section that is not reclaimed within ninety days of such removal by the owner or other person lawfully entitled to reclaim such item shall be subject to forfeiture upon notice and judicial determination in accordance with provisions of law. Upon forfeiture, the Commission shall, upon a public notice of at least five days, sell such item at public sale. The net proceeds of such sale, after deduction of the lawful expenses incurred, shall be paid into the general fund of the City.

§ 1-05 Liability for Violations.

A business required to be licensed or registered pursuant to section 16-505 of the Code shall be liable for violations of any of the provisions of chapter 1 of Title 16-A of the Code or 17 RCNY § 2-05 or 2-06 or any provisions of subchapters D, E, F or G of this chapter committed by any of its employees or agents.

§ 1-06 Supplemental Disclosure.

(a) In addition to the items set forth in clauses (a) through (m) of Paragraph (ii) of Subdivision b of Section 16-508 of the Code, disclosure by the applicant must include the following:

   (1) information concerning any involvement of applicant in unlawful activities, including without limitation the making, creation, or filing of false statements or records, violations of the Taft-Hartley Act, 29 U.S.C. § 186 or other provisions concerning payments to a labor union official or representative, agreements not to compete with a business, bribery, or participation in other anti-competitive or corrupt business practices, and contacts with members and associates of organized crime;

   (2) a listing of any criminal or civil investigation by a Federal, State, or Local prosecutorial agency, or investigative agency, in the five (5) year period preceding the filing of an application for a license or registration, pursuant to this chapter, wherein applicant has been granted immunity, or entered into a consent decree, order, or similar agreement, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law;

   (3) a listing of accounts held by the applicant business, during the five (5) year period preceding the filing of an application for a license or registration, pursuant to this chapter, with banks, credit unions, brokerage firms, and similar entities, and of the amounts held therein in the form of an identification of range of dollar value;

   (4) a listing of any bankruptcy proceedings in which applicant or any predecessor trade waste business of applicant, as such term is defined in Section 16-508 of the Code, was a debtor or any proceedings involving forfeiture, receivership, or independent monitoring, in which applicant or any predecessor trade waste business of applicant was a party or participated in during the ten (10) year period preceding the filing of an application for a license or registration, pursuant to this chapter;

   (5) information concerning the acquisition, sale, assignment, or loss of routes or customers by the applicant during the ten (10) year period preceding the filing of the application; and

   (6) information concerning the involvement and participation of the applicant in the activities of trade associations, including but not limited to payment of dues, attendance at meetings, participation in committee work or other decision-making processes, and use of or reliance upon the trade association to facilitate business transactions or resolve business disputes.

  1. In addition to the items set forth in clauses a through m of Paragraph (ii) of Subdivision b of Section 16-508 of the Code and in Subdivision a of this section, the applicant business must include in the form submitted by it to the Commission the following information with respect to each of its former principals:

   (1) The items set forth in clauses g, h, i, j, and l of Paragraph (ii) of Subdivision b of Section 16-508 of the Code, pertaining to the period during which the former principal was a principal of the applicant business; and

   (2) The items set forth in Paragraphs (1), (2), (5), and (6) of Subdivision (a) of this section pertaining to the period during which the former principal was a principal of the applicant business.

  1. With respect to disclosure under Subdivision (b) of this section, the applicant business must supply a certification, sworn and certified under penalty of criminal prosecution, that such information is complete and accurate to the best of its knowledge and belief and has been prepared based upon a diligent search of all business and other records in its possession or control.

§ 1-07 Enforcement and Compliance.

The Commission may conduct lawful inspections to ensure compliance with this chapter. Such inspections may include, but need not be limited to, the inspection and audit of records required to be kept pursuant to this chapter, as well as accompanying a licensee on its collection routes and a licensee or registrant to transfer stations, recycling facilities, organic waste processing facilities, dumps and when transferring waste to other vehicles, in order to determine compliance with the provisions of this chapter and Chapter 1 of Title 16-A of the Code. A licensee shall, upon request by the Commission, provide the Commission with a list of its collection routes and schedules.

§ 1-08 Investigation of Customer Complaints.

(a)  In addition to any other investigations, the Commission may conduct an investigation into any complaint by a commercial establishment alleging violations of the provisions of Chapter 1 of Title 16-A of the Code or any provision of this chapter. The Commission may, in the course of such investigation, issue subpoenas, take depositions under oath, conduct hearings and use such other means as the Commission determines will assist such investigation, including but not limited to interviews with the complainant and other persons who may have knowledge of the facts involved in the complaint and assisting a customer in verifying the measurement of such customer's waste. The Commission may direct that a licensee conduct a waste stream survey in connection with its investigation.
  1. Where the Commission determines that evidence exists to support a complainant’s allegations, the Commission may seek redress of injuries to the complainant as well as penalties as provided in 17 RCNY § 1-04. Such redress and penalties may be sought in a hearing conducted pursuant to 17 RCNY § 1-03, or, if the parties agree, redress may be sought in an informal proceeding. Such a hearing or proceeding may include testimony by the complainant as well as evidence presented by the Commission.
  2. Any resolution of a complaint by a customer prior to a hearing or proceeding shall be submitted to the Commission for its review and approval. Where the Commission disapproves such a resolution, the Commission may continue to seek penalties regarding any violation by the licensee underlying the customer complaint.

§ 1-09 General Prohibitions.

In addition to any other prohibition contained in Chapter 1 of Title 16-A of the Code or this chapter, an applicant, a licensee, a registrant, a principal of a licensee or a registrant, or an employee required to make disclosure, pursuant to Section 16-510 of the Code as listed in Appendix A of Subchapter C of this chapter must not:

  1. violate or fail to comply with an applicable provision of this chapter;
  2. associate with a person whom such person knows or should know is a member or associate of an organized crime group (a person who has been identified by a federal, state, or local law enforcement agency as a member or associate of an organized crime group shall be presumed to be a member or associate of an organized crime group);
  3. refuse to answer an inquiry from the Commission;
  4. violate or fail to comply with any order or directive of the Commission;
  5. fail to appear, to be examined, or to provide testimony under oath to the Commission;
  6. make a false or misleading statement to the Commission;
  7. make a false or misleading statement to a customer or prospective customer;
  8. threaten or attempt to intimidate a customer or prospective customer;
  9. retaliate against a customer or prospective customer that has made a complaint to the Commission or has exercised or attempted to exercise a right under the Code or this chapter;
  10. engage in a deceptive trade practice;
  11. discourage a customer or prospective customer who has a question or inquiry concerning the customer or prospective customer’s rights or obligations concerning trade waste from contacting the Commission;
  12. request, participate in, or comply with, a resolution, consideration, hearing, mediation, or adjudication by a trade association or any person holding a position in a trade association concerning a dispute between two (2) or more licensees or trade waste removal businesses relating to a customer, route, or stop;
  13. pay any money to a trade association or any person holding a position in a trade association for any activity relating to a sale, purchase, acquisition, or loss of a customer, route, or stop;
  14. falsify any business record;
  15. make, file, or submit a false statement or claim to a government agency or employee;
  16. violate any law concerning payments to labor unions or labor representatives;
  17. give or offer any money or other benefit to an official or employee of a private business with intent to induce that official or employee to engage in an unethical or illegal business practice;
  18. give or offer any money or other benefit to any public employee whose duties relate to the trade waste industry with the exception of funds that must be paid in accordance with a statute, rule, agency order, or court order;
  19. solicit business from a customer for any person who, or entity that, provides goods or services related to the removal, collection, or disposal of trade waste and is not licensed by, or registered with, the Commission;
  20. agree with another trade waste business to divide or allocate customers or respect an existing division or allocation of customers by geography, territory, or otherwise, except that this provision shall not apply to a covenant not to compete agreed to in connection with the sale of a licensee’s business where the Commission has expressly approved such covenant;
  21. discuss with, or agree upon, with another private carter the prices to be submitted on a bid for a trade waste contract;
  22. fail to timely pay taxes related to a trade waste business;
  23. operate a transfer station in violation of any federal, state, or local law or regulation;
  24. remove, collect, or dispose of trade waste from a commercial establishment with which the applicant, licensee, or registrant does not have a contract or agreement or other permission from the Commission to remove, collect, or dispose of such commercial establishment’s trade waste; or
  25. attempt to or conspire to engage in any act proscribed by this section.

§ 1-10 Forms Prescribed or Provided by the Commission.

Wherever any provision of this chapter requires that any document be employed, maintained, submitted, or filed by a business required to be licensed or registered, pursuant to this chapter, or that a form may be reviewed or approved by the Commission, the Commission may, in its discretion, prescribe the form of such document or provide an acceptable form.

§ 1-11 Commission Approval not to be Implied.

Whenever any document is to be filed, submitted, or provided to the Commission pursuant to a provision of this chapter, or is otherwise provided to the Commission, the document shall not be deemed acceptable to the Commission or approved by the Commission unless the Commission or Chair expressly sets forth such approval in writing. Failure of the Commission to disapprove or object to any action that a licensee or registrant proposes to take shall not be deemed an approval of such action by the Commission.

§ 1-12 Disclosure of Certain Adverse Determinations by Governmental Agencies or Authorities.

Whenever a licensee or registrant or an applicant for a license or registration is required by the Administrative Code or this Chapter to disclose, provide notification of or maintain any determination by any Federal, State, or Local governmental agency or authority against such licensee, registrant or applicant, or principal, employee or agent of such licensee, registrant or applicant, including but not limited to any judgment, decree, order, finding by or settlement agreement with such governmental agency or authority, such judgment, decree, order, finding or settlement must be disclosed if:

  1. it resulted or will result in the suspension or revocation of a permit, license or other permission required in connection with the operation of such licensee’s, registrant’s or applicant’s business;
  2. it resulted or will result in a civil or administrative fine, penalty or settlement in excess of one thousand dollars ($1,000) or any injunctive relief against such licensee, registrant or applicant, or principal, employee or agent of such licensee, registrant or applicant; or
  3. such determination relates to a violation of the Vehicle and Traffic Law or any other laws or regulations relating to the safe operation of a vehicle.

§ 1-13 Severability.

The provisions of this chapter shall be severable and if any phrase, clause, sentence, paragraph, subdivision or section of this chapter, or the applicability thereof to any person or circumstance, shall be held invalid by any court of competent jurisdiction, the remainder of this chapter and the application thereof shall not be affected thereby.

Subchapter B: Licensing and Registration

§ 2-01 License Application.

(a) Except as provided in Subdivision b of this section, an applicant business required by Section 16-505 of the Code to obtain a license for the removal, collection, or disposal of trade waste must submit the information contained in the license application form provided by the Commission and the disclosure required by the forms provided by the Commission. In addition, each principal of the applicant business must:

   (i) be fingerprinted by a person designated for such purpose by the Commission and pay the fee prescribed by the Division of Criminal Justices Services for the purpose of obtaining criminal history records; and

   (ii) be photographed by the Commission and submit the disclosure required by the forms provided by the Commission. Notwithstanding Paragraphs (i) and (ii) of this subdivision, an applicant may submit, in lieu of such fingerprints and disclosure, copies of submissions to any Federal, State, or local regulatory entity containing information comparable to that required by the Commission, provided that the Commission may require fingerprinting and disclosure, pursuant to such paragraphs where it finds that it has not received sufficient information or information that is comparable to Commission requirements. The Commission may compel attendance, examine, take testimony, and require the production of evidence, pursuant to the provisions of Subdivision c of Section 16-504 of the Code as the Commission deems necessary to investigate the truth and accuracy of the information submitted. A fee of six hundred dollars ($600) per applicant business and six hundred dollars ($600) per principal thereof must be paid by the applicant for such investigation.

    1. An application submitted by an applicant business that is a regional subsidiary of or otherwise owned, managed by, or affiliated with a business that has national or international operations must identify and provide fingerprints and disclosure for those principals for whom such fingerprints and disclosure are required pursuant to Subdivision b of Section 16-508 of the Code. In addition, such application must be accompanied by:

      (i) an organizational chart that clearly identifies relationships between the “parent” company and all affiliates and subsidiaries; and

      (ii) a list, in chart or other form, of all persons not employed by the applicant who have managerial responsibilities for the New York operations of the applicant – i.e., employees of a parent company or an affiliate – and a description of the nature of such responsibilities.

   (2) Upon review of the materials submitted pursuant to Subparagraphs (i) and (ii) of Paragraph (1) of this subdivision, the Commission shall require fingerprints and disclosure from additional persons whom it identifies as having “direct management supervisory responsibility for the operations or performance of the applicant” within the meaning of Subdivision b of Section 16-508 of the Code. Where the Commission requires fingerprints and disclosure with respect to such persons, it shall notify the applicant, identifying such person and specifying the date by which such information must be submitted.

  1. Following receipt of the license application and the disclosure required by the forms provided by the Commission, the Commission may require such additional information related to such application and disclosure, including without limitation documents and deposition testimony, as the Commission determines is necessary to make a licensing determination.

§ 2-02 Information Required on License Application.

An application for a license must be signed by all persons participating directly or indirectly in the control of the applicant business and by: the proprietor of an applicant if the applicant is a sole proprietorship; every officer and director and stockholder holding ten (10) percent or more of the outstanding shares of a corporation, if the applicant is a corporation; all the partners, if the applicant is a partnership; the chief operating officer or chief executive officer, irrespective of organizational title and all persons or entities having an ownership interest of ten (10) percent or more, if the applicant is any other type of business entity. The application must be sworn and certified under penalty of criminal prosecution. The application for a license must include, but not be limited to, the following information:

    1. the name, address, email address designated for communications with the business that will be checked regularly, website (if any), and telephone number(s) of the business submitting such application;

   (ii) the names, addresses, email address(es), telephone number(s), and, if natural persons, the social security numbers of the principals of the applicant business and a description of the positions occupied or ownership interest held by each such principal;

   (iii) the names, job titles, social security numbers, email addresses, and addresses of all other employees or agents, or prospective employees or agents of the applicant, who will perform work directly or indirectly related to trade waste removal; driver’s license numbers, with the class and expiration date, or other required operators’ licenses, of all employees or agents who will operate vehicles in the business;

   (iv) if the applicant is doing business under an assumed name, a Certificate of Assumed Name, certified by the County Clerk if a sole proprietorship or partnership, or by the Secretary of State if a corporation;

   (v) if the applicant is a sole proprietorship, a notarized copy of the business certificate certified by the County Clerk;

   (vi) if the applicant is a corporation, a copy of the certificate of incorporation; and

   (vii) if the applicant is a partnership, a copy of partnership papers, certified by the County Clerk.

  1. A disclosure form completed by the applicant business and disclosure forms completed by all of the principals of the business, except as provided in Subdivisions (b) and (c) of 17 RCNY § 2-01, and disclosure forms completed by employees and agents or prospective employees or agents in the categories specified in Appendix A to this chapter.
  2. A business telephone number and a business address within the City of New York where notices may be delivered and legal process may be served, and where records required by these rules must be maintained.
  3. A Federal or State tax identification number.
  4. A listing of each vehicle that will be operated pursuant to the license, and the vehicle identification number and registration number of such vehicle and a copy of the insurance card for each such vehicle.
  5. Before a license is issued, an applicant must submit proof that the following insurance policies have been secured:

   (1) The required Workers’ Compensation and Disability Benefits Coverage, or proof that the applicant is exempt from the Workers’ Compensation Law, Section 57, and Subdivision 8 of Section 220 of the Disability Benefits Law. Proof of coverage can be established by submitting the following Workers’ Compensation Board forms:

      (i) C-105.2 Application for Certificate of Workers’ Compensation Insurance;

      (ii) DB-120.1 Employer’s Application for Certificate of Compliance with Disability Benefits Law;

      (iii) S1-12 Affidavit certifying that compensation has been secured.

   (2) Proof that no coverage is required can be provided by submitting the following Workers’ Compensation Board form:

      (i) C-105.21 Statement that applicant does not require Workers’ Compensation or Disability Benefits Coverage.

   (3) Liability insurance against claims for injuries to persons or damages to property which may arise from or in connection with the licensee’s business pursuant to the license. The licensee may purchase such policies in connection with one (1) or more other licensees, provided that the coverages described in this subdivision are maintained.

   (4) Commercial General Liability Insurance with liability limits of no less than five million dollars ($5,000,000) combined single limit per occurrence for bodily injury and property damage. The maximum deductible for such insurance shall be no more than fifty thousand dollars ($50,000).

   (5) Business Automobile Liability Insurance covering every vehicle operated by the licensee in his or her business, whether or not owned by the applicant, and every vehicle hired by the licensee with liability limits of no less than two million dollars ($2,000,000) combined single limit per accident for bodily injury and property damage.

   (6) Employers’ Liability Insurance with limits of no less than one million five hundred thousand dollars ($1,500,000) per accident. The policy or policies of insurance required by these rules must name the Commission as Certificate Holder and must be endorsed to state that coverage shall not be suspended, voided, canceled, or reduced in coverage or in limits except upon sixty (60) days prior written notice to the Commission. Failure to maintain continuous insurance coverage meeting the requirements of these rules will result in revocation of the license. Such policy or policies of insurance must be obtained from a company, or companies, duly authorized to do business in the State of New York with a Best’s rating of no less than A:X unless specific approval has been granted by the Mayor’s Office of Operations to accept a company with a lower rating. Two (2) certificates of insurance effecting the required coverage and signed by a person authorized by the insurer to bind coverage on its behalf, must be delivered to the Commission prior to the effective date of the license. A licensee must demonstrate that he or she has secured the insurance coverage required pursuant to this section and must maintain such required insurance coverage throughout the term of the license.

  1. If applicant transports or proposes to transport medical waste, asbestos, or other hazardous materials for which a New York State Waste Transporter permit is required, a copy of such permit must be submitted with the application.

§ 2-03 Application for Exemption from Licensing Requirements for Removal of Demolition Debris and a Class 2 Registration.

(a) Class 2 Registration for Business Exempt from Licensing Requirements under Section 16-505(a). A business solely engaged in the removal of waste materials resulting from building demolition, construction, alteration, or excavation, including waste materials resulting from building demolition, construction, alteration, or excavation generated by such business, may, pursuant to Subdivision a of Section 16-505 of the Code, apply to the Commission for exemption from the licensing requirements of Section 16-505 where no principal of such applicant is a principal of a business or a former business required to be licensed during the past ten (10) years pursuant to this chapter.
  1. An application for an exemption pursuant to this section must be signed by all persons participating directly or indirectly in the control of the applicant business and by: the proprietor of an applicant if the applicant is a sole proprietorship; every officer and director and stockholder holding ten (10) percent or more of the outstanding shares of a corporation, if the applicant is a corporation; all the partners, if the applicant is a partnership; the chief operating officer or chief executive officer, irrespective of organizational title and all persons or entities having an ownership interest of ten (10) percent or more if the applicant is any other type of business entity. The application must be certified under penalty of criminal prosecution, and must, in addition, contain:

   (1) A statement describing the nature of the applicant business, including a statement that the applicant business removes no waste other than materials resulting from building demolition, construction, alteration, or excavation, and a description of the kinds of waste removed by the applicant business, the types of sites from which such waste is removed, and the nature of the customers of such applicant business.

   (2) The names, e-mail addresses, and addresses of the principals of such business, a description of the position occupied or ownership interest held by each such principal, and a statement that no such principal is or was a principal of a business required to be licensed pursuant to Section 16-505 of the Code.

  1. Such application must, in addition, contain the following information:

   (1) If applicant transports asbestos or other hazardous materials for which a New York State Department of Environmental Conservation Waste Transporter permit is required, a copy of such permit must be submitted with the application.

   (2) If such applicant is doing business under an assumed name, a Certificate of Assumed Name, certified by the County Clerk if a sole proprietorship or partnership or by the Secretary of State if a corporation, and in addition: if a sole proprietorship, a business certificate certified by the County Clerk; if a corporation, a copy of the certificate of incorporation; if a partnership, a copy of partnership papers, certified by the County Clerk.

   (3) A business telephone number and a business address within the City of New York where notices may be delivered and legal process may be served, and where records required by these rules must be maintained.

   (4) A Federal or State tax identification number.

   (5) A listing of any criminal convictions of the applicant, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law.

   (6) A listing of any pending civil or criminal actions in any jurisdiction, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law.

   (7) A listing of any judgments finding liability of the applicant in a civil or administrative action related to the conduct of a business bearing a relationship to the removal of trade waste.

   (8) A listing of each vehicle that will be operated, pursuant to the license, and the vehicle identification number and registration number of such vehicle.

   (9) A listing of the employees who will drive vehicles operated, pursuant to this license, and the driver’s license numbers, driver’s license classes, and driver’s license expiration dates of such employees.

   (10) Evidence of business automobile liability insurance covering every vehicle operated by the applicant in his or her business, whether or not owned by the applicant, and every vehicle hired by the applicant, with liability limits of no less than two million dollars ($2,000,000) combined single limit per accident for bodily injury and property damage. Such insurance policy must name the Commission as Certificate Holder.

  1. An applicant eligible for an exemption, pursuant to this section shall be photographed by the Commission and shall be issued a Class 2 registration by the Commission. Notwithstanding any other provision of this chapter, if at any time after the issuance of a registration to a business granted an exemption pursuant to this section, the Commission has reasonable cause to believe that any or all of the principals of such business do not possess good character, honesty, and integrity, the Commission may require that such principal(s):

   (i) be fingerprinted by a person designated for such purpose by the Commission and pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records; and

   (ii) submit to the Commission the disclosure required by the form provided by the Commission; provided that the Commission may consider a written statement from an applicant setting forth any special facts with respect to a principal in the applicant’s business that the applicant believes should allow exemption of such principal from fingerprinting and disclosure.

Notwithstanding the fingerprinting and disclosure requirements of Paragraphs (i) and (ii) of this subdivision, an applicant may submit, in lieu of such fingerprints and disclosure, copies of submissions to any federal, state or local regulatory entity containing information comparable to that required by the Commission, provided that the Commission may require fingerprinting and disclosure, pursuant to such paragraphs where it finds that it has not received sufficient information or information that is comparable to Commission requirements. Following receipt of the disclosure required by the forms provided by the Commission, the Commission may require such additional information related to such disclosure, including without limitation documents and deposition testimony, as the Commission determines is necessary to render determination. The Commission may, after notice and the opportunity to be heard, refuse to register such applicant for the reasons set forth in Paragraphs (i) through (x) of Subdivision a of Section 16-509 of the Code.

  1. At any time after the registration of an applicant eligible for an exemption, pursuant to this section, the Commission may, after notice and the opportunity to be heard, revoke the registration of such business for the reasons set forth in Paragraphs (i) through (x) of Subdivision a of Section 16-509 of the Code.
  2. If an application for the renewal of a license or registration is not submitted to the Commission within the time period required by the Commission, the Commission may reject the renewal application and require the applicant to file a new application for a license or registration. If a new application is required by the Commission, the provisions pertaining to the application process set forth in Chapter 1 of Title 16-A of the Code and of this subchapter shall apply.

§ 2-04 Registration Application.

(a) Class 1 Registration. A person or business required, pursuant to Subdivision b of Section 16-505 of the Code, to register with the Commission to remove, collect, or dispose of trade waste that is generated in the course of operation of such person's business must submit a registration form, containing the information required by the Commission, including, but not limited to the following:

   (1) A list of the names, e-mail addresses, and addresses of all principals of the applicant and a description of the position occupied or ownership interest held by each such principal;

   (2) If the applicant is doing business under an assumed name, a Certificate of Assumed Name, certified by the County Clerk if a sole proprietorship or partnership or by the Secretary of State if a corporation, and in addition: if the applicant is a sole proprietorship, a notarized copy of the Certificate of Business, certified by the County Clerk; if a corporation, a copy of the certificate of incorporation and a list of the names and addresses of all principals; if a partnership, a copy of partnership papers, certified by the County Clerk;

   (3) A business telephone number and a business address within the City of New York where notices may be delivered and legal process may be served, and where records required by these rules must be maintained, and the name of a person of suitable age and discretion who is designated as agent for the service of legal process;

   (4) A Federal and State tax identification number;

   (5) A listing of each vehicle that will be operated, pursuant to the registration, and the vehicle identification number and registration number of such vehicle;

   (6) A listing of the employees who will drive vehicles operated, pursuant to the registration, and the driver’s license numbers, the driver’s license classes, and the driver’s license expiration dates of such employees; and

   (7) A listing of the locations from which the registrant will remove trade waste and to which the waste is proposed to be removed; and a description of the kinds of waste removed and the methods used to remove such waste. If the applicant transports asbestos or other hazardous materials for which a New York State Department of Environmental Conservation Waste Transporter permit is required, a copy of such permit must be submitted with the application;

   (8) Evidence of business automobile liability insurance covering every vehicle operated by the registrant that will transport waste, whether or not owned by the applicant, and every such vehicle hired by the registrant, with liability limits of no less than two million dollars ($2,000,000) combined single limit per accident for bodily injury and property damage.

  1. Class 2 Trade Waste Broker Registration. An application for registration required by Subdivision b of Section 16-505 of the Code to register as a trade waste broker must be signed by all persons participating directly or indirectly in the control of the applicant business and by: the proprietor of an applicant if the applicant is a sole proprietorship; every officer and director and stockholder holding ten (10) percent or more of the outstanding shares of a corporation, if the applicant is a corporation; all the partners, if the applicant is a partnership; the chief operating officer or chief executive officer, irrespective of organizational title and all persons or entities having an ownership interest of ten (10) percent or more, if the applicant is any other type of business entity. The application must be certified under penalty of criminal prosecution. The principal of such applicant shall be photographed by the Commission, and such application must contain the following information:

   (1) The names, addresses, and e-mail addresses of all principals of the applicant and a description of the position occupied or ownership interest held by each such principal;

   (2) If such applicant is doing business under an assumed name, a Certificate of Assumed Name, certified by the County Clerk if a sole proprietorship or partnership or by the Secretary of State if a corporation; if a sole proprietorship, a notarized Certificate of Business, certified by the County Clerk; if a corporation, a copy of the certificate of incorporation and a list of the names and addresses of all the principals; if such applicant is a partnership, a copy of partnership papers, certified by the County Clerk.

   (3) A business telephone number and a business address within the City of New York where notices may be delivered and legal process may be served, and where records required by these rules must be maintained, and the name of a person of suitable age and discretion who is designated as agent for the service of legal process;

   (4) A Federal or State tax identification number;

   (5) The names, addresses, e-mail addresses, telephone numbers, social security numbers, and dates of birth of all employees or agents, or prospective employees or agents of the applicant, who will perform work related to the trade waste removal industry;

   (6) Where any principal of the applicant business is, or has been at any time during the past ten (10) years, a principal of a trade waste removal business required to be licensed, pursuant to Title 16-A of the Code, a listing of such trade waste removal business and the nature of the involvement of such principal in such business;

   (7) A listing of any contractual or other business relationship, at any time during the past ten (10) years, between the applicant business and a trade waste removal business required to be licensed, pursuant to Title 16-A of the Code;

   (8) A listing of any criminal convictions of the applicant, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law;

   (9) A listing of any pending civil or criminal actions with respect to the applicant business in any jurisdiction; and

   (10) A listing of any suspensions or revocations of licenses or permits held by the applicant for the removal or recycling of trade waste in any jurisdiction or any judgments or orders finding liability of the applicant in a civil or administrative action related to the conduct of a business that removes or recycles trade waste, a trade waste broker business, or the operation of a dump, landfill, or transfer station.

    1. Notwithstanding any provision of this chapter, the Commission may, when there is reasonable cause to believe that an applicant for registration as a trade waste broker or an applicant for registration to remove, collect, or dispose of trade waste that is generated in the course of operation of such person’s business or any or all of the principals of such applicant does not possess good character, honesty, and integrity, require that such applicant or any or all of the principals of such applicant be fingerprinted by a person designated for such purpose by the Commission and pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records and provide to the Commission the disclosure required by the form provided by the Commission. Following receipt of such disclosure, the Commission may require such additional information relating to such disclosure, including without limitation documents and deposition testimony, as the Commission determines is necessary to render a determination. The Commission may, after notice and the opportunity to be heard, refuse to register such applicant for the reasons set forth in Paragraphs (i) through (x) of Subdivision a of Section 16-509 of the Code.

   (2) If at any time after the registration of a trade waste broker or the registration of an entity that removes, collects, or disposes of trade waste that is generated in the course of operation of such person’s business, the Commission has reasonable cause to believe that any or all of the principals of such business do not possess good character, honesty, and integrity, the Commission may require that such principal(s) be fingerprinted by a person designated for such purpose by the Commission and pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records and provide the disclosure required by the form provided by the Commission; provided that the Commission may consider a written statement from an applicant setting forth any special facts with respect to a principal in the applicant’s business that the applicant believes should allow exemption of such principal from fingerprinting and disclosure. Notwithstanding the fingerprinting and disclosure requirements of this paragraph, an applicant may submit, in lieu of such fingerprints and disclosure, copies of submissions to any federal, state, or local regulatory entity containing information comparable to that required by the Commission, provided that the Commission may require fingerprinting and disclosure where it finds that it has not received sufficient information or information that is comparable to Commission requirements. Following receipt of disclosure required by the forms provided by the Commission, the Commission may require additional information related to such disclosure, including without limitation documents and deposition testimony, as the Commission determines is necessary to render determination. The Commission may, after notice and the opportunity to be heard, revoke the registration of such business for the reasons set forth in Paragraphs (i) through (x) of Subdivision a of Section 16-509 of the Code.

   (3) If an application for renewal of a Class 1 registration or a Class 2 trade waste broker registration is not submitted to the Commission within the time required by the Commission, the Commission may reject the renewal application and require the applicant to file a new application for a Class 1 Registration or a Class 2 Trade Waste Broker Registration. If a new application is required by the Commission, the provisions pertaining to the application process as set forth in Chapter 1 of Title 16-A of the Code and of this subchapter shall apply.

  1. Class 3 Labor Union and Labor Organization Registration Application.

   (1) An application for a labor union or labor organization registration pursuant to section 16-505 of the Code, or for a renewal of such registration, shall be made on a form prescribed by the Commission. The application shall be certified under penalty of perjury and signed by all officers of the applicant. The application shall include, but not be limited to, the following information:

      (i) the names of all officers and agents and the names of all individuals who were officers and agents within the previous five years;

      (ii) a business telephone number and a business address within the City of New York where notices may be delivered and legal process may be served;

      (iii) a listing of any collective bargaining agreement to which the applicant and a trade waste licensee or registrant are signatories;

      (iv) a Federal or State tax identification number;

      (v) a listing of any civil or criminal actions pending against such union or labor organization in any jurisdiction, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law;

      (vi) all criminal convictions, in any jurisdiction, of such labor union or labor organization, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law;

      (vii) any criminal or civil investigation of such labor union or labor organization by a federal, state or local prosecutorial, investigative or regulatory agency;

      (viii) all civil or administrative proceedings to which such labor union or labor organization has been a party involving allegations of racketeering, including but not limited to offenses listed in subdivision nineteen hundred sixty-one of the Racketeer Influenced and Corrupt Organization statute (18 U.S.C. §§ 1961 et seq.) or of an offense listed in subdivision one of section 460.10 of the penal law, as such statutes may be amended from time to time;

      (ix) any judicial or administrative consent decrees entered into by such labor union or labor organization in the five-year period preceding the date of the application; and

      (x) the appointment of any independent auditor, monitor, receiver, administrator or trustee to oversee any activities of such labor union or labor organization in the five-year period preceding the date of the application. Notwithstanding the foregoing, no labor union or labor organization shall be required to furnish information pursuant to this subdivision which is already included in a report filed by the labor union or labor organization with the Secretary of Labor pursuant to 29 U.S.C. §§ 431 et seq. or 29 U.S.C. §§ 1001 et seq. if a copy of such report, or of the portion thereof containing such information, is furnished to the Commission.

   (2) In addition to and concurrent with the application required by 17 RCNY § 2-05(d)(1), each officer of the applicant must pay the fee of six hundred ($600) dollars for a background investigation and must inform the Commission, on a form prescribed by the Commission and certified under penalty of perjury by the officer, of:

      (i) all criminal convictions, in any jurisdiction, of the officer;

      (ii) any pending civil or criminal actions to which the officer is a party; and

      (iii) any criminal or civil investigation by a federal, state, or local prosecutorial agency, investigative agency or regulatory agency, in the five-year period preceding the date of the application pursuant to subdivision (1) of this section and at any time subsequent to such registration, wherein any officer has (A) been the subject of such investigation, or (B) received a subpoena requiring the production of documents or information in connection with such investigation.

   (3) Any labor union or organization that represents employees directly involved in the collection, removal, transportation or disposal of trade waste as of July 16, 2019 must register with the Commission by October 14, 2019. Any labor union or organization that does not represent employees directly involved in the collection removal, transportation or disposal of trade waste as of July 16, 2019 and that seeks to represent such employees subsequent to such date must first register with the Commission.

   (4) Notwithstanding any provision of this subchapter, where there is reasonable cause for the Commission to believe that an officer of a labor union or labor organization does not possess good character, honesty and integrity, the Commission may require that such officer be fingerprinted by a person designated for such purpose by the Commission, pay the fee prescribed by the Division of Criminal Justice Services and/or the Federal Bureau of Investigation for the purpose of obtaining criminal history records, and provide to the Commission any additional information the Commission may require.

   (5) After providing notice and opportunity to be heard, the Commission may disqualify an officer of a labor union or labor organization from holding office based on the grounds set forth in section 16-509(g) of the Code.

   (6) Nothing in this subdivision shall be construed to require registration with the Commission of a:

      (i) labor union or labor organization representing or seeking to represent clerical or other office workers; or

      (ii) an affiliated national or international labor union of local labor unions required to register pursuant to section 16-505 of the Code.

§ 2-05 Notification of Arrest, Conviction, Civil and Administrative Determinations, Vehicle Crashes, Suspension or Revocation of Driver’s License, Traffic Violation, or Material Change in Information; Addition of New Principal or Employee.

(a) (1) An applicant for a license or a licensee and an applicant for exemption from the requirement for a license or an applicant granted such exemption must notify the Commission, within ten (10) business days, of the arrest or criminal conviction after the submission of the application of any principal or any employee or agent or any prospective employee or agent identified on the application, of which the applicant for a license or the licensee had knowledge or should have known, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law.

   (2) An applicant for a license or a licensee must notify the Commission within ten (10) business days of any determination by any Federal, State, or Local governmental agency or authority against such licensee, registrant or applicant, including but not limited to any judgment, decree, order, finding by or settlement agreement with such governmental agency or authority.

   (3) An applicant for a license or a licensee must notify the Commission within ten (10) business days of any crash that involved a vehicle used in the course of the business of such applicant or licensee. Additionally, such applicant or licensee must provide the Commission with a copy of the Report of Motor Vehicle Accident (MV-104) and any other forms filed with the New York State Department of Motor Vehicles within ten (10) business days from the date by which such applicant or licensee is required to file the forms with such department.

   (4) An applicant for a license or a licensee must notify the Commission within ten (10) business days of the suspension or revocation of the driver’s license of any person whose job duties include operating a vehicle on behalf of such applicant or licensee.

   (5) An applicant for a license or a licensee must notify the Commission within ten (10) business days of all vehicle traffic summonses issued to such applicant or licensee as the lessee or owner of the vehicle or to any person while operating a vehicle on behalf of such applicant or licensee.

   (6) An applicant for a license or a licensee must notify the Commission within ten (10) business days of any material change as defined in 17 RCNY § 1-01 in the information submitted in an application or disclosure form submitted, pursuant to this chapter.

   (7) A licensee must notify the Commission within ten (10) business days of contract closing of any change in the capital stock or ownership in the business of the licensee, including but not limited to a stock transfer or sale of the outstanding shares of the business or sale or merger of such business; provided, however that a business whose equity securities are publicly traded on a national or regional stock or securities exchange must disclose only such stock transfer or sale required to be disclosed by the Securities Exchange Commission or other Federal or State regulatory body. Such notification must include a list of any persons formerly possessing ownership interest in the licensee business who will have any beneficial interest in the current business and a copy of the contract or agreement.

   (8) In addition to notification of material change required by any other provision of this chapter, a licensee must provide the Commission with notice of at least ten (10) business days of the proposed addition of a new principal (other than a person or entity that becomes a principal through the acquisition of outstanding shares of a business whose equity securities are registered under Federal and State securities laws and publicly traded on a national or regional stock or security exchange) to the business of such licensee. The Commission may waive or shorten such period upon a showing that there exists a bona fide business requirement therefor. Except where the Commission determines within such period, based upon information available to it, that the addition of such new principal may have a result inimical to the purposes of this chapter, the licensee may add such new principal pending the completion of review by the Commission. The licensee shall be afforded an opportunity to demonstrate to the Commission that the addition of such new principal pending completion of such review would not have a result inimical to the purposes of this chapter. If upon the completion of such review, the Commission determines that such principal lacks good character, honesty, and integrity, the license shall cease to be valid unless such principal divests his or her interest, or discontinues his or her involvement in the business of such licensee, as the case may be, within the time period prescribed by the Commission.

    1. An applicant for registration and a registrant, including a registrant issued a registration after the granting of an exemption from the licensing requirement of Subdivision a of Section 16-505 of the Code, must notify the Commission within ten (10) business days of: (i) the addition of a principal to the business of a registrant after the submission of the application for registration or exemption from the licensing requirement, pursuant to this Chapter; (ii) the arrest or criminal conviction of any principal of a Class 2 registrant of which such applicant or registrant had knowledge or should have known, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law; (iii) any determination by any Federal, State, or Local governmental agency or authority against such licensee, registrant or applicant, including but not limited to any judgment, decree, order, finding by or settlement agreement with such governmental agency or authority; (iv) any crash that involved a vehicle used in the course of the business of the applicant for registration or registrant; (v) the suspension or revocation of the driver’s license of any person whose job duties include operating a vehicle on behalf of the applicant for registration or registrant; (vi) all vehicle traffic summonses issued to the applicant for registration or registrant as the lessee or owner of the vehicle or to any person while operating a vehicle on behalf of such applicant or registrant; and (vii) any other material change in the information submitted pursuant to this subchapter.

   (2) For any crash required to be reported pursuant to Subparagraph (iv) of Paragraph (1) of this Subdivision, an applicant for registration or registrant must provide the Commission with a copy of the Report of Motor Vehicle Accident (MV-104) and any other forms filed with the New York State Department of Motor Vehicles within ten (10) business days from the date by which such applicant or registrant is required to file the forms with such department.

  1. Any material change in the information submitted pursuant to 17 RCNY § 2-04(d)(1) or 17 RCNY § 2-04(d)(2) shall be reported to the Commission by such labor union or labor organization or officer, in a signed and notarized writing, within ten (10) business days thereof.
  2. Notification pursuant to Paragraphs (1), (6), (7) and (8) of Subdivision (a) and Subparagraphs (i), (ii) and (vii) of Paragraph (1) of Subdivision (b) of this section must be sworn and notarized and must be signed by all persons participating directly or indirectly in the control of the applicant business and by: the proprietor of an applicant if the applicant is a sole proprietorship; every officer and director and stockholder holding ten (10) percent or more of the outstanding shares of a corporation, if the applicant is a corporation; all the partners, if the applicant is a partnership; the chief operating officer or chief executive officer, irrespective of organizational title and all persons or entities having an ownership interest of ten (10) percent or more if the applicant is any other type of business entity. Notification pursuant to Paragraph (1) of Subdivision (a) of this section must be sworn and notarized and must be signed by the chief operating officer or chief executive officer, irrespective of organizational title, of the applicant or licensee, as the case may be.

§ 2-06 Non-Transferability of Licenses and Registrations.

A license or registration issued by the Commission pursuant to this subchapter shall not be transferable. A licensee or registrant shall not permit the use by any other person of the license or registration number issued pursuant to this subchapter.

§ 2-07 Terms and Fees.

The term of a license or Class 1 or Class 2 registration shall be two (2) years. The fee for investigation of a license applicant shall be five thousand dollars ($5,000), and the fee for each vehicle in excess of one (1) operated, pursuant to a license shall be five hundred dollars ($500). The fee for investigation of a Class 2 registration applicant, pursuant to 17 RCNY § 2-03 shall be three thousand and five hundred dollars ($3,500), and the fee for each vehicle operated, pursuant to a Class 2 registration shall be five hundred dollars ($500). The fee for investigation of a Class 1 registration applicant shall be one thousand dollars ($1,000), and the fee for each vehicle operated, pursuant to a Class 1 registration shall be four hundred dollars ($400). There shall be no fee for a Class 1 registrant that is a Not-For-Profit Corporation. The fee for investigation of a trade waste broker registration application shall be five thousand dollars ($5,000). The term of a Class 3 registration shall be five (5) years. The fee for investigation of a Class 3 registration applicant shall be four thousand dollars ($4,000).

§ 2-08 Refusal to Issue License or Registration; Revocation and Suspension of License or Registration.

(a)  Where the Staff of the Commission proposes that the Commission refuse, pursuant to section 16-509 or 16-507 of the Code, as the case may be, to issue a license to remove, collect, or dispose of trade waste or a registration as a trade waste broker or a Class 1 registration or Class 2 registration for a business exempt from licensing requirements, the applicant shall be notified in writing of the reasons for the proposed refusal of such license or registration and that the applicant may, within ten (10) business days of the date of such notification, respond in writing to the Commission setting forth the reasons such applicant believes that it should not be denied such license or registration. In the exercise of its discretion, the Commission, considering the reasons for the proposed refusal to issue the license or registration, the nature of the issues raised in connection therewith, and the response submitted by the applicant, may make a final determination regarding the issuance of such license or registration or through the Chair or his or her designee, afford the applicant such further opportunity to be heard in such proceeding as is deemed appropriate. A final determination to refuse to issue a license or registration pursuant to this section shall be by majority vote of the Commission. Such determination and the reasons therefor shall be communicated to the applicant in writing.
  1. The Commission may, after notice to a licensee, Class 2 registrant under section 16-505(a), Class 1 registrant or trade waste broker registrant, and the opportunity for a hearing conducted pursuant to 17 RCNY § 1-03, revoke or suspend a license or a registration issued pursuant to this subchapter for the reasons set forth in section 16-513 of the Code. The Commission may suspend a license, Class 2 registration under section 16-505(a), Class 1 registration or trade waste broker registration pursuant to section 16-514 of the Code without a prior hearing. Upon notification of an emergency suspension pursuant to such section, a licensee or registrant may apply to the Chair of the Commission for immediate review of such suspension. The Chair shall determine such appeal forthwith. In the event that such appeal is denied, an opportunity for a hearing pursuant to 17 RCNY § 1-03 shall be provided on an expedited basis, within a period not to exceed four business days, and the Commission shall issue a final determination no later than four days following the conclusion of such hearing.

§ 2-09 Financial Hardship Waiver from Vehicle Emissions Compliance.

(a) Pursuant to § 24-163.11(c) of the Administrative Code, the chairperson of the Commission may issue a waiver from the requirements of Administrative Code § 24-163.11(b)(1) to a licensee, registrant or applicant for a license or registration if compliance with the requirements of Administrative Code § 24-163.11(b)(1) would create an undue financial hardship on that licensee, registrant or applicant for a license or registration.
  1. To qualify for a waiver from the requirements of Administrative Code § 24-163.11(b)(1), the applicant for the waiver must demonstrate to the Commission that complying with Administrative Code § 24-163.11(b)(1) would create an undue financial hardship. The waiver applicant must submit to the Commission an undue financial hardship waiver application as proscribed by the Commission, which will require the following information:

   1. All actions the waiver applicant has taken up to the date of the application to bring its fleet into compliance with § 24-163.11(b)(1) of the Administrative Code;

   2. Information demonstrating that bringing the waiver applicant’s truck fleet into compliance with § 24-163.11(b)(1) of the Administrative Code would cost more than 30 percent of the company’s average gross revenue from the previous three years;

   3. Information demonstrating that the waiver applicant has made a good faith effort to secure financing to cover the costs of bringing its truck fleet into compliance with § 24-163.11(b)(1) of the Administrative Code but has been unable to secure such financing, together with an explanation as to why the applicant could not secure financing; and

   4. A written plan demonstrating how the waiver applicant will bring its truck fleet into compliance with the requirements of § 24-163.11(b)(1) of the Administrative Code and when it will do so.

  1. Any entity applying for a license or registration for the first time after January 1, 2019 and seeking a financial hardship waiver must provide all of the information set forth in 17 RCNY § 2-09(b)1-4, and explain why any trucks that were purchased prior to applying for the financial hardship waiver were not compliant with Local Law 145/2013 when purchased.
  2. The chairperson of the Commission may deny a waiver for undue financial hardship where the applicant for such waiver fails to provide the information required by the Commission on the waiver application, for failure to demonstrate a good faith effort to comply with the requirements of § 24-163.11(b)(1) of the Administrative Code without a need for a waiver, for failure to demonstrate the ability to come into compliance with the requirements of § 24-163.11(b)(1) within a maximum of two years if granted a financial hardship waiver, or for failure to demonstrate the ability to come into compliance with the requirements of § 24-163.11(b)(1) by January 1, 2025.
  3. Financial hardship waivers granted pursuant to § 24-163.11(c) of the Administrative Code will specify the length of the waiver and will be valid for a period of no more than 2 years. Any entity granted a financial hardship waiver may apply to the chairperson of the Commission to renew the waiver no later than 180 days before the expiration of the waiver. All financial hardship waivers will expire no later than January 1, 2025.

Subchapter C: Investigation of Employees and Agents

§ 3-01 Employees and Agents Required to Submit Fingerprints and Disclosure.

(a)  Each person not otherwise a principal as defined in 17 RCNY § 1-02 who is an employee or agent or prospective employee or agent of an applicant for a license or a licensee and who is in a managerial capacity or in a job category listed in Appendix A to this subchapter, shall: (i) be fingerprinted by a person designated for such purpose by the Commission and pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records; and (ii) be photographed by the Commission and provide the disclosure set forth in subparagraphs (b) through (n) of paragraph (ii) of subdivision b of section 16-508 of the Code on the form provided by the Commission and pay the fee of six hundred ($600) dollars for the investigation of such information. Following receipt of such disclosure, the Commission may require such additional information, including without limitation documents and deposition testimony, as the Commission determines is necessary to render determination.
  1. Where, at any time subsequent to an investigation of an employee or agent pursuant to the provisions of subdivision a of this section, the Commission has reasonable cause to believe that such employee or agent lacks good character, honesty and integrity, the Commission may conduct an additional investigation of such employee or agent and may require, if necessary, that such employee or agent provide information updating, supplementing or explaining information previously submitted.
  2. Where, following a background investigation required by subdivision a of this section, the official designated by the Commission to review the findings of such investigation concludes that an employee or agent or a prospective employee or agent lacks good character, honesty and integrity, such person shall be provided with notice of such conclusion and the reasons therefor and may contest the conclusion in person or in writing to such official. Such official shall review such response and, in the event that he or she continues to find that such person lacks good character, honesty and integrity, shall submit such final conclusion to the Commission. In the exercise of its discretion, the Commission, considering the information which forms the basis for the conclusion of such official, the nature of the issues raised in connection therewith, and of any response submitted by the employee or agent, may: (i) make a final determination regarding such person; (ii) notify such person that he or she may appear in person to meet with the Commission or a designee of the Commission in order to present oral explanation and respond to questions prior to a final determination being made; or (iii) notify such person that he or she shall be provided the opportunity for a hearing pursuant to the provisions of 17 RCNY § 1-03 prior to a final determination being made. In the event that a subsequent investigation of an employee or agent conducted pursuant to subdivision b of this section results in a conclusion by the reviewing official that such person lacks good character, honesty and integrity, the Commission shall provide such person with notice and the opportunity for a hearing pursuant to the provisions of 17 RCNY § 1-03 to contest such determination before the Commission makes a final determination.

§ 3-02 Investigation of Other Employees or Agents.

(a)  Where the Commission has reasonable cause to believe that an employee or agent or prospective employee or agent of a licensee or an applicant for a license not subject to the provisions of 17 RCNY § 3-01 lacks good character, honesty and integrity, the Commission shall notify such employee or agent or prospective employee or agent that he or she shall: (i) be fingerprinted by a person designated for such purpose by the Commission and pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records; and (ii) provide the disclosure required in subparagraphs (b) through (n) of paragraph (ii) of subdivision b of section 16-508 of the Code on the form provided by the Commission and pay the fee of six hundred ($600) dollars for the investigation of such information. Following receipt of such disclosure, the Commission may require such additional information related to such disclosure including without limitation documents and deposition testimony, as the Commission determines is necessary to render determination.
  1. Where, in conjunction with the application for a license for trade waste removal pursuant to section 16-508 of the Code and following a background investigation conducted pursuant to this section, the official designated by the Commission to review the findings of such investigation concludes that an employee or agent or prospective employee or agent not subject to the provisions of 17 RCNY § 3-01 and identified on a list submitted by such applicant pursuant to 17 RCNY § 2-02 lacks good character, honesty and integrity, such person shall be provided with notice of such conclusion and the reasons therefore and may contest the conclusion in person or in writing to such official. Such official shall review such response and, in the event that he or she continues to find that such person lacks good character, honesty and integrity, shall submit such final conclusion to the Commission. In the exercise of its discretion, the Commission considering the information which forms the basis for the conclusion of such official, the nature of the issues raised in connection therewith, and of any response submitted by the employee or agent, may: (i) make a final determination regarding such person; (ii) notify such person that he or she may appear in person to meet with the Commission or a designee of the Commission in order to present oral explanation and respond to questions prior to a final determination being made; or (iii) notify such person that he or she shall be provided the opportunity for a hearing pursuant to the provisions of 17 RCNY § 1-03 prior to a final determination being made. Where, at any time subsequent to the issuance of the license and following an investigation conducted pursuant to the provisions of this subdivision of any such employee or agent identified on the list submitted by such applicant pursuant to 17 RCNY § 2-02, the reviewing official concludes that such employee or agent lacks good character, honesty and integrity, such person shall be provided with notice of such conclusion and the reasons therefor and the opportunity for a hearing pursuant to the provisions of 17 RCNY § 1-03 in order to contest such conclusion before the Commission makes a final determination.
  2. Where, within sixty days following notification by a licensee pursuant to section 16-520 of the Code that the licensee proposes to hire or retain or has hired or retained an additional employee or agent who is not subject to the provisions of 17 RCNY § 3-01, the Commission requires such person to be fingerprinted and submit the information required pursuant to this section and at any time thereafter the official designated by the Commission to review the findings of such investigation concludes that such person lacks good character, honesty and integrity, such person shall be provided with notice of such conclusion and the reasons therefor and the opportunity to respond in writing to the Commission before the Commission makes a final determination. Where, following such sixty day period, the Commission requires a background investigation pursuant to this subdivision and the reviewing official makes such a conclusion, the Commission shall provide such person with notice and an opportunity for a hearing pursuant to the provisions of 17 RCNY § 1-03 in order to contest such conclusion before the Commission makes a final determination.
  3. A licensee shall not employ or engage as an agent any person with respect to whom the Commission has made a final determination, following a background investigation conducted pursuant to this subdivision, that such person lacks good character, honesty and integrity.

§ 3-03 Notification by Licensee of Additional Employee or Agent.

A licensee shall provide the Commission with notice of at least ten business days of the proposed addition of a new employee or agent in a managerial capacity or in a job category listed in Appendix A to this subchapter to the business of such licensee. The Commission may waive or shorten such period upon a showing that there exists a bona fide business requirement therefor. Except where the Commission determines within such period, based upon information available to it, that the addition of such new employee or agent may have a result inimical to the purposes of Local Law 42 and this chapter, the licensee may add such new employee or agent pending the completion of review by the Commission. The licensee shall be afforded an opportunity to demonstrate to the Commission that the addition of such new employee or agent pending completion of such review would not have a result inimical to the purposes of this chapter. If upon the completion of such review, the Commission determines that such employee or agent lacks good character, honesty and integrity, the license shall cease to be valid unless such employee or agent leaves the employ of such licensee within the time period prescribed by the Commission.

§ 3-04 Displaced Employee List.

(a)  The Commission shall maintain a displaced employee list containing the names and contact addresses and telephone numbers of persons formerly employed by a business engaged in the collection, removal or disposal of trade waste whose employment ended following the denial or revocation of a license by the Commission.
  1. Upon the denial or revocation of a license by the Commission, a person who was employed by the business whose license has been refused or revoked and who wishes his or her name to be on the displaced employee list shall so notify the Commission in writing and provide his or her name, contact address or telephone number to the Commission. The Commission shall remove an employee’s name from the list forthwith upon receipt of a written request for such removal from the employee.
  2. The addition or deletion of information regarding a former employee shall be made only at the written request of such former employee.
  3. The Commission shall make the displaced employee list available to an applicant for a license pursuant to this chapter upon the request of such applicant, and may notify applicants, licensees and registrants of the availability of such list. The provision of such list shall in no way be construed as a recommendation by the City regarding the employment of any person on such list, nor shall the City be responsible for the accuracy of the information on the list.

APPENDIX A EMPLOYEES SUBJECT TO DISCLOSURE PURSUANT TO 17 RCNY § 3-01

Employees who perform the following functions shall be subject to disclosure pursuant to 17 RCNY § 3-01:

Solicitation of Businesses;

Bill Collection;

Evaluation of Trade Waste Stream of Customers;

Dispatchers who have regular contacts with customers;

Persons who have authority to agree or refuse to service customers;

Persons who have authority to resolve complaints.

Subchapter D: Auditors and Monitors

§ 4-01 Responsibilities of Auditors.

Where the Commission requires, pursuant to Subdivision a of Section 16-511 of the Code, that a licensee enter into a contract with an independent auditor, such licensee must cooperate with such auditor in the performance of the responsibilities set forth in such contract and this section.

  1. An auditor shall:

   (1) Investigate the activities of the licensee with respect to:

      (i) compliance with the provisions of Local Law Number 42 for the Year 1996 and the provisions of this chapter;

      (ii) compliance with all Federal, State, and local laws applicable to trade waste removal and any rules or regulations promulgated thereunder;

      (iii) any transfer of ownership interest in the business of the licensee;

      (iv) any litigation entered into by the licensee against a customer or another licensee or its customer or a trade waste broker;

      (v) any sales, assignments or purchases of contracts;

      (vi) any activity of the licensee that may violate laws or regulations prohibiting anti-competitive activities or unfair trade practices; and

      (vii) any membership in a trade association;

   (2) Audit the books and records of the licensee;

   (3) Have authority to verify employees and capital equipment of the licensee;

   (4) Accompany trucks operated by the licensee in order to verify amounts of trade waste collected and the disposal of such waste;

   (5) Verify the costs and revenues relating to business arrangements of the licensee with truckers, transfer stations, landfills, recycleries, trade waste brokers, and manufacturers, including paper processors and printing establishments; and

   (6) Have such additional duties and responsibilities as the Commission determines are necessary in the case of a licensee in order to ensure that such licensee performs in a manner consistent with the purposes of Local Law Number 42 for the Year 1996.

  1. An auditor must promptly report the findings of investigations conducted, pursuant to this section to the Commission but must report to the Commission on his or her activities at least on a quarterly basis, except that an auditor must report immediately to the Commission any decisions by the licensee to assign contracts for the removal, collection, or disposal of trade waste, decisions to transfer ownership interest or assets in excess of ten thousand dollars ($10,000) to another person or entity or the initiation of litigation against a customer, another trade waste removal business or its customer, or a trade waste broker. The licensee must fully cooperate with the auditor, and the auditor must immediately report to the Commission any failure of the licensee to cooperate.

§ 4-02 Responsibilities of Monitors.

Where the Commission requires, pursuant to Subdivision b of Section 16-511 of the Code, that an applicant for a license or a licensee enter into a contract with an independent monitor, the applicant or licensee must cooperate with the monitor in the exercise of his or her responsibilities set forth in such contract and this section. Where an applicant or licensee is subject to a receivership, the applicant or licensee must furnish the monitor with the relevant orders of the court regarding such receivership.

  1. A monitor shall:

   (1) Investigate the activities of the applicant or licensee with respect to:

      (i) compliance with the provisions of any court order to which the applicant or licensee is subject;

      (ii) the provisions of Local Law Number 42 for the Year 1996 and the provisions of this chapter;

      (iii) compliance with all Federal, State, and local laws applicable to trade waste removal and any rules or regulations promulgated thereunder;

      (iv) any transfer of ownership interest in the business of the applicant or licensee;

      (v) any litigation entered into by the applicant or licensee against a customer or another applicant or licensee or its customer or a trade waste broker;

      (vi) any sales, assignments, or purchases of contracts;

      (vii) any activity of the applicant or licensee that may violate laws or regulations prohibiting anti-competitive activities or unfair trade practices; and

      (viii) any membership in a trade association;

   (2) audit the books and records of the licensee;

   (3) have authority to verify employees and capital equipment of the applicant or licensee;

   (4) accompany trucks operated by the applicant or licensee in order to verify amounts of trade waste collected and the disposal of such waste;

   (5) verify the costs and revenues relating to business arrangements of the applicant or licensee with truckers, transfer stations, landfills, recycleries, trade waste brokers, and manufacturers, including paper processors and printing establishments; and

   (6) have such additional duties and responsibilities as the Commission determines are necessary in the case of the applicant or licensee in order to ensure that such applicant or licensee performs in a manner consistent with the purposes of Local Law Number 42 for the Year 1996.

  1. A monitor shall have authority to approve or disapprove:

   (i) the involvement in the conduct of the business of a principal who is a defendant in the criminal action for which the applicant or licensee has been indicted in any particular aspect of the business of the licensee, where the monitor has reasonable cause to believe that such involvement would be inconsistent with the purposes of Local Law Number 42 for the Year 1996;

   (ii) the assignment of contracts by the applicant or licensee;

   (iii) the transfer of ownership interest or assets of the applicant or licensee business of ten thousand dollars ($10,000) and more;

   (iv) cash expenditures and contracts, with the exception of collective bargaining agreements, for services of ten thousand dollars ($10,000) and more;

   (v) membership in a trade association;

   (vi) litigation against a customer, another applicant or licensee or a customer of such business or a trade waste broker; and

   (vii) the hiring or firing of personnel when the monitor has reasonable cause to believe that such actions are inconsistent with the purposes of Local Law Number 42 for the Year 1996. The monitor may, in addition, prohibit persons from the premises of the applicant or licensee or from involvement in the business of the applicant or licensee, when the monitor determines that such prohibition is necessary to effectuate the purposes of Local Law Number 42 for the Year 1996.

  1. A monitor must report the findings of investigations conducted, pursuant to this section to the Commission on a monthly basis, except that a monitor must report immediately to the Commission any decisions by the applicant or licensee to assign contracts for the removal, collection, or disposal of trade waste, decisions to transfer ownership interest or assets in excess of ten thousand dollars ($10,000) to another person or entity, or the initiation of litigation against a customer, another trade waste removal business or its customer, or a trade waste broker. The licensee must fully cooperate with the monitor, and the monitor must immediately report to the Commission any failure of the licensee to cooperate.

Subchapter E: Conduct of Licensee

§ 5-01 Sign or Decal Required; Display of License.

(a) Every licensee must provide to every recipient of its services a sign or decal which the licensee must obtain from the Commission. A licensee must not provide such a sign or decal to a business unless such licensee has entered into an agreement with such business to provide waste removal services. Such sign or decal must conspicuously and legibly display the name, address, telephone number, number of license and the day and approximate time of waste collection. Such sign or decal must also identify, by type, each designated recyclable material (as defined in 16 RCNY § 1-01) that will be collected by a licensee and, if applicable, whether a licensee will be using single stream recycling collection (as defined in 16 RCNY § 1-01) or co-collection of recyclables (as defined in 16 RCNY § 1-01). Any licensee that provides organic waste removal services to a designated covered establishment must also provide the designated covered establishment with a sign or decal that states (i) the name, address, telephone number, number of license and the day and approximate time of organic waste collection from the designated covered establishment; or (ii) the name, address, telephone number, number of license and the day and approximate time of organic waste collection and a statement that the licensee transports its organic waste to an entity that provides for beneficial organic waste reuse; or (iii) the name, address, telephone number, number of license and the day and approximate time of organic waste collection and a statement that the licensee provides for on-site processing of organic waste generated at its premises.
  1. Such sign(s) or decal(s) must be conspicuously posted as prescribed in Section 16-116(b) of the Code by the owner, lessee or person in control of the commercial establishment which receives the licensee’s services. The licensee must provide each sign or decal to the customer and must inform the customer of its obligation to post the sign or decal in accordance with the requirements of Section 16-116(b) of the Code.
  2. A licensee must not charge a fee to any business for a sign or decal issued by the Commission.
  3. A licensee must conspicuously display its license in its place of business.

§ 5-02 Rates.

(a)  A trade waste removal business must not demand, charge, exact, or accept rates for the collection, removal, disposal, or recycling of trade waste greater than the following maximum rates:

   (1) $20.76 per cubic yard.

   (2) $13.62 per 100 pounds.

   (3) Exempt Waste. This subdivision does 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 15 RCNY § 19-11(a) and paper that is collected for the purpose of shredding or destruction by the licensee.

  1. The rates set forth in subdivision a of this section are maximum rates. Nothing in such subdivision shall be construed to prevent customers and trade waste removal businesses from negotiating rates lower than the rates set forth therein, and trade waste removal businesses and customers are encouraged to do so.
    1. Surveys. In the event that a written contract or other agreement between a licensee and a customer contemplates a “flat” billing method, whether based on weight or on volume, a customer shall have the right to have such fee determined by a survey provided at no charge by the licensee. The time period over which the survey is to be conducted shall be determined by mutual agreement between the customer and the licensee. The survey must reflect the average amount of waste collected, either in volume or by weight, over the survey period. The cost charged to the customer for waste removal service shall be established by multiplying the negotiated dollar rate per cubic yard or per 100 pounds of waste by the total number of cubic yards or 100-pound increments, generated in the billing the period. For purpose of a “flat” billing method, a licensee may round up the total volume or weight for the billing period to the next highest cubic yard or 100 pounds. Prior to conducting the survey, the licensee shall inform the customer in writing that the survey is to be conducted and of the customer’s right to participate in the survey by independently monitoring the waste collected during the survey period and by attempting to reach an agreement with the licensee on the survey information. A copy of the waste survey, in a form prescribed by the commission, must be signed by the owner of the business to be served or the owner’s authorized representative and the licensee. The licensee must provide a copy of the waste survey to the customer and a copy must be retained by the licensee as part of the records required pursuant to 17 RCNY § 5-03. In the event the customer utilizes the services of a trade waste broker, the trade waste broker’s survey can be used in lieu of a survey conducted by the licensee, provided the trade waste broker is registered with the commission. For customers who are charged on the basis of estimated weight, nothing in this section shall preclude such a customer’s right to have its refuse accurately weighed during the survey period.

   (2) The licensee or customer may require a new survey of the customer’s waste stream to be provided by the licensee in the manner described in paragraph (1) of this subdivision at no charge to the customer or to be conducted by a registered trade waste broker, provided that no more than two (2) surveys may be required within any twelve (12) month period.

   (3) A licensee shall not submit a false or misleading survey to a customer or prospective customer.

  1. Scales. Licensees who charge on the basis of the weight of a customer’s waste shall use weighing devices, whether owned, rented or borrowed by the licensee, that are accurate to within five (5) percent. Licensees who use the services of a person or entity to weigh a customer’s waste have the responsibility of insuring that the weighing devices used by such person or entity are accurate to within five (5) percent. The weight of a customer’s waste shall be determined net of the weight of the can, container, dumpster or other rigid container in which it is placed by the customer.
  2. Charges by a licensee to a customer shall be based solely on volume or weight, and a licensee shall not charge an additional fee for services, materials or the use of a waste container or receptacle (except for compactors and roll-off boxes) provided by such licensee.
  3. No later than October 31 of every odd-numbered year, the Commission will hold a public hearing on the maximum rates charged by a licensee for the collection, removal, disposal, or recycling of trade waste. At least 30 days prior to the public hearing, the Commission will publish the date, time and location of the public hearing in the City Record and on the Commission website. At the hearing, proponents of a change in the maximum rates may submit oral or written testimony. The proponent of the rate change shall bear the burden of demonstrating, on an industry-wide basis, that existing rates are inconsistent with the standards for maximum rates set forth in § 16-519 of the Administrative Code.
  4. In determining whether the maximum rates charged by licensees for the collection, removal, disposal, or recycling of trade waste will be adjusted, the Commission shall not be limited to evidence provided by proponents of a rate change pursuant subdivision (f) of this section and may consider any relevant factor affecting the trade waste industry or its customers, including but not limited to:

   (1) The Producer Price Index (PPI), as published by the United States Department of Labor Bureau of Labor Statistics;

   (2) Available data on the trade waste industry, including but not limited to:

      (a) Gross operating revenues (overall revenues);

      (b) Regulated service operating revenues (revenue generated from waste removal services associated with rate-regulated portion of business);

      (c) Net operating revenues;

      (d) Operating expenses;

      (e) Net regulated operating revenues;

      (f) Net regulated operating expenses;

      (g) Total regulated waste tonnage disposed;

   (3) Any other factor that may be relevant to assessing a fair and reasonable return to licensees and the protection of those using the services of such licensees from excessive or unreasonable charges.

§ 5-03 Record Keeping; Customer, Financial and Other Reporting Requirements.

(a) A licensee must maintain records concerning its business including but not limited to:

   (i) bills and purchase invoices (with notations identifying whether the bill or invoice was paid and, if so, the check number and date),

   (ii) deposit slips,

   (iii) copies of checks received from payors,

   (iv) bank statements,

   (v) cancelled checks,

   (vi) tax returns (copies of Federal, State, and Local returns with all supporting schedules),

   (vii) copies of accountants’ workpapers,

   (viii) insurance policies,

   (ix) drivers’ route trip sheets,

   (x) collective bargaining agreements,

   (xi) petty cash disbursement records,

   (xii) IRS W-2 forms,

   (xiii) IRS W-4 forms,

   (xiv) IRS 1099 forms,

   (xv) I-9 forms,

   (xvi) internal memoranda concerning the licensee’s finances or one (1) or more customers or prospective customers of the licensee,

   (xvii) contracts,

   (xviii) documents concerning route sales and contract assignments,

   (xix) waste surveys,

   (xx) rate schedules,

   (xxi) discount rate lists,

   (xxii) documents concerning mergers, acquisitions, subcontracts, and asset sales,

   (xxiii) copies of cash receipts,

   (xxiv) documents reflecting electronic fund transfers,

   (xxv) written correspondence,

   (xxvi) lists of collection routes and schedules,

   (xxvii) submissions to and notices from the Commission, and

   (xxviii) all documents supporting, evidencing, or used to create the reports, books, journals, registers, and ledgers that the licensee is required to maintain, pursuant to this section.

  1. A licensee must provide each payor with a written receipt for all cash payments setting forth the name and address of the licensee, the license number of the licensee, the date of the payment, the amount of the payment, and the identity of the payor. Each such receipt must be signed by the licensee or the licensee’s authorized agent. A duplicate copy of the receipt must be kept by the licensee as part of its books and records. For the purposes of this section, the term “payor” means any person who remunerates the licensee for any purpose.
  2. A licensee must not make any payment in excess of one thousand dollars ($1,000) in cash or by check made payable to “Petty Cash.” A licensee must not make any check payable to “Cash.”
  3. A licensee must maintain a complete and accurate set of books of account reflecting the operation of the licensee’s business. Such books may be maintained on a computerized accounting system and must be kept on either a cash or an accrual basis of accounting in accordance with Generally Accepted Accounting Principles. The books must be kept on a quarterly or monthly basis and must be brought up to date no later than thirty (30) days after the end of each preceding quarter or month. The books must include the following journals and ledgers:

   (1) Cash Receipts Journal showing for each payment received:

      (A) the date payment was received;

      (B) the identity of the payor;

      (C) the amount of the payment;

      (D) the check number; and

      (E) a brief explanation of the purpose of the payment.

      Payments for routes or contracts sold must be described in detail.

   (2) Cash Disbursements Journal showing for each payment made:

      (A) the date payment was made;

      (B) the identity of the payee;

      (C) the amount of the payment;

      (D) the check number; and

      (E) a brief explanation of the purpose of the payment.

      Payments for routes or contracts purchased must be described in detail.

   (3) Disposal Expense Subsidiary Journal showing:

      (A) details of all expenses incurred;

      (B) credits (including cash) obtained in connection with disposing or recycling collected waste including:

      (C) the name of the disposal facility or vehicle or recycling facility,

      (D) the type of disposal or recycling facilities used (e.g., landfill, transfer station, or recycling center),

      (E) the complete address of each disposal facility or vehicle or recycling facility,

      (F) the date on which the disposal or recycling occurred,

      (G) the date on which payment was made,

      (H) the check number,

      (I) the invoice number,

      (J) the type of collected waste,

      (K) the amount of collected waste that was delivered to such disposal or recycling facility or facilities (in compacted cubic yards and tons),

      (L) the rate charged per cubic yard or ton,

      (M) the total amount billed by the vehicle or facility, and

      (N) the amount paid.

      The monthly or quarterly closing must include a total of the amount of collected waste that was delivered to each disposal or recycling facility or vehicle (in compacted cubic yards and tons), a total of the amount billed by each disposal or recycling vehicle and facility, and the amount paid and must also include a total for each of these categories for all of the vehicles and facilities;

   (4) Payroll Journal showing:

      (A) the name of the employee;

      (B) job title and position of the employee;

      (C) the home address of the employee;

      (D) the social security number of the employee;

      (E) gross pay;

      (F) deductions;

      (G) net pay.

   (5) General Journal showing all non-cash transactions including adjusting entries, reversing entries, correcting entries, and reclassifying entries with explanations.

   (6) General Ledger maintaining an account for each kind of asset, liability, capital, income, and expense accounts. Each posting to an account must include date, folio page, and amount. Balances of each account must be updated on a monthly basis.

   (7) Customer Subsidiary Ledger must include a separate account for each customer, arranged alphabetically, showing:

      (A) the name of the customer;

      (B) the address(es) where the waste is collected;

      (C) the customer’s billing address;

      (D) telephone number;

      (E) the current negotiated rate per cubic yard or per one hundred (100) pounds charged;

      (F) the actual weekly or monthly charges; and

      (G) the date, check number, and amount of payments.

   (8) Fixed Assets Subsidiary Ledger must include an account or record for each kind of fixed asset, including trucks, containers, and other waste removal equipment, showing:

      (A) the date the asset was acquired;

      (B) the amount paid for the asset;

      (C) a description of the asset including the serial number, VIN number if applicable, make, year of manufacture, capacity, and type;

      (D) estimated life of each asset;

      (E) estimated salvage value of each asset; and

      (F) method of depreciation, additions and disposals, invoice number, and check number.

   (9) Accounts Payable Subsidiary Ledger must show the following for each account:

      (A) the date of purchase;

      (B) the name of the vendor or supplier;

      (C) the amount payable; and

      (D) a brief explanation.

   (10) Other Subsidiary Ledgers must be kept for accounts that are not maintained elsewhere, including subsidiary ledgers for Loans and Notes Payable and Loans and Notes Receivable (which must include details of each loan and note including the date of the payment, the identity of the debtor or creditor, the form of the payment, and the check number, if applicable).

  1. A licensee must maintain annual financial statements in a form or computer format prescribed by the Commission. The Commission may require that such financial statements be audited by an independent certified public accountant who is not employed by or related to the licensee or any principal of the licensee and has no financial interest in the licensee or any principal of the licensee. The financial statements must include a balance sheet, an income statement, a statement of cash flows, and a statement of retained earnings or (if the licensee is a sole proprietorship or partnership) capital. The auditor shall render an opinion as to whether the financial statements accurately reflect the financial position of the licensee as of the balance sheet date and the results of its operations and cash flows for the year ended, except that the auditor need not opine on Paragraphs (3) and (4) of this Subdivision. The auditor shall also issue a supplemental opinion on the licensee’s compliance with the financial record-keeping and reporting requirements of the Commission. Such supplemental opinion shall detail each and every variance or deviation from the Commission’s requirements noted during the auditor’s examination of the licensee’s financial books and records. The licensee must certify, and the principal responsible for the licensee’s financial affairs must swear under oath upon penalty of perjury, that the financial statement accurately reflects the licensee’s accounts and financial operations. At the completion of the audit, the licensee must obtain from the auditor copies of the accountant’s work papers and must retain such papers with the licensee’s records.

   (1) The balance sheet must include the balance for each group or type of asset, liability, and capital amount at the end of the accounting period.

   (2) The income statement must include the balance of each group or type of income and expense for the accounting period. Income and expenses related to waste removal, collection, disposal, and recycling must be shown in such a manner as to be traceable from the income statement to the General Ledger, Customer Ledger, Cash Receipts Journal, Cash Disbursements Journal, Disposal Expense Subsidiary Journal, invoices, cancelled checks, cash receipts, bank statements, and deposit slips.

   (3) The following schedules must be included in the financial statement in support of the balance sheet and income statement:

      (A) a truck and container analysis;

      (B) a schedule of investments;

      (C) allowances for doubtful accounts;

      (D) prepaid expenses;

      (E) miscellaneous current and other assets;

      (F) fixed assets, depreciation, and accumulated depreciation;

      (G) route purchases;

      (H) notes payable and receivable;

      (I) taxes prepaid and accrued;

      (J) miscellaneous current and accrued liabilities;

      (K) capital stock;

      (L) additional paid-in capital;

      (M) retained earnings;

      (N) intangible assets and accumulated amortization; and

      (O) waste collection analysis.

   (4) Operating, administrative, and general expenses must be summarized and must include schedules as follows:

      (A) a payroll analysis with details of drivers’ and helpers’ wages, mechanics’ wages, workers’ compensation insurance, disability insurance, payroll taxes, and pension and welfare fund payments;

      (B) a truck and container analysis with details of garage, rent, gas, oil, tolls, truck insurance, repairs, maintenance, truck rental, license plates, license fees, truck mileage taxes, depreciation, and other related expenses;

      (C) a disposal analysis with details of all expenses incurred, and credits (including cash) obtained in connection with disposing or recycling collected waste including the name of the disposal facility or vehicle or recycling facility, the type of disposal or recycling facilities used (e.g., landfill, transfer station, or recycling center), the complete address of each disposal facility or vehicle or recycling facility, the amount of collected waste that was delivered to such disposal or recycling facility or facilities (in compacted cubic yards and tons), the rate charged per cubic yard or ton, the total amount billed by the vehicle or facility, and the amount paid;

      (D) a compensation schedule for officers, directors, and owners;

      (E) a revenue analysis;

      (F) an analysis of interest paid and received; and

      (G) an amortization expense analysis.

  1. On or before June 30 of each year but not later than six (6) months following the end of the licensee’s fiscal year, all licensees must file a report on a form or computer format prescribed by the Commission. If the Commission requires a revision of the report after review by an auditor on the Commission’s staff, an amended report must be submitted to the Commission no later than the date specified by the Commission. The Commission may require that the annual report include the financial statement described in Subdivision (e) of this section and other information and documents concerning the licensee’s operations, including but not limited to: financial information reported on a calendar year basis, the management letter issued by the licensee’s auditor to the licensee, and information concerning: affiliations with other licensees; organization and control of the licensee, corporate control over the licensee; corporations controlled by the licensee; officers and directors of the licensee; allocation of recyclables and non-recyclables; security holders of and voting powers within the licensee; subcontracting, management, engineering, and contracts of the licensee.
  2. A licensee must maintain a complete and accurate Customer Register on a form or in a computer format approved by the Commission.

   (1) The Customer Register contain a list of all customers currently served by the licensee and include the customer’s name and the name of an authorized representative of the customer, any trade name, the address or addresses of service, the billing address, the telephone number, the date on which services commenced, the total charge per month, and such other information as may be specified by Commission directives.

   (2) The Customer Register must state the name of each putrescible solid waste transfer station, nonputrescible solid waste transfer station, or other facility used during the period for which the report is submitted. Such report must also state the total volume or weight and type of designated recyclable materials collected and transported and/or the total combined volume or weight and type of designated recyclable materials and non-designated materials collected and transported to putrescible solid waste transfer stations, non-putrescible solid waste transfer stations, or other facilities during the period for which the report is submitted.

   (3) A complete and up-to-date Customer Register be filed on January 31 for the period October 1 to December 31; on April 30 for the period January 1 to March 31; on July 31 for the period April 1 to June 30; and on October 31 for the period July 1 to September 30, or as often as ordered by the Commission. In the event that the Commission grants a new license, the newly licensed company must file its first Customer Register to the Commission no later than ninety (90) days after the granting of its license, unless otherwise directed by the Commission. This subdivision applies to companies operating with temporary permission of the Commission, pending decision on their license application.

  1. A licensee must maintain a register of all complaints that such licensee receives from customers or prospective customers.
  2. A licensee must maintain written policies and procedures regarding compliance with all of the laws, rules and regulations of Federal, State and Local government authorities having jurisdiction over any of the licensees’ activities concerning vehicle specifications, sanitary requirements, handling, transport, receipt, transfer or disposal of trade waste, regulated medical waste or waste containing asbestos or other hazardous, toxic or dangerous material.
  3. A licensee must maintain all Report of Motor Vehicle Accident (MV-104) forms and any other forms that the licensee is required to file with the New York State Department of Motor Vehicles related to a crash.
  4. A licensee must maintain all determinations by any Federal, State, or Local governmental agency or authority against such licensee, including but not limited to any judgment, decree, order, finding by or settlement agreement with such governmental agency or authority.
  5. All records, receipts, documents, journals, ledgers, registers, and books that must be maintained, pursuant to this section must be maintained for five (5) years unless the Commission directs otherwise. This period for record keeping shall only be reduced if the Commission so directs in a specific case in writing. The Commission may in specific instances, in its discretion, require more or less detailed and/or frequent record-keeping and reporting requirements and may require the retention of identified records for more than five (5) years.
  6. All records, receipts, documents, journals, ledgers, registers, and books that must be maintained, pursuant to this section be made available for inspection and audit by the Commission. The Commission may conduct such an inspection or audit at the licensee’s place of business or, at the Commission’s discretion, at the offices of the Commission. The licensee must cooperate with the representatives of the Commission conducting any such inspection or audit.
  7. If any due date under this section falls on a weekend or City holiday, the due date shall be deemed to be the first business day following such weekend or holiday.

§ 5-04 Compliance with Applicable Law and Regulation.

All licensees shall at all times comply with all the laws, rules and regulations of Federal, State and local governmental authorities having jurisdiction over any of the licensees’ activities, including, but not limited to, rules and regulations of the Department of Environmental Protection, the Department of Health, the Department of Sanitation and the Department of Transportation concerning the vehicle specifications, sanitary requirements, handling, transport, receipt, transfer or disposal of trade waste, regulated medical waste or waste containing asbestos or other hazardous, toxic or dangerous material. Failure to comply with these laws, rules or regulations shall be grounds for suspension and/or revocation of the license and, in addition to any other penalty provided by law, the imposition of penalties pursuant to 17 RCNY § 1-04.

§ 5-05 Agreements and Contracts with Customers; Service to Customers.

(a) Term and form of contract; requirements; service and discontinuation of service; increase of rates.

   (1) An oral agreement for the collection, removal, or disposal of trade waste shall be terminable at will by the customer and upon fourteen (14) days’ written notice by the licensee. A contract for the collection, removal, or disposal of trade waste shall not exceed two (2) years in duration. A written contract for the removal, collection, or disposal of trade waste that contains no provision regarding duration shall be terminable at will by the customer and upon fourteen (14) days’ written notice by the licensee. A written contract must provide that the licensee must remove the customer’s waste from the location designated by the customer. A sample standard contract form must be submitted to the Commission when an application for a license is submitted, and a licensee must submit any subsequent changes in the standard form to the Commission thirty (30) days’ prior to implementing such change. Nothing in this provision shall be construed to prevent a licensee from negotiating terms at variance with the standard form contract, except that a licensee must not vary such contract in any manner identified by the Commission as inconsistent with the purposes of Chapter 1 of Title 16-A of the Code by the Commission after review of such standard form.

   (2) A licensee must comply with the service and other terms set forth in the written contract or oral agreement with the customer, including the agreed-upon frequency and schedule for the collection of waste. A schedule agreed to in writing must not be altered without the written agreement of the customer’s owner or authorized representative. When a licensee offers to provide a commercial establishment with trade waste services, the licensee must provide such customer with a copy of the Commission’s informational notice to customers. The licensee must provide the customer with such additional informational notices as the Commission shall require throughout the term of service to the customer by the licensee.

   (3) A licensee must not discontinue service to any customer, or raise the rates charged to such customer, unless at least fourteen (14) days’ written notice to the customer is given. No contract for the removal, collection, or disposal of waste shall provide that a licensee may discontinue service upon shorter notice.

   (4) A written contract that does not meet the requirements of Federal, State, or Local Law is voidable by either party.

  1. Subcontracting, assignment of contracts, mergers, and acquisitions.

   (1) A licensee must apply for review by the Commission before subcontracting or assigning a contract and must seek such review by the Commission thirty (30) days before such subcontract or assignment is proposed to take effect. The Commission may issue any order with respect to the transaction consistent with the purposes of Local Law 42. An assignee or subcontractor of contracts for the removal, collection, or disposal of trade waste notify, within fifteen (15) days of the effective date of such assignment or subcontract, each party to a contract so assigned of such assignment or subcontract and of the right of such party to terminate such contract upon thirty (30) days’ notice during the three (3) months after receiving notice of such assignment or subcontract. Such notification must be by certified mail with the receipt of delivery retained by the assignee or subcontractor and must be upon a form approved by the Commission. Where no written contract exists with a customer for the removal, collection, or disposal of trade waste, a company that assumes such trade waste removal from another company must provide such customer with notification within fifteen (15) days of such assignment or subcontract, on a form approved by the Commission by certified mail with the receipt for delivery retained by the assignee or subcontractor, that a new company will be providing such trade waste removal, and that the customer has the right to terminate such service. A licensee must not enter into a subcontract before receiving express approval for the subcontracting arrangement from the Commission.

   (2) A licensee must apply for review by the Commission before acquiring, selling, or merging with another trade waste removal, collection, or disposal business and must seek such review by the Commission no later than thirty (30) days before such acquisition, sale, or merger is to take effect. The Commission may issue any order with respect to the intended transaction consistent with the purposes of Local Law 42. The Commission may, in its discretion, require that either the purchaser or seller post a bond or place money in escrow with the Commission in an amount that the Commission believes, in its discretion, is needed to cover any outstanding or potential fines or penalties owed or that may be owed to the Commission, any customer complaints that have been heard, pursuant to 17 RCNY § 1-03 in regard to which a final determination has not been rendered, and any restitution ordered by the Commission which the selling or dissolving licensee has failed to make to the customer. If the seller fails to post such bond or place money in escrow as set forth in this paragraph, the Commission may seek from the purchaser any and all outstanding fines or penalties for violations of Chapter 1 of Title 16-A of the Code and this chapter and any outstanding ordered customer restitution.

   (3) Investigation, inspection, and evaluation fee. The fee for investigation and review of any proposed transaction described in Paragraphs (1) and (2) of this subdivision shall be four thousand and five hundred dollars ($4,500) per entity involved and one thousand and two hundred dollars ($1,200) per principal involved. After submission to the Commission of an appropriate request for review of such a transaction, the Commission shall notify the parties to the transaction of the total fee amount due and owing, which must be paid in full within ten (10) days after such notification. The Commission, in its discretion, may waive or reduce fees upon written request in light of one (1) or more of the following reason(s):

      (i) specified persons or entities have recently undergone completed background investigations by the Commission;

      (ii) the value of the transaction under review is minimal;

      (iii) specified persons or entities need not undergo background investigations because of their attenuated connection to the transaction;

      (iv) the transaction does not involve the sale, assignment, or other transfer of any accounts or customer contracts (e.g., trucks or other non-customer assets);

      (v) the transaction involves less than five (5) customers;

      (vi) the transaction involves unique characteristics or other mitigating factors that would warrant a reduction or waiver of fees.

   (4) Requests for authorization of subcontracting, assignment, and other such arrangements. All trade waste subcontracting, assignment, and similar arrangements must be submitted to the Commission for authorization. Requests for approval of such an arrangement must be submitted in writing to the Commission, and the arrangement must not go forward unless and until it has been approved in advance by the Commission. The request must identify the customer(s) involved (including name, address, contact person, and contract terms), state the requested length of the arrangement, and describe the business justification for the arrangement. Copies of all affected contracts or proposed contracts must be submitted with the request.

   (5) Customer’s thirty (30) day termination right during ninety (90) day post-assignment period. During the ninety (90) day period following the assignment or other transfer of a customer contract to another trade waste removal business, the customer has the right to terminate its carting contract on thirty (30) days’ notice. All contracts signed by affected customers during the ninety (90) day period subsequent to contract assignment or transfer remain terminable on thirty (30) days’ notice throughout the ninety (90) day period, and any such contract signed during that ninety (90) day period must contain prominent notice of this fact.

  1. Customer’s contract termination right after denial of license application or revocation of license. During the ninety (90) day period following the effective date of the denial of the license application of a trade waste removal business or the revocation of the license of such a business, the customers of that business have the right to terminate any contracts for trade waste removal entered into during that period, on thirty (30) days’ written notice to the other contracting party. Any contract for trade waste removal entered into by any such customer during the ninety (90) day post-denial period shall be terminable at will by the customer throughout that period on said written notice. Any such contract must contain prominent notice of the customer’s right to terminate the contract at any time within such period upon such notice.
  2. Written contract. When service to a customer is commenced, the licensee must take all steps necessary to attempt to reach an agreement with the customer on the terms and conditions of the service to be provided and within forty (40) days of the commencement of service, must prepare a written contract that clearly and legibly sets forth the terms and conditions of the agreement negotiated by the licensee and the customer and deliver such contract to the customer. Such contract must provide that it shall be effective only upon being dated and signed by the licensee and the customer’s owner or authorized representative and that a change of any term or condition of such contract must be made in writing, dated, and signed by both the licensee and the customer’s owner or authorized representative before such term or condition takes effect. The proposed contract offered by the licensee be accompanied by a notice stating: “You are not required to sign this contract. If you have any questions or complaints, call the Business Integrity Commission at (212) 437-0600.” One (1) copy of such signed and dated contract and a copy of any signed and dated amendments must be provided to the customer’s owner or authorized representative by the licensee.
  3. Customer’s decision not to sign a contract. A customer is not required to sign a contract. If a customer fails or refuses to sign a contract that has been tendered to the customer, pursuant to Subdivision c of this section, a licensee will be deemed to have complied with such subdivision if the licensee complies with the requirements in Paragraphs (1) through (3) of this subdivision provided, however, that a licensee must not discontinue service to such a customer, or raise the rates charged such a customer, unless at least fourteen (14) days’ written notice of such discontinuance or rate increase was given to such customer. Where a written contract with a customer has not been obtained by the licensee, the licensee must:

   (1) demonstrate that a contract has been tendered to the customer in accordance with Subdivision c of this section, within forty (40) days of the commencement of service; and

   (2) keep a copy of the contract tendered on file along with the signed returned postal receipt for a period of one (1) year after the eventual discontinuance of service to the customer; and

   (3) make available to the Commission upon its request a copy of the contract and the return receipt.

  1. Liability for negligence. No contract or contract amendment shall provide that the licensee is exempt from liability for damage caused by its negligence or the negligence of any of its agents.
  2. Standard bills, statements, invoices. A licensee must provide a written bill, statement, or invoice at least once every month to each and every customer to which such licensee provides services. Such bill, statement, or invoice must conspicuously contain all of the following:

   (1) the licensee’s name, address, telephone number, license number;

   (2) the customer’s name and complete address;

   (3) a notice to customers as follows: NOTICE TO CUSTOMERS – The maximum rate that may be charged by your trade waste removal business is regulated by the New York City Business Integrity Commission. If you should have a question or a complaint concerning waste removal, contact the New York City Business Integrity Commission; and

   (4) the maximum rates in effect with a statement indicating that the rates so identified are maximum legal rates and that lower rates may be lawfully charged;

   (5) the negotiated rate per cubic yard or per one hundred (100) pounds on which the invoice is based;

   (6) an itemized list of charges detailing the cubic yards or weight of putrescible waste removed, recyclables removed, and any additional charges;

   (7) where the customer is being charged on a “flat” or “average” billing basis,

      a. the total charges for waste removal for the billing period;

      b. an itemized statement of the estimated volume or weight of the putrescible waste removed and the charge for the removal of such waste;

      c. an itemized statement of the estimated volume or weight, if any, of the recyclable waste removed and the charge for the removal of such waste;

      d. a statement as to the method by which the estimated volume or weight was determined; and

   (8) a separate statement of sales tax collected.

Such bill must be on a form approved by the Commission.

§ 5-06 Acceptance of Customers.

(a)  Whenever a prospective or actual customer has been unable to obtain a licensee to remove his or her waste upon terms and conditions satisfactory to both the prospective or actual customer and licensee, the Commission may require a licensee collecting trade waste in or near the area in which the customer conducts business, to collect and remove such waste at a rate designated by the Commission.
  1. A licensee who has been ordered to serve a customer pursuant to subdivision (a) of this section may, within five days of such directive, object to the Commission, setting forth the reasons why such licensee should not be compelled to serve such customer, but must comply with any final order to serve. Failure to comply with such an order shall be a violation of this section.

§ 5-07 Employee Information.

Within 10 business days of hiring an employee or extending an offer of employment to a prospective employee, a licensee or an applicant for a license must provide the Commission with the name of such employee or prospective employee and the information required, pursuant to 17 RCNY § 2-02.

§ 5-08 Operations.

(a)  A licensee shall maintain any premises where trade waste removal vehicles and machinery are kept in a safe and sanitary condition.
  1. All vehicles operated pursuant to a license shall be loaded at all times in such a manner and by such methods as to prevent the release or discharge of dust and to prevent spilling of materials upon sidewalks or streets and every operator of a vehicle shall remove immediately from sidewalks or streets all materials spilled, littered, or thrown thereon in loading operations or in the handling and return of receptacles or while traveling.
  2. Materials loaded into vehicles shall be dumped or unloaded and disposed of only at points where disposal of the particular material may be made lawfully.
  3. Vehicles with open top box type bodies and containers on or in platform or panel type body vehicles shall not be filled or loaded over their capacity. In no case shall such vehicles be filled or loaded above water level of body or container.
  4. Trade waste vehicle operators of all types of vehicles shall exercise care at all times to prevent the making of unnecessary or avoidable noise in the course of operating such vehicles or loading trade waste.
  5. Each open top box type vehicle body shall be loaded only from front to rear and the partial load kept securely and fully covered at all times. Each such vehicle shall have a heavy tarpaulin cover which shall be secured over the vehicle body at all times other than when the vehicle body is being loaded or unloaded or is empty.
  6. Materials loaded in or upon vehicles shall not be re-worked, re-sorted, picked over, or rehandled while vehicle is on the streets and material shall not be transferred nor reloaded from a vehicle while on the streets to or into any other vehicle, except that operators of vehicles of the totally enclosed walk-in door type may sort materials only within and inside the body, during which periods the door or doors may be kept open.
  7. Materials shall not be carried at any time upon any vehicle other than solely within the vehicle body or solely within containers on or in the vehicle body when such materials are to be removed in containers.
  8. After materials are dumped for disposal the vehicle body and each container used, shall be emptied thoroughly and cleared of all loose materials.
  9. Vehicles and containers shall be thoroughly cleaned inside and outside frequently so that they shall present a good appearance and be maintained free of dirt and offensive odors at all times.
  10. Bodies of dead animals shall not be dissected outside of the premises from which removed, in the loading process or in the vehicle.
  11. All loading hoppers, doors, covers, or other closures of loading openings of all vehicles shall be kept closed and secured at all times excepting during actual loading through the particular opening.
  12. A licensee shall provide for the general cleanliness of, and the control of odors and extermination of pests and rodents on and around, the vehicles used to transport trade waste and the locations where such vehicles are stored when not in use.
  13. A licensee shall provide for off-street parking for vehicles used to transport waste, and shall not permit such vehicles to be parked on the street during the hours when they are not in use.
  14. A licensee shall keep closed the doors of any garage, or the gate to any outdoor premises, from which vehicles used in the transport of waste are dispatched except when such vehicles are entering or leaving such premises. The perimeter of any outdoor location used to store vehicles shall be surrounded by an opaque fence which shall be at least eight (8) feet high.
  15. A vehicle used to transport waste shall operate in compliance with all traffic laws, rules and regulations and shall not be permitted to stand with the motor idling in violation of section 24-163 of the Code.
  16. Any waste receptacle provided by a licensee to a customer shall be made of metal or other material or grade and type acceptable to the Department of Sanitation, the Department of Health and the Department of Housing Preservation and Development, as provided in section 16-120 of the Code. Receptacles used for liquid waste provided by the licensee shall be constructed, and maintained by the licensee, so as to hold their contents without leakage. All containers provided by the licensee shall be provided and maintained with tight fitting covers.
  17. Any container provided by a licensee to a designated covered establishment for the collection of organic waste must:

   (1) meet the labeling requirements set forth in 17 RCNY § 5-11;

   (2) have a lid and a latch, lock, or other fastening or sealing mechanism or cord that keeps the lid closed and is resistant to tampering by rodents or other wildlife; and

   (3) have the capacity to meet the disposal needs of the designated covered establishment.

  1. A licensee shall, after removing the waste of a customer, return the receptacle from which such waste was removed to a place inside or in the rear of the premises from which such waste was removed. If this is not feasible, the licensee shall place such receptacle against the building line.
  2. A licensee that removes, collects or disposes of trade waste shall keep the sidewalk, flagging, curbstone and roadway abutting any area from which waste is removed free from obstruction, garbage, litter, debris and other offensive material resulting from the removal by the licensee of such trade waste.

§ 5-09 Membership in Trade Associations.

(a)  No licensee or principal thereof shall be a member or hold a position in any trade association:

   (i) where such association, or a predecessor thereof as determined by the Commission has violated state or federal antitrust statutes or regulations, or has been convicted of a racketeering activity or similar crime, including but not limited to the offenses listed in subdivision one of section nineteen hundred sixty-one of the Racketeer Influenced and Corrupt Organizations statute (18 U.S.C. §§ 1961 et seq.) or of an offense listed in subdivision one of section 460.10 of the penal law, as such statutes may be amended from time to time;

   (ii) where a person holding a position in such trade association, or a predecessor thereof as determined by the Commission, has violated state or federal antitrust statutes or regulations, or has been convicted of a racketeering activity or similar crime, including but not limited to the offenses listed in subdivision one of section nineteen hundred sixty-one of the Racketeer Influenced and Corrupt Organizations statute (18 U.S.C. §§ 1961 et seq.) or of an offense listed in subdivision one of section 460.10 of the penal law, as such statutes may be amended from time to time;

   (iii) where a person holding a position in such trade association, or a predecessor thereof as determined by the Commission, is a member or associate of an organized crime group as identified by a federal, state or city law enforcement or investigative agency; or

   (iv) where the trade association has failed to cooperate fully with the Commission in connection with any investigation conducted pursuant to this chapter. The Commission may determine, for purposes of this subdivision, that a trade association is a predecessor of another such trade association by finding that transfers of assets have been made between them or that all or substantially all of the persons holding positions in the two associations are the same.

  1. Notwithstanding the provisions of subdivision a of this section, the Commission may permit a licensee to be a member of a trade association where such membership would be prohibited by such subdivision upon a determination that such association no longer operates in a manner inconsistent with the purposes of this chapter.

§ 5-10 License Plates and Vehicle Markings.

(a) Upon issuance of a license, the Commission shall issue to the licensee two (2) license plates for each vehicle that will transport trade waste, pursuant to such license and for which a fee has been paid, pursuant to 17 RCNY § 2-07. Such plates must at all times be affixed as prescribed by the Commission to a visible and conspicuous part of each such vehicle. A licensee must not permit a vehicle to be used in the course of collecting, removing, or disposing of waste that has not been identified and covered by the license and for which a fee has not been paid. A license plate issued by the Commission for such a covered and identified vehicle must not be transferred to any other vehicle. Upon the sale or dissolution of the business of a licensee, or upon the suspension, revocation, or expiration of a Commission-issued license, such plates must be immediately surrendered to the Commission. All license plates issued by the Commission are the property of the Commission, and the Commission reserves the right to reclaim such plates at any time.
  1. Each vehicle must have the name and business address of the licensee lettered legibly in letters and figures not less than eight (8) inches in height, and in a color that contrasts with the color of the vehicle, on each side of the vehicle body or upon each door of the vehicle cab at all times.

§ 5-11 Labeling of Containers.

(a)  All containers or receptacles from which trade waste is collected by any licensee shall have the volume capacity of each container or receptacle painted on the front of the container or receptacle in Arabic numerals at least 4 inches in height and followed by the indication "cu. yd." when the volume of the container or receptacle is measured in cubic yards or "GAL." when the volume of the container or receptacle is measured in gallons.
  1. If a container is provided by a licensee, it shall be the responsibility of that licensee to imprint and maintain the licensee’s name and license number along with the accurate true measurement of the volume of the container. A licensee shall, at no charge, mark each unmarked container provided by a customer with the name of the owner of the container and the accurate true measurement of the volume of the container.
  2. Any container provided by a licensee to a designated covered establishment for the collection of organic waste shall be labeled to indicate that only organic waste may be placed in that container.
  3. If trade waste is collected from any container that does not have the volume capacity imprinted, the licensee collecting waste from such container shall report the exact location of such container to the Commission within three (3) business days of the time it had actual or constructive knowledge of the improper labeling.
  4. If organic waste is collected from a designated covered establishment in a container that does not have a label indicating that the container contains only organic waste, the licensee collecting waste from such container shall report the exact location of such container to the Commission within three (3) business days of the time it had actual or constructive knowledge of the improper labeling.

§ 5-12 Recycling Requirements for Licensees.

(a) Designated recyclable materials. For purposes of this section, the term "designated recyclable materials" means materials that have been designated for recycling by the Department of Sanitation in 16 RCNY § 1-10(a).
  1. Licensees required to recycle. A licensee that collects or transports designated recyclable materials that have been source-separated as required in 16 RCNY § 1-10(b) or materials that have been commingled pursuant to 16 RCNY § 1-10(c) and paragraph (2) of subdivision (c) of this section shall transport such materials to putrescible or non-putrescible transfer stations or other facilities that accept such materials for recycling, reuse or sale for reuse. Such licensee shall not bring such materials for disposal, or cause such materials to be brought for disposal to any solid waste disposal facility, whether or not such disposal facility is operated by the Department of Sanitation, in an amount that should have been detected through reasonable inspection efforts by the licensee.
  2. Collection restrictions for designated recyclable materials.

   (1) Waste that has been source-separated for recycling by the customer.

      (i) A licensee collecting materials that have been source-separated by the customer may not commingle in the same vehicle compartment any of the following: (1) designated recyclable paper, (2) designated recyclable metal, glass, and plastic, (3) yard waste, (4) textiles, (5) construction and demolition debris, (6) organic waste, (7) any other materials that have special collection requirements pursuant to applicable local, state or federal law, or (8) other solid waste. Each of these terms is defined in 16 RCNY § 1-01.

      (ii) Designated recyclable metal, glass and plastic may be commingled together, but may not be commingled in the same vehicle compartment with designated recyclable paper unless such materials are collected pursuant to single stream collection and recycling as allowed by paragraph (2) of subdivision (c) of this section.

   (2) Commingling of certain designated recyclable materials. A licensee may collect waste consisting of designated metal, glass, and plastic commingled with designated recyclable paper if:

      (i) it has furnished information to the Commission demonstrating its ability to use either (a) single stream collection and recycling, or (b) co-collection of recyclables; or

      (ii) it will transport its own designated recyclable materials to a central holding location under its control from which such designated recyclable materials will be delivered by the licensee directly to a recycler or collected by a licensee that has furnished information to the Commission demonstrating its ability to use either single stream collection and recycling or co-collection of recyclables.

   (3) Collection of organic waste that has been source-separated.

      (i) Organic waste shall not be commingled with any trade waste or designated recyclable material. No trade waste or designated recyclable material shall be collected in the same truck compartment as organic waste.

      (ii) A licensee that collects or transports organic waste that has been separated as required by the Department of Sanitation under 16 RCNY § 1-11(b)(1) shall transport such organic waste either:

         A) directly to an organic waste processing facility for purposes of composting, aerobic digestion or anaerobic digestion; or

         B) to a putrescible transfer station permitted or licensed by the State and the Department of Sanitation to handle source separated organic waste, and that has represented to the licensee that it will deliver such organic waste to an organic waste processing facility.

      (iii) Except as otherwise provided under subparagraph (ii)(B) of this section, any licensee that delivers organic waste directly to an organic waste processing facility shall enter into a written agreement with such facility for the delivery of organic waste that identifies the name and contact information of the organic waste processing facility owner and its location. Such agreement shall be signed by both the licensee and the facility owner, and identify the quantity of estimated organic waste to be delivered on a monthly or quarterly basis. The licensee shall also furnish to the designated covered establishment, upon its request, a copy of such written agreement it has entered into with an organic waste processing facility for the delivery of the organic waste generated by such covered establishment. A copy of such written agreement shall also be provided to the Commissioner upon request.

  1. Contract and bill requirements.

   (1) Contracts entered into with customers in accordance with 17 RCNY § 5-05 shall state the estimated volume or weight of designated recyclable materials to be collected and transported pursuant to subdivision (c) of this section.

   (2) Contracts entered into with customers on or after July 19, 2016, shall specify that the licensee will not commingle source-separated organic waste with any trade waste or recyclable material, and such contracts may specify both the estimated volume or weight of organic waste collected and transported (that is separate from the estimated volume or weight of designated recyclable materials).

   (3) The written bill, statement or invoice provided to customers pursuant to 17 RCNY § 5-05 shall include an itemized list of charges detailing the cost per cubic yard or per 100 pounds and the volume or weight of designated recyclable materials collected and transported pursuant to paragraphs (1) and (2) of subdivision (c) of this section; or the cost per cubic yard or per 100 pounds and the volume or weight of designated recyclable materials collected and transported pursuant to paragraphs (1) and (2) of subdivision (c) of this section; or the cost and volume or weight of organic materials transported pursuant to paragraph (3) of subdivision (c) of this section.

  1. [Repealed.]

Subchapter F: Conduct of Trade Waste Brokers

§ 6-01 Presentation of Registration to Customer.

A trade waste broker must not evaluate or analyze a business’ trade waste stream or broker a transaction between a commercial establishment and a trade waste business required to be licensed or registered, pursuant to this chapter, unless such broker has first presented a copy of his or her registration to such customer or prospective customer.

§ 6-02 Acceptance of Payment.

(a) A trade waste broker who evaluates or analyzes a trade waste stream must not request or accept any payment in regard to such evaluation or analysis from a party other than the customer or prospective customer for whom such services are performed unless such broker has first disclosed to such customer or prospective customer in writing that the broker proposes to request or accept such payment. A copy of such notice to the customer or prospective customer must be submitted to the Commission within fifteen (15) days of such disclosure.
  1. A trade waste broker who brokers a transaction between a customer or prospective customer of trade waste removal, collection, or disposal services and a trade waste business required to be licensed or registered, pursuant to this chapter must not request or accept payment from such trade waste business. A trade waste broker must not broker a transaction between a customer or prospective customer and a trade waste business owned by, operated by, or affiliated with the trade waste broker or any principal thereof without disclosing the relationship between the trade waste broker and the trade waste business to the customer or prospective customer.
  2. A trade waste broker who brokers a transaction between a customer or prospective customer of trade waste removal, collection, or disposal services and a trade waste business required to be licensed or registered, pursuant to this chapter must state in writing to such customer or prospective customer that such broker has examined the rate schedules made available by the Commission, pursuant to 17 RCNY § 5-02.

§ 6-03 Collection of Fees Prohibited; Contract Duration.

(a) A trade waste broker must not engage in the collection of fees from commercial establishments for trade waste removal by a trade waste business required to be licensed or registered, pursuant to this chapter except where:

   (i) the contract for such fee collection complies with standards set forth in Subdivision (b) of this section;

   (ii) such fee collection is upon the request of the customer; and

   (iii) such fee collection is part of an agreement providing for other services such as periodic waste evaluation and consulting with respect to source separation, recycling, or other business practices relating to trade waste.

  1. A contract that includes a provision for the collection by a trade waste broker of fees for trade waste removal must be submitted to the Commission and must set forth:

   (i) the fee charged for such collection,

   (ii) the rates charged by the trade waste removal business,

   (iii) the method of billing employed by the trade waste removal business, and

   (iv) must provide that the trade waste broker provide the customer with a monthly statement detailing the volume of trade waste removed.

  1. A contract for the provision of brokering services to a commercial establishment must not exceed two (2) years in duration.

§ 6-04 Records and Reporting Requirements.

(a) Definitions. For the purposes of this subchapter, the following terms apply:

   (1) The term “payor” shall mean any person who reimburses the broker for any purpose.

   (2) The term “customer” means an entity who engages a trade waste broker to either

      (i) represent the entity for the purpose of securing trade waste removal by a licensed or registered provider, or

      (ii) to analyze the entity’s waste stream to recommend a cost efficient means of waste disposal or to make other recommendations with respect to related business practices.

  1. A trade waste broker shall maintain any records concerning its business including but not limited to: bills and purchase invoices (with notations identifying whether the bill or invoice was paid and, if so, the check number and date), deposit slips, copies of checks received from payors, bank statements, cancelled checks, tax returns (copies of Federal, State, and local returns with all supporting schedules), copies of accountants’ work papers, insurance policies, petty cash disbursement records, IRS W-2 forms, IRS W-4 forms, IRS 1099 forms, I-9 forms, internal memoranda concerning the trade waste broker’s finances or one or more customers or prospective customers of the broker, contracts, copies of cash receipts, documents reflecting electronic fund transfers, written correspondence, contract assignments, waste stream analyses, rate schedules, documents concerning route sales, discount rate lists, documents concerning mergers, acquisitions, subcontracts and asset sales, and all documents supporting, evidencing, or used to create the reports, books, journals, registers, and ledgers that the broker is required to maintain pursuant to this section.
  2. A trade waste broker must provide each payor with a written receipt for all cash payments. These receipts must include the name and address of the broker, the registration number of the broker, the date of the payment, the amount of the payment and the identity of the payor. The broker or the broker’s authorized agent must sign the receipt. The broker must then keep a duplicate copy of the receipt as part of its books and records in accordance with the requirements of subdivision (e).
  3. A trade waste broker must not make any payment in excess of one thousand dollars ($1,000) in cash or by check made payable to “Petty Cash”. A trade waste broker must not make any check payable to “Cash”.
  4. A trade waste broker must maintain a complete and accurate set of books of account reflecting the operation of the broker’s business. Such books may be maintained on a computerized accounting system. The books must be in accordance with Generally Accepted Accounting Principles and be kept on either a cash or an accrual basis of accounting. The books must be kept on a quarterly or monthly basis, as provided in this subdivision, and be brought up to date no later than thirty days after the end of each preceding quarter or month. The books shall include the following journals and ledgers:

   (1) Cash Receipts Journal showing for each payment received:

      (i) The date payment was received;

      (ii) The identity of the payor;

      (iii) The amount of the payment;

      (iv) The check number; and

      (v) A brief explanation of the purpose of the payment.

   (2) Cash Disbursements Journal showing for each payment made:

      (i) The date payment was made;

      (ii) The identity of the payee;

      (iii) The amount of the payment;

      (iv) The check number; and

      (v) A brief explanation of the purpose of the payment.

   (3) Payroll Journal showing:

      (i) The name of the employee;

      (ii) Job title and position of the employee;

      (iii) The home address of the employee;

      (iv) The social security number of the employee;

      (v) Gross pay;

      (vi) Deductions; and

      (vii) Net pay.

   (4) General Journal showing all non-cash transactions including adjusting entries, reversing entries, correcting entries, and reclassifying entries with explanations.

   (5) General Ledger maintaining an account for each kind of asset, liability, capital, income and expense accounts. Each posting to an account must include the date, folio page and amount. Balances of each account must be updated on a monthly basis.

   (6) Customer Subsidiary Ledger including a separate account for each of the broker’s customers, arranged alphabetically, showing:

      (i) The name of the customer;

      (ii) The customer’s billing address;

      (iii) Telephone number;

      (iv) The name, billing address and phone number of any licensee or registrant who will be removing customer’s waste;

      (v) A description of the services provided to the customer;

      (vi) Monthly charges to each customer;

      (vii) Monthly collections from each customer;

      (viii) The rate collected from customers (per cubic yard or ton where applicable);

      (ix) The date, check number and amount of payments received;

      (x) If the broker has arranged agreements between consumers and providers of trade waste removal, collection or disposal services, the name, billing address, and license or registration number of the provider of trade waste removal, collection or disposal who will serve the customer; and

      (xi) If the broker has arranged agreements between consumers and providers of trade waste removal, collection or disposal services, the rate the provider of trade waste removal, collection or disposal is paid to remove, collect or dispose of customer’s trade waste.

   (7) Accounts Payable Subsidiary Ledger showing for each account:

      (i) The date of purchase;

      (ii) The name of the vendor or supplier;

      (iii) The amount payable; and

      (iv) A brief explanation of the accounts payable item.

   (8) Other Subsidiary Ledgers must be kept for accounts that are not maintained elsewhere. This includes subsidiary ledgers for Loans and Notes Payable and Loans and Notes Receivable (which must include details of each loan and note including the date of the payment, the identity of the debtor or creditor, the form of the payment, and the check number, if applicable).

    1. A trade waste broker must maintain an annual financial statement in a form or computer format prescribed by the Commission. The financial statements must include a balance sheet, an income statement, a statement of cash flows and a statement of retained earnings or (if the broker is a sole proprietorship or partnership) capital.

   (2) The broker must retain the following records:

      (i) The balance sheet, including the balance for each group or type of asset, liability, and capital amount at the end of the accounting period.

      (ii) The income statement including the balance of each group or type of income and expense for the accounting period.

   (3) The following schedules must be included in the financial statement in support of the balance sheet and income statement:

      (i) A schedule of investments;

      (ii) Allowances for doubtful accounts;

      (iii) Prepaid expenses;

      (iv) Miscellaneous current and other assets;

      (v) Fixed assets, depreciation and accumulated depreciation;

      (vi) Notes payable and receivable;

      (vii) Taxes prepaid and accrued;

      (viii) Miscellaneous current and accrued liabilities;

      (ix) Capital stock;

      (x) Additional paid-in capital;

      (xi) Retained earnings;

      (xii) Intangible assets and accumulated amortization; and

      (xiii) Records related to any waste stream analysis performed.

   (4) Operating, administrative and general expenses must be summarized and shall include schedules as follows:

      (i) A payroll analysis with details of employee wages;

      (ii) A compensation schedule for officers, directors and owners;

      (iii) A revenue analysis;

      (iv) An analysis of interest paid and received; and

      (v) An amortization expense analysis.

  1. No later than six (6) months following the end of the trade waste broker’s fiscal year, all brokers must file a report on a form or computer format prescribed by the Commission. Such annual report must include the financial statement described in subdivision (f) of this section and other information and documents concerning the broker’s operations, including but not limited to: financial information reported on a calendar year basis, the management letter issued by the broker’s auditor to the broker, if any, information concerning affiliations with other licensees and brokers; information concerning the organization and control of the broker, corporate control over the broker, corporations controlled by the broker, officers and directors of the broker, and security holders of and voting powers within the trade waste broker’s business; and management, engineering and other contracts of the broker. The trade waste broker must certify, and the principal responsible for the broker’s financial affairs must swear under oath upon penalty of perjury, that the financial statement accurately reflects the broker’s accounts and financial operations.
  2. In the event that a revision of the report is required by the Commission subsequent to review by an auditor on the Commission’s staff, an amended report must be submitted to the Commission no later than the date specified by the Commission.
  3. The Commission may require that the financial statements required under this section be audited by an independent certified public accountant. The certified public accountant must not be employed by or related to the trade waste broker or any principal of the broker and must not have any financial interest in the broker or any principal of the broker. The auditor shall render an opinion regarding:

   (1) the results of the broker’s operations and cash flows for the broker’s fiscal year end and

   (2) whether the financial statements accurately reflect the financial position of the broker as of the balance sheet date. The auditor need not opine on paragraphs (3) and (4) of subdivision (f) of this section. The auditor must also issue a supplemental opinion on the broker’s compliance with the financial record-keeping and reporting requirements of the Commission. The supplemental opinion must detail every variance or deviation from the Commission’s requirements noted during the auditor’s examination of the broker’s financial books and records. The trade waste broker must certify, and the principal responsible for the broker’s financial affairs must swear under oath upon penalty of perjury, that the financial statement accurately reflects the broker’s accounts and financial operations. At the completion of the audit, the broker must obtain from the auditor copies of the accountant’s work papers.

  1. A trade waste broker must maintain a complete and accurate Customer Register on a form or in a computer format approved by the Commission, and file the Customer Register with the Commission as provided in paragraph (3) of this subdivision.

   (1) The Customer Register must contain a list of all customers currently served by the broker. This list must include the customer’s name and the name of an authorized representative of the customer, any trade name of the customer, the customer’s address(es) of service and billing address, the customer’s telephone number, the date on which services commenced, the total charge to the customer per month, and such other information as may be specified by Commission directives. Where, pursuant to 17 RCNY § 6-03, a trade waste broker collects fees from a commercial establishment for trade waste removal by a trade waste removal business required to be licensed pursuant to this chapter, such broker shall include in the customer register a description of the other services provided for the customer as required by 17 RCNY § 6-03(a)(iii) and shall retain for inspection by the Commission a copy of the customer’s request for such collection service as required by 17 RCNY § 6-03(a)(ii) and the contract governing the agreement to provide services.

   (2) If the broker has secured a contract or agreement between a customer and a provider of trade waste removal, collection or disposal services, the Customer Register shall state the name, billing address and license or registration number of the provider. Additionally, the Customer Register must include the date on which services commenced, the total charge to the customer per month, including the charge for brokering services, and such other information as may be specified by Commission directives.

   (3) A complete and up-to-date Customer Register must be filed twice each year: on January 30 for the period from June 1 through December 31, and on July 31 for the period from January 1 through June 30, or as often as ordered by the Commission. In the event that the Commission grants a new registration, the newly registered trade waste broker must submit its first Customer Register to the Commission no later than 90 days after the granting of its registration, unless otherwise directed by the Commission.

  1. A trade waste broker must maintain a register of all complaints that such broker receives from customers, licensees or registrants.
  2. All records, receipts, documents, journals, ledgers, registers, and books required by this section, must be maintained for five years unless the Commission directs otherwise. This period for record keeping will only be reduced if the Commission so directs in a specific case in writing. The Commission may in specific instances, in its discretion, require more or less exacting record-keeping and reporting requirements and may require the retention of identified records for a period of time exceeding five years.
  3. All records, receipts, documents, journals, ledgers, registers, and books that must be maintained pursuant to this section, must be made available for inspection and audit by the Commission. The Commission may conduct an inspection or audit at the trade waste broker’s place of business or at the offices of the Commission. The broker shall cooperate with the representatives of the Commission conducting any such inspection or audit.
  4. If any due date under this section falls on a weekend or City holiday, the due date shall be deemed to be the first business day following such weekend or holiday.

§ 6-05 Compliance with Applicable Law and Regulation.

All trade waste brokers shall at all times comply with all the laws, rules and regulations of Federal, State and local governmental authorities having jurisdiction over any of the brokers’ activities. Failure to comply with these laws, rules or regulations shall be grounds for suspension and/or revocation of the registration and, in addition to any other penalty provided by law, the imposition of penalties pursuant to 17 RCNY § 1-04.

§ 6-06 Agreements and Contracts with Customers; Service to Customers.

(a) Trade waste removal providers. A trade waste broker may only arrange for trade waste removal services to be provided by haulers licensed or registered by the Commission, in accordance with Section 16-505 of the Code.
  1. Term and form of contract; requirements; service and discontinuation of service; increase of rates.

   (1) A contract for the services of a trade waste broker entered into after the effective date of this rule shall not exceed two (2) years in duration.

   (2) A contract to provide the services of a trade waste broker entered into prior to the effective date of this rule must terminate on the date provided therein or shall be deemed to terminate no later than two (2) years following such effective date, whichever date is earlier.

   (3) A written contract to provide the services of a trade waste broker that contains no provision regarding duration must be terminable at will by either party upon fourteen (14) days’ written notice to the other party.

   (4) An oral agreement between a customer and a trade waste broker must be terminable at will by either party upon fourteen (14) days’ written notice to the other party.

   (5) Where a broker is arranging for an agreement between a customer and a licensee, a written contract must provide that the licensee will arrange for removal of the customer’s waste from the location designated by the customer, and state the time the waste removal will begin and the rate the customer will pay the licensee. Where the services to be provided by the broker also include evaluation or analysis of the waste stream, the written contract must provide a brief description of such evaluation or analysis the broker will perform and the rate the customer will pay to either the broker or the licensee. Nothing in this provision should be construed to prevent a broker from negotiating terms at variance with the standard form contract, except that a broker shall not vary such contract in any manner inconsistent with Chapter 1 of Title 16-A of the Code or any provision of these rules.

   (6) A trade waste broker must comply with the terms of service and any other terms set forth in the written contract or oral agreement with the customer. A contract agreed to in writing should not be altered without the written agreement of the customer or authorized representative.

   (7) The broker must provide the customer with any other additional informational notices required by the Commission throughout the term of service to the customer by the broker.

  1. Written contract. At the time service to a customer is commenced, the trade waste broker must take all steps necessary to attempt to reach an agreement with the customer on the terms and conditions of the service to be provided. Within forty (40) days of the commencement of service, the broker must prepare a written contract that clearly and legibly sets forth the terms and conditions of the agreement negotiated by the broker and the customer and deliver such contract to the customer. The contract must provide that it is only effective upon being dated and signed by the broker and the customer or authorized representative. Additionally, the contract must specify that a change of any term or condition of such contract must be made in writing, dated, and signed by both the broker and the customer or authorized representative before such term or condition takes effect. The proposed contract offered by the trade waste broker must be accompanied by a notice that states: “You are not required to sign this contract. If you have any questions or complaints, call the Business Integrity Commission at (212) 435-0600.” The broker must provide one (1) copy of such signed and dated contract and a copy of any signed and dated amendments to the customer or authorized representative.
  2. Customer’s decision not to sign a written contract. A customer is not required to sign a written contract. In the event a customer fails or refuses to sign a contract that has been tendered to the customer, pursuant to Subdivision (d) of this section a broker will be deemed to have complied with such subdivision if the broker complies with the requirements in Paragraphs (1) through (3) of this subdivision. Where a written contract with a customer has not been obtained by the trade waste broker, the broker must: (1) Demonstrate that a written contract has been tendered to the customer in accordance with Subdivision (d) of this section, within forty (40) days of the commencement of service; (2) Keep a copy of the contract tendered on file along with the signed returned postal receipt for a period of one (1) year after service to the customer ends; and (3) Make available to the Commission upon its request a copy of the contract and the return receipt.
  3. Liability for negligence. No contract or contract amendment between a broker and a customer may provide that the broker is exempt from liability for damage caused by the broker’s negligence or the negligence of any of its agents.
  4. Standard bills, statements, invoices.

   (1) A broker must provide a written bill, statement, or invoice at least once every month to each customer to which such broker provides services. Such bill, statement, or invoice must clearly contain all of the following:

      (i) The trade waste broker’s name, address, telephone number, and registration number;

      (ii) The customer’s name and complete address;

      (iii) The maximum rates in effect with a statement indicating that the rates so identified are maximum legal rates and that lower rates may be lawfully charged;

      (iv) The negotiated rate per cubic yard or per one hundred (100) pounds on which the invoice is based;

      (v) An itemized list of charges detailing the cubic yards or weight of putrescible waste removed, recyclables removed, and any additional charges;

      (vi) Where the customer is being charged on a “flat” or “average” billing basis: a. The total charges for waste removal for the billing period; b. An itemized statement of the estimated volume or weight of the putrescible waste removed and the charge for the removal of such waste; c. An itemized statement of the estimated volume or weight, if any, of the recyclable waste removed and the charge for the removal of such waste; and d. A statement as to the method by which the estimated volume or weight was determined; and

      (vii) A separate statement of sales tax collected.

   (2) When the trade waste broker has brokered an agreement between a customer and provider of trade waste removal, collection, or disposal services, the broker must provide a notice to customers as follows, on a form approved by the Commission: NOTICE TO CUSTOMERS – The New York City Business Integrity Commission regulates the maximum rate your licensed trade waste hauler may charge. If you should have a question or a complaint concerning waste removal, contact the New York City Business Integrity Commission.

   (3) If all trade waste being transported is exempt waste under 17 RCNY § 5-02(a)(3), the Notice shall be as follows: NOTICE TO CUSTOMERS – If you have a question or a complaint concerning waste removal, contact the New York City Business Integrity Commission.

§ 6-07 Employee Information.

A trade waste broker shall provide to the Commission the names of any employees hired or to whom offers of employment are extended subsequent to the issuance of a registration and the information required in regard to employees and such prospective employees on the application for a trade waste broker registration.

Subchapter G: Conduct of Class 1 Registrants Removing Their Own Waste and Class 2 Registrants Granted Exemption from Licensing Requirements

§ 7-01 Display of Registration.

A registrant must conspicuously display the registration issued by the Commission at the registrant’s place of business.

§ 7-02 Compliance with Applicable Law Required.

All registrants shall at all times comply with all the laws, rules and regulations of Federal, State and local governmental authorities having jurisdiction over any of the registrants’ activities, including, but not limited to, rules and regulations of the Department of Environmental Protection, the Department of Health, the Department of Sanitation and the Department of Transportation concerning the vehicle specifications, sanitary requirements, handling, transport, receipt, transfer or disposal of trade waste, regulated medical waste or waste containing asbestos or other toxic or dangerous material. Failure to comply with these laws, rules or regulations shall be grounds for suspension and/or revocation of the registration and, in addition to any other penalty provided by law, the imposition of penalties pursuant to 17 RCNY § 1-05.

§ 7-03 License Plates.

(a) Upon issuance of a registration, the Commission shall issue to a registrant who removes trade waste generated in the course of operation of his or her business and to a registrant exempt from the licensing requirements of this chapter two (2) license plates for each vehicle that will transport trade waste, pursuant to such registration and for which a fee has been paid to the Commission, pursuant to 17 RCNY § 2-07. A registrant shall not permit a vehicle to be used in the course of collecting, removing, or disposing of waste that has not been identified and covered by the registration and for which a fee has not been paid. A license plate issued by the Commission for such a covered and identified vehicle must not be transferred to any other vehicle. Upon the sale or dissolution of the business of a registrant, or upon the suspension, revocation, or expiration of a Commission-issued registration, such plates must be immediately surrendered to the Commission. All license plates issued by the Commission are the property of the Commission, and the Commission reserves the right to reclaim such plates at any time. Notwithstanding any other provision of this chapter, the penalty for violation of this section shall not exceed five thousand dollars ($5,000) for each such violation.
  1. Each vehicle must have the name and business address of the registrant lettered legibly in letters and figures not less than eight (8) inches in height, in a color that contrasts with the color of the vehicle, on each side of the vehicle body or upon each door of the vehicle cab, in a manner prescribed by the Commission, at all times.

§ 7-04 Recycling Requirements.

(a) A registrant shall comply with the requirements for recycling set forth in subdivisions (a) through (c) of 17 RCNY § 5-12.
  1. A registrant that collects its own waste and receives free dump privileges at Department of Sanitation solid waste disposal facilities shall provide for source separation of designated recyclable materials (as defined in 17 RCNY § 5-12) from solid waste and organic waste, if applicable.
  2. A registrant that is also a designated covered establishment shall comply with the requirements for disposing of organic waste set forth in subdivisions (a) through (c) of 17 RCNY § 5-12. The registrant shall dispose of the organic waste either directly to an organic waste processing facility for purposes of composting, aerobic digestion or anaerobic digestion, or to a putrescible transfer station permitted or licensed by the State and the Department of Sanitation to handle source separated organic waste, and that has represented that it will deliver such organic waste to an organic waste processing facility.
  3. Any registrant that is also a designated covered establishment that delivers organic waste directly to an organic waste processing facility shall enter into a written agreement with such facility for the delivery of organic waste that identifies the name and contact information of the organic waste processing facility owner and its location. Such agreement shall be signed by both the registrant and the facility owner, and identify the quantity of estimated organic waste to be delivered on a monthly or quarterly basis. A copy of such written agreement shall be provided to the Commissioner upon request.
  4. Registrants shall submit to the Commission quarterly reports, which shall state the name and address of each putrescible solid waste transfer station, non-putrescible solid waste transfer station, organic waste processing facility, or other facility used during the quarter for which the report is submitted. Such report shall also state the total volume and type of designated recyclable materials, and/or the total volume and type of commingled designated and non-designated materials, and/or the total volume and type of organic waste delivered to putrescible solid waste transfer stations, non-putrescible solid waste transfer stations, organic waste processing facilities, or other facilities during the quarter for which the report is submitted. Where applicable, such report shall also state the volume of construction waste delivered to construction and demolition debris transfer stations during the quarter for which the report is submitted. The report for the quarter ending on March 31 shall be due on April 30; the report for the quarter ending on June 30 shall be due on July 30; the report for the quarter ending on September 30 shall be due on October 30; and the report for the quarter ending on December 31 shall be due on January 30. In the event any of those dates falls on a weekend or holiday, the report shall be due the next business day.

§ 7-05 Operations.

A registrant that removes, collects or disposes of trade waste shall keep the sidewalk, flagging, curbstone and roadway abutting any area from which waste is removed free from obstruction, garbage, litter, debris and other offensive material resulting from the removal by the registrant of trade waste and shall comply with the requirements for operation contained in subdivisions (a) through (q) of 17 RCNY § 5-08 and 17 RCNY § 5-11.

§ 7-06 Recordkeeping.

(a) A registrant must maintain written policies and procedures regarding compliance with all of the laws, rules and regulations of Federal, State and Local government authorities having jurisdiction over any of the registrant’s activities concerning vehicle specifications, sanitary requirements, handling, transport, receipt, transfer or disposal of trade waste, regulated medical waste or waste containing asbestos or other hazardous, toxic or dangerous material.
  1. A registrant must maintain all Report of Motor Vehicle Accident (MV-104) forms and any other forms that the registrant is required to file with the New York State Department of Motor Vehicles related to a crash.
  2. A registrant must maintain all determinations by any Federal, State, or Local governmental agency or authority against such registrant, including but not limited to any judgment, decree, order, finding by or settlement agreement with such governmental agency or authority.

Subchapter H: Workers’ Rights Information

§ 8-01 Display and Distribution of Workers’ Rights Information.

(a) Each licensee or registrant shall post and keep posted a notice, to be provided by the Commission, informing employees engaged in operating vehicles or handling trade waste information regarding the maximum number of hours such employees are permitted to work in a twenty-four hour period; the minimum wage such employees must be paid; any required worker safety trainings for such employees; information regarding what safety equipment must be provided by licensees or registrants; a description of how to contact the Commission to log a complaint; and a list of additional government agencies that accept complaints about violations of workers’ rights, including, but not limited to the New York state attorney general, the New York state department of labor, and the United States department of labor, and contact information for such agencies.
  1. Licensees and registrants shall post such notice to employees in each office, garage or lot in a conspicuous place, or in a conspicuous place where notices to employees are customarily posted. Each licensee or registrant shall take steps to ensure that such notices are not altered, defaced, or covered by other material.
  2. Licensees and registrants shall distribute such notice to their employees by mail and email and shall provide such notice to all new employees within 30 days of hire.

Chapter 2: Markets

Subchapter A*: Public Wholesale Markets

§ 11-01 Scope and Construction.

(a) This subchapter shall be applicable to each public wholesale market.
  1. Any act prohibited by this subchapter shall extend to and include the permitting, allowing, causing, procuring, aiding or abetting of such act.
  2. No provision in this subchapter shall make unlawful the act of any employee of the Commission or other government official in the performance of his or her official duties.
  3. Any act prohibited by this subchapter not otherwise prohibited by law or any other government rule or regulation shall be lawful if performed pursuant to and in strict compliance with written authorization by the Chairperson.
  4. This subchapter is in addition to and supplements all laws, rules and regulations of the City and State of New York and federal government and all terms and conditions set forth in any lease, license, registration or permit.

§ 11-02 Definitions.

For the purposes of this subchapter, the following terms shall have the following meanings:

Applicant. “Applicant” shall mean, if a business entity submitting a registration application, the entity itself and all the principals thereof; if a person submitting an application for a photo identification card, such person.

Code. “Code” shall mean the Administrative Code of the City of New York.

Chairperson. “Chairperson” shall mean the Chairperson of the New York City Business Integrity Commission.

Commission. “Commission shall mean the New York City Business Integrity Commission. The term “Commission” also shall refer to an action of the Chairperson of the Commission, taken under delegation from the Commission.

Cooperative association. “Cooperative association” shall mean the cooperative association established, with the approval of the Commission, by wholesalers in a market area to assist with the management of the market area.

Employee. “Employee” shall mean a person who works or has been hired to work in a market on a full-time, part-time or seasonal basis for a wholesaler, market business, or a wholesale trade association, but shall not include persons hired to work on an occasional basis. A person hired to work on an occasional basis is any person who works or has been hired to work for a wholesaler or market business and works no more than five (5) days in any given month for the same employer. Any person who works for a wholesaler or a market business is presumed to be an employee unless the presumption is overcome by credible evidence produced by the person and/or the employer.

Hearing officer. “Hearing officer” shall mean a person appointed or designated to conduct hearings pursuant to the procedures set forth in 17 RCNY § 11-21(b) relating to the suspension or revocation of a license, registration, or photo identification card. “Hearing officer” shall not include a person assigned to preside over a case that has been referred to the Office of Administrative Trials and Hearings.

Labor union or labor organization. “Labor union” or “labor organization” shall mean a union or organization that represents or seeks to represent, for purposes of collective bargaining, employees directly involved in the movement, handling or sale of goods in the markets. Notwithstanding the foregoing, such terms shall not include:

   (i) a labor union that represents or seeks to represent fewer than two hundred (200) employees in any public wholesale market or combination of public wholesale markets in the City of New York;

   (ii) a labor union representing or seeking to represent clerical or other office workers, construction or electrical workers, or any other workers temporarily or permanently employed in a public wholesale market for a purpose not directly related to the movement, handling or sale of goods in such market; or

   (iii) an affiliated national or international labor union of local labor unions required to register pursuant to 17 RCNY § 11-10.

Market business. “Market business” shall mean any business located or operating within a market that is engaged in providing goods or services to wholesalers or retail purchasers in such market that are related to the conduct of a wholesale business or the purchase of food or related agricultural products or horticultural products by retailers or others, or that receives such goods within a market for delivery, forwarding, transfer or further distribution outside such market. “Market business” shall include, but not be limited to, the provision of security services within a market, the provision of services related to the collection of fees for entrance into a market and parking, the supply of ice, and the unloading, loading, transfer or distribution of food or related agricultural products or horticultural products. The term “market business” shall not include a business located or operating within a market the main offices of which are located outside a market and which

   (i) supplies the food or related agricultural products or products sold by wholesalers or is engaged in the trucking or shipping thereof to the market or

   (ii) supplies electrical, plumbing, construction, renovation or other similar services to wholesalers in the market and does not earn fifty (50) percent or more of its income from such wholesalers.

Market manager. “Market manager” shall mean a person designated by the Commission to supervise operations in a public wholesale market. Such supervision shall include, without limitation: implementation of these rules and the authority to enforce violations of any provision of Chapter 1-B of Title 22 of the Code or such rules; supervision of Commission staff employed in the markets; response to complaints relating to the operation of businesses in the market; examination of documents required to be maintained by a registrant pursuant to Chapter 1-B of Title 22 of the Code or this subchapter; referrals, where appropriate, to any law enforcement, adjudicatory, investigative or prosecutorial agency of matters occurring within the markets; and such other functions and duties as the Commission may assign consistent with the provision of Chapter 1-B of Title 22 of the Code or the rules promulgated pursuant to such chapter and this subchapter.

Officer. “Officer” shall mean any person holding an elected position or any other position involving participation in the management or control of a wholesale trade association required to register pursuant to 17 RCNY § 11-12 or of a labor union or labor organization required to register pursuant to 17 RCNY § 11-10.

Person. “Person” shall include entities as well as natural persons unless the context indicates otherwise.

Principal. “Principal” shall mean, of a sole proprietorship, the proprietor; of a corporation, every officer, director and stockholder holding ten (10) percent or more of the outstanding shares of the corporation; of a partnership, all the partners; of another type of business entity, the chief operating officer or chief executive officer, irrespective of organizational title, and all persons having an ownership interest of ten (10) percent or more; and with respect to all business entities, all other persons participating directly or indirectly in the control of such business entity. Where a partner or stockholder holding ten (10) percent or more of the outstanding shares of a corporation is itself a partnership or a corporation, a “principal” shall also include the partners of such partnership or the officers, directors and stockholders holding ten (10) percent or more of the outstanding shares of such corporation, as is appropriate. For the purposes of this subchapter

   (1) a person shall be considered to hold stock in a corporation where such stock is owned directly or indirectly by or for

      (i) such person,

      (ii) the spouse of such person (other than a spouse who is legally separated from such person pursuant to a judicial decree or an agreement cognizable under the laws of the state in which such person is domiciled),

      (iii) the children, grandchildren and parents of such person,

      (iv) a partnership in which such person is a partner, in proportion to the partnership interest of such person, and

      (v) a corporation in which any of such person, the spouse, children, grandchildren and parents of such person own fifty (50) percent or more in value of the stock;

   (2) a partnership shall be considered to hold stock in a corporation where such stock is owned, directly or indirectly, by or for a partner in such partnership; and

   (3) a corporation shall be considered to hold stock in a corporation that is an applicant where such corporation holds fifty (50) percent or more in value of the stock of a third corporation that holds stock in the applicant corporation.

Public wholesale market or market. “Public wholesale market” or “market” shall mean any building, structure or place owned by the City or located on property owned by the City or under lease to or in the possession of the City or any part of a street, avenue, parkway, plaza, square or other public place that has been designated as a public market by resolution of the former Board of Estimate of the City or a local law enacted by the City Council to be used or intended to be used for the wholesale buying, selling or keeping of food, flowers or ornamental plants; except that the term “public wholesale market” shall not, unless otherwise set forth in this subchapter, include any building, structure or place within the market area as defined in 17 RCNY § 12-02. For purposes of this subchapter, the term “public wholesale market” shall also include the area adjacent to the New York City Terminal Cooperative Produce Market beginning at the point where the westerly street line of Garrison Avenue intersects the northerly street line of Lafayette Avenue; thence easterly along the northerly street line of Lafayette Avenue to the easterly street line of Halleck Street; thence southerly along the easterly street line of Halleck Street to the southerly street line of Ryawa Avenue; thence westerly along the southerly street line of Ryawa Avenue to the westerly street line of Manida Street; thence northerly along the westerly street line of Manida Street to the southerly street line of Viele Avenue; thence westerly along the southerly street line of Viele Avenue to the westerly street line of Tiffany Street; thence northerly along the westerly street line of Tiffany Street to the southerly street line of Oak Point Avenue; thence westerly along the southerly street line of Oak Point Avenue to the westerly street line of Barry Street; thence northerly along the westerly street line of Barry Street to the southerly street line of Leggett Avenue; thence westerly along the southerly street line of Leggett Avenue to the westerly street line of Garrison Avenue; thence northerly along the westerly street line of Garrison Avenue to the point of beginning, and the premises known as 240 Food Center Drive.

Registration. “Registration” shall mean:

   (a) wholesaler registration or market business registration as required pursuant to section 22-253 of the Code and 17 RCNY § 11-04;

   (b) labor union or labor organization registration as required pursuant to section 22-264 of the Code and 17 RCNY § 11-10; or (c) wholesale trade association registration as required pursuant to section 22-265 of the Code and 17 RCNY § 11-12.

Wholesale trade association. “Wholesale trade association” shall mean an entity, the majority of whose members are wholesale businesses and/or market businesses, having as a primary purpose the promotion, management or self-regulation of a market or such wholesale businesses or market businesses within such market or the facilities utilized by such businesses, including, but not limited to a corporation, cooperative, unincorporated association, partnership, trust or limited liability partnership or company, whether or not such entity is organized for profit, not-for-profit, business or non-business purposes. The term “wholesale trade association” shall include a cooperative association. The term “wholesale trade association” shall not include any entity the majority of whose members are primarily engaged in retail sales outside a public wholesale market.

Wholesaler or wholesale business. “Wholesaler” or “wholesale business” shall mean any business engaged in selling food or related agricultural products or horticultural products at wholesale prices for resale by a wholesaler or retailer or for use by an institution or other similar establishment, whether or not such business also sells directly to the public, except that such terms as used in this subchapter shall not include a “wholesaler” or “wholesale seafood business” as defined in 17 RCNY § 12-02; provided, however, that a wholesale business to which customers do not regularly come to pick up purchases and that does not deal from such location primarily in perishable products shall not be subject, unless otherwise provided by rule of the Commission, to the provisions of sections 22-252, 22-254 and 22-255 of chapter 1-B of title 22 of the Code and the rules promulgated pursuant to such sections.

§ 11-03 Terms and Fees.

(a) A registration shall be valid for three (3) years and may be renewed for three (3) year periods thereafter.
  1. The fee for registration shall be four thousand dollars ($4,000), and the fee for renewal of such registration shall be four thousand dollars ($4,000).
  2. The fee for a permanent photo identification card shall be one hundred dollars ($100), and the fee for the replacement of a photo identification card that has been lost or stolen shall be twenty dollars ($20). The Chairperson may waive the fee for a permanent photo identification card if the applicant has applied for and paid the fee for a photo identification within the last six (6) months.
  3. The fee for fingerprinting pursuant to sections 22-259 (pertaining to wholesale businesses, market businesses and photo identification cards), 22-264 (pertaining to labor unions and labor organizations and officers), and 22-265 (pertaining to trade associations and officers) of the Code shall be as determined by the New York State Division of Criminal Justice Services.
  4. Investigative fee. The fee for a background investigation pursuant to subdivision d or e of section 22-252 shall be two hundred dollars ($200) and the fee for a background investigation pursuant to subdivision b of section 22-253, subdivision b of section 22-264, or subdivision b of section 22-265 of the Code shall be six hundred dollars ($600).
  5. A wholesale business or a market business shall be responsible for the payment of any fee imposed by this section with respect to an employee of such business or any person seeking to become an employee of such business.
  6. The fees provided for in this section shall be payable to the Commission.

§ 11-04 Wholesale Business and Market Business Registration Required.

No person shall operate a wholesale business or market business in a public wholesale market without first receiving a registration or registration number from the Commission.

§ 11-05 Application for a Wholesale Business or Market Business Registration.

(a) An application for registration or renewal thereof must be made on a form prescribed by the Commission. The application form must be certified under penalty of perjury and signed by all principals of the applicant business. The registration application must include all of the following information:

   (1) the name, address, e-mail address designated for communications with the business that will be checked regularly, and telephone number(s) of the business submitting such application;

   (2) the names, addresses, e-mail address(es), telephone number(s) and social security numbers of all current and past principals of the applicant and a description of the positions occupied or ownership interest held by each such principal;

   (3) the names, job titles, social security numbers, addresses, and e-mail address of all other employees or agents of the applicant;

   (4) a list of vehicles used in the course of the applicant’s business;

   (5) employment and business background information on the principals such as the principal’s employment history, wholesale or market business interests, and any related business interests;

   (6) if the applicant is doing business under an assumed name, a Certification of Assumed Name, certified by the County Clerk if a sole proprietorship or partnership, or by the Secretary of State if a corporation;

   (7) if the applicant business is a sole proprietorship, a notarized copy of the business certificate certified by the County Clerk;

   (8) if the applicant is a corporation, a copy of the certificate of incorporation;

   (9) if the applicant is a partnership, a copy of partnership papers, certified by the County Clerk;

   (10) a listing of the names and addresses of any person having a beneficial interest in the applicant and the amount and nature of such interest;

   (11) a listing of any determination by a Federal, State, or City regulatory agency of a violation by such applicant of laws or regulations relating to the conduct of the applicant’s business where such violation has resulted in the suspension or revocation of a permit, license, or other permission required in connection with the operation of such business or in a civil fine, penalty, settlement, or injunctive relief;

   (12) a listing of all criminal convictions, in any jurisdiction, of the applicant, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law;

   (13) a Federal or State tax identification number; and

   (14) such other information that the Commission deems appropriate.

  1. Notwithstanding any provision of this subchapter:

   (1) the Commission may, when there is reasonable cause to believe that an applicant for a registration or any or all of the principals of such applicant does not possess good character, honesty, and integrity, require that such applicant or any or all of the principals of such applicant be fingerprinted by a person designated for such purpose by the Commission, pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records, and provide to the Commission the disclosure required by the form provided by the Commission. The Commission also may require such additional information, in lieu of or in addition to such fingerprinting and/or disclosure, including without limitation documents and/or an in-person interview, as the Commission determines is appropriate and reasonable to render a determination. After providing notice and an opportunity to be heard, the Commission may refuse to register such applicant for the reasons set forth in Section 22-259 of the Code, or defer a decision whether to register such applicant when there is a pending indictment or criminal action or pending civil or administrative action as provided in Paragraph (ii) of Subdivision b of Section 22-259 of the Code.

   (2) If at any time after the registration of a wholesale business or a market business the Commission has reasonable cause to believe that any or all of the principals of such business do not possess good character, honesty, and integrity, the Commission may require that any or all of the principals be fingerprinted by a person designated for such purpose by the Commission, pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records, and provide the disclosure required by the form provided by the Commission. The Commission also may require additional information in lieu of or in addition to such fingerprinting and/or disclosure, including without limitation documents and an in-person interview, as the Commission determines is appropriate and reasonable to render a determination.

  1. If an application for the renewal of a registration is not submitted to the Commission within the time period required by the Commission, the Commission may reject the renewal application and require the applicant to file a new application for registration. If a new application is required by the Commission, the provisions pertaining to the application process as set forth in Chapter 1-B of Title 22 of the Code and this subchapter shall apply.

§ 11-06 Photo Identification Cards Required.

(a) No person who is a principal or employee of any wholesale business or market business operating in a public wholesale market, or any other business operating in a public wholesale market located on City property, shall perform any function in such market without having been issued a photo identification card by the Commission pursuant to the provisions of this subchapter and section 22-252 of the Code.
  1. Notwithstanding the foregoing, any person required to have a photo identification card who has filed an application therefor and obtained a temporary photo identification card, may continue to perform such functions unless and until

   (1) the application of such person for a photo identification card has been denied, or

   (2) the temporary photo identification card of such person has been revoked, or

   (3) in cases where the Commission has required such person to be fingerprinted, submit background information and/or appear for an interview pursuant to sections 22-252 and 22-259 of the Code and 17 RCNY § 11-08.1, such person has failed, within the time period prescribed by the Commission, to be fingerprinted, submit the required information, or appear for an interview.

  1. Photo identification cards shall be in the possession of principals and employees of wholesale businesses, market businesses or other businesses at all times when such persons are in the market, and shall be produced upon demand to an authorized employee or agent of the Commission.
  2. Where a photo identification holder changes employment in the market, the photo identification holder shall notify the market manager of the change of employment and submit the transfer form provided by the market manager. The photo identification holder shall also be required to apply for a new photo identification card and pay the requisite fee in accordance with the provisions of this subchapter. A wholesale or market business shall immediately notify the market manager of the addition of or other change of status of a photo identification holder.
  3. A person who discontinues his or her employment in the market or who ceases to be a principal of a wholesale or market business shall immediately surrender his or her photo identification card to the market manager. A business that terminates any employee or principal possessing a photo identification card shall obtain that employee’s or principal’s photo identification card and surrender it to the market manager.
  4. No wholesale or market business shall continue to employ a person who is required to but does not possess a valid photo identification card issued in accordance with the provisions of this subchapter.
  5. The photo identification card of a person who is a principal or employee of more than one wholesale business or market business operating in a public wholesale market shall reflect the multiple affiliations of such person.

§ 11-07 Temporary Photo Identification Cards and Visitors Passes.

(a) The Commission may designate the cooperative association of any public wholesale market to issue temporary photo identification cards to persons required to have a photo identification card within such market. The duties of such designated cooperative association are to be performed pursuant to the provisions of the Code and this subchapter relating to such temporary photo identification cards and such terms and conditions as the Commission may impose.
  1. Such temporary photo identification cards shall be valid for a period of one year but shall cease to be valid upon the issuance by the Commission of a permanent photo identification card or the occurrence of any of the events set forth in paragraphs (1), (2) or (3) of subdivision (b) of 17 RCNY § 11-06.
  2. The Commission may designate the cooperative association of any public wholesale market to issue visitor passes at the public wholesale market in which it operates. The duties of such designated cooperative association are to be performed pursuant to the provisions of the Code and this subchapter relating to such visitors passes and such terms and conditions as the Commission may impose.
  3. Any cooperative association designated by the Commission to issue temporary identification cards may impose fees and set amounts for such fees for the performance of the functions set forth in this section with the prior written permission of the Commission. No change in a fee or amount of such fee imposed pursuant to this section shall be made without prior written permission of the Commission.
  4. Temporary photo identification cards and visitors passes shall be in the possession of all persons required to have them at all times when such persons are in the market, and shall be produced upon demand to an authorized employee or agent of the Commission.

§ 11-08 Application for a Photo Identification Card.

An application for a photo identification card shall include the information requested in the application form provided by the Commission. The application shall be signed and certified under penalty of perjury by the applicant. The application shall include, but not be limited to, the following information: name, address and telephone number(s) of the applicant, the applicant’s employment history, the applicant’s business interests, and any other such information required by the Commission.

§ 11-08.1 Photo Identification Card; Investigation by the Commission.

Notwithstanding any provision of this subchapter, the Commission may, when there is reasonable cause to believe that an applicant for or holder of a photo identification card who is a principal or employee of a wholesale or market business does not possess good character, honesty and integrity, require that such person be fingerprinted by a person designated for such purpose by the Commission, pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records, and provide to the Commission the disclosure required by the form provided by the Commission. The Commission also may require such additional information in lieu of or in addition to such fingerprinting and/or disclosure, including without limitation documents and/or an in-person interview, as the Commission determines is appropriate and reasonable to render a determination.

§ 11-09 Wholesale Business and Market Business Operations.

(a) Registration not transferable. Wholesale businesses and market businesses must not transfer their registration or registration numbers as part of the sale of such businesses.
  1. Furnishing and display of registration or registration numbers. A wholesale business or market business must conspicuously and prominently display its registration certificate issued by the Commission at its place of business.
  2. Recordkeeping. Wholesale businesses or market businesses must retain copies of all invoices and other documents reflecting deliveries or payments from or to suppliers and customers. Electronic copies of such books and records are acceptable. Such bills and records must accurately reflect the amount of goods or services involved in each transaction, and must, along with all other records produced or received in the normal course of business, be retained for a minimum of thirty-six (36) months, and must be made available for immediate inspection and/or copying upon request by the market manager, a designee of the market manager, or an employee of the Commission.
  3. Workers’ Compensation Insurance. Wholesale businesses or market businesses must submit proof that they have obtained the required Workers’ Compensation and Disability Benefits Coverage or that they are exempt from Section 57 of the Workers’ Compensation Law and Subdivision 8 of Section 220 of the Disability Benefits Law.

   (1) Proof of coverage can be established by submitting the following Workers’ Compensation Board forms:

      (i) C-105.2 Application for Certificate of Workers’ Compensation Insurance;

      (ii) DB-120.1 Employer’s Application for Certificate of Compliance with Disability Benefits Law;

      (iii) S1-12 Affidavit certifying that compensation has been secured.

   (2) Proof that no coverage is required can be provided by submitting the following Workers’ Compensation Board form:

      (i) C-105.21 Statement that applicant does not require Workers’ Compensation or Disability Benefits Coverage.

  1. Liability insurance. Wholesale businesses or market businesses must procure and maintain throughout the term of the registration the following types of insurance against claims for injuries to persons or damages to property which may arise from or in connection with the business:

   (1) Commercial general liability insurance with liability limits of no less than one million dollars ($1,000,000) combined single limit per occurrence for bodily injury, personal, and property damage. The maximum deductible for such insurance shall be no more than twenty-five thousand dollars ($25,000).

   (2) Business automobile liability insurance covering every vehicle operated by the wholesale business or market business, whether or not owned by the business, and every vehicle hired by the applicant with liability limits of no less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage.

  1. The policy or policies of insurance required by this section must name the Commission as certificate holder and must be endorsed to state that the coverage shall not be suspended, voided, canceled, or reduced in coverage or in limits except upon sixty (60) days prior written notice to the Commission. Failure to maintain continuous insurance coverage meeting the requirements of these rules will result in revocation of the registration. Such policy or policies of insurance must be obtained from a company or companies duly authorized to do business in the State of New York with a Best’s rating of no less than A:X unless specific approval has been granted by the Commission to accept a company with a lower rating. A certificate of insurance effecting the required coverage and signed by a person authorized by the insurer to bind coverage on its behalf must be delivered to the Commission prior to the effective date of the registration. Delivery to the Commission’s offices may be made in person, by first class mail, or by e-mail to Licensing@bic.nyc.gov. A registrant must demonstrate that the registrant has secured the insurance coverage required pursuant to this section and must maintain such required insurance coverage throughout the term of the registration.
  2. Wholesale businesses and market businesses shall be jointly and severally liable for any violation of Chapter 1-B of Title 22 of the Code or of this subchapter by any of their employees or agents.
  3. Each wholesale business and market business must permit the Commission, or any person designated by the Commission, to enter its premises whenever in the discretion of the Commission such entry is necessary.

§ 11-10 Labor Union and Labor Organization Registration Required.

Labor unions and labor organizations representing or seeking to represent employees directly involved in the movement, handling or sale of goods sold in any public wholesale market shall register with the Commission, unless such labor union or labor organization is exempt from registration pursuant to subdivision 22-264(a) of the Code.

§ 11-11 Application for a Labor Union and Labor Organization Registration.

(a) An application for a labor union or labor organization registration pursuant to section 22-264 of the Code, or for a renewal of such registration, shall be made on a form prescribed by the Commission. The application shall be certified under penalty of perjury and signed by an officer of the applicant. The application shall include, but not be limited to, the following information:

   (1) the names of all officers and agents;

   (2) all criminal convictions, in any jurisdiction, of such labor union or labor organization;

   (3) any criminal or civil investigation of such labor union or labor organization by a federal, state or local prosecutorial, investigative or regulatory agency;

   (4) all civil or administrative proceedings to which such labor union or labor organization has been a party involving allegations of racketeering, including but not limited to offenses listed in subdivision nineteen hundred sixty-one of the Racketeer Influenced and Corrupt Organization statute (18 U.S.C. §§ 1961 et seq.) or of an offense listed in subdivision one of section 460.10 of the penal law, as such statutes may be amended from time to time;

   (5) judicial or administrative consent decrees entered into by such labor union or labor organization in the five

   (5) year period preceding the date of the application; and

   (6) the appointment of an independent auditor, monitor, receiver, administrator or trustee to oversee any activities of such labor union or labor organization in the five

   (5) year period preceding the date of the application. Notwithstanding the foregoing, no labor union or labor organization shall be required to furnish information pursuant to this subdivision which is already included in a report filed by the labor union or labor organization with the Secretary of Labor pursuant to 29 U.S.C. §§ 431 et seq. or 29 U.S.C. §§ 1001 et seq. if a copy of such report, or of the portion thereof containing such information, is furnished to the Commission.

  1. An officer of a labor union or labor organization required to be registered with the Commission pursuant to subdivision 22-264(a) of the Code shall submit the information required by subdivision 22-264(b) of the Code on a form prescribed by the Commission.
  2. Notwithstanding any provision of this subchapter, where there is reasonable cause to believe that an officer of a labor union or labor organization does not possess good character, honesty and integrity, the Commission may require that such officer be fingerprinted by a person designated for such purpose by the Commission, pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records, and provide to the Commission the disclosure required by the form provided by the Commission. The Commission also may require such additional information, in lieu of or in addition to, such fingerprinting and/or disclosure, including without limitation documents and an in-person interview, as the Commission determines is appropriate and reasonable to render a determination.
  3. Any material change in the information submitted pursuant to subdivision (a) or (b) of this section shall be reported to the Commission by such union or organization or officer, in a signed and notarized writing, within thirty (30) calendar days thereof.
  4. After providing notice and opportunity to be heard, the Commission may disqualify an officer of a labor union or labor organization from holding office based on the grounds set forth in subdivision c of section 22-264 of the Code and in accordance with the procedure for such disqualification set forth in such subdivision.
  5. If an application for the renewal of a registration is not submitted to the Commission with the time period required by the Commission, the Commission may reject the renewal application and require the applicant to file a new application for a labor union and labor organization registration. If a new application is required by the Commission, the provisions pertaining to the application process as set forth in Chapter 1-B of Title 22 of the Code and of this subchapter shall govern.

§ 11-12 Wholesale Trade Association Registration Required.

Wholesale trade associations shall register with the Commission before operating in a public wholesale market.

§ 11-13 Application for a Wholesale Trade Association Registration.

(a) An application for a wholesale trade association registration pursuant to section 22-265 of the Code, or for a renewal of such registration, shall be made on a form prescribed by the Commission. The application shall be certified under penalty of perjury and signed by an officer of the applicant. The application shall include, but be not limited to, the following information:

   (1) the names of all members of such association;

   (2) the names of all persons holding office in such association; and

   (3) any criminal or civil investigation by a federal, state, or local prosecutorial, investigative or regulatory agency.

  1. An officer of a wholesale trade association required to be registered with the Commission pursuant to section 22-265 of the Code shall submit the information required by subdivision 22-265(b) of the Code on a form provided by the Commission.
  2. Notwithstanding any provision of this subchapter, when there is reasonable cause to believe that an officer of the trade association does not possess good character, honesty and integrity, the Commission may require that such officer be fingerprinted by a person designated for such purpose by the Commission, pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records, and provide to the Commission the disclosure required by the form provided by the Commission. The Commission also may require such additional information, in lieu of or in addition to such fingerprinting and/or disclosure, including without limitation documents and an in-person interview, as the Commission determines is appropriate and reasonable to render a determination.
  3. After providing notice and opportunity to be heard, the Commission may disqualify an officer from holding office in a wholesale trade association based on the grounds set forth in subdivision c of section 22-265 of the Code and in accordance with the procedure for such disqualification set forth in such subdivision.
  4. If an application for the renewal of a registration is not submitted to the Commission within the time period required by the Commission, the Commission may reject the renewal application and require the applicant to file a new application for a wholesale trade association registration. If a new application is required by the Commission, the provisions pertaining to the application process as set forth in Chapter 1-B of Title 22 of the Code and of this subchapter shall govern.

§ 11-14 Record Keeping Requirements for Wholesale Trade Associations.

(a) Wholesale trade associations shall retain copies of all invoices and other documents reflecting payment to and from wholesalers and market businesses, leases, sub-leases, union contracts, and all other records produced or maintained in the normal course of business for a minimum of thirty-six (36) months. Electronic copies of such books and records shall be acceptable.
  1. Such books and records shall be made available for immediate inspection and/or copying upon request by the market manager, a designee of the market manager or an employee of the Commission.

§ 11-15 Notification of Material Change in Information, Addition of Principal and Change in Composition of Business.

(a) An applicant for a registration or a photo identification card shall notify the Commission within ten (10) calendar days of any material change in the information submitted in an application or disclosure form submitted pursuant to this subchapter. Subsequent to the issuance of the registration or photo identification card, the registrant or photo identification card holder shall notify the Commission within thirty (30) calendar days of any material change in the information submitted in an application or disclosure form.
  1. A registrant shall provide the Commission with notice of at least ten (10) business days of the proposed addition of a new principal (other than a person that becomes a principal through the acquisition of outstanding shares of a business whose equity securities are registered under Federal and State securities laws and publicly traded on a national or regional stock or security exchange). The Commission may waive or shorten such period upon a showing that there exists a bona fide business requirement therefor. Except where the Commission determines within such period, based upon information available to it, that the addition of such new principal may have a result inimical to the purposes of this subchapter, the registrant may add such new principal pending the completion of review by the Commission. The registrant shall be afforded an opportunity to demonstrate to the Commission that the addition of such new principal pending completion of such review would not have a result inimical to the purposes of this subchapter. If upon the completion of such review, the Commission determines that such principal lacks good character, honesty and integrity, the registration shall cease to be valid unless such principal divests his or her interest, or discontinues his or her involvement in the business of such registrant, as the case may be, within the time period prescribed by the Commission.
  2. The registrant shall also notify the Commission within thirty (30) days calendar days, of the ownership composition of the business.
  3. Any notification pursuant to this section shall be in writing, sworn and notarized.
  4. For the purposes of this section “material change” shall mean a change in any information provided in response to an item identified as such on an application or disclosure form submitted to the Commission or by any other directive issued by the Commission. “Material change” also includes the occurrence of any event after the submission of an application or disclosure that would have been required to be disclosed on such form had it occurred prior to such submission.

§ 11-16 Acquisitions and Subleases.

(a) A person who intends to acquire a registered wholesale business or market business shall submit an application for a wholesale business or market business registration pursuant to the provisions of Chapter 1-B of Title 22 of the Code and the rules set forth in this subchapter for a preliminary review of such application by the Commission. Upon the submission of purchase and sale agreement for review by the Commission no later than thirty (30) days before such acquisition or sale is to take effect, the Commission will conduct an expedited application review.
  1. A registrant shall notify the Commission within ten (10) calendar days of contract closing of any change in the capital stock or ownership in the business of the registrant, including but not limited to a stock transfer or sale of the outstanding shares of the business or sale or merger of such business; provided, however, that a business whose equity securities are publicly traded on a national or regional stock or securities exchange shall be required to make disclosure of only such stock transfer or sale required to be disclosed by the Securities Exchange Commission or other Federal or State regulatory body. Such notification shall include a list of any persons formerly possessing ownership interest in the registrant business who will have any beneficial interest in the current business and a copy of the contract or agreement.
  2. Sublessee required to apply for registration. Wholesale businesses and market businesses shall not allow the use by any other person of the registration number or the name of the business to which such registration number has been issued. In the event that a wholesale business or market business seeks to sublease or otherwise allow the use of its premises, or any portion thereof, for the operation of a wholesale business or market business by another person, where such sublease is permitted under the terms of the lease, the Commission may, upon application and payment of the required fee by the prospective sublessee pursuant to the provisions of chapter 1-B of Title 22 of the Code and the rules set forth in this subchapter, issue a registration number to such sublessee. Absent such registration number no wholesale business or market business may permit a sublessee to operate a wholesale business or market business on such premises.

§ 11-17 Refusal to Issue Registration or Photo Identification Card; Revocation and Suspension of Registration or Photo Identification Card.

(a) Where the staff of the Commission recommends that the Commission refuse, pursuant to section 22-259 of the Code, to issue a registration to a wholesale business or market business applicant or a photo identification card applicant, the applicant shall be notified in writing of the reasons for the proposed refusal of such registration or photo identification card and that the applicant may, within ten (10) business days of the date of such notification, respond in writing to the Commission setting forth the reasons such applicant believes that it should not be denied such registration or photo identification card. In the exercise of its discretion, the Commission, considering the reasons for the proposed refusal to issue the registration or photo identification card, the nature of the issues raised in connection therewith, and the response submitted by the applicant, may make a final determination regarding the issuance of such registration or photo identification card or afford the applicant such further opportunity to be heard in such proceeding as is deemed appropriate. A final determination and the reasons therefor shall be communicated to the applicant in writing.
  1. The Commission may revoke a temporary photo identification card, and after notice and hearing, revoke or suspend the registration of a wholesale business or market business or a photo identification card for any of the reasons set forth in section 22-260 of the Code, or for violation of any rule promulgated pursuant to section 22-266 of the Code, including without limitation 17 RCNY § 11-19. Notice shall be provided in accordance with the provisions of 17 RCNY § 11-20. Hearings shall be afforded in accordance with the provisions of 17 RCNY § 11-21.
  2. Revocation or suspension of a registration, discontinuance of business operations in the market area by a registrant, or denial of an application for registration shall require the immediate surrender to the market manager of all photo identification cards issued to the principals, employees and/or agents of the registrant. Violation of the provisions of this subdivision may result in immediate revocation of a suspended registration and/or the imposition of sanctions and penalties as provided in section 22-258 of the Code.
  3. Revocation or suspension of photo identification cards or denial of an application for a photo identification card (including temporary photo identification cards) shall require the immediate surrender of such cards to the market manager.

§ 11-18 Emergency Suspension of Registration or Photo Identification Card.

Notwithstanding the foregoing provisions, the Chairperson may, if he or she has reasonable cause to believe that the operation of a wholesale business or market business or the presence of any person in the public wholesale market creates an imminent danger to life or property or to the orderly and lawful operation of the market, or that there has likely been false or fraudulent information submitted to the Commission, immediately suspend the registration of such business or the photo identification card of such person without a prior hearing, provided that such suspension may be appealed to the Deputy Commissioner for Legal Affairs of the Commission who shall determine such appeal forthwith. If the Deputy Commissioner for Legal Affairs upholds the suspension, an opportunity for a hearing pursuant to the provisions of subdivision (b) of 17 RCNY § 11-21 shall be provided on an expedited basis. The Commission shall issue a final determination no later than four (4) business days following the conclusion of such hearing. The Chairperson may, upon application by a wholesale business or market business whose registration has been suspended without a prior hearing, permit such business to remain in the market for such time as is necessary to allow for the expeditious sale, consignment or removal of a perishable product if, in the Commission’s judgment, such permission is consistent with the safety of the market.

§ 11-19 Prohibited Acts Generally.

(a) No person shall

   (1) interfere, or attempt to interfere, with the market manager, his or her staff or the employees of the Commission in the discharge of their functions or interfere with or otherwise obstruct the orderly functioning of the market;

   (2) interfere, or attempt to interfere with, or otherwise obstruct any operations or property of any person in the market;

   (3) take into, carry through, leave in, throw, or discharge into or on any market any rubbish, litter or refuse, except that rubbish, litter or refuse generated within any market may be discarded in receptacles that are specifically designed for such purpose or as otherwise provided for by this subchapter;

   (4) urinate or defecate in any market, or in or upon any market building or structure, except in a facility which is specifically designed for such purpose;

   (5) damage, remove or destroy any property or equipment without authority;

   (6) engage in, instigate or encourage a fight or other disturbance;

   (7) commit any act injurious to any person, animal or property;

   (8) bring into any market or have in his possession any firearms, illegal knives, hatchets, machetes, slingshots, fireworks or other dangerous instruments or explosives;

   (9) play any game of chance, participate in the conduct of an illegal lottery, or use any slot machine, gaming table or instrument or have in his or her possession any implements or devices commonly used, or intended to be used, for gambling purposes;

   (10) make a misrepresentation of any kind with respect to merchandise offered for sale or the take any unfair advantage of a purchaser or any attempt to take such unfair advantage;

   (11) sell in any market any merchandise that the Commission has prohibited to be sold therein;

   (12) discharge into or leave in tidal water, sewage or drainage that may result in the pollution of water;

   (13) perform any act that may tend to damage or clog drains or sewers; or

   (14) disobey any lawful order of any employee of the Commission or other employee of the City or disobey or violate any lawful notice, prohibition, instruction or direction of the Commission or any other City agency.

  1. In addition to the foregoing, the following rules also apply to principals, employees and agents of wholesalers or market businesses, officers of labor unions and labor organizations, and officers of wholesale trade associations. Such persons shall not:

   (1) authorize another person to use the name of the wholesale business, labor union or organization, wholesale trade association or market business to which a registration number has been issued for such business;

   (2) authorize another person to conduct a wholesale business or market business with the registration number that has been issued to such business;

   (3) conduct a wholesale business or market business under any name other than the name under which such business has been registered;

   (4) violate applicable federal, state or city laws or regulations;

   (5) in the case of a wholesale business or market business, fail to notify the Commission of any change in the information pursuant to 17 RCNY § 11-15;

   (6) associate with a person whom such person knows or should know is a member or associate of an organized crime group (a person who has been identified by a federal, state, or local law enforcement agency as a member or associate of an organized crime group shall be presumed to be a member or associate of an organized crime group);

   (7) make, file or submit a false or misleading statement to the Commission or to any other government agency or employee;

   (8) threaten or attempt to intimidate a customer or prospective customer;

   (9) retaliate against a customer or prospective customer of any business in the market or against any person who has made, or who is associated with any person who has made, a complaint concerning conduct involving the market to the Commission or any other governmental entity;

   (10) falsify any business record;

   (11) in the case of a wholesale, market or other business, continue to employ within any market a person who is required to have but has not received a valid photo identification card in accordance with the provisions of this subchapter, or whose photo identification card has been revoked or suspended;

   (12) utilize any motor vehicle in connection with a business operating in the market that is not properly registered with the New York State Department of Motor Vehicles and insured in accordance with 17 RCNY § 11-09;

   (13) engage in any unfair labor practice under federal or state labor law;

   (14) refuse to respond to an inquiry from the Commission;

   (15) violate or fail to comply with any order or directive of the Commission; or

   (16) fail to pay any fines or civil penalties imposed by the Commission or any court or administrative tribunal of competent jurisdiction for violations of Chapter 1-B of Title 22 of the Code or this subchapter.

§ 11-20 Notice.

Unless otherwise provided, all notices pursuant to Chapter 1-B of Title 22 of the Code or this subchapter, including but not limited to notice related to hearings, violations, and subpoenae, may be served by first class mail addressed to the business address provided to the Commission by the applicant, registrant, or photo identification card holder. All such notices served on an employee or agent may be served by first class mail to the address listed for such employee or agent in the information provided to the Commission. Such notice also may be served by personal service or in any other manner reasonably calculated to achieve actual notice, including but not limited to any method authorized in the Civil Practice Law and Rules.

§ 11-21 Administrative Hearings.

(a) Hearings on the violation of any provision of Chapter 1-B of Title 22 of the Code or any provision of the rules promulgated pursuant to such chapter may be conducted by the Environmental Control Board or by other administrative tribunal of competent jurisdiction, and shall be held pursuant to the procedures for adjudication set forth in the rules of such Board or tribunal.
  1. Where a hearing is conducted in relation to the suspension or revocation of a photo identification card or registration, such hearing shall, at the discretion of the Commission, be conducted by the Commission, a hearing officer or by the Office of Administrative Trials and Hearings.

   (1) Where such hearing is conducted by the Commission or a hearing officer, such hearing shall be conducted as follows:

      (i) The hearing officer or the Commission shall set a time and place for such hearing and the respondent shall be provided with notice of such time and place no less than ten (10) days prior to the date of the hearing, except that in the case of an immediate suspension requiring an expedited hearing pursuant to section 22-261 of the Code, such notice shall be provided no later than one (1) business day following such suspension.

      (ii) All parties shall be afforded due process of law, including the opportunity to be represented by counsel, to issue subpoenas or request that a subpoena be issued, to call and examine witnesses and to present arguments on the law and facts. Relevant material and reliable evidence may be admitted without regard to technical or formal rules or laws of evidence.

      (iii) All persons giving testimony as witnesses shall be placed under oath.

      (iv) The Chairperson, or his or her designee, or the hearing officer, as the case may be, shall preside over the hearing and shall have all powers necessary to conduct a fair and impartial hearing, to avoid delay in the disposition of proceedings, and to maintain order, including but not limited to the following: to compel the attendance of witnesses and the production of documents; to issue orders for discovery upon motion for good cause shown; to rule upon offers of proof and receive evidence; to regulate the course of the hearing and the conduct of the parties and their counsel therein; to hold conferences for the purposes of settlement or any other purpose; and to examine witnesses.

      (v) The hearing officer or the Commission, as the case may be, shall arrange for the hearing to be either stenographically transcribed or mechanically recorded. The transcript or recording and all exhibits received in evidence shall constitute the hearing record.

      (vi) When the hearing is conducted by a hearing officer, as soon as possible after the hearing, the hearing officer shall present recommended findings of fact and a recommended decision to the Commission. The Commission shall then make its final determination and notify the respondent of such determination. When the hearing is conducted by the Commission, the Commission shall make a final determination and notify the respondent of such determination.

      (vii) Failure of a respondent to make a timely written response, appear or proceed as required by the hearing officer or the Commission, as the case may be, shall constitute a default. When the hearing is conducted by a hearing officer, upon default the hearing officer shall make recommended findings and a recommended decision as is appropriate under the pleadings and such evidence as he or she shall have received. The Commission shall then make a final determination and notify the respondent of such determination. Where the hearing is before the Commission, upon default the Commission shall make a final determination and shall notify the respondent thereof.

   (2) Where such hearing is conducted by the Office of Administrative Trials and Hearings, such hearing shall be governed by the rules of procedure utilized by that tribunal. After the conclusion of the hearing, the Office of Administrative Trials and Hearings shall issue proposed findings and a report and recommendation to the Commission. The Commission shall review such findings and report and recommendation and shall issue a final determination. The Commission shall notify the respondent in writing of its determination.

§ 11-22 Fines and Penalties.

(a) The Commission may issue a notice of violation to any person, including a wholesale business, market business, or wholesale trade association, or any of their principals, employees, agents or officers, for the violation of any provision of Chapter 1-B of Title 22 of the Code or this subchapter. Any person who violates any such provision shall be subject to the civil and criminal fines and penalties and injunctive relief as provided in section 22-258 of the Code.
  1. A wholesale business, market business, or wholesale trade association shall be jointly and severally liable for any violation of Chapter l-B of Title 22 of the Code or of this subchapter committed by any of its officers, employees and/or agents acting within the scope of their employment.
  2. All penalties are in dollar amounts. Repeat penalties apply to violations of the same subdivision penalty schedule description. Second, third, fourth, fifth and subsequent (“subs.”) violations are defined as a violation by the same respondent on a date within five years of the date of occurrence of the previous violation.
  3. An asterisk (*) in the penalty schedule denotes availability of a mail-in penalty. Mail-in penalties are only available for a first offense. Where a mail-in penalty exists in this penalty schedule for the cited violation, a respondent may admit to the violation charged and pay the penalty by mail in the manner and time directed by the summons. Payment in full is deemed an admission of liability and no further hearing or appeal will be allowed. Where a respondent is permitted to admit and pay by mail but fails to do so prior to the original hearing date written on the violation, the respondent will have the option of paying the mail-in penalty, plus a late admit fee of $30.00, within 30 days of the mailing date of the default order issued against respondent.
  4. The table below sets forth the penalties imposed in connection with summonses issued by the Commission in public wholesale markets. Particular violations are classified as indicated in the following table:

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17 RCNY § 11-06(a) Failure to obtain identification card None $350 2nd $7503rd $1,500Subs. $3,000 $10,000
17 RCNY § 11-06(c)* Failure to produce ID card upon demand $250 $500 2nd $5003rd $1,0004th $2,5005th $5,000Subs. $10,000 $10,000
17 RCNY § 11-09(a)* Improper transfer of registration number $3,000 $5,000 Subs. $10,000 $10,000
17 RCNY § 11-09(b)* Failure to affix and prominently display registration certificate $500 $1,000 2nd $1,5003rd $2,5004th $5,000Subs. $10,000 $10,000
17 RCNY § 11-09(c)* Failure to maintain books, records, etc. $1,500 $2,500 2nd $3,0003rd $5,000Subs. $10,000 $10,000
17 RCNY § 11-09(c)* Failure to retain books, records, etc., and make available for inspection $500 $750 2nd $1,0003rd $2,5004th $5,000Subs. $10,000 $10,000
17 RCNY § 11-15(a)* Failure to notify Commission of material changes of info submitted in application $1,500 $2,500 2nd $5,000Subs. $10,000 $10,000
17 RCNY § 11-16(c)* Unauthorized sublease of registration number, premises, and/or business $3,000 $5,000 Subs. $10,000 $10,000
17 RCNY § 11-19(a)(1)* Interference with lawful duties of Market Manager or his/her staff None $10,000 Subs. $10,000 $10,000
17 RCNY § 11-19(a)(1)* Interference with/obstruction of orderly function of Market $3,000 $5,000 Subs. $10,000 $10,000
17 RCNY § 11-19(a)(2)* Interference with/obstruction of any operation, etc., of registrant $750 $1,000 2nd $2,5003rd $5,000Subs. $10,000 $10,000
17 RCNY § 11-19(a)(3)* Improper disposal of litter, rubbish, or refuse $250 $350 2nd $5003rd $1,000Subs. $10,000 $10,000
17 RCNY § 11-19(a)(4)* Public urination and/or defecation $350 $500 2nd $1,5003rd $3,500Subs. $10,000 $10,000
17 RCNY § 11-19(a)(5)* Improper damage, removal, or destruction of property $500 $1,000 2nd $2,5003rd $5,000Subs. $10,000 $10,000
17 RCNY § 11-19(a)(6)* Engagement/instigation of fight or other disturbance $1,000 $1,500 2nd $3,5003rd $7,000Subs. $10,000 $10,000
17 RCNY § 11-19(a)(7)* Commission of any act injurious to any person, animal or property $1,000 $1,500 2nd $3,5003rd $7,000Subs. $10,000 $10,000
17 RCNY § 11-19(a)(8)* Possession of dangerous instruments and/or explosives $1,000 $1,500 2nd $3,5003rd $7,000Subs. $10,000 $10,000
17 RCNY § 11-19(a)(9)* Gambling $250 $350 2nd $1,5003rd $3,0004th $5,000Subs. $10,000 $10,000
17 RCNY § 11-19(a)(10)* Misrepresentation of merchandise offered for sale $500 $1,000 2nd $2,5003rd $5,000Subs. $10,000 $10,000
17 RCNY § 11-19(a)(11)* Sale of prohibited items $750 $1,500 2nd %2,5003rd %5,000Subs. %10,000 $10,000
17 RCNY § 11-19(a)(12)* Discharge into tidal water, sewage, or drainage that may result in the pollution of water $250 $500 2nd $1,0003rd $2,5004th $5,000Subs. $10,000 $10,000
17 RCNY § 11-19(a)(13)* Causing damage to or clogging of drains or sewers $250 $500 2nd $1,0003rd $2,5004th $5,000Subs. $10,000 $10,000
17 RCNY § 11-19(a)(14)* Disobeyance of lawful order of employee of Commission or City $750 $1,500 2nd $2,5003rd $5,000Subs. $10,000 $10,000
17 RCNY § 11-19(a)(14)* Violation any lawful notice of Commission or other City agency $750 $1,500 2nd $2,5003rd $5,000Subs. $10,000 $10,000
17 RCNY § 11-19(b)(3)* Conducting of business using unregistered name $3,000 $5,000 Subs. $10,000 $10,000
17 RCNY § 11-19(b)(4)* Violation of any applicable Federal, State, or City law or regulation $1,000 $1,500 2nd $2,5003rd $5,000Subs. $10,000 $10,000
17 RCNY § 11-19(b)(8)* Threat or attempt to intimidate any customer $1,500 $3,000 2nd $5,0003rd $7,500Subs. $10,000 $10,000
17 RCNY § 11-19(b)(11)* Employment of individuals without approved ID cards $3,000 $5,000 Subs. $10,000 $10,000
17 RCNY § 11-19(b)(12)* Use of unregistered/uninsured vehicle $500 $750 2nd $1,0003rd $2,5004th $5,000Subs. $10,000 $10,000
17 RCNY § 11-19(b)(13)* Engagement in an unfair labor practice $1,000 $1,500 2nd $2,5003rd $5,000Subs. $10,000 $10,000
17 RCNY § 11-19(b)(15)* Violation or failure to comply with any order or directive of the Commission $375 $500 2nd $7503rd $1,000Subs. $10,000 $10,000
17 RCNY § 11-25(a)* Failure to obey and/or comply with traffic directions $250 $500 2nd $1,0003rd $2,5004th $5,000Subs. $10,000 $10,000
17 RCNY § 11-25(b)* Obstruction of traffic $250 $500 2nd $7503rd $1,0004th $2,5005th $5,000Subs. $10,000 $10,000
17 RCNY § 11-25(c)* Failure to remove disabled vehicle $250 $500 2nd $7503rd $1,0004th $2,5005th $5,000Subs. $10,000 $10,000
17 RCNY § 11-25(e)* Failure to comply with traffic laws $500 $1,000 2nd $2,5003rd $5,000Subs. $10,000 $10,000
Admin. Code § 22-252(a) Failure to obtain identification card None $500 2nd $1,5003rd $2,500Subs. $5,000 $5,000
Admin. Code § 22-253(a) Failure to register wholesale and/or market businesses None $1,000 2nd $2,500Subs. $5,000 $5,000
Admin. Code § 22-262 Failure to surrender and/or cease using registration certificate and/or number None $5,000 Subs. $5,000 $5,000
Admin. Code § 22-262 Failure to surrender and/or cease using identification card None $1,500 2nd $2,500Subs. $5,000 $5,000

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§ 11-23 Commission Delegations to the Chairperson.

The Commission may by resolution delegate to the Chairperson any authority of the Commission set forth in this subchapter or Chapter 1-A of Title 22 of the Code that is lawful and appropriate to delegate. Such resolution shall state the authority delegated and the extent of such delegation, including any limitations on the authority delegated.

§ 11-24 Additional Powers of the Commission.

In addition to the other powers of the Commission, the Commission shall have the following powers:

  1. Entry into any market may be regulated by the Commission. No fee shall be charged for entry into a market or for parking therein, nor shall any existing fee be increased, unless the Commission shall have first approved the amount of such fee. The Chairperson may delegate the authority to approve the amount of such fee to the Department of Small Business Services or the Economic Development Corporation. The Commission may establish or authorize the establishment of an identification card and pass system as a prerequisite for entry of any persons into any market.

§ 11-25 Traffic Regulation and Parking Within the Market.

(a) All persons operating a vehicle within the market shall obey and comply with any traffic direction of any police officer or employee of the Commission indicated by gesture or otherwise and with any parking or traffic sign posted by the Commission or other City agency.
  1. No person shall obstruct the movement of traffic or stop, stand or park a vehicle, freight car or other conveyance except in designated places.
  2. All disabled vehicles must be promptly removed from paved roadways and removed from the market within three (3) hours. If not removed, such vehicles will be removed by City personnel or licensed tow operators at the expense of the vehicle owner.
  3. No person shall grease, lubricate or make repairs, except of a minor and emergency nature, to any vehicle within the market without prior notification to the Commission.
  4. All persons operating a vehicle within the market shall operate such vehicles at all times in full compliance with all New York State and New York City traffic laws, rules and regulations and all laws, rules and regulations and procedures of any other government agency having jurisdiction over motor vehicles.

§ 11-26 Administration. [Repealed]

(a) This subchapter shall govern licensing, registration and other requirements relating to seafood distribution in seafood distribution areas, including the market area.
  1. Any act prohibited by this subchapter shall extend to and include the permitting, allowing, causing, procuring, aiding or abetting of such act.
  2. No provision in this subchapter shall make unlawful the act of any employee of the Commission or other government official in the performance of his or her official duties.
  3. Any act prohibited by this subchapter not otherwise prohibited by law or any other government rule or regulation shall be lawful if performed pursuant to and in strict compliance with written authorization by the Chairperson.
  4. This subchapter is in addition to and supplements all laws, rules and regulations of the City and State of New York and federal government and all terms and conditions set forth in any lease, license, registration or permit.

§ 12-02 Definitions.

For the purposes of this subchapter, the following terms shall have the following meanings:

Applicant. “Applicant” shall mean, if a business entity submitting a response to a request for licensing proposals, an application for a temporary license or a registration application, the entity itself and all the principals thereof; if an individual submitting an application for a photo identification card, such individual.

Business related to seafood distribution. “Business related to seafood distribution” shall mean any business located in the market area other than an unloading, loading, wholesaler or seafood delivery business, that provides or maintains items or services necessary to seafood distribution, including, but not limited to, the provision or maintenance of ice or other equipment or supplies.

Business entity. “Business entity” shall mean a sole proprietorship, partnership, corporation, or other entity established under law and authorized to conduct business within the state of New York.

Code. “Code” shall mean the Administrative Code of the City of New York.

Chairperson. “Chairperson” shall mean the Chairperson of the New York City Business Integrity Commission.

Commission. “Commission” shall mean the New York City Business Integrity Commission. The term “Commission” also shall refer to an action of the Chairperson of the Commission, taken under delegation from the Commission.

Cooperative association. “Cooperative association” shall mean the cooperative association established, with the approval of the Commission, by wholesale seafood businesses in a market area to assist with the management of the market area.

Designated waiting area. “Designated waiting area” shall mean that area set aside by the market manager during regular unloading hours in which trucks shall wait until unloaders are assigned to them.

Designee of the commission. “Designee of the commission” shall mean the Department of Citywide Administrative Services and, with respect to loading services or the direction of traffic within the market area, the Department of Transportation.

Employee. “Employee” shall mean a person who works or who expects to work in a market area on a full-time, part-time or seasonal basis for a wholesaler, seafood delivery business, loading business, unloading business or market business, but shall not include persons hired to work on an occasional basis. A person hired to work on an occasional basis is any person who works or has been hired to work for a wholesaler, seafood delivery business, loading business, unloading business or market business and works no more than five (5) days in any given month for the same employer. Any person who works for a wholesaler, seafood delivery business, loading business, unloading business or market business is presumed to be an employee unless the presumption is overcome by credible evidence produced by the person and/or the employer.

Hearing officer. “Hearing officer” shall mean a person appointed or designated to conduct hearings pursuant to the procedures set forth in 17 RCNY § 12-26(b) relating to the suspension or revocation of a license, registration, or photo identification card. “Hearing officer” shall not include a person assigned to preside over a case that has been referred to the Office of Administrative Trials and Hearings.

Loader. “Loader” shall mean any person who performs loading services.

Loading area. “Loading area” shall mean a location, approved or designated by the market manager, in which designated loading business shall provide loading services. Notice of such designations and of any changes thereto shall be posted in appropriate locations.

Loading business. “Loading business” shall mean any business entity that, for a payment, provides loading services.

Loading services. “Loading services” shall mean services performed by a loader and provided by a loading business for a purchaser of seafood, including parking such purchaser’s vehicle, moving such vehicle when necessary for traffic control, loading seafood onto such vehicle, and ensuring the security of such vehicle and the seafood loaded thereon; provided, however, that the term shall not mean the loading of seafood onto the vehicle of a purchaser when such loading is performed by an employee of a wholesaler delivering seafood from such wholesaler to the vehicle of the purchaser thereof or by a purchaser or an employee of such purchaser.

License. “License” shall mean an unloading business license or a loading business license issued by the Commission authorizing the conduct of such business in the market area.

Market area. “Market area” shall mean:

   (1) The area in Hunts Point in the Borough of the Bronx that includes (i) the structure known as the New Fulton Fish Market at Hunts Point and all parking and other areas adjacent thereto, beginning at the intersection of the bulkhead line in the East River and the easterly street line of Halleck Street extended, thence northwesterly to the intersection of the easterly street line of Halleck Street extended and the southerly street line of Food Center Drive, thence easterly along the southerly street line of Food Center Drive to the intersection of the southerly street line of Food Center Drive and the southerly street line of Farragut Street, thence easterly along the southerly street line of Farragut Street continuing to its easterly terminus, thence easterly to the intersection of Farragut Street extended and the bulkhead line in the East River, thence westerly along said bulkhead line to the place of beginning, but excluding (A) the southern portion of the above-described area that is under the jurisdiction of the Department of Correction and includes a prison barge and adjacent parking lot and other facilities and areas controlled by the Department of Correction, and (B) the eastern portion of the above-described area that is under the jurisdiction of the Department of Sanitation and includes a marine transfer station and other facilities and areas controlled by the Department of Sanitation; and (ii) the parking lot for use by persons employed at the New Fulton Fish Market at Hunts Point, including the pathway connecting such parking lot with Food Center Drive and the driveway connecting such parking lot with Halleck Street, that lies northwest of the area described in paragraph (i) of this subdivision, northeast of Halleck Street, southeast of the northerly street line of Viele Street extended, and southwest of the Hunts Point Meat Market. The aerial photograph constituting Appendix A of this subchapter illustrates the market area described above. Such appendix is for illustration purposes only, and the area indicated therein is not necessarily to scale. If there is a conflict between the description set forth above and the area illustrated by such photograph, the description set forth above shall prevail.

   (2) Any other area declared to be a seafood distribution area pursuant to section 22-222 of the Code.

Market manager. “Market manager” shall mean a person designated by the Commission to supervise operations in the market area. Such supervision shall include, without limitation: implementation of these rules and the authority to enforce violations of any provision of Chapter 1-A of Title 22 of the Code or the rules promulgated pursuant to such chapter; supervision of Commission staff employed in the market area; response to complaints relating to the operation of businesses in the market area; examination of documents required to be maintained by a licensee or registrant pursuant to this subchapter; referrals, where appropriate, to any law enforcement, adjudicatory, investigative or prosecutorial agency of matters occurring within the market area; and such other functions and duties as the Commission may assign consistent with the provisions of Chapter 1-A of Title 22 of the Code or the rules promulgated pursuant to such chapter.

Non-seafood business. “Non-seafood business” shall mean any business that operates within a market area on City property that is not a loading, unloading, wholesale seafood or seafood delivery business or a market business, as that term is defined in 17 RCNY § 14-02.

Person. “Person” shall include entities as well as natural persons unless the context indicates otherwise.

Principal. “Principal” shall mean, of a sole proprietorship, the proprietor; of a corporation, every officer, director and stockholder holding ten (10) percent or more of the outstanding shares of the corporation; of a partnership, all the partners; of another type of business entity, the chief operating officer or chief executive officer, irrespective of organizational title, and all persons having an ownership interest of ten (10) percent or more; and with respect to all business entities, all other persons participating directly or indirectly in the control of such business entity. Where a partner or stockholder holding ten (10) percent or more of the outstanding shares of a corporation is itself a partnership or a corporation, a “principal” shall also include the partners of such partnership or the officers, directors and stockholders holding ten (10) percent or more of the outstanding shares of such corporation, as is appropriate. For the purposes of this subchapter

   (1) a person shall be considered to hold stock in a corporation where such stock is owned directly or indirectly by or for

      (i) such person,

      (ii) the spouse of such person (other than a spouse who is legally separated from such person pursuant to a judicial decree or an agreement cognizable under the laws of the state in which such person is domiciled),

      (iii) the children, grandchildren and parents of such person,

      (iv) a partnership in which such person is a partner, in proportion to the partnership interest of such person, and

      (v) a corporation in which any of such person, the spouse, children, grandchildren and parents of such person own fifty (50) percent or more in value of the stock;

   (2) a partnership shall be considered to hold stock in a corporation where such stock is owned, directly or indirectly, by or for a partner in such partnership; and

   (3) a corporation shall be considered to hold stock in a corporation that is an applicant where such corporation holds fifty (50) percent or more in value of the stock of a third corporation that holds stock in the applicant corporation.

Registration. “Registration” shall mean wholesale seafood registration as required by section 22-209 of the Code or a seafood deliverer registration as required by section 22-211 of the Code.

Regular loading hours. “Regular loading hours” shall mean the hours designated by the market manager for the loading of seafood. Notice of such designation and of any changes thereto shall be posted in appropriate locations.

Regular unloading hours. “Regular unloading hours” shall mean the hours designated by the market manager for the unloading of seafood from trucks. Notice of such designation and of any changes thereto shall be posted in appropriate locations.

Seafood. “Seafood” shall mean fish, seafood or consumables derived therefrom.

Seafood delivery business or seafood deliverer. “Seafood delivery business” or “seafood deliverer” shall mean any business entity, that, for payment, delivers seafood from wholesalers in the market area by truck or other vehicle to retail establishments or other wholesalers in the City of New York or other locations outside the market area.

Stand permit. “Stand permit” shall mean an occupancy permit granted by the Commission subject to such conditions as the Commission shall prescribe authorizing use of city property by a wholesaler for the placement of seafood in an area extending into a city street.

Unloader. “Unloader” shall mean any person who performs unloading services.

Unloading area. “Unloading area” shall mean a location, approved or designated by the market manager, in which seafood may be unloaded from trucks for delivery to wholesalers or for transfer and distribution to other locations. Notice of such designations and of any changes thereto shall be posted in appropriate locations.

Unloading business. “Unloading business” shall mean any business entity that, for a payment, provides unloading services.

Unloading dispatcher. “Unloading dispatcher” shall mean any person designated by the market manager to supervise the unloading procedure.

Unloading services. “Unloading services” shall mean the unloading of seafood from a truck or other vehicle that has transported such seafood from suppliers and the delivery thereof to wholesalers or the transfer thereof to other trucks or vehicles for transport to other locations.

Wholesaler or wholesale seafood business. “Wholesaler” or “wholesale seafood business” shall mean any business entity which sells or offers to sell seafood for resale to the public, whether or not such business entity also sells or offers to sell seafood directly to the public; except that “wholesaler” shall not include any such entity that is primarily engaged in the sale of seafood that has been processed and packaged by another business for sale to consumers in such packaged form.

§ 12-03 Terms and Fees.

(a) Licenses.

   (1) License term. An unloading or loading license issued pursuant to this subchapter shall be valid for two (2) years and may be extended for an additional (1) year at the discretion of the Commission. A temporary license issued pursuant to subdivision 22-204(g) or 22-206(g) shall be valid for a period not to exceed one (1) year, provided that such license shall not extend beyond the remainder of the term of the original license.

   (2) License fee. The fee for an unloading or loading license shall be seven thousand five hundred dollars ($7,500) and the fee for extension of such license for an additional year shall be three thousand seven hundred and fifty dollars . The fee for a temporary license shall be prorated to the term of an original license.

   (3) Disclosure fee for principals of license applicants. The fee for each principal disclosure in connection with an unloading or loading license shall be six hundred dollars ($600).

  1. Registrations.

   (1) Registration term. A wholesale seafood business or a seafood delivery business registration issued pursuant to this subchapter shall be valid for two (2) years, and may be renewed for two (2)-year periods thereafter.

   (2) Registration fee. The fee for registration of a wholesale seafood business or a seafood delivery business shall be four thousand dollars ($4,000) and the fee for renewal of such registration shall be four thousand dollars ($4,000).

  1. Stand permits.

   (1) Stand permit term. A stand permit issued pursuant to this subchapter shall be valid for two years, and may be renewed for two year periods thereafter.

   (2) Stand permit fee. The fee for a stand permit shall be based on the square footage of the area encompassed by the stand permit.

  1. Photo identification fee. The fee for a Class B photo identification card issued by the market manager shall be one hundred dollars ($100), and the fee for the replacement of a Class B photo identification card that has been lost or stolen shall be twenty dollars ($20). The fee for Class A photo identification card issued by the market manager shall be one hundred and fifty dollars ($150), and the fee for the replacement of a Class A photo identification card that has been lost or stolen shall be twenty dollars ($20). The Chairperson may waive the fee for a permanent photo identification card if the applicant has applied for and paid the fee for a photo identification within the last six (6) months.
  2. Investigative fee. The fee for a background investigation pursuant to subdivision b of section 22-209 and subdivision b of section 22-211 shall be six hundred dollars ($600) and the fee for a background investigation pursuant to subdivision b of section 22-203 of the Code shall be two hundred dollars ($200).
  3. Fingerprint fee. The fee for fingerprinting shall be as determined by the New York State Division of Criminal Justice Services.
  4. A wholesale seafood business, a seafood delivery business, a loading business or an unloading business shall be responsible for the payment of any fee imposed by this section with respect to an employee, principal or agent of such business or any person seeking to become an employee, principal or agent of such business.
  5. The fees provided for in this section shall be payable to the Commission.

§ 12-04 Photo Identification Cards and Visitors Passes.

(a) Class A and Class B Photo Identification Cards. No person who is a principal or employee of any unloading, loading, wholesale, seafood delivery or non-seafood business who performs any function in the market area, or any agent of such a business who performs any function in the market area directly related to the handling or transportation of seafood, shall perform such function without a Class A or Class B photo identification card issued by the market manager pursuant to this subchapter and section 22-203 of the Code. A person who performs any function in the market area who is a principal or employee of an unloading or loading business subject to the licensing requirement in sections 22-204 and 22-206 of the Code, or an agent of such business who performs any function in the market area directly related to the handling or transportation of seafood, must first obtain a Class A photo identification card issued by the market manager. A person who performs any function in the market area who is a principal or employee of a wholesale or seafood delivery business subject to the registration requirement in sections 22-209 and 22-211 of the Code or a non-seafood business, or an agent of such business who performs any function in the market area directly related to the handling or transportation of seafood, must first obtain a Class B photo identification card from the market manager.
  1. Notwithstanding the foregoing, any person required to have a photo identification card who has filed an application therefor and obtained a temporary photo identification card, may continue to perform such functions unless and until (1) the application of such person for a photo identification card has been denied, or (2) the temporary photo identification card of such person has been revoked, or (3) in cases where the Commission has required such person to be fingerprinted, submit background information and/or appear for an interview pursuant to sections 22-203 and 22-216 of the Code and 17 RCNY § 12-05, such person has failed, within the time period prescribed by the Commission, to be fingerprinted, submit the required information, or appear for an interview.
  2. Temporary Photo Identification Cards and Visitors Passes.

   (1) The Commission may designate the cooperative association of any market to issue temporary photo identification cards to persons required to have a photo identification card within such market. The duties of such designated cooperative association are to be performed pursuant to the provisions of the Code and this subchapter relating to such temporary photo identification cards and such terms and conditions as the Commission may impose.

   (2) Such temporary photo identification cards shall be valid for a period of one year but shall cease to be valid upon the issuance by the Commission of a permanent photo identification card or the occurrence of any of the events set forth in paragraphs (1), (2) or (3) of subdivision (b) of this section.

   (3) The Commission may designate the cooperative association of any market to issue visitor passes at the market in which it operates. The duties of such designated cooperative association are to be performed pursuant to the provisions of the Code and this subchapter relating to such visitors passes and such terms and conditions as the Commission may impose.

   (4) Any cooperative association designated by the Commission to issue temporary identification cards may impose fees and set amounts for such fees for the performance of the functions set forth in this section with the prior written permission of the Commission. No change in a fee or amount of such fee imposed pursuant to this section shall be made without prior written permission of the Commission.

  1. Where a photo identification holder changes employment in the market, the photo identification holder shall notify the market manager of the change of employment and submit the transfer form provided by the market manager. The photo identification holder shall also be required to apply for a new photo identification card and pay the requisite fee in accordance with the provisions of this subchapter. A loading, unloading, wholesale seafood, seafood delivery or non-seafood business shall immediately notify the market manager of the addition or other change of status of a photo identification holder.
  2. A person who discontinues his or her employment in the market or who ceases to be a principal of an unloading, loading, wholesale, seafood delivery or non-seafood business shall immediately surrender his or her photo identification card to the market manager. A business that terminates an employee possessing a photo identification card shall obtain that employee’s photo identification card and surrender it to the market manager.
  3. Photo identification cards and visitors passes shall be displayed at all times within the market area so as to be readily visible to others.
  4. No loading, unloading, wholesale seafood, seafood delivery or non-seafood business shall continue to employ a person who is required to but does not possess a valid photo identification card issued in accordance with the provisions of this subchapter.

§ 12-05 Application for Class A and Class B Photo Identification Cards.

(a) An applicant for a Class A photo identification card shall be fingerprinted by a person designated for such purpose by the Commission and pay the prescribed fee for the purpose of obtaining criminal history records, provide in full the background information required pursuant to subdivision a of section 22-216 of the Code in the application form as prescribed by the Commission. The application form shall be signed and certified under penalty of perjury by the applicant. The application shall include the following information: names, address and telephone number(s) of the applicant, the applicant's employment history, the applicant's business interests, and other such information deemed appropriate by the Commission.
  1. An applicant for a Class B photo identification card shall submit the information requested in the application form as prescribed by the Commission. The application form shall be signed and certified under penalty of perjury by the applicant. The application shall include the following information: names, address and telephone number(s) of the applicant, the applicant’s employment history, the applicant’s business interests, and other such information deemed appropriate by the Commission.
  2. Notwithstanding any provision of this subchapter:

   (1) the Commission may, when there is reasonable cause to believe that an applicant for, or holder of, a Class B photo identification card (other than a principal, employee or agent of a non-seafood business) does not possess good character, honesty and integrity, require that such applicant or Class B holder be fingerprinted by a person designated for such purpose by the Commission and pay the prescribed fee for the purpose of obtaining criminal history records and provide to the Commission the disclosure required by the form provided by the Commission pursuant to sections 22-203 and 22-216 of the Code. The Commission also may require such additional information, in lieu of or in addition to such fingerprinting and/or disclosure, including without limitation, documents and an in-person interview, as the Commission determines is appropriate and reasonable to render a determination.

  1. The Class B photo identification card of a person who is a principal, employee or agent of more than one wholesale seafood business or seafood delivery business shall reflect the multiple affiliations of such person.

§ 12-06 Unloading and Loading Licenses Required.

(a) Unloading licenses. No person shall operate an unloading business in the market area without having first obtained a license to conduct such business issued by the Commission.
  1. Loading licenses. No person shall operate a loading business in the market area without having first obtained a license to conduct such business issued by the Commission.

§ 12-07 Application for License.

(a) Procedure.

   (1) An applicant business required by section 22-204 or section 22-206 of the Code, where applicable, to obtain a license to operate an unloading business or a loading business in the market area shall submit an application for a license and a response to a request for licensing proposal issued by the Commission pursuant to section 22-204 or section 22-206 of the Code no later than the dates specified in such request for licensing proposal.

   (2) Notice of the availability of requests for licensing proposals to conduct an unloading business or a loading business in the market area, and the date or dates by which such proposals must be submitted, shall be posted in locations within the market area and published in The City Record and any other locations and publications as the Commission may determine are appropriate.

   (3) An applicant for an unloading or loading license shall submit the information contained in the license application form and the required disclosure form provided by the Commission. In addition, each principal of the applicant business shall be fingerprinted by a person designated for such purpose by the Commission. The Commission may compel attendance, examine witnesses, take testimony and require the production of evidence as the Commission deems necessary to investigate the truth and accuracy of the information submitted.

  1. If a renewal application is not submitted to the Commission within the time period required by the Commission, the Commission may reject the renewal application and instead require the applicant to file a new application in accordance with the provisions pertaining to the application process as set forth in Chapter 1-A of Title 22 of the Code and in this subchapter.

§ 12-08 Information Required on a License Application.

(a) The application for a loading or unloading license accompanying the response to the request for licensing proposals must be signed by all principals of the applicant and certified under penalty of perjury.
  1. The application must include, but not be limited to the following information:

   (1) The name, address, e-mail address designated for communications with the business that will be checked regularly, website (if any), and telephone number(s) of the business submitting such application and the names, addresses, e-mail address(es), telephone number(s), and social security numbers of the principals of the applicant business.

   (2) (i) If such applicant is a corporation, a copy of the certificate of incorporation and the names and addresses of all officers and directors.

      (ii) If such applicant is a partnership, a copy of partnership papers, certified by the County Clerk.

      (iii) If such applicant is a limited liability company, a copy of the articles of organization and the names and addresses of all members.

      (iv) If the applicant is doing business under an assumed name, a Certificate of Assumed Name, certified by the County Clerk.

   (3) Complete responses by the applicant business under an assumed name, a Certificate of Assumed Name, certified by the County Clerk.

   (4) The names and addresses and dates of birth of all employees and/or agents of the applicant who will perform work directly or indirectly related to loading or unloading, as the case may be, whether inside or outside the market area; and completed disclosure forms, as required, pursuant to Section 22-216 of the Code for each current or identified employee and/or agent who will be required to possess a Class A photo identification card.

   (5) A business telephone number and a business address within the City of New York where notices may be delivered and legal process may be served, and where records required by these rules must be maintained, and the name of a person of suitable age and discretion who must be designated as agent for the service of legal process.

   (6) A tax identification number.

   (7) A statement of financial responsibility in the form prescribed by the Commission demonstrating the capacity to conduct the business for which the license is sought and setting forth the amounts and sources of funds used or intended to be used in the operation of the business. Proof of such financial capacity must include, at a minimum, a demonstration of the current financial ability to pay all monthly expenses relating to required equipment, insurance, personnel, and other items for a period of at least three (3) months.

   (8) Proof of insurance required.

      (i) Before a license is issued, an applicant must submit proof that the following insurance policies have been secured:

         (A) The required Workers’ Compensation and Disability Benefits Coverage, or proof that the applicant is exempt from Section 57 of the Workers’ Compensation Law and Subdivision 8 of Section 220 of the Disability Benefits Law. Proof of coverage can be established by submitting the following Workers’ Compensation Board forms:

            (I) C-105.2 Application for Certificate of Workers’ Compensation Insurance;

            (II) DB-120.1 Employer’s Application for Certificate of Compliance with Disability Benefits Law;

            (III) S1-12 Affidavit certifying that compensation has been secured; Proof that no coverage is required can be provided by submitting the following Workers’ Compensation Board form:

            (IV) C-105.21 Statement that applicant does not require Workers’ Compensation or Disability Benefits Coverage.

         (B) Liability insurance against claims for injuries to persons or damage to property which may arise from or in connection with the applicant’s business, pursuant to the license. The applicant may purchase such policies in conjunction with one (1) or more other licensees, provided that the following coverages are maintained:

            (I) Commercial general liability insurance with liability limits for unloading businesses of no less than one million dollars ($1,000,000) and for loading businesses no less than five hundred thousand dollars ($500,000) combined single limit per occurrence for bodily injury, personal, and property damage. The maximum deductible for such insurance shall be no more than twenty-five thousand dollars ($25,000).

            (II) Business automobile liability insurance covering every vehicle operated by the applicant in its business, whether or not owned by the applicant, and every vehicle hired by the applicant with liability limits of no less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage.

      (ii) The policy or policies of insurance required by this paragraph must name the Commission as certificate holder and must be endorsed to state that coverage must not be suspended, voided, canceled, reduced in coverage, or in limits except upon sixty (60) days prior written notice to the Commission.

      (iii) The licensee must maintain all required insurance coverage throughout the term of the license. Failure to maintain continuous insurance coverage meeting the requirements of these rules will result in the revocation of the license.

      (iv) All required policies of insurance must be obtained from a company, or companies, duly authorized to do business in the State of New York with a Best’s rating of no less than A:X unless specific approval has been granted by the Commission to accept a company with a lower rating.

      (v) A certificate of insurance effecting the required coverage and signed by a person authorized by the insurer to bind coverage on its behalf must be delivered to the Commission prior to the effective date of the license. Delivery to the Commission’s offices may be made in person, by first class mail, or by e-mail to Licensing@bic.nyc.gov.

   (9) Proof of a performance bond, or other security that the Commission in its discretion so requires, in an amount, if any, determined by the Commission that will secure the City for the provision of unloading services or loading services, as the case may be, in the event of a default of a licensee as provided by Section 22-204 or Section 22-206 of the Code. The requirement of a performance bond, or other security that the Commission in its discretion so requires, may be imposed by the Commission at any time, including after a license has been issued.

  1. Requirements for proposals. Responses to requests for proposals must be in the form prescribed by the Commission and must contain the proposed information concerning the services to be performed and the conduct of the business described in Subdivision b of Section 22-204 of the Code with respect to unloading licenses and in Subdivision b of Section 22-206 of such Code with respect to loading licenses. The proposal must be signed by all the principals of the applicant and certified under penalty of perjury.
  2. Examination of records. The Commission may require an applicant to produce for inspection such business records as the Commission deems necessary to verify the truth and accuracy of information submitted, pursuant to an application for a license.

§ 12-09 License Issuance.

(a) Following review of proposals submitted in response to a request for licensing proposals issued pursuant to section 22-204 or section 22-206 of the Code, as the case may be, the Commission may, at its discretion, issue one or more licenses to conduct an unloading business or a loading business in the market area to the business entity or entities the Commission has determined are most qualified to provide such services in a safe, orderly and cost-efficient manner.
  1. The Commission may refuse to consider a proposal, refuse to issue a license or defer a decision on whether to consider such proposal or issue such license pursuant to the provisions set forth in subdivision b of section 22-216 of the Code.
  2. When a license or consideration of a proposal is denied for lack of good character, honesty and integrity or when the decision to issue such license or to consider such proposal is deferred, the applicant shall be given notice of the reasons for such denial or deferral and may respond in writing within ten (10) days of receipt of such notice. The Commission shall review such response and shall make a final determination whether to issue the license or consider the proposal.
  3. Notwithstanding any other provision of this section, the Commission may, for the reasons set forth in section 22-208 of the Code, determine not to issue a license or licenses to conduct unloading or loading businesses, as the case may be, in the market area and instead arrange for the Commission, a designee of the Commission or an entity under contract to the Commission, or any combination thereof, to provide such services.

§ 12-10 License Conditions.

A license to conduct an unloading business in the market area shall be subject to conditions specifying rates, insurance and bonding, performance standards and customer service, and any other requirements as may be set forth as conditions of such license pursuant to subdivision d of section 22-204 of the Code. A license to conduct a loading business shall be subject to conditions specifying rates, insurance and bonding, performance standards and customer service, and any other requirements set forth as conditions of such license pursuant to subdivision d of section 22-206 of the Code. In addition, a license to conduct an unloading business and a license to conduct a loading business shall be subject to the following conditions;

  1. Maintenance of insurance. A licensee shall demonstrate that he, she or it has secured the insurance coverage required pursuant to 17 RCNY § 12-08, and shall maintain such required insurance coverage throughout the term of the license.
  2. A license issued by the Commission pursuant to this subchapter shall not be transferable. A licensee shall not permit the use by any other person of the license or license number issued pursuant to this subchapter.
  3. A license shall not be altered by a licensee. Any license that is altered by the licensee shall be null and void.

§ 12-11 Unloading Operations.

An unloading business shall comply with the conditions for conducting unloading operations that are contained in the license issued to such unloading business pursuant to section 22-204 and subdivision b of section 22-222 of the Code. In addition, an unloading business shall be subject to such provisions of this section as the market manager may direct.

  1. Order of unloading.

   (1) Upon arrival, trucks shall be directed to the designated waiting area. The unloading dispatcher designated by the market manager shall record relevant information, including the license number and time of arrival and shall inspect and make a copy of the manifest for seafood to be delivered by each truck that enters a designated waiting area.

   (2) Trucks shall remain in the designated waiting area until directed by the unloading dispatcher to proceed to a designated unloading area.

   (3) Except as otherwise provided in paragraph (4) of this subdivision, unloaders shall unload trucks in order of their arrival at the designated waiting area, based on the time of arrival recorded by the unloading dispatcher.

   (4) Notwithstanding paragraph (3) of this subdivision, the unloading dispatcher may permit the unloader to unload out of order of arrival if the truck is delivering fewer than three (3) pallets of seafood; if the truck contains live seafood; if the seafood requires special handling or equipment which only a particular unloader can provide; or for other reasons which the unloading dispatcher determines justify expedited unloading.

  1. Unloading assignments and hours.

   (1) An unloading business shall not conduct unloading in an unloading area unless the market manager has approved the use of such area by such unloading business or has assigned such unloading business to such unloading area. The market manager may rotate such assignments.

   (2) (i) Except as provided in subdivision (b) of this section, an unloading business licensed pursuant to this subchapter shall be available throughout the regular unloading hours to unload trucks directed to such business by the unloading dispatcher.

      (ii) If, toward the end of the regular unloading hours, the market manager determines that the presence of an unloading business is not required because of the small number of trucks awaiting unloading or expected to unload, he or she may allow such unloading business to leave. Where more than one unloading business is operating pursuant to an unloading license issued by the Commission, the market manager shall arrange for the rotation of such businesses required to remain present during such periods.

      (iii) The market manager shall provide that an unloading business be on call to unload any truck that may arrive after the regular unloading hours and shall designate such unloading business. Where more than one unloading business is operating pursuant to an unloading license issued by the Commission, the market manager shall rotate the responsibility to unload trucks after regular unloading hours on a periodic basis. Each unloading business shall provide for an unloading crew and a supervisor of such unloading crew to be on duty during the hours that such business is on call. Such unloader may, where authorized in the conditions of its unloading license, charge a surcharge not to exceed the amount specified in such conditions for unloading after the regular unloading hours. Such surcharge shall be posted with the unloading rates as required in subdivision (c) of this section.

   (3) An unloading business and an unloader shall at all times unload trucks in the order directed by the unloading dispatcher.

   (4) An unloading business and an unloader shall not refuse to unload any truck directed to his, her or its approved or assigned unloading area by the unloading dis- patcher.

  1. Rates, billing procedures and record keeping.

   (1) An unloading business may charge no more than those rates for unloading that are specified in the conditions of the unloading license issued pursuant to section 22-204 of the Code and the provisions of this subchapter, and shall post such rates in such appropriate locations within the market area as the market manager shall specify.

   (2) An unloading business shall direct the unloader to verify that the information on the bill of lading conforms to the seafood delivered to the wholesaler, and to sign and legibly record the license number of the unloading business on the bill of lading and obtain a signature thereon from the wholesaler or a person authorized by the wholesaler to sign for such delivery acknowledging receipt of the seafood indicated thereon, noting any discrepancies.

   (3) Except as otherwise authorized in writing by the market manager, an unloading business shall provide for the weekly billing of wholesalers for seafood delivered, shall retain copies of all such bills and of all other records produced in the normal course of business for thirty-six (36) months and shall make all such records available for immediate inspection and/or copying upon request by the market manager or a designee of the market manager. Electronic copies of such books and records shall be acceptable. Each bill shall specify for each delivery the shipper, the date and time of delivery to the wholesaler, the quantity and type of seafood delivered and amount charged for the delivery.

   (4) The provisions of this subdivision shall not apply where the Commission, a designee of the Commission or an entity under contract to the Commission performs unloading services pursuant to paragraph (ii) of subdivision g of section 22-204 or 22-208 of the Code.

  1. Prohibited acts for unloaders.

   (1) An unloading business or an unloader shall not engage in any other business or perform any other service in the market area that would interfere with the ability of the unloading business adequately and effectively to perform unloading activities under this subchapter.

   (2) An unloading business or an unloader shall not interfere with the market manager or his or her staff or the employees of the Commission in the discharge of their functions or interfere with or obstruct the orderly functioning of the unloading process by threats, intimidation or coercion, or by unloading any truck out of order or soliciting any other unloading business or unloader to unload any truck out of order, or by refusing to unload or soliciting any other unloading business or unloader to refuse to unload any truck directed to him, her or it by the unloading dispatcher.

   (3) An unloading business or an unloader shall not charge any fees in addition to the fees for unloading specified in the conditions of the unloading license issued by the Commission, nor shall an unloading business or an unloader request or accept other fees or gratuities relating to unloading from wholesalers or truckers.

   (4) An unloading business or an unloader shall not violate applicable federal, state and city regulations regarding the handling of seafood.

   (5) In addition to the foregoing, the following rules also apply to principals, employees and agents of an unloading business or an unloader. Such persons shall not:

      (i) authorize another person to use the name of the unloading business or unloader to which a license has been issued;

      (ii) authorize another person to conduct an unloading business or act as an unloader with the license that has been issued to such unloading business or unloader;

      (iii) conduct an unloading business under any name other than the name under which such business has been licensed with Commission;

      (iv) associate with a person whom such person knows or should know is a member or associate of an organized crime group (a person who has been identified by a federal, state, or local law enforcement agency as a member or associate of an organized crime group shall be presumed to be a member or associate of an organized crime group);

      (v) make, file or submit a false or misleading statement to the Commission or to a government agency or employee;

      (vi) falsify any business record;

      (vii) continue to employ a person who has not received a valid photo identification card in accordance with the provisions of this subchapter, or whose photo identification card has been revoked, or whose photo identification card has been suspended during the period of suspension;

      (viii) utilize any motor vehicle in connection with the operation of such business which is not properly registered with the New York State Department of Motor Vehicles and insured in accordance with 17 RCNY § 12-08;

      (ix) engage in any unfair labor practice under federal and state labor laws as applicable.

      (x) refuse to answer an inquiry from the Commission or provide false or misleading information to the Commission;

      (xi) violate or fail to comply with any order or directive of the Commission;

      (xii) fail to pay federal, state and local taxes;

      (xiii) fail to pay any fines or civil penalties imposed by the Commission, a court, or the Environmental Control Board for violations of Chapter 1-A of Title 22 of the Code and of this subchapter.

§ 12-12 Loading Operations.

A loader shall comply with the conditions for conducting a loading business that are contained in the license issued to such loading business pursuant to section 22-206 and subdivision b of section 22-222 of the Code. In addition, a loading business shall be conducted subject to the provisions of this section as the market manager may direct.

  1. Loading charges and vouchers.

   (1) A loading business shall post copies of the schedule of the rates set forth in the conditions of its license to be charged for the parking of vehicles and for the services performed by such loading business in appropriate areas within the market area as determined by the market manager. The market manager or the designee of the market manager may issue vouchers for sale to persons who wish to park and use loading services in the market area. Where the market manager or the designee of the market manager has issued such vouchers, persons parking and using loading services in the market area shall pay loaders for such parking and loading services only with vouchers purchased from the market manager or his or her designee.

   (2) A loading business or a loader shall not charge more than the rates that are contained in the conditions of the loading license and are shown on a schedule posted pursuant to paragraph (1) of this subdivision. Where the market manager or his or her designee has issued vouchers pursuant to this subdivision, loaders shall accept payment for parking and loading services only in voucher form and shall not charge, request or accept any cash payment or other fees or gratuities in connection with loading. Where such vouchers have been issued, the market manager or his or her designee shall redeem those vouchers presented to him or her by a loading business for payment.

  1. Loading Assignments and Hours.

   (1) A loading business shall not conduct loading in a loading area unless the market manager has approved the use of such area by such loading business or has assigned such loading business to such loading area. The market manager may rotate such assignments.

   (2) All loading and services related to loading shall take place during the regular loading hours designated by the market manager.

  1. Prohibited acts for loaders.

   (1) A loading business or a loader shall not engage in any other business or perform any other service in the market area that would interfere with the ability of the loading business to perform loading activities adequately and effectively under this subchapter.

   (2) A loading business or a loader shall not interfere with the market manager or his or her staff or the employees of the Commission in the discharge of their functions or interfere with or obstruct the orderly functioning of the market area.

   (3) Where the market manager or the designee of the market manager has issued vouchers pursuant to subdivision (a) of this section, a loading business or a loader shall accept payment for parking and loading services only in voucher form. A loading business or a loader shall not charge other than the fees contained in the conditions of the loading license and shown in the schedule of rates posted pursuant to subdivision (a) of this section nor shall a loading business or a loader solicit or accept gratuities from purchasers of seafood or fees other than for the services specified on such schedule.

   (4) A loading business or a loader shall not attempt to force any person to park his or her vehicle in the location designated or approved by the market manager for the use of such loading business.

   (5) A loading business or a loader shall not refuse to perform loading or services related to loading for any person when space is available for such person’s vehicle in the location designated or approved by the market manager for the use of the loading business.

   (6) A loading business or a loader shall not, by threats, intimidation or any other action, force any person to agree to use the services of such business or prevent any person from using the services of any other loading business. A loading business or a loader shall not solicit, threaten, or enter into agreement with another loader to refuse loading services to any person.

   (7) A loading business or a loader shall not move or otherwise interfere with any vehicle, except that a loader may move a vehicle for the purposes of facilitating traffic flow or loading operations when the owner of such vehicle has entrusted the loader with the keys to the vehicle.

   (8) A loading business or a loader shall not violate applicable federal, state or city regulations regarding the proper handling of seafood.

   (9) In addition to the foregoing, the following rules also apply to principals, employees and agents of a loading business or a loader. Such persons shall not:

      (i) authorize another person to use the name of the loading business or loader to which a license has been issued;

      (ii) authorize another person to conduct a loading business or act as a loader with the license that has been issued to such loading business or loader;

      (iii) conduct an loading business under any name other than the name under which such business has been licensed with Commission;

      (iv) associate with a person whom such person knows or should know is a member or associate of an organized crime group (a person who has been identified by a federal, state, or local law enforcement agency as a member or associate of an organized crime group shall be presumed to be a member or associate of an organized crime group);

      (v) make, file or submit a false or misleading statement to the Commission or to a government agency or employee;

      (vi) falsify any business record;

      (vii) continue to employ a person who has not received a valid photo identification card in accordance with the provisions of this subchapter, or whose photo identification card has been revoked, or whose photo identification card has been suspended during the period of suspension;

      (viii) utilize any motor vehicle in connection with the operation of such business which is not properly registered with the New York State Department of Motor Vehicles and insured in accordance with 17 RCNY § 12-08;

      (ix) engage in any unfair labor practice under federal and state labor laws as applicable.

      (x) refuse to answer an inquiry from the Commission or provide false or misleading information to the Commission;

      (xi) violate or fail to comply with any order or directive of the Commission;

      (xii) fail to pay federal, state and local taxes;

      (xiii) fail to pay any fines or civil penalties imposed by the Commission, a court, or the Environmental Control Board for violations of Chapter 1-A of Title 22 of the Code and of this subchapter.

§ 12-13 Wholesale Seafood Business and Seafood Deliverer Registration Required.

(a) No person shall operate a wholesale seafood business in the market area without having first registered with the Commission and received a registration or registration number from the Commission.
  1. No person shall operate a seafood delivery business in the market area without having first registered with the Commission and having received a registration or registration number from the Commission.

§ 12-14 Application for a Wholesale Seafood Business and Seafood Delivery Business Registration.

(a) An application or renewal thereof for a wholesale seafood business or a seafood delivery business, pursuant to Sections 22-209 and 22-211 of the Code, must be made of a form prescribed by the Commission. The application must be certified under penalty of perjury and signed by all principals of the applicant business. The registration application must include, but not be limited to, the following information:

   (1) the name, address, e-mail address designated for communications with the business that will be checked regularly, website (if any), and telephone number(s) of the business submitting such application;

   (2) the names, addresses, e-mail address(es), telephone number(s), and social security numbers of all current and past principals of the applicant and a description of the positions occupied or ownership interest held by each such principal;

   (3) the names, job titles, social security numbers, and addresses of all other employees or agents of the applicant;

   (4) a list of vehicles used in the course of the applicant’s business;

   (5) employment and business background information on the principals such as the principal’s employment history, wholesale or market business interests, and any related business interests;

   (6) if the applicant is doing business under an assumed name, a Certificate of Assumed Name, certified by the County Clerk if a sole proprietorship or partnership, or by the Secretary of State if a corporation;

   (7) if the applicant business is a sole proprietorship, a notarized copy of the business certificate certified by the County Clerk;

   (8) if the applicant is a corporation, a copy of the certificate of incorporation;

   (9) if the applicant is a partnership, a copy of the partnership papers, certified by the County Clerk;

   (10) a listing of the names and addresses of any person having a beneficial interest in the applicant, and the amount and nature of such interest;

   (11) a listing of any determination by a federal, state, or city regulatory agency of a violation by such applicant of laws or regulations relating to the conduct of the applicant’s business where such violation has resulted in the suspension or revocation of a permit, license, or other permission required in connection with the operation of such business or in a civil fine, penalty, settlement, or injunctive relief;

   (12) a listing of all criminal convictions, in any jurisdiction, of the applicant, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law;

   (13) a Federal or State tax identification number; and

   (14) such other information that the Commission deems appropriate.

  1. Notwithstanding any provision of this subchapter:

   (1) The Commission may, when there is reasonable cause to believe that an applicant for registration as a wholesale seafood business or seafood delivery business or any or all of the principals of such applicant business does not possess good character, honesty, and integrity, require that any or all such principals be fingerprinted by a person designated for such purpose by the Commission and pay the prescribed fee for the purpose of obtaining criminal history records and provide to the Commission the disclosure required by the form provided to the Commission. The Commission also may require such additional information, in lieu of or in addition to such fingerprinting and/or disclosure, including without limitation documents and an in-person interview, as the Commission determines is appropriate and reasonable to render a determination.

   (2) If at any time subsequent to the registration of a wholesale seafood business or a seafood delivery business, the Commission has reasonable cause to believe that any or all of the principals, employees or agents of such business do not possess good character, honesty, and integrity, the Commission may require that any or all of such principals be fingerprinted by a person designated for such purpose by the Commission and pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records and provide the disclosure required by the form provided by the Commission. The Commission also may require additional information, in lieu of or in addition to such fingerprinting and/or disclosure, including, without limitation, documents and an in-person interview, as the Commission determines is appropriate and reasonable to render a determination.

  1. If a renewal application is not submitted to the Commission within the time period required by the Commission, the Commission may reject the renewal application and instead require the applicant to file a new application in accordance with the provisions pertaining to the application process as set forth in Chapter 1-A of Title 22 of the Code and this subchapter.

§ 12-15 Wholesale Seafood Business Operations.

(a) Registration not transferable.

   (1) A wholesale seafood business must not transfer its registration or registration number as part of the sale of such business.

   (2) A wholesaler must not allow the use by any other person of the registration or registration number or the name of the business to which such registration has been issued.

   (3) A wholesaler must not allow any other person to place seafood in the space which the wholesaler has subleased from a cooperative association, except that a wholesaler may, as provided in Subdivision d of Section 22-209 of the Code, permit the use of such space by another registered wholesaler who has received a shipment of seafood that cannot be accommodated in the space from which such registered wholesaler operates. No fee may be charged for such temporary use and any such use must be reported to the Commission as soon as practicable, with details specifying the dates, times, and extent of such use. A wholesaler may also, as set forth in Subdivision e of Section 22-209 of the Code and, pursuant to the provisions regarding approval of the Commission and limitations upon the charging of fees set forth in such subdivision, allow the use by no more than one (1) other registered wholesaler on other than a temporary basis of no more than forty-nine (49) percent of the space which the wholesaler has subleased from a cooperative association.

  1. Furnishing and display of registration numbers.

   (1) A wholesaler must furnish, by telephone or in writing, to each supplier, distributor, or other person from whom the wholesaler orders or agrees to receive seafood the registration number and the name of the business to which such registration number has been issued.

   (2) The name and registration number of a wholesale seafood business must be affixed and prominently displayed on all premises from which such wholesale seafood business is conducted.

  1. Record keeping.

   (1) Wholesalers must retain copies of all bills from and records of payments to unloaders, suppliers, and shippers of seafood and payment from retailers. Such bills and records must accurately reflect the amount of seafood involved in each transaction and must, along with all other records produced in the normal course of business, be retained for a minimum of thirty-six (36) months, and must be made available for immediate inspection and/or copying upon request by the market manager or a designee of the market manager or an employee of the Commission. Electronic copies of such books and records are acceptable.

   (2) Wholesalers or a designee of the wholesaler must sign each bill of lading acknowledging delivery and receipt of the seafood indicated thereon, noting any discrepancies.

  1. Workers’ Compensation Insurance. A wholesaler must submit proof that it has obtained the required Workers’ Compensation and Disability Benefits Coverage, or that it is exempt from Section 57 of the Workers’ Compensation Law, and Subdivision 8 of Section 220 of the Disability Benefits Law.

   (1) Proof of coverage can be established by submitting the following Workers’ Compensation Board forms:

      (i) C:105.2 Application for Certificate of Workers’ Compensation Insurance;

      (ii) DB-120.1 Employer’s Application for Certificate of Compliance with Disability Benefits Law;

      (iii) S1-12 Affidavit certifying that compensation has been secured;

   (2) Proof that no coverage is required can be provided by submitting the following Workers’ Compensation Board form:

      (i) C-105.21 Statement that applicant does not require Workers’ Compensation or Disability Benefits Coverage.

  1. Liability insurance. A wholesaler must procure and maintain throughout the term of the registration the following types of insurance against claims for injuries to persons or damages to property which may arise from or in connection with the wholesale business. The wholesaler may purchase such policies in conjunction with one (1) or more other wholesalers, provided that the following coverages described in this subdivision are maintained with respect to each wholesaler:

   (1) Commercial general liability insurance with liability limits of no less than one million dollars ($1,000,000) combined single limit per occurrence for bodily injury, personal, and property damage. The maximum deductible for such insurance shall be no more than twenty-five thousand dollars ($25,000).

   (2) Business automobile liability insurance covering every vehicle operated by the wholesaler, whether or not owned by wholesaler, and every vehicle hired by the wholesaler with liability limits of no less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage.

    1. The policy or policies of insurance required by this section must name the Commission as certificate holder and must be endorsed to state that the coverage must not be suspended, voided, canceled, reduced in coverage, or in limits except upon sixty (60) days prior written notice to the Commission.

   (2) A wholesaler must demonstrate that it has secured the insurance coverage required, pursuant to this subdivision and must maintain such required insurance coverage throughout the term of the registration. Failure to maintain continuous insurance coverage meeting the requirements of these rules will result in revocation of the registration.

   (3) All required policies of insurance must be obtained from a company, or companies, duly authorized to do business in the State of New York with a Best’s rating of no less than A:X unless specific approval has been granted by the Commission to accept a company with a lower rating.

   (4) A certificate of insurance effecting the required coverage and signed by a person authorized by the insurer to bind coverage on its behalf, must be delivered to the Commission prior to the effective date of the registration. Delivery to the Commission’s offices may be made in person, by first class mail, or by e-mail to Licensing@bic.nyc.gov.

  1. Payment bond. A wholesaler must, in the discretion of the Commission, procure and maintain a payment bond or other security ensuring payment to suppliers of such wholesaler or to unloading businesses in an amount, if any, to be determined by the Commission taking into account such factors as the wholesaler’s volume of business and credit worthiness. The requirement of a payment bond, or other security that the Commission in its discretion so requires, may be imposed by the Commission at any time, including after a registration has been issued.

§ 12-16 Seafood Delivery Operations.

A seafood deliverer shall be subject to the requirements for conducting a seafood delivery business that are contained in this section.

  1. The market manager may designate an area or areas within the market area where seafood deliverers must park while picking up seafood from wholesalers for delivery.
    1. Seafood deliverers must possess a valid driver’s license as required by Section 501 of the Vehicle and Traffic Law.

   (2) All vehicles employed in a seafood delivery business must possess: proper vehicle registration as required by Section 401 of the Vehicle and Traffic Law; and insurance coverage required by Article 6 of the Vehicle and Traffic Law.

  1. A seafood deliverer must not offer to sell seafood for sale within the market area for resale to the public unless the seafood deliverer is also registered as a wholesaler.
  2. Seafood deliverers must comply at all times with all applicable federal, state, and city regulations regarding the proper handling of seafood.
  3. Workers’ Compensation Insurance. A seafood deliverer must submit proof that it has obtained the required Workers’ Compensation and Disability Benefits Coverage, or that it is exempt from Section 57 of the Workers’ Compensation Law, and Subdivision 8 of Section 220 of the Disability Benefits Law.

   (1) Proof of coverage can be established by submitting the following Workers’ Compensation Board forms:

      (i) C:105.2 Application for Certificate of Workers’ Compensation Insurance;

      (ii) DB-120.1 Employer’s Application for Certificate of Compliance with Disability Benefits Law;

      (iii) S1-12 Affidavit certifying that compensation has been secured;

   (2) Proof that no coverage is required can be provided by submitting the following Workers’ Compensation Board form:

      (i) C-105.21 Statement that applicant does not require Workers’ Compensation or Disability Benefits Coverage.

  1. Liability insurance. A seafood deliverer must procure and maintain throughout the term of the registration the following types of insurance against claims for injuries to persons or damages to property which may arise from or in connection with the seafood deliverer’s business. The seafood deliverer may purchase such policies in conjunction with one (1) or more other seafood deliverers, provided that the following coverages described in this subdivision are maintained with respect to each seafood deliverer:

   (1) Commercial general liability insurance with liability limits of no less than one million dollars ($1,000,000) combined single limit per occurrence for bodily injury, personal, and property damage. The maximum deductible for such insurance shall be no more than twenty-five thousand dollars ($25,000).

   (2) Business automobile liability insurance covering every vehicle operated by the seafood deliverer, whether or not owned by the seafood deliverer, and every vehicle hired by the seafood deliverer with liability limits of no less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage.

    1. The policy or policies of insurance required by this section must name the Commission as certificate holder and must be endorsed to state that the coverage must not be suspended, voided, canceled, reduced in coverage, or in limits except upon sixty (60) days prior written notice to the Commission.

   (2) A seafood deliverer must demonstrate that it has secured the insurance coverage required, pursuant to this subdivision and must maintain such required insurance coverage throughout the term of the registration. Failure to maintain continuous insurance coverage meeting the requirements of these rules will result in revocation of the registration.

   (3) All required policies of insurance must be obtained from a company, or companies, duly authorized to do business in the State of New York with a Best’s rating of no less than A:X unless specific approval has been granted by the Commission to accept a company with a lower rating.

   (4) A certificate of insurance effecting the required coverage and signed by a person authorized by the insurer to bind coverage on its behalf, must be delivered to the Commission prior to the effective date of the registration. Delivery to the Commission’s offices may be made in person, by first class mail, or by e-mail to Licensing@bic.nyc.gov.

§ 12-17 Regulation for Safety, Order and Health in the Market Area.

(a) In order to ensure safe, orderly and healthful conditions in the market area, the market manager may take measures, including but not limited to the following:

   (1) designate areas in which activities not otherwise regulated by the provisions of this subchapter and related to the distribution of seafood in the market area may be conducted;

   (2) prohibit any activity that may present a threat of

      (i) intimidation or disruption of businesses in the market area,

      (ii) traffic congestion or

      (iii) unsafe, unlawful or unsanitary conditions, and exclude from the market area any person or business conducting such activity;

   (3) regulate the movement of traffic throughout the market area; and

   (4) prescribe methods for the sanitary disposal of waste in the market area.

  1. With respect to the conduct of business and activities related to the distribution of seafood in the market area, where any provision of this subchapter is inconsistent with any other provision of this chapter, the provisions of this subchapter shall apply.

§ 12-18 Prohibited Acts Generally.

(a) No person shall

   (1) interfere, or attempt to interfere, with the market manager, his or her staff or the employees of the Commission in the discharge of their functions or interfere with or otherwise obstruct the orderly functioning of the market;

   (2) interfere, or attempt to interfere with, or otherwise obstruct any operations or property of any other person within the market;

   (3) take into, carry through, leave in, throw, or discharge into or on any market any rubbish, litter or refuse, except that rubbish, litter or refuse generated within any market may be discarded in receptacles that are specifically designed for such purpose or as otherwise provided for by this subchapter;

   (4) urinate or defecate in any market, or in or upon any market building or structure, except in a facility that is specifically designed for such purpose;

   (5) violate any measure imposed by the market manager pursuant to 17 RCNY § 12-17;

   (6) violate any other order of the market manager issued in accordance with Chapter 1-A of Title 22 of the Code or this subchapter;

   (7) violate any applicable federal, state or local law or regulation regarding the handling of seafood;

   (8) make a misrepresentation of any kind with respect to merchandise offered for sale or the take any unfair advantage of a purchaser or any attempt to take such unfair advantage;

   (9) sell in any market any merchandise that the Commission has prohibited to be sold therein;

   (10) discharge into or leave in tidal water, sewage or drainage that may result in the pollution of water;

   (11) perform any act that may tend to damage or clog drains or sewers; or

   (12) provide false or misleading information to the Commission.

  1. Where any provision of Chapter 1-A of Title 22 of the Code or this subchapter prohibits or otherwise restricts any activity or conduct of licensees or registrants, the principals, employees and agents of such licensees and registrants, or holders of photo identification cards, such provision also is applicable to applicants for such licenses and registrations, and principals, employees and agents thereof, and applicants for photo identification cards, as the case may be.

§ 12-19 Prohibited Acts for Wholesalers and Seafood Deliverers.

(a) A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not solicit an unloader to unload a truck out of order.
  1. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not interfere with the market manager or his or her staff or the employees of the Commission in the discharge of their functions or interfere with or otherwise obstruct the orderly functioning of the market.
  2. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not authorize another person to use the name of the business to which a registration or registration number has been issued for such wholesale or seafood delivery business.
  3. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not authorize another person to conduct a wholesale seafood business or a seafood delivery business with the registration or registration number that has been issued to such wholesaler or seafood deliverer.
  4. A wholesaler and its employees and agents shall not sublease or otherwise allow the use of its premises by a person who does not possess a registration number issued by the Commission pursuant to this subchapter.
  5. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not conduct a wholesale seafood business or a seafood delivery business under any name other than the name under which such business has been registered with the Commission.
  6. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall discard seafood in accordance with applicable federal, state, and local law governing the disposal of seafood and seafood products.
  7. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not violate applicable federal, state and city regulations regarding the proper handling of seafood.
  8. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not fail to notify the Commission of any change in the information provided pursuant to 17 RCNY § 12-21 with respect to the composition or ownership of the wholesale business, or of any change in the employment status of its employees.
  9. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not associate with a person whom such person knows or should know is a member or associate of an organized crime group. A person who has been identified by a federal, state, or local law enforcement agency as a member or associate of an organized crime group shall be presumed to be a member or associate of an organized crime group.
  10. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not make, file or submit a false or misleading statement to the Commission or to a government agency or employee.
  11. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not falsify any business record.
  12. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not engage in any unfair labor practice under federal and state labor laws as applicable.
  13. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not refuse to answer an inquiry from the Commission.
  14. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not violate or fail to comply with any order or directive of the Commission.
  15. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not fail to pay federal, state and local taxes.
  16. A wholesaler and its employees and agents and a seafood delivery business and its employees and agents shall not fail to pay any fines or civil penalties imposed pursuant to Chapter 1-A of Title 22 of the Code or this subchapter.

§ 12-20 Applicability When Commission Performs Unloading or Loading Services.

  1. The sections of this subchapter relating to licensing requirements shall not apply where the Commission determines, pursuant to paragraph (ii) of subdivision g of section 22-204, paragraph (ii) of subdivision g of section 22-206 or section 22-208 of the Code, that the Commission, a designee of the Commission, an entity under contract to the Commission, or a combination thereof shall provide unloading services or loading services in the market area.
  2. Where the Commission makes such a determination, such loading or unloading services shall be provided in accordance with all rules governing the conduct of such services prescribed under sections 22-205 and 22-207 of the Code, other than insurance and bonding requirements.

§ 12-21 Notification of Material Change in Information, Addition of Principal and Change in Composition of Business.

(a) An applicant for a license, registration or a photo identification card shall notify the Commission within ten (10) calendar days of any material change in the information submitted in an application or disclosure form.
  1. Subsequent to the issuance of a license, registration or photo identification card, the licensee, registrant or card holder shall notify the Commission within thirty (30) calendar days of any material change in the information submitted in an application or disclosure form.
  2. A licensee or registrant shall provide the Commission with notice of at least ten (10) business days of the proposed addition of a new principal (other than a person who becomes a principal through the acquisition of outstanding shares of a business whose equity securities are registered under Federal and State securities laws and publicly traded on a national or regional stock or security exchange) to the business of such registrant. The Commission may waive or shorten such period upon a showing that there exists a bona fide business requirement therefor. Except where the Commission determines within such period, based upon information available to it, that the addition of such new principal may have a result inimical to the purposes of this subchapter, the licensee or registrant may add such new principal pending the completion of review by the Commission. The licensee or registrant shall be afforded an opportunity to demonstrate to the Commission that the addition of such new principal pending completion of such review would not have a result inimical to the purposes of this subchapter. If upon the completion of such review, the Commission determines that such principal lacks good character, honesty and integrity, the license or registration shall cease to be valid unless such principal divests his or her interest, or discontinues his or her involvement in the business of such licensee or registrant, as the case may be, within the time period prescribed by the Commission.
  3. Any notification pursuant to this section shall be in writing, sworn and notarized.
  4. For the purposes of this section “material change” shall mean a change in any information provided in response to an item identified as such on an application or disclosure form submitted to the Commission or by any other directive issued by the Commission. “Material change” also includes the occurrence of any event after the submission of an application or disclosure that would have been required to be disclosed on such form had it occurred prior to such submission.

§ 12-22 Acquisitions and Subleases.

(a) A person who intends to acquire a registered wholesale seafood business or a seafood delivery business shall submit an application for a wholesale seafood business or seafood delivery business registration pursuant to the provisions of Chapter 1-A of Title 22 of the Code and this subchapter and a purchase and sale agreement for review by the Commission no later than thirty (30) days before such acquisition is to take effect. The Commission will conduct an expedited review of such application and agreement. If the person seeking to acquire the wholesale seafood business or seafood delivery business currently holds a registration for another such business in a market, the Commission at its discretion may waive the requirement of a new application or require that only certain portions of the application be submitted for review.
  1. A loading or unloading licensee or a wholesale seafood business or seafood delivery business registrant shall notify the Commission within ten (10) calendar days of contract closing of any change in the capital stock or ownership in the business of the licensee or registrant, including but not limited to a stock transfer or sale of the outstanding shares of the business or sale or merger of such business; provided, however that a business whose equity securities are publicly traded on a national or regional stock or securities exchange shall be required to make disclosure of only such stock transfer or sale required to be disclosed by the Securities Exchange Commission or other Federal or State regulatory body. Such notification shall include a list of any persons formerly possessing ownership interest in the registrant business who will have any beneficial interest in the current business and a copy of the contract or agreement.
  2. Sublessee required to apply for registration. Wholesale seafood businesses and seafood delivery businesses shall not allow the use by any other person of the registration or registration number or the name of the business to which such registration has been issued. In the event that a wholesale seafood business seeks to sublease or otherwise allow the use of its premises, or any portion thereof, for the operation of a wholesale seafood business by another person, where such sublease is permitted under the terms of the lease, the Commission may, upon application and payment of the required fee by the prospective sublessee pursuant to the provisions of Chapter 1-A of Title 22 of the Code and this subchapter, issue a registration to such sublessee. Absent such registration, no wholesale seafood business may permit a sublessee to operate a wholesale seafood business on such premises.

§ 12-23 Refusal to Issue License, Registration or Photo Identification Card; Revocation and Suspension of License, Registration or Photo Identification Card.

(a) Where the staff of the Commission recommends that the Commission refuse, pursuant to section 22-216 of the Code, to issue a license, registration or photo identification card, the applicant shall be notified in writing of the reasons for the proposed refusal and may, within ten (10) business days of the date of such notification, respond in writing to the Commission setting forth the reasons such applicant believes that it should not be denied such license, registration or photo identification card. In the exercise of its discretion, the Commission, considering the reasons for the proposed refusal to issue the license, registration or photo identification card, the nature of the issues raised in connection therewith, and the response submitted by the applicant, may make a final determination regarding the issuance of such license, registration or photo identification card or afford the applicant such further opportunity to be heard in such proceeding as is deemed appropriate. A final determination and the reasons therefor shall be communicated to the applicant in writing.
  1. For any of the reasons set forth in sections 22-216 and 22-217 of the Code, including the violation of any rule promulgated pursuant to section 22-223 of the Code, the Commission may suspend or revoke a provisional photo identification card, and after notice and hearing, revoke or suspend

   (1) the license of a loader or unloader,

   (2) the registration of a wholesale seafood business or seafood delivery business or

   (3) a Class A or Class B photo identification card. Notice shall be provided in accordance with the provisions of 17 RCNY § 12-25. Hearings shall be afforded in accordance with the provisions of 17 RCNY § 12-26.

  1. Revocation or suspension of a license or registration, the discontinuance of business operations in the market area by a licensee or registrant, or denial of an application for a license or registration shall require the immediate surrender to the market manager of all photo identification cards issued to the principals, employees and/or agents of the licensee or registrant. Violation of the provisions of this subdivision may result in the imposition of the sanctions and penalties provided in sections 22-215 and 22-219 of the Code.
  2. Revocation or suspension of a photo identification card or denial of an application for a photo identification card (including provisional photo identification cards) shall require the immediate surrender of such card to the market manager.

§ 12-24 Emergency Suspension of License, Registration or Photo Identification Card.

Notwithstanding the foregoing provisions, the Chairperson may, if he or she has reasonable cause to believe that the operation of a loading or unloading business, a wholesale seafood business or seafood delivery business or the presence of any person in the market area creates an imminent danger to life or property or to the orderly and lawful operation of the market, or that there has likely been false or fraudulent information submitted to the Commission, may immediately suspend the license or registration of such business or the photo identification card of such person without a prior hearing, provided that such suspension may be appealed to the Deputy Commissioner for Legal Affairs of the Commission, who shall determine such appeal forthwith. If the Deputy Commissioner for Legal Affairs upholds the suspension, an opportunity for a hearing pursuant to the provisions of 17 RCNY § 12-26(b) shall be provided on an expedited basis. The Commission shall issue a final determination no later than four (4) business days following the conclusion of such hearing. The Chairperson may, upon application by the business whose license or registration has been suspended, permit such business to remain in the market area for such time as is deemed necessary by the Chairperson to allow for the expeditious sale, consignment or removal of a perishable product if, in the Chairperson’s judgment, such permission is consistent with the safety of the market area.

§ 12-25 Notice.

Unless otherwise provided, all notices, pursuant to Chapter 1-A of Title 22 of the Code or this subchapter, including but not limited to notice related to hearings, violations, and subpoenae, may be served by first class mail addressed to the business address provided to the Commission by the applicant, licensee, registrant, or photo identification card holder. All such notices served on an employee or agent may be served by first class mail to the address listed for such employee or agent in the information provided to the Commission. Such notice also may be served by personal service or in any other manner reasonably calculated to achieve actual notice, including but not limited to any method authorized in the Civil Practice Law and Rules.

§ 12-26 Administrative Hearings.

(a) Hearings on the violation of any provision of Chapter 1-A of Title 22 of the Code or any provision of the rules promulgated pursuant to such chapter may be conducted by the Environmental Control Board or any other administrative tribunal of competent jurisdiction, and shall be held pursuant to the procedures for adjudication set forth in the rules of such Board or tribunal.
  1. Where a hearing is conducted in relation to the suspension or revocation of a photo identification card, license or registration, such hearing shall, at the discretion of the Commission, be conducted by a hearing officer or by the Office of Administrative Trials and Hearings.

   (1) Where such hearing is conducted by the Commission or a hearing officer, such hearing shall be conducted as follows:

      (i) The hearing officer or the Commission shall set a time and place for such hearing and the respondent shall be provided the respondent with notice of such time and place no less than ten (10) days prior to the date of the hearing, except that in the case of an immediate suspension requiring an expedited hearing pursuant to section 22-218 of the Code, such notice shall be provided no later than one (1) business day following such suspension.

      (ii) All parties shall be afforded due process of law, including the opportunity to be represented by counsel, to issue subpoenas or request that a subpoena be issued, to call and examine witnesses and to present arguments on the law and facts. Relevant material and reliable evidence may be admitted without regard to technical or formal rules or laws of evidence.

      (iii) All persons giving testimony as witnesses shall be placed under oath.

      (iv) The Chairperson, or his or her designee, or the hearing officer, as the case may be, shall preside over the hearing and shall have all powers necessary to conduct fair and impartial hearings, to avoid delay in the disposition of proceedings, and to maintain order, including but not limited to the following: to compel the attendance of witnesses and the production of documents; to issue orders for discovery upon motion for good cause shown; to rule upon offers of proof and receive evidence; to regulate the course of the hearing and the conduct of the parties and their counsel therein; to hold conferences for the purposes of settlement or any other purpose; and to examine witnesses.

      (v) The hearing officer or the Commission, as the case may be, shall arrange for the hearing to be either stenographically transcribed or mechanically recorded. The transcript or recording and all exhibits received in evidence shall constitute the hearing record.

      (vi) When the hearing is conducted by a hearing officer, as soon as possible after the hearing, the hearing officer shall present recommended findings of fact and a recommended decision to the Commission. The Commission shall then make its final determination and notify the respondent of such determination. When the hearing is conducted by the Commission, the Commission shall make a final determination and notify the respondent of such determination.

      (vii) Failure of a respondent to make a timely written response, appear or proceed as required by the hearing officer or the Commission, as the case may be, shall constitute a default. When the hearing is conducted by a hearing officer, upon default, the hearing officer shall make recommended findings and recommended decision as is appropriate under the pleadings and such evidence as he or she shall have received. The Commission shall then make a final determination and shall notify the respondent of such determination. Where the hearing is before the Commission, upon default the Commission shall make a final determination and shall notify the respondent thereof.

   (2) Where such hearing is conducted by the Office of Administrative Trials and Hearings, such hearing shall be governed by the rules of procedure utilized by that tribunal. After the conclusion of the hearing, the Office of Administrative Trials and Hearings shall issue proposed findings and a report and recommendation to the Commission. The Commission shall review such findings and report and recommendation and shall issue a final determination. The Commission shall notify the respondent in writing of its determination.

§ 12-27 Fines and Penalties.

(a) The Commission may issue a notice of violation to any person, including a loading or unloading business, wholesale seafood business, seafood delivery business, or any of their principals, employees, agents or officers, for the violation of any provision of Chapter 1-A of Title 22 of the Code or of this subchapter. Any person who violates any such provision shall be subject to the civil and criminal fines and penalties and injunctive relief as provided in section 22-215 of the Code.
  1. A loading or unloading business, wholesale seafood business or seafood delivery business shall be jointly and severally liable for any violation of Chapter l-A of Title 22 of the Code or of this subchapter committed by any of its officers, employees and/or agents acting within the scope of their employment.
  2. All penalties are in dollar amounts. Repeat penalties apply to violations of the same subdivision penalty schedule description. Second, third, fourth, fifth and subsequent (“subs.”) violations are defined as a violation by the same respondent with a date of occurrence within five years of the date of occurrence of the previous violation.
  3. An asterisk (*) below denotes availability of a mail-in penalty. Mail-in penalties are only available for a first offense. Where a mail-in penalty exists in this penalty schedule for the cited violation, a respondent may admit to the violation charged and pay the penalty by mail in the manner and time directed by the summons. Payment in full is deemed an admission of liability and no further hearing or appeal will be allowed. Where respondent is permitted to admit and pay by mail but fails to do so before the original hearing date written on the violation, the respondent will have the option of paying the mail in penalty, plus a late admit fee of $30.00, within 30 days of the mailing date of the default order issued against respondent.
  4. The table below sets forth the penalties imposed in connection with Summonses returnable. Particular violations shall be classified as indicated in the following table:

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17 RCNY § 12-04(a) Failed to obtain identification card $350 2nd $7503rd $1,500Subs. $3,000 $10,000
17 RCNY § 12-04(f) Failed to display identification card $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-06(a) Operated an unloading business without a license $2,500 2nd $5,000Subs. $7,500 $10,000
17 RCNY § 12-06(b) Operated a loading business without a license $2,500 2nd $5,000Subs. $7,500 $10,000
17 RCNY § 12-10(a) Failed to maintain required insurance (Licensee) $500 2nd $7503rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-10(b) Unauthorized transfer of license $1,500 2nd $3,000Subs. $5,000 $10,000
17 RCNY § 12-11 Failed to comply with conditions in unloading license $500 2nd $7503rd $1,000Subs. $2,500 $10,000
17 RCNY § 12-11(a)(3) / (b)(1) Unloaded outside approved, designated and/or assigned areas $100 2nd $2503rd $500Subs. $1,000 $10,000
17 RCNY § 12-11(b)(3) Failed to unload in required order $500 2nd $7503rd $1,000Subs. $2,500 $10,000
17 RCNY § 12-11(b)(4) Refused to unload trucks in approved or assigned unloading area $500 2nd $7503rd $1,000Subs. $2,500 $10,000
17 RCNY § 12-11(c)(1) Charged rates in excess of those specified in unloading license (Unloader) $1,000 2nd $1,5003rd $2,000Subs. $3,000 $10,000
17 RCNY § 12-11(c)(1) Failed to post rates in appropriate locations (Unloader) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-11(c)(2) Failed to verify bill of lading/obtain signature/record license number (Unloader) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-11(c)(3) Failed to keep/make available weekly records (Unloader) $500 2nd $1,0003rd $1,500Subs. $3,000 $10,000
17 RCNY § 12-11(d)(1) Unloader engaged in business/activity interfering with unloading business (Unloader) $1,000 2nd $1,5003rd $2,500Subs. $5,000 $10,000
17 RCNY § 12-11(d)(2) Interfered with market manager (Unloader) $1,500 2nd $3,000Subs. $5,000 $10,000
17 RCNY § 12-11(d)(2) Obstructed unloading process (Unloader) $1,500 2nd $3,000Subs. $5,000 $10,000
17 RCNY § 12-11(d)(3) Requested/accepted unauthorized fees and/or gratuities (Unloader) $500 2nd $7503rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-11(d)(3) Charged unauthorized fees (Unloader) $500 2nd $7503rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-11(d)(5)(xi) Violated or failed to comply with any order or directive of the Commission (Unloader) $500 2nd $750Subs $1,000 $10,000
17 RCNY § 12-12 Failed to comply with loading license conditions (Loader) $500 2nd $1,0003rd $1,500Subs. $3,000 $10,000
17 RCNY § 12-12(a)(1) Failed to post copies of rates (Loader) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-12(a)(2) Charged rates in excess of those specified in loading license (Loader) $500 2nd $1,0003rd $1,500Subs. $3,000 $10,000
17 RCNY § 12-12(b)(1) Unauthorized use of a loading area (Loader) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-12(b)(2) Loaded outside designated hours (Loader) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-12(c)(3) Charged fees not specified in license (Loader) $500 2nd $7503rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-12(c)(3) Solicited or accepted unauthorized gratuities (Loader) $500 2nd $7503rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-12(c)(5) Refused to perform loading services when space is available (Loader) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-12(c)(6) Forced another to use or prevented another from using loading services (Loader) $500 2nd $7503rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-12(c)(6) Solicited, threatened, and/or agreed to refuse loading services (Loader) $500 2nd $7503rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-12(c)(7) Moved or interfered with any vehicle (Loader) $250 2nd $5003rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-12(c)(9)(xi) Violated or failed to comply with any order or directive of the Commission (Loader) $500 2nd $750Subs $1,000 $10,000
17 RCNY § 12-13(a)/(b) Operated wholesale seafood or seafood delivery business without registration from Commission $2,500 2nd $5,000Subs. $7,500 $10,000
17 RCNY § 12-15(b)(2) Failed to affix and prominently display name and/or registration number (Wholesaler) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-15(c)(1) Failed to keep and/or make available records, bills, etc. (Wholesaler) $500 2nd $7503rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-15(d) Failed to submit proof of worker’s compensation coverage (Wholesaler) $500 2nd $7503rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-15(g) Failed to procure/maintain payment bond (Wholesaler) $500 2nd $7503rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-16(a) Operated a seafood delivery operation in non-designated area (Deliverer) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-16(b)(1) Failed to possess a valid driver’s license as required by Vehicle and Traffic Law (Deliverer) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-16(b)(2) Operated vehicle without a valid registration, inspection sticker and/or insurance card (Deliverer) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-16(b)(2) Failed to display sticker on vehicle (Deliverer) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-16(e)/(f) Failed to maintain required liability insurance (Wholesaler/Deliverer) $500 2nd $7503rd $1,000Subs. $3,000 $10,000
17 RCNY § 12-16(c) Offered seafood for resale to public without wholesale registration (Deliverer) $1,500 2nd $2,500Subs. $5,000 $10,000
17 RCNY § 12-16(c) Offered seafood for resale to public without wholesale registration (Deliverer) $1,500 2nd $2,500Subs. $5,000 $10,000
17 RCNY § 12-17(a) Failed to comply with order of market manager regarding safety/order/health in market area $1,500 2nd $2,500Subs. $5,000 $10,000
17 RCNY § 12-18(a)(1) Committed an act prohibited in the seafood distribution area $1,000 2nd $2,500Subs. $5,000 $10,000
17 RCNY § 12-19 Committed an act prohibited to wholesalers and seafood deliverers in the seafood distribution area $1,500 2nd $3,000Subs. $7,500 $10,000
17 RCNY § 12-19(a) Solicited unloader to unload out of order (Wholesaler) $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-19(c) Authorized another to use business name (Wholesaler) $1,500 2nd $3,000Subs. $5,000 $10,000
17 RCNY § 12-19(c) Unauthorized transfer of registration number (Wholesaler) $1,000 2nd $2,500Subs. $5,000 $10,000
17 RCNY § 12-19(d) Authorized another to use registration number (Wholesaler) $1,500 2nd $3,000Subs. $5,000 $10,000
17 RCNY § 12-19(e) Subleased or allowed use of premises by unregistered person (Wholesaler) $1,500 2nd $3,000Subs. $5,000 $10,000
17 RCNY § 12-19(e) Allowed another to place seafood in stand space (Wholesaler) $1,000 2nd $2,500Subs. $5,000 $10,000
17 RCNY § 12-19(f) Conducted business under unregistered name (Wholesaler) $1,500 2nd $3,000Subs. $5,000 $10,000
17 RCNY § 12-19(g) Discard of seafood in violation of applicable federal, state, and city regulations (Wholesaler) $1,500 2nd $3,000Subs. $5,000 $10,000
17 RCNY § 12-19(o) Violation or failure to comply with any order or directive of the Commission (Wholesaler/Deliverer) $500 2nd $750Subs $1,000 $10,000
17 RCNY § 12-21(a) Failure to notify Commission of changes in registration information (Wholesaler/Deliverer) $500 2nd $1,0003rd $2,500Subs. $5,000 $10,000
17 RCNY § 12-21(a)/(b) Failure to notify Commission of material change in license information (Licensee) $1,000 2nd $1,5003rd $2,500Subs. $5,000 $10,000
17 RCNY § 12-21(c) Failure by licensee to provide notice of addition of principal $1,000 2nd $2,0003rd $3,000Subs. $5,000 $10,000
17 RCNY § 12-21(c) Failure to notify Commission of proposed addition of principal $1,000 2nd $1,5003rd $2,500Subs. $5,000 $10,000
17 RCNY § 12-23(c) Failure to surrender license upon suspension or revocation $2,500 Subs. $5,000 $10,000
17 RCNY § 12-23(c) Failure to surrender identification card upon suspension/revocation of registration (Wholesaler/Deliverer) $1,000 2nd $2,500Subs. $5,000 $10,000
17 RCNY § 12-23(d) Failure to surrender photo identification card $1,000 2nd $2,5003rd $5,000 $10,000
17 RCNY § 12-30(a) Failure to obey and comply with any traffic direction of any police officer or employee of the Commission $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-30(b) Obstruction of traffic within the market and/or stopping of a vehicle or other conveyance in a non-designated place $250 2nd $5003rd $750Subs. $1,000 $10,000
17 RCNY § 12-30(c) Failure to remove disabled vehicle $250 2nd $5003rd $750Subs. $1,000 $10,000
Admin. Code § 22-252(a) Failure to obtain identification card (for 11 to 30 days) $2,500 Subs. $5,000 $5,000
Admin. Code § 22-253(a) Failure to register wholesale and/or market businesses (single day) $1,000 2nd $2,500Subs. $5,000 $5,000
Admin. Code § 22-253(a) Failure to register wholesale and/or market businesses 2 to 10 days $2,500 Subs. $5,000 $5,000
Admin. Code § 22-253(a) Failure to register wholesale and/or market businesses for 11 to 30 days $3,500 Subs. $5,000 $5,000
Admin. Code § 22-262 Failure to surrender and/or cease to use registration, certification and/or number (single day) $2,500 Subs. $5,000 $5,000
Admin. Code § 22-262 Failure to surrender and/or cease to use registration, certification and/or number for 2 to 10 days $3,500 Subs. $5,000 $5,000
Admin. Code § 22-262 Failure to surrender and/or cease to use registration, certification and/or number for 11 and 30 days $5,000 Subs. $5,000 $5,000
Admin. Code § 22-262 Failure to surrender and/or cease to use identification card (single day) $1,000 2nd $2,500Subs. $5,000 $5,000
Admin. Code § 22-262 Failure to surrender and/or cease to use identification card for 2 to 10 days $2,500 Subs. $5,000 $5,000
Admin. Code § 22-262 Failure to surrender and/or cease to use identification card for 11 to 30 days $3,500 Subs. $5,000 $5,000

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§ 12-28 Commission Delegations to the Chairperson.

The Commission may by resolution delegate to the Chairperson any authority of the Commission set forth in this subchapter or Chapter 1-B of Title 22 of the Code that is lawful and appropriate to delegate. Such resolution shall state the authority delegated and the extent of such delegation, including any limitations on the authority delegated.

§ 12-29 Additional Powers of the Commission.

In addition to the other powers of the Commission, the Commission shall have the following powers:

  1. Entry into any market may be regulated by the Commissioner. No fee shall be charged for entry into a market or for parking therein, nor shall any existing fee be increased, unless the Commissioner shall have first approved the amount of such fee. The Chairperson may delegate the authority to approve the amount of such fee to the Department of Small Business Services or the Economic Development Corporation. The Commissioner may establish or authorize the establishment of an identification card and pass system as a prerequisite for entry of any persons into any market.

§ 12-30 Traffic Regulation and Parking Within the Market.

(a) All persons operating a vehicle within the market shall obey and comply with any traffic direction of any police officer or employee of the Commission indicated by gesture or otherwise and any parking or traffic sign posted by the Commission or other City agency.
  1. No person shall obstruct the movement of traffic or stop, stand or park a vehicle, freight car or other conveyance except in designated places.
  2. All disabled vehicles must be promptly removed from paved roadways and removed from the market within three (3) hours. If not removed, such vehicles will be removed by City personnel or licensed tow operators at the expense of the vehicle owners.
  3. No person shall grease, lubricate or make repairs, except of a minor and emergency nature, to any vehicle within the market without prior notification to the Commission.
  4. All persons operating a vehicle within the market shall operate such vehicles at all times in full compliance with all New York State and New York City traffic laws, rules and regulations and all laws, rules and regulations of any other government agency having jurisdiction over motor vehicles.

   (i) When the Commissioner finds that there is reasonable cause to believe that a seafood wholesale business or a seafood delivery business has regularly failed to make timely payment for services rendered and/or products provided by an unloading business or a seafood wholesale business, the Commission may require such business to post a payment bond.

§ 12-31 Administration. [Repealed]

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Subchapter C: Seafood Distribution Outside Seafood Distribution Areas and the Declaration and Establishment of Seafood Distribution Areas

§ 13-01 Scope and Construction.

(a) This subchapter shall govern:

   (1) the registration of wholesale seafood businesses outside of seafood distribution areas, and the requirements applicable to such businesses; and

   (2) the declaration and establishment of seafood distribution areas pursuant to subdivision b of section 22-222 of the Code, and the licensing, registration and other requirements relating to seafood distribution in such areas.

  1. Any act prohibited by this subchapter shall extend to and include the permitting, allowing, causing, procuring, aiding or abetting of such act.
  2. No provision in this subchapter shall make unlawful the act of any employee of the Commission or other government official in the performance of his or her official duties.
  3. Any act prohibited by this subchapter not otherwise prohibited by law or any other government rule or regulation shall be lawful if performed pursuant to and in strict compliance with written authorization by the Chairperson.
  4. This subchapter is in addition to and supplements all laws, rules and regulations of the City and State of New York and federal government and all terms and conditions set forth in any lease, license, registration or permit.

§ 13-02 Definitions.

Unless otherwise provided in this subchapter, the terms used herein shall have the meanings provided for such terms in section 22-202 of the Code and 17 RCNY § 12-02.

§ 13-03 Terms and Fees.

(a) Registration term. A wholesale seafood business registration issued pursuant to this subchapter shall be valid for two years, and may be renewed for two-year periods thereafter.
  1. Registration fee. The fee for registration of a wholesale seafood business shall be four thousand dollars ($4,000) and the fee for renewal of such registration shall be four thousand dollars ($4,000).

§ 13-04 Wholesaler Registration Required.

(a) No person may operate a wholesale seafood business in the City of New York, outside the market area, without having first registered with the Commission and having received a registration or registration number from the Commission.
  1. Any person who violates 17 RCNY § 13-04(a) will be subject to civil and criminal fines and penalties and injunctive relief as follows: For the first such violation, a civil penalty of $2,500; for the second such violation, a penalty of $5,000; and for subsequent violations, a penalty of $7,500; and for a default, a penalty of $10,000.
  2. An application for a registration or renewal thereof must be made on a form prescribed by the Commission. The application form must be certified under penalty of perjury and signed by all the principals of the applicant business. If a renewal application is not submitted to the Commission with the time period as required by the Commission, the Commission may reject the renewal application and instead require the applicant to file a new application in accordance with the provisions pertaining to the application process as set forth in Chapter 1-A of Title 22 of the Code and this subchapter.

§ 13-05 Wholesaler Registration Requirements in a Seafood Distribution Area.

Notwithstanding any provisions of this subchapter, where the Commission, pursuant to subdivision b of section 22-222 of the Code, declares and establishes an area where one or more wholesale seafood business have been established to be a seafood distribution area, all wholesale seafood businesses which operate within such area, and the principals, employees and/or agents of such businesses, shall be subject to all the provisions governing wholesaler registration set forth in Chapter 1-A of Title 22 of the Code and subchapter B of this chapter. When such provisions are applied to a seafood distribution area, the term “market area” as contained therein shall be deemed to include such seafood distribution area.

§ 13-06 Licensing and Seafood Delivery Business Registration Requirements in a Seafood Distribution Area.

Where the Commission, pursuant to subdivision b of section 22-222 of the Code, declares and establishes an area where one or more wholesale seafood businesses have been established to be a seafood distribution area, all unloading businesses, loading businesses, and seafood delivery businesses which operate within such area, and the principals, employees and/or agents of such businesses, shall be subject to all the provisions governing such businesses and their principals, employees and/or agents, set forth in Chapter 1-A of Title 22 of the Code and subchapter B of this chapter, except as may be otherwise determined by the Commission pursuant to section 22-222(c) of the Code. When such provisions are applied to a seafood distribution area, the term “market area” as contained therein shall be deemed to include such seafood distribution area.

§ 13-07 Commission Delegations to the Chairperson.

The Commission may by resolution delegate to the Chairperson any authority of the Commission set forth in this subchapter and any related provision of Chapter 1-A of Title 22 of the Code that is lawful and appropriate to delegate. Such resolution shall state the authority delegated and the extent of such delegation, including any limitations on the authority delegated.

Subchapter D: Market Businesses, Labor Unions and Labor Organizations Operating In Seafood Distribution Areas

§ 14-01 Scope and Construction.

(a) This subchapter shall govern the registration of and other requirements relating to: (1) market businesses located and operating within any market area; and (2) labor unions and labor organizations representing or seeking to represent employees directly involved in the movement, handling or sale of goods sold in any market area.
  1. Any act prohibited by this subchapter shall extend to and include the permitting, allowing, causing, procuring, aiding or abetting of such act.
  2. No provision in this subchapter shall make unlawful the act of any employee of the Commission or other government official in the performance of his or her official duties.
  3. Any act prohibited by this subchapter not otherwise prohibited by law or any other government rule or regulation shall be lawful if performed pursuant to and in strict compliance with written authorization by the Chairperson.
  4. This subchapter is in addition to and supplements all laws, rules and regulations of the City and State of New York and federal government and all terms and conditions set forth in any lease, license, registration or permit.

§ 14-02 Definitions.

For the purposes of this subchapter, the following terms shall have the following meanings:

Labor union and labor organization. “Labor union” and “labor organization” shall mean a union or other organization that represents or seeks to represent, employees directly involved in the movement, handling or sale of goods in the market area. Notwithstanding the foregoing, such terms shall not include: (i) a labor union that represents or seeks to represent fewer than two hundred employees in any market area; (ii) a labor union representing or seeking to represent clerical or other office workers, construction or electrical workers, or any other workers temporarily or permanently employed in the market area for a purpose not directly related to the movement, handling or sale of goods in such market; (iii) affiliated national or international labor unions of local labor unions required to register pursuant to this subchapter.

Market business. “Market business” shall mean any business located or operating within any market area that is engaged in providing goods or services to wholesalers or retail purchasers in market area that are related to the conduct of a wholesale seafood business or the purchase of seafood products by retailers or others, or that receives such goods within such market area for delivery, forwarding, transfer or further distribution outside such market area. “Market business” shall include, but not be limited to, the supply of ice or refrigeration services, security, and transfer or distribution of seafood, and shall exclude suppliers of seafood.

Material change. “Material change” shall mean a change in any information provided in response to an item identified as such on an application or disclosure form submitted to the Commission or by any other directive issued by the Commission. “Material change” also includes the occurrence of any event after the submission of an application or disclosure that would have been required to be disclosed on such form had it occurred prior to such submission.

Officer. “Officer” shall mean any person holding an elected position or any other position involving participation in the management or control of a market business, labor union or labor organization required to register pursuant to this subchapter.

Registration. “Registration” shall mean a market business registration, as required by section 22-253 of the Code, or a labor union or labor organization registration, as required by section 22-212.1 of the Code.

Unless otherwise provided in this subchapter, all other terms used herein shall have the meanings provided for such terms in 17 RCNY § 12-02.

§ 14-03 Market Business Registration Required.

No person shall operate a market business in the market area without first receiving a registration or registration number from the Commission.

§ 14-04 Issuance of Registration.

(a) A person wishing to register a market business shall provide the information requested in the registration application form provided by the Commission, which form shall be signed by all principals of such business, and accompanied by the certification form provided by the Commission, fully executed by all principals of such business.
  1. A market business is required to notify the Commission of any change in the ownership composition of the business, any changes regarding persons employed by the business, the arrest or criminal conviction of any principal of the business, or any other material change in the information submitted pursuant to subdivision (a) of this section during the term of its registration, and shall notify the Commission, in writing, of any such change within ten (10) calendar days thereof.
  2. In the event that a registrant notifies the Commission of the proposed addition of a new principal (other than a person or entity that becomes a principal through the acquisition of outstanding shares of a business whose equity securities are registered under Federal and State securities laws and publicly traded on a national or regional stock or security exchange) as required by subdivision (b) of this section, the registrant shall simultaneously submit the registration application form provided by the Commission completed, signed and certified by such prospective principal. Except where the Commission determines within fifteen (15) days, based upon information available to him or her, that the addition of such new principal may have a result inimical to the purposes of Chapter 1-B of Title 22 of the Code, the registrant may add such new principal pending the completion of review by the Commission. The Commission may waive or shorten such fifteen (15) day period upon a showing that there exists a bona fide business requirement therefor. The registrant shall be afforded an opportunity to demonstrate to the Commission that the addition of such new principal pending completion of such review would not have a result inimical to the purposes of Chapter 1-B of Title 22 of the Code. If upon the completion of such review, the Commission determines that such principal lacks good character, honesty and integrity, the registration shall cease to be valid unless such principal divests his or her interest, or discontinues his or her involvement in the business of such registrant, as the case may be, within the time period prescribed by the Commission.
  3. Notification pursuant to this section shall be signed and sworn to before a notary public.
  4. Notwithstanding any provision of this subchapter:

   (1) the Commission may, when it determines that there is reasonable cause to believe that any or all of the principals of an applicant or a registrant lack(s) good character, honesty or integrity, require that such principal(s)

      (i) be fingerprinted in accordance with paragraph 22-259(a)(i) of the Code;

      (ii) provide to the Commission the information requested in the background investigation form provided by the Commission;

      (iii) appear to be interviewed by the Commission; and/or

      (iv) pay the fee for a background investigation and provide to the Commission the disclosure required by the form provided by the Commission.

   (2) The Commission may refuse to register a market business for the reasons set forth in subdivisions b, c, d and e of section 22-259 of the Code, or may defer a decision whether to register such market business when an indictment or a criminal or civil action is pending as provided in paragraph (b)(ii) of such section.

  1. A market business denied registration for lack of good character, honesty or integrity pursuant to section 22-259(b) of the Code shall be given notice of the reasons for such denial, and may respond in writing to the Commission within ten days of the mailing of such notice. The Commission shall review such response and make a final determination.

§ 14-05 Photo Identification Cards Required.

(a) No person who is a principal or employee of any market business operating in any market area who performs any function directly related to the provision of goods or services to wholesalers or retail purchasers in such area shall perform such function without having been issued a photo identification card issued by the Commission pursuant to the provisions of this subchapter and section 22-252 of the Code. Notwithstanding the foregoing, principals and employees of any market business required to have photo identification cards who have filed applications therefor and obtained temporary photo identification cards, may continue to perform such functions unless and until

   (1) the application of such person for a photo identification card has been denied, or

   (2) the temporary photo identification card of such person has been revoked, or (3) in cases where the Commission has required such person to be fingerprinted, submit background information and/or appear for an interview pursuant to sections 22-252 and 22-259 of the Code, such person has failed, within the time period prescribed by the Commission, to be fingerprinted, submit the required information, or appear for an interview.

  1. Photo identification cards shall be displayed at all times within the market area so as to be readily visible to others.
  1. Where a photo identification holder changes employment in the market, the photo identification holder shall notify the market manager of the change of employment and submit the transfer form provided by the market manager. The photo identification holder shall also be required to apply for a new photo identification card and pay the requisite fee in accordance with the provisions of this subchapter. A market business shall immediately notify the market manager of the addition of or other change of status of a photo identification holder.
  2. A person who discontinues his or her employment with a market business or who ceases to be a principal thereof shall immediately surrender his or her photo identification card to the market manager. A business that terminates any employee or principal possessing a photo identification card shall obtain that employee’s photo identification card and surrender it to the market manager.
  3. No market business shall continue to employ a person who is required to but does not possess a valid photo identification card issued in accordance with the provisions of this subchapter.

§ 14-06 Temporary Photo Identification Cards.

The Commission may designate the cooperative association of any market area to issue temporary photo identification cards to principals and employees (including seasonal employees) of market businesses at the market area in which such cooperative association operates. The duties of such designated cooperative association are to be performed pursuant to the provisions of the Code and this subchapter relating to such temporary photo identification cards and such terms and conditions as the Commission may impose. Such temporary photo identification cards shall be valid for a period of one year but shall cease to be valid upon the issuance by the Commission of a permanent photo identification card or the occurrence of any of the events set forth in paragraph (1), (2) or (3) of subdivision (a) of 17 RCNY § 14-05. Any cooperative association designated by the Commission to issue temporary identification cards may impose fees and set amounts for such fees for the performance of the functions set forth in this section with the prior written permission of the Commission. No change in a fee or amount of such fee imposed pursuant to this section shall be made without prior written permission of the Commission.

§ 14-07 Issuance of Photo Identification Cards.

(a) A person wishing to apply for a photo identification card must provide the information required in the application form provided by the Commission, which form must be signed and certified under penalty of perjury by the applicant. The application must include, but not be limited to, the following information: name, address, and telephone number(s) of the applicant, the applicant's employment history, the applicant's business interests, and any other such information required by the Commission.
  1. Persons required to have photo identification cards must notify the Commission of any material change in the information submitted, pursuant to Subdivision (a) of this section, including without limitation, any change in employment, as well as any arrests or criminal convictions, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law; and shall notify the Commission, in a signed and notarized writing, of any such change within ten (10) business days thereof.
  2. Notwithstanding any provision of this subchapter, the Commission may, when there is reasonable cause to believe that an applicant for or holder of a photo identification card does not possess good character, honesty, and integrity, require that such person be fingerprinted by a person designated for such purpose by the Commission, pay the fee prescribed by the Division of Criminal Justice Services for the purpose of obtaining criminal history records, and provide to the Commission the disclosure required by the form provided by the Commission. The Commission also may require such additional information in lieu of or in addition to such fingerprinting and/or disclosure, including without limitation documents and/or an in-person interview, as the Commission determines is appropriate and reasonable to render a determination.
  3. The Commission may refuse to issue a photo identification card for the reasons set forth in Subdivisions b, d, and e of Section 22-259 of the Code or may defer a decision whether to issue such card when there is an indictment or a criminal or civil action pending against or involving the applicant as provided in Paragraph (b)(ii) of such section.
  4. Where the staff of the Commission recommends that the Commission refuse, pursuant to Section 22-259 of the Code, to issue a photo identification card, the applicant shall be notified in writing of the reasons for the proposed refusal of such photo identification card and that the applicant may, within ten (10) business days of the date of such notification, respond in writing to the Commission setting forth the reasons such applicant believes that it should not be denied such photo identification card. In the exercise of its discretion, the Commission, considering the reasons for the proposed refusal to issue the photo identification card, the nature of the issues raised in connection therewith, and the response submitted by the applicant, may make a final determination regarding the issuance of such photo identification card or afford the applicant such further opportunity to be heard in such proceeding as is deemed appropriate. A final determination and the reasons therefor shall be communicated to the applicant in writing.

§ 14-08 Terms and Fees.

(a) A registration issued pursuant to this subchapter shall be valid for three (3) years, and may be renewed for three (3)-year periods thereafter.
  1. The fee for registration of a market business shall be four thousand dollars ($4,000), and the fee for renewal of such registration shall be four thousand dollars ($4,000).
  2. The fee for photo identification cards and temporary photo identification cards shall be one hundred dollars ($100).
  3. The fee for the replacement of any photo identification card that has been lost or stolen shall be twenty dollars ($20). The Chairperson may waive the fee for a permanent photo identification card if the applicant has applied for and paid the fee for a photo identification within the last six (6) months.
  4. A market business shall be responsible for the payment of any fee imposed by this section with respect to an employee of such business or any person seeking to become an employee of such business.
  5. Investigative fee. The fee for a background investigation pursuant to subdivision d or e of section 22-252 shall be two hundred dollars ($200) and the fee for a background investigation pursuant to subdivision b of section 22-253 or subdivision b of section 22-264 of the Code shall be six hundred dollars ($600).

§ 14-09 Market Business Operations.

(a) (1) A market business must not transfer its registration number as part of the sale of such market business.

   (2) A market business must not allow the use by any other person of the registration number or the name of the business to which such registration number has been issued. If a market business seeks to sublease or otherwise allow the use of its premises, or any portion thereof, for the operation of a market business by another person, where such sublease it permitted under the terms of the lease, the Chairperson may, upon application and payment of the required fee by the prospective sublessee, pursuant to the provisions of these rules, issue a registration number to such sublessee. Absent the issuance of such registration number, no market business may permit a sublessee to operate a market business on such premises.

  1. The name and registration number of a market business must be affixed and prominently displayed on all premises and vehicles from which such market business is conducted.
  2. Market businesses must retain copies of all invoices and other documents reflecting deliveries or payments from or to suppliers and customers. Such books and records must accurately reflect the amount of goods or services involved in each transaction, and must, along with all other records produced or received in the normal course of business, be retained for a minimum of thirty-six (36) months, and must be made available for immediate inspection and/or copying upon request by the market manager or a designee of the market manager or an employee of the Commission. Electronic copies of such books and records are acceptable.
  3. A market business must submit proof that it has obtained the required Workers’ Compensation and Disability Benefits Coverage, or that it is exempt from Section 57 of the Workers’ Compensation Law, and Subdivision 8 of Section 220 of the Disability Benefits Law.

   (1) Proof of coverage can be established by submitting the following Workers’ Compensation Board forms:

      (i) C:105.2 Application for Certificate of Workers’ Compensation Insurance;

      (ii) DB-120.1 Employer’s Application for Certificate of Compliance with Disability Benefits Law;

      (iii) S1-12 Affidavit certifying that compensation has been secured;

   (2) Proof that no coverage is required can be provided by submitting the following Workers’ Compensation Board form:

      (i) C-105.21 Statement that applicant does not require Workers’ Compensation or Disability Benefits Coverage.

  1. Liability Insurance. A market business must procure and maintain throughout the term of the registration the following types of insurance against claims for injuries to persons or damages to property which may arise from or in connection with the market business.

   (1) Commercial General Liability insurance with liability limits of no less than one million dollars ($1,000,000) combined single limit per occurrence for bodily injury, personal, and property damage. The maximum deductible for such insurance shall be no more than twenty-five thousand dollars ($25,000).

   (2) Business Automobile Liability Insurance covering every vehicle operated by the market business, whether or not owned by the market business, and every vehicle hired by the applicant with liability limits of no less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage.

  1. The policy or policies of insurance required by this rule must name the City of New York and the Commission and any other agency or entity of the City as may be required as parties insured thereunder, and must be endorsed to state that coverage must not be suspended, voided, canceled, reduced in coverage, or in limits except upon sixty (60) days prior written notice to the Commission. Failure to maintain continuous insurance coverage meeting the requirements of these rules will result in revocation or suspension of registration. Such policy or policies of insurance must be obtained from a company, or companies, duly authorized to do business in the State of New York with a Best’s rating of no less than A:X unless specific approval has been granted by the Commission to accept a company with a lower rating. A certificate of insurance effecting the required coverage and signed by a person authorized by the insurer to bind coverage on its behalf, must be delivered to the Commission prior to the effective date of the registration. Delivery to the Commission’s offices may be made in person, by first class mail or by e-mail to Licensing@bic.nyc.gov. A registrant must demonstrate that the registrant has secured the insurance coverage required, pursuant to this section and must maintain such required insurance coverage throughout the term of the registration.
  2. A market business shall be jointly and severally liable for any violation of Chapter 1-B of Title 22 of the Code or of this subchapter by any of its employees or agents.
  3. Each market business must permit the Commission, or any person designated by the Commission, to enter its premises whenever in the discretion of the Commission such entry is necessary.

§ 14-10 Revocation or Suspension of Registration or Photo Identification Cards.

(a) The Commission may revoke a temporary photo identification card, and after notice and hearing, revoke or suspend

   (1) the registration of a market business or

   (2) a photo identification card for any of the reasons set forth in section 22-260 of the Code, or for violation of any rule promulgated pursuant to section 22-266 of the Code, including without limitation 17 RCNY §§ 14-09 and 14-17. Notice shall be provided in accordance with the provisions of 17 RCNY § 11-20. Hearings shall be afforded in accordance with the provisions of 17 RCNY § 11-21.

  1. Revocation or suspension of registration shall require the immediate surrender to the market manager of all photo identification cards issued to the principals and employees of the registrant. If a registration has been suspended, violation of the provisions of this subdivision may result in immediate revocation of a registration and/or the imposition of penalties as provided in section 22-258 of the Code.
  2. Revocation or suspension of photo identification cards (including temporary photo identification cards) shall require the immediate surrender of such cards to the market manager.

§ 14-11 Emergency Suspension of Registration or Photo Identification Cards.

Notwithstanding the foregoing provisions, the Chairperson may, if he or she has reasonable cause to believe that the operation of a market business or the presence of any person in the market area creates an imminent danger to life or property or to the orderly and lawful operation of the market, or that there has likely been false or fraudulent information submitted to the Commission, immediately suspend the registration of such business or the photo identification card of such person, as applicable, without a prior hearing, provided that, such suspension may be appealed to the Deputy Commissioner of Legal Affairs. If such Deputy Commissioner upholds the suspension imposed by the market manager, an opportunity for a hearing pursuant to the provisions of 17 RCNY § 11-21 shall be provided on an expedited basis within a period not to exceed four (4) business days, and the Commission shall issue a final determination no later than four (4) business days following the conclusion of such hearing. The Commission may, upon application by a market business whose registration has been suspended without a prior hearing, permit such market business to remain in the market area for such time as is necessary to allow for the expeditious sale, consignment or removal of a perishable product if, in the Commission’s judgment, such permission is consistent with the safety of the public and the market area.

§ 14-12 Labor Union and Labor Organization Registration Required.

(a) Labor unions and labor organizations shall register with the Commission.
  1. A registration issued pursuant to this chapter shall be valid for three (3) years, and may be renewed for three (3)-year periods thereafter.
  2. The fee for registration of a labor union or labor organization shall be four thousand dollars ($4,000) and the fee for renewal of such registration shall be four thousand dollars ($4,000).

§ 14-13 Registration Procedure.

(a) A labor union or labor organization shall provide the information requested in the registration application form provided by the Commission, which form shall be signed by an officer and certified under penalty of perjury, including

   (i) the information required by section 22-264(a) of the Code,

   (ii) all criminal convictions, in any jurisdiction, of such labor union or labor organization,

   (iii) any criminal or civil investigation of such labor union or labor organization by a federal, state or local prosecutorial agency, investigative agency or regulatory agency, in the five (5)-year period preceding the date of registration,

   (iv) all civil or administrative proceedings to which such labor union or labor organization has been a party involving allegations of racketeering, including but not limited to offenses listed in subdivision nineteen hundred sixty-one of the Racketeer Influenced and Corrupt Organization statute (18 U.S.C. §§ 1961 et seq.) or of an offense listed in subdivision one of section 460.10 of the Penal Law, as such statutes may be amended from time to time,

   (v) all judicial or administrative consent decrees entered into by such labor union or labor organization in the five (5)-year period preceding the date of registration, and

   (vi) the appointment of an independent auditor or monitor or receiver or administrator or trustee over such labor union or labor organization in the five (5)-year period preceding the date of registration. Notwithstanding the foregoing, no labor union or labor organization shall be required to furnish information pursuant to this subdivision which is already included in a report filed by the labor union or labor organization with the Secretary of Labor pursuant to 29 U.S.C. §§ 431 et seq. or §§ 1001 et seq. if a copy of such report, or of the portion thereof containing such information, is furnished to the Commission.

  1. An officer of a labor union or labor organization required to be registered with the Commission pursuant to section 22-264 of the Code shall provide the information requested in the registration application form provided by the Commission, which form shall be signed by such officer under penalty of perjury.
  2. Any material change in the information submitted pursuant to subdivision (a) or (b) of this section shall be reported to the Commission by such union or organization or officer, in a signed and notarized writing, within ten (10) calendar days thereof.
  3. Notwithstanding any provision of this subchapter, the Commission may, if it has reasonable cause to believe that an officer of a labor union or labor organization lack good character, honesty or integrity, require that such officer be fingerprinted in accordance with section 22-264 of the Code, and pay the requisite fees and provide to the Commission the disclosure required by the form provided by the Commission. The Commission also may require such additional information, in lieu of or in addition to, such fingerprinting and/or disclosure, including without limitation documents and an in-person interview, as the Commission determines is appropriate and reasonable to render a determination.
  4. After providing notice and opportunity to be heard, the Commission may disqualify an officer of a labor union or labor organization from holding office based on the grounds set forth in subdivision c of section 22-264 of the Code and in accordance with the procedure for such disqualification set forth in such subdivision.
  5. If an application for the renewal of a registration is not submitted to the Commission with the time period required by the Commission, the Commission may reject the renewal application and require the applicant to file a new application for a labor union and labor organization registration. If a new application is required by the Commission, the provisions pertaining to the application process as set forth in Chapter 1-B of Title 22 of the Code and of this subchapter shall govern.

§ 14-14 Prohibited Acts.

(a) No person shall

   (1) interfere, or attempt to interfere, with the market manager, his or her staff or the employees of the Commission in the discharge of their functions, or interfere with or otherwise obstruct the orderly functioning of the market;

   (2) interfere, or attempt to interfere with, or otherwise obstruct any operations or property of any person in the market;

   (3) take into, carry through, leave in, throw, or discharge into or on any market any rubbish, litter or refuse, except that rubbish, litter or refuse generated within any market may be discarded in receptacles that are specifically designed for such purpose or as otherwise provided for by this subchapter;

   (4) urinate or defecate in any market, or in or upon any market building or structure, except in a facility which is specifically designed for such purpose;

   (5) damage, remove or destroy any property or equipment without authority;

   (6) engage in, instigate or encourage a fight or other disturbance;

   (7) commit any act injurious to any person, animal or property;

   (8) bring into any market or have in his possession any firearms, illegal knives, hatchets, machetes, slingshots, fireworks or other dangerous instruments or explosives;

   (9) play any game of chance, participate in the conduct of an illegal lottery, or use any slot machine, gaming table or instrument or have in his or her possession any implements or devices commonly used, or intended to be used, for gambling purposes;

   (10) make a misrepresentation of any kind with respect to merchandise offered for sale or the take any unfair advantage of a purchaser or any attempt to take such unfair advantage; or

   (11) disobey any lawful order of any employee of the Commission or other employee of the City or disobey or violate any lawful notice, prohibition, instruction or direction of the Commission or any other City agency.

  1. In addition to the foregoing, the following rules also apply to principals, employees and agents of market businesses and officers of labor unions and labor organizations. Such persons shall not:

   (1) authorize another person to use the name of the market business or labor union or organization to which a registration number has been issued for such market business;

   (2) authorize another person to conduct a market business with the registration number that has been issued to such market business;

   (3) conduct a market business under any name other than the name under which such business has been registered;

   (4) violate applicable federal, state or city laws and regulations;

   (5) in the case of a market business, fail to notify the Commission of any change in the information provided pursuant to 17 RCNY § 14-04;

   (6) associate with a person whom such person knows or should know is a member or associate of an organized crime group (a person who has been identified by a federal, state, or local law enforcement agency as a member or associate of an organized crime group shall be presumed to be a member or associate of an organized crime group);

   (7) make, file or submit a false or misleading statement to the Commission or any other government agency or employee;

   (8) threaten or attempt to intimidate a customer or prospective customer;

   (9) retaliate against a customer or prospective customer of any business in the market or against any person who has made, or who is associated with any person who has made, a complaint concerning conduct involving the market to the Commission or any other governmental entity;

   (10) falsify any business record;

   (11) in the case of a market business, continue to employ a person who has not received a valid photo identification card in accordance with the provisions of this subchapter, or whose photo identification card has been revoked or suspended;

   (12) utilize any motor vehicle in connection with a business operating in the market that is not properly registered with the New York State Department of Motor Vehicles and insured in accordance with 17 RCNY § 14-09;

   (13) engage in any unfair labor practice under federal or state labor law;

   (14) refuse to respond to an inquiry from the Commission;

   (15) violate or fail to comply with any order or directive of the Commission; or

   (16) fail to pay any fines or civil penalties imposed by the Commission or any court or administrative tribunal of competent jurisdiction for violations of Chapter 1-B of Title 22 of the Code or this subchapter.

§ 14-15 Fines and Penalties.

(a) The Commission may issue a notice of violation to a market business, labor union or labor organization, or any of their principals, employees, agents or officers, for the violation of any provision of Chapter 1-A or 1-B of Title 22 of the Code or subchapter A or B of this chapter (as such provision of such Chapter or subchapter relates to market businesses located and operating within any market area and labor unions and labor organizations representing or seeking to represent employees directly involved in the movement, handling or sale of goods sold in any market area) or this subchapter. Any person who violates any such provision shall be subject to the civil and criminal fines and penalties and injunctive relief as provided in section 22-258 of the Code.
  1. A market business, labor union or labor organization shall be jointly and severally liable for the violation of any such provision committed by any of its officers, employees and/or agents acting within the scope of their employment.

§ 14-16 Commission Delegations to the Chairperson.

The Commission may by resolution delegate to the Chairperson any authority of the Commission set forth in this subchapter and Chapter 1-B of Title 22 of the Code, as such chapter relates to market businesses located and operating within any market area and labor unions and labor organizations representing or seeking to represent employees directly involved in the movement, handling or sale of goods sold in any market area, that is lawful and appropriate to delegate. Such resolution shall state the authority delegated and the extent of such delegation, including any limitations on the authority delegated.

Chapter 3: Rulemaking

§ 15-01 Proposed Rules.

The chair may draft or direct to be drafted such proposed rules of the Commission as he or she may deem necessary to effectuate the provisions of Section 2101 of the New York City Charter and of Title 16-A of the Administrative Code of the City of New York, and may provide for the publication and distribution of any such proposed rule and for a public hearing on any such proposed rule, all in accordance with the requirements of Chapter 45 of the New York City Charter. No rule of the Commission will be promulgated except by vote of a majority of the Commission, in accordance with Section 1119 of the New York City Charter.