In Chicago, we can dispose of it as long as its a dry, solid waste in the can. After all, when I scrape a house of peeling paint I just sweep, bag and place the paint chips in the trash.
Of course liquid paint is a hazardous material and must be disposed differently. Our city has drop-off points for hazardous household waste. They recycle what they can and dispose of the rest correctly. It's all supervised by the Illinois EPA, and they actually run it pretty cleanly.