Chapter 5.42
CHECK CASHING ACTIVITY

Sections:

5.42.010    Check cashing activity defined.

5.42.020    Permit required—Fee and application.

5.42.030    Permit issuance—Conditions and terms—Public record.

5.42.040    Denial of permit—Appeal to Council.

5.42.050    Reapplication.

5.42.060    Permit revocation—Appeal to City Council.

5.42.070    Duration of permits—Renewals.

5.42.080    Permit nontransferable.

5.42.090    Penalty for violation of chapter.

5.42.100    City’s right of access and inspection.

5.42.010 Check cashing activity defined.

"Check cashing activity" means the business of cashing checks, warrants, drafts, money orders, or other commercial paper serving the same purpose for compensation by any person or entity other than: (i) a state or federally chartered bank, savings association, credit union, industrial loan company, or (ii) a retail seller engaged primarily in the business of selling consumer goods, such as consumables to retail buyers that cashes checks or money orders for a minimum flat fee not exceeding two dollars ($2.00), as a service to its customers that is incidental to its main purpose or business, provided: (a) such retail seller does not cash more than one hundred (100) checks in any calendar month, or (b) such retail seller is located in an area zoned C-3 Central Commercial District or C-4 General Commercial District. (Ord. 937 § 2 (part), 2005).

5.42.020 Permit required—Fee and application.

It shall be unlawful for any person or entity to engage in any check cashing activity, as described in this chapter, without having first obtained a check cashing permit from the Chief of Police. To secure such a permit, a written application must be filed with the police department accompanied by a fee in an amount established pursuant to the master fee schedule as adopted by the City Council from time to time. The application for a check cashing permit shall be made on a form provided by the City and shall include the following information and records:

(1)    Name and residence address of applicant;

(2)    Address of applicant’s business;

(3)    A brief description of the nature of the proposed check cashing activity;

(4)    A copy of applicant’s check casher permit issued by the Department of Justice (if required);

(5)    A photograph of the applicant, taken within sixty (60) days immediately prior to the date of the filing of the application, which picture shall show the head and shoulders of the applicant in a clear and distinguishing manner;

(6)    Fingerprints of the applicant to be taken by a member of the police department;

(7)    A statement as to whether or not the applicant has been convicted of a crime, felony or misdemeanor, the nature of the offense and the punishment or penalty assessed therefor;

(8)    A security plan ("security plan") for the proposed check cashing activity which shall include at a minimum: (i) a description of the limit on the amount of cash immediately available for withdrawal; (ii) use of a time-release safe or equivalent mechanical or electrical device for the release of cash for check cashing; and (iii) posting of visible signs announcing that limited cash is available due to the use of a time-release safe for cash withdrawals. The security plan should also address the following:

(A)    Explanation of employee training for proper cash handling procedures,

(B)    Lighting plan for the business showing both exterior and interior lighting,

(C)    Plans for maintaining visibility into the interior of the check cashing facility,

(D)    Plans for security of the check cashing area of the facility,

(E)    Any program for graffiti and litter abatement,

(F)    Hours of operation,

(G)    Use of security guards and cameras. (Ord. 937 § 2 (part), 2005).

5.42.030 Permit issuance—Conditions and terms—Public record.

The Police Chief may approve, conditionally approve, or deny an application for a check cashing permit as the Chief deems necessary to secure the health, safety and general welfare of the customers and employees of the check cashing business and of persons residing or working in the neighborhood of the proposed check cashing activity. If approved, the check cashing permit issued shall require compliance with the security plan submitted by the applicant in his/her application subject to any and all conditions, modifications or additions attached to the security plan by the Chief as deemed necessary to secure the health, safety and general welfare of customers and employees of the business and of persons residing or working in the neighborhood of the proposed check cashing activity. Prior to issuance of a check cashing permit, the police department shall cause to be posted at the entrance to the business location at which the proposed check cashing activity will be posted, a notice of application for a check cashing permit. Such notice shall be posted continuously for a period of not less than thirty (30) days and shall provide contact information for anyone desiring to submit comment on the proposed check cashing activity. The application, including the security plan, (except for confidential information or information protected by privacy rights) shall be available for inspection by the public during the posting period. The permit shall not be issued until the applicant has fully implemented the security plan as approved by the Police Chief. Once issued, the check cashing permit shall constitute a public record for purposes of the California Public Records Act, except that any and all security measures requiring confidentiality to be effective (such as location of security cameras, the amount and frequency of cash availability, the times and routes for making cash deposits, etc.) shall not be public records for purposes of responding to a public records request pursuant to the California Public Records Act. (Ord. 937 § 2 (part), 2005).

5.42.040 Denial of permit—Appeal to Council.

Any check cashing permit application submitted in accordance with this chapter may be denied by the Police Chief in the manner hereinafter set forth if the Chief finds that the proposed check cashing activity would be detrimental to health, safety or general welfare of employees or customers of the business or of persons residing or working in the surrounding neighborhood. Upon the denial of any check cashing permit, the Chief shall make his findings and reasons for denial and transmit them in writing to the applicant whose permit has been denied. The applicant whose permit has been denied shall have the right to appeal such denial to the City Council in the same manner and in conformity with the procedure set forth in Section 5.40.050 of this code. (Ord. 937 § 2 (part), 2005).

5.42.050 Reapplication.

In the case of an application for a check cashing permit which has been denied, no application for a check cashing permit on the same property shall be considered for a period of one (1) year from the date of denial. (Ord. 937 § 2 (part), 2005).

5.42.060 Permit revocation—Appeal to City Council.

Any check cashing permit granted in accordance with this chapter may be revoked by the Police Chief in the manner hereinafter set forth, if any of the conditions or terms of such permit is violated or if the Chief finds that the continuance of the check cashing activity would be detrimental to health, safety or general welfare of customers or employees of the business, or of persons residing or working in the surrounding neighborhood. Upon the revocation of any check cashing permit issued under the provisions of this chapter, the Chief shall make his findings and reasons for revocation and transmit them in writing to the permit holder whose permit has been revoked. The permit holder whose permit has been revoked shall have the right of appeal to the City Council in the same manner and in conformity with the procedure set forth in Section 5.40.050 of this code. (Ord. 937 § 2 (part), 2005).

5.42.070 Duration of permits—Renewals.

When issued, the check cashing permit shall be valid for one (1) year from the date of issuance unless the same has been revoked for any of the causes set forth above. The permit holder, in making application for a renewal of his permit, shall follow the same procedure as set forth in making his original application except he shall not be required to be fingerprinted, and shall only be required to address any proposed changes to the terms and conditions attached to the existing permit. He shall pay a fee in an amount established pursuant to the master fee schedule as adopted from time to time by the City Council. (Ord. 937 § 2 (part), 2005).

5.42.080 Permit nontransferable.

Any permit issued under the provisions of this chapter is nontransferable, and any attempt to transfer such permit shall be void. Check cashing activity by the permit holder at a location other than that specified in the permit shall be unlawful. (Ord. 937 § 2 (part), 2005).

5.42.090 Penalty for violation of chapter.

Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not exceeding one thousand dollars ($1,000.00) or by imprisonment in the county jail not exceeding six (6) months or by both such fine and imprisonment pursuant to Section 1.12.010(a) of this code. In addition, any condition caused or permitted to exist in violation of any of the provisions of this chapter is a public nuisance and may be summarily abated as such by the city. (Ord. 937 § 2 (part), 2005).

5.42.100 City’s right of access and inspection.

Representatives of the police department shall have access to any facility in which check cashing activity is permitted and to the business records relating to check cashing activity at any and all times and as often as may be deemed necessary by the Police Chief or his designee to enforce the terms and provisions of a check cashing permit and the provisions of this chapter. (Ord. 937 § 2 (part), 2005).