CC Ordinance No. 16-2157 Amending Section 19.08.030 of Chapter 19.08 of Title 19 of the Cupertino Municipal Code adding Definitions of Financial Institutions and Banks that Expressly Exclude Payday Lending and CheckORDINANCE NO. 16-2157
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING SECTION 19.08.030 OF CHAPTER 19.08 OF TITLE 19 OF THE
CUPERTINO MUNICIPAL CODE ADDING DEFINITIONS OF "FINANCIAL
INSTITUTIONS" AND "BANKS" THAT EXPRESSLY EXCLUDE PAYDAY
LENDING AND CHECK CASHING BUSINESSES WITH THE INTENT TO
DISALLOW SUCH USES FROM OPERATING WITHIN THE CITY OF
CUPERTINO
WHEREAS, the Ordinance amendments set forth below further the goals and policies
of the City's General Plan and are necessary to promote the health, safety and welfare of
the City; and
WHEREAS, the City Council does find that payday lenders are predatory businesses
that target people in desperate need of cash and charge unusually high interest rates
and exorbitant fees that end up trapping borrowers in a cycle of crippling debt and
poverty; and
WHEREAS, the City Council does find that the State regulates maximum loan amounts,
fees, and other aspects of how payday lenders operate, however, local jurisdictions can
enact local policies to restrict payday loan businesses from operating within their
communities through the use of its .police power; and
WHEREAS, the City Council finds that payday lenders and cash checking businesses
are predatory businesses that target people in a financially vulnerable situation and
charge exorbitant fees and high interest rates;
WHEREAS, the Planning Commission has reviewed the amendments to the Municipal
Code at a duly noticed public hearing held on October 11, 2016 where the public had an
opportunity to comment at which the Commission adopted Planning Commission
Resolution No. 6818 by a 4-0 vote (Sun absent) recommending that the City Council
adopt the amendments;
WHEREAS, a duly noticed public hearing was held on November 1, 2016 at which the
public had an opportunity to speak on this matter; and
WHEREAS, the proposed Ordinance is not a project within the meaning of section
15378 of the California Environmental Quality Act ("CEQA") Guidelines because it has
no potential for resulting in physical change in the environment, either directly or
ultimately. In the event that this Ordinance is found to be a project under CEQA, it is
subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3)
Ordinance No. 16-2157
Page 2
because it can be seen with certainty to have no possibility of a significant effect on the
environment.
WHEREAS, the City Council has reviewed and considered the "not a project"
determination under the California Environmental Quality Act prior to taking any
approval actions on this Ordinance and approves such determinations; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES
ORDAIN AS FOLLOWS:
SECTION 1. Section 19.08.030(B), '"B' Definitions", of Chapter 19.08 of Title 19 of the
Cupertino Municipal Code is hereby amended to add the definition of "banks" to be
inserted into the definitions in alphabetical order and to read as follows:
"banks" means financial institutions including federally-chartered banks, savings
and loan associations, industrial loan companies, and credit unions providing
retail banking services to individuals and businesses. This classification does not
include payday lending businesses or check cashing businesses. The term
"payday lending business" as used herein means retail businesses owned or
operated by a "licensee" as that term is defined in California Financial Code
Section 23001(d), as amended from time to time. The term "check cashing
business" as used herein means a retail business owned or operated by a "check
casher" as that term is defined in California Civil Code Section 1789.31 as
amended from time to time.
SECTION 2. Section 19.08.030(F), '"F' Definitions", of Chapter 19.08 of Title 19 of the
Cupertino Municipal Code is hereby amended to add the definition of "financial
institutions" to be inserted into the definitions in alphabetical order and to read as
follows :
"financial institutions" means a company engaged in the business of dealing
with monetary transactions, such as deposits, loans, investments and currency
exchange. This classification does not include payday lending businesses or
check cashing businesses. The term "payday lending business" as used herein
means retail businesses owned or operated by a "licensee" as that term is defined
in California Financial Code Section 23001(d), as amended from time to time . The
term "check cashing business" as used herein means a retail business owned or
operated by a "check casher" as that term is defined in California Civil Code
Section 1789.31 as amended from time to time.
Ordinance No. 16-2157
Page3
SECTION 3. Severability.
Should any provision of this Ordinance, or its application to any person or
circumstance, be determined by a court of competent jurisdiction to be unlawful,
unenforceable or otherwise void, that determination shall have no effect on any other
provision of this Ordinance or the application of this Ordinance to any other person or
circumstance and, to that end, the provisions hereof are severable.
SECTION 4. Effective Date.
This Ordinance shall take effect thirty days after adoption as provided by Government
Code Section 36937.
SECTION 5. Cert~fication.
The City Clerk shall certify to the passage and adoption of this Ordinance and shall give
notice of its adoption as required by law. Pursuant to Government Code Section 36933,
a summary of this Ordinance may be published and posted in lieu of publication and
posting of the entire text.
SECTION 6. Continuity.
To the extent the provisions of this Ordinance are substantially the same as previous
provisions of the Cupertino Municipal Code, these provisions shall be construed as
continuations of those provisions and not as amendments of the earlier provisions.
INTRODUCED at a regular meeting of the Cupertino City Council the 1 day of
November, 2016 and ENACTED at a regular meeting of the Cupertino City Council on
this 6th of December, 2016 by the following vote:
AYES: Chang, Vaidhyanathan, Paul, Sinks, Wong
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: APPROVED:
Grace Schmidt, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SANTA CLARA )
CITY OF CUPERTINO )
I, GRACE SCHMIDT, City Clerk and ex-officio Clerk of the City
Council of the City of Cupertino, California, do hereby certify the attached
to be a true and correct copy of Ordinance No. 16-2157, which was
enacted on December 6, 2016, and that it has been published or posted
pursuant to law (G.C. 40806).
IN WITNESS WHEREOF, I have hereunto set my hand and seal
this 7th day of December, 2016.
GRACE SCHMIDT, City Clerk and Ex-officio Clerk
of the City Council of the City of Cupertino, California