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Ordinance 2014-011 ORDINANCE NO. 2014-01 AN ORDINANCE OF THE CITY OF GILROY CITY COUNCIL AMENDING THE GILROY CITY CODE, CHAPTER 30, SECTION 2.20, ENTITLED "DEFINITIONS" TO ADD DEFINITIONS OF "BANK" AND "OFFICE" TO PROHIBIT THE ESTABLISHMENT, EXPANSION, OR RELOCATION OF PAYDAY LENDING AND CHECK CASHING BUSINESSES WITHIN THE CITY OF GILROY WHEREAS, the City Council finds that proliferation of payday lending and check cashing businesses has had significant detrimental effects on the financial stability of low - income communities throughout California, and low - income neighborhoods in the surrounding cities. These businesses operate almost exclusively in low- income neighborhoods and prey upon the City of Gilroy's most financially vulnerable residents, drawing them into a cycle of debt or causing them to lose a significant share of their income to exorbitant fees for simple financial transactions; and WHEREAS the City Council finds that the establishment, expansion, or relocation of payday lending and check cashing businesses within the City of Gilroy presents a threat to public health, safety and welfare; and WHEREAS, the City of Gilroy's City Code does not adequately regulate the establishment, expansion, or relocation of payday lending and check cashing businesses within the City of Gilroy; and WHEREAS, the Ordinance amendments set forth below further the goals and policies of the City of Gilroy's General Plan and are necessary to promote the health, safety and welfare of the City; and WHEREAS, the Ordinance amendments set forth below have been reviewed and considered by the City Council in accordance with the provisions of the California Environmental Quality Act of 1970, as amended ( "CEQA "), and the guidelines promulgated thereunder and, further, the Council finds that it can be seen with certainty that there is no ORDINANCE NO. 2014-01 48293347- 3303v3 JH104706083 2 possibility that said amendments may have a significant adverse effect on the environment and said amendments are therefore exempt from the requirements of the CEQA pursuant to the provisions of Section 15061(b)(3) of Division 6 of Title 14 of the California Code of Regulations. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I Gilroy City Code, Chapter 30, Section 2.20, entitled "Definitions" is hereby amended to add the definition of "Bank" and to amend the definition of "Office" to read as follows: "`Bank.' 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 of bank does not include payday lending businesses or check cashing businesses, and as a result, the establishment, expansion, or relocation of such businesses is prohibited. The term `payday lending business' as used herein means retail businesses owned or operated by a `licensee' who offers, originates, or makes a deferred deposit transaction, 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."' "`Office' means uses that predominantly sell professional and/or business services. The contact with the general public is not as frequent as with retail businesses or personal services, and a significant portion of the business may take place at other locations. Examples include banks, law offices, accountants, medical, advertising, and computer support." SECTION II If any section, subsection, subdivision, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, subdivision, sentence, clause or phrase thereof, irrespective of the fact that ORDINANCE NO. 2014-01 4829,3347- 3303v3 JH104706083 3 any one or more sections, subsections, subdivisions, sentences, clauses or phrases be declared unconstitutional. SECTION III After this Ordinance No. 2014 -01 is validly adopted and is in effect, or on February 27, 2014 Interim Ordinance No. 2013 -07 shall be repealed and be of no further force or effect. SECTION IV Pursuant to section 608 of the Charter of the City of Gilroy, this Ordinance shall be in full force and effect thirty (30) days from and after the date of its adopted. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF GILROY this 27h day of January 2014 by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ATTEST: Cam:/ L SL!frwr3a Freels, City Clerk 4829 - 3347- 3303v3 JH104706083 ARELLANO, AULMAN, BRACCO, LEROE- MUNOZ, TUCKER, WOODWARD and GAGE NONE NONE APPROVED: Donald Gage, Mayor ORDINANCE NO. 2014-01 I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2014 -01 is an original ordinance, or true and correct copy of a City ordinance, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 27`" day of January, 2014, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 28`" day of January, 2014. City Clerk of the City of Gilroy (Seal)