31A - CUP SERVIMAX FINANCIAL CHECK CASHING

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Conditional Use Permit No. 2008-04 May 12, 2008 Page 3 locations where these facilities are proposing to operate. Authority is given to the Planning Commission by Section 41-638 of the Santa Ana Municipal Code to recommend approval or denial of a conditional use permit as well as impose any conditions that they deem necessary and desirable based on the information provided. The following information regarding state and federal regulations on check cashing facilities is provided as additional background although it is currently not part of the review criteria for check cashing businesses. The check cashing industry is regulated by the State of California and permits are issued from the Check Casher Permit Program through the Attorney General's Department of Justice. A permit is required for each check cashing establishment and is valid for one year. A permit can be renewed; however, the permit can be revoked if the applicant violates the provisions or regulations of the check Casher permit. Additionally, Section 1789.35 of the California Civic Code regulates the fee amounts that can be charged for the cashing of a check. Up to a three percent fee can be charged to cash a payroll or government check if identification is provided by the customer, or three and a half percent without identification. For personal checks, the check cashing business may charge up to 12 percent. If a customer feels that they have been charged fees in excess of those allowed by law, they may contact the California Department of Justice. In order to ensure that the proposed check cashing facility remains in compliance with State regulations, a condition of approval has been included to require that the business obtains a Check Casher Permit prior to the issuance of a Certificate of Occupancy. Check cashing facilities provide a variety of financial services similar to commercial banking institutions with one important difference being a requirement for identification. Commercial banking establishments such as Bank of America or Wells Fargo typically require two forms of identification to open new accounts. Until recently, this identification requirement meant that foreign nationals who hold valid identification other than a California Driver's License, Social Security Number or a United States Visa or Passport had to seek out alternative banking options. These banks now accept Consular Identification cards issued by foreign governments, such as the Matricula Consular issued by the Government of Mexico, as one form of valid identification. This practice was authorized by the United States Treasury Department as part of the requirement that banking establishments must require valid identification from those wishing to open new accounts pursuant to the provisions of the U.S. Patriot Act. Once an account is established, the bank customer is eligible for all check cashing services provided by the bank. However, check cashing facilities can process a check with only one form of identification required. 31 A-4