31B - CHECK CASHING BUSINESS - 1647 EAST FIRST STREET

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VA Nos. 2009-03, 05, 06, 07 & 09 CUP No. 2009-15 October 12, 2009 Page 5 that was approved at 1620 East First Street, Suite E remains valid at the current property and allows another check cashing business to occupy the space within a one year time period. On September 28, 2009, Cash Multi-Service submitted a Certificate of Occupancy and business license application to open a new check cashing facility in Suite E. Cash Multi-Service is able to utilize the existing conditional use permit and begin operating under the original conditions of approval without any further discretionary actions or public hearing. Although Cash Multi- service currently operates as a money transfer business, following the approval of a check casher's license by the state, they will begin the check cashing component of the business without any additional City review. This new check cashing facility eliminates the possibility that the applicants' previous site will remain vacant or utilized for a business other than a check cashing facility, further intensifying the number of check cashing facilities in the area. Background on Check Cashing Facility Services and Commercial Bankin Services The check cashing industry is regulated by the State of California and permits are issued from the Check Casper 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. Although it may be renewed annually, a permit can also be revoked if the applicant violates the provisions or regulations of the check casher permit. Additionally, Section 1789.35 of the California Civil 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. 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 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. Several commercial banks, 31 B-7