HomeMy WebLinkAboutOrdinance 24403-09-2020 ORDINANCE NO. 24403-09-2020
AN ORDINANCE AMENDING CHAPTER 20, "LICENSES AND
MISCELLANEOUS BUSINESS REGULATIONS" OF THE CODE OF THE CITY
OF FORT WORTH, ARTICLE XIII, "CREDIT ACCESS BUSINESSES", TO
AMEND THE DEFINITION OF A CREDIT ACCESS BUSINESSES; PROVIDING
THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES;
PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE;
AND NAMING AN EFFECTIVE DATE.
WHEREAS, on December 17, 2019, the City Council adopted Ordinance No.
23991-12-2019 to protect the welfare of the citizens of the City by monitoring credit access
businesses (more commonly known as payday and auto title lenders) in an effort to reduce
abusive and predatory lending practices; and
WHEREAS, the ordinance establishes a registration program for credit access
businesses, provides definitions for certain terms, imposes restrictions on extensions of
consumer credit made by credit access businesses, and imposes recordkeeping
requirements on credit access businesses; and
WHEREAS, upon the adoption of the ordinance the City joined over forty
municipalities across Texas who had adopted a uniform ordinance regulating credit access
businesses; and
WHEREAS, the City Attorney's Office recommends amending the definition of
"credit access business"to more closely align with the uniform ordinance adopted by other
municipalities.
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
SECTION 1.
Article XIII "Credit Access Businesses" to Chapter 20, "Licenses and
Miscellaneous Business Regulations," of the Code of Ordinances of Fort Worth, Texas
(2015), is hereby amended to revise the definition of"credit access business" to read as
follows:
ARTICLE XIII-CREDIT ACCESS BUSINESSES
See. 20-451- Definitions.
As used in this chapter:
(4) CREDIT ACCESS BUSINESS has the meaning given that term in Section 393.601
of the Texas Finance Code.
Chapter 20 Credit Access Businesses Ordinance No.24403-09-2020
Page 1 of 2
SECTION 2.
That this ordinance shall be cumulative of all other ordinances of the City of Fort
Worth,Texas,and shall not repeal any of the provisions of such ordinances,except in those
instances where provisions of such ordinances are in direct conflict with the provisions of
this ordinance.
SECTION 3.
That all rights or remedies of the City of Fort Worth, Texas,are expressly saved as
to any and all violations of the City Code,or any amendments thereto that have accrued at
the time of the effective date of this ordinance; and as to such accrued violations, and all
pending litigation, both civil and criminal, same shall not be affected by this ordinance but
may be prosecuted until final disposition by the courts.
SECTION 4.
That it is hereby declared to be the intention of the City Council that the sections,
paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any
phrase, clause, sentence, paragraph or section of this ordinance shall be declared void,
ineffective or unconstitutional by the valid judgment or decree of any court of competent
jurisdiction,such voidness,ineffectiveness or unconstitutionality shall not affect any of the
remaining phrases, clauses, sentences, paragraphs or sections of this ordinance, since the
same would have been enacted by the City Council without the incorporation herein of any
such void, ineffective or unconstitutional phrase, clause, sentence,paragraph or section.
SECTION 5.
This ordinance shall take effect on October 15, 2020.
APPROVED AS TO FORM AND LEGALITY:
MWz—'t i'gww PT- ror Ronald P Gonzales
By: Melinda Ramos(Sep 29,2020 10:16 CDT) for Ronald P.Gonzales(Sep 29,202010:20 CDT)
Melinda Ramos, Sr.Assistant City Attorney Mary Kayser, City Secretary
Adopted: September 15, 2020 FORT
Effective: October 15, 2020
Chapter 20 Credit Access Businesses Ordinance No.24403-09-2020
Page 2 of 2
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/01/20 M&C FILE NUMBER: M&C 20-0611
LOG NAME: 12CREDITACCESS BUS INESSAMEND20
SUBJECT
(ALL)Adopt an Ordinance Amending Chapter 20,"Licenses and Miscellaneous Business Regulations,"Article XIII,"Credit Access Businesses"of
the Code of the City of Fort Worth to Amend the Definition of Credit Access Business(Continued from a Previous Meeting)
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance amending Chapter 20,"Licenses and Miscellaneous Business Regulations,"
Article XIII,"Credit Access Businesses"of the Code of the City of Fort Worth,to amend the definition of credit access business.
DISCUSSION:
On December 17,2019,the City Council adopted Ordinance No.23991-12-2019 to protect the welfare of the citizens of the City by monitoring
credit access businesses(more commonly known as payday and auto title lenders)in an effort to reduce abusive and predatory lending practices.
The ordinance establishes a registration program for credit access businesses, provides definitions for certain terms, imposes restrictions on
extensions of consumer credit made by credit access businesses,and imposes recordkeeping requirements on credit access businesses. Upon
the adoption of the ordinance the City joined over forty municipalities across Texas who had adopted a uniform ordinance regulating credit access
businesses with the exception of the definition of a"credit access business."
The City Attorney's Office recommends amending the definition of"credit access business"to more closely align with the uniform ordinance
adopted by other municipalities.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION I CERTIFICATION:
The Director of Finance certifies that approval of this recommendation will have no material effect on City funds.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating_Business Unit Head: Sarah Fullenwider 7606
Additional Information Contact: Melinda Ramos 7631