11 - Credit Access Business report and ordinance

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STATUS OF ISSUE: Before the City Council tonight is 1) the original ordinance presented to you at your November 14, 2022 City Council meeting, and 2) a redline version following our negotiations and discussions since January 2023. The City worked with the CABs to produce #2, which we are of the understanding they are willing to work with. Upon presenting this to consumer representatives (United Way, Texas Appleseed, and others working alongside them), they ultimately decided to request #1 and for the City Council to not accept any edits to the original ordinance as presented by the CABs in 92. Unable to reach a compromise between both parties, and with much time having transpired, the City Manager decided to stop the process and bring this update to the City Council, seeking guidance as to next steps they wish to see. This has proven to be a very challenging and complex issue to take on. Staff recognizes our limitations when it comes to fully understanding the inner workings of these businesses, authorized to operate by the Texas Legislature by statute, and whether or not the industry is in need of additional regulation beyond what the State of Texas has already enacted. We recognize that there are instances where individuals have found themselves in challenging situations after having taken out a loan, however — as seen with the OCCC quarterly reports — this continues to be a highly sought service for a portion of Texans and those living in our community. We have, as of yet, not received any reports of specific abuses within our community. Furthermore, we recognize that there are strong opinions on both sides of this topic and that there have been concerns with the review process we have undergone these past few months. However, through this all, the process we undertook gave all parties equal footing to provide input to the City Council and their decision to be made. BUDGET: There will be a reasonable registration fee attached to this ordinance in order to cover administrative review costs for issuing a certificate of registration. OPTIONS: 1. Agree to the TML ordinance as presented to the City Council on November 14, 2022 (attached). 2. Agree to the revised TML ordinance as presented to the City Council tonight (attached). 3. Request additional edits to either # 1 or 92 above. 4. Request that city staff go back and talk further with the parties involved to make further edits to either # 1 or #2 above. 5. Do not approve any ordinance. 6. Table this item until a later time TBD, until litigation with the City of Austin and/or the City of Dallas has been completed, and/or until the legislative session has concluded and the final status of H.B. 2127 is determined.