2014 03 13 WS MinutesMINUTES OF THE REGULAR WORK SESSION OF THE
CITY COUNCIL OF THE CITY OF BAYTOWN
March 13, 2014
The City Council of the City of Baytown, Texas met in a Regular Work Session
on Thursday, March 13, 2014, at 5:30 P.M., in the Council Chamber of the Baytown City
Hall, 2401 Market Street, Baytown, Texas with the following in attendance:
Brandon Capetillo
Council Member
Robert Hoskins
Council Member
David McCartney
Council Member
Chris Presley
Council Member
Terry Sam
Council Member
Stephen DonCarlos Mayor
Robert D. Leiper
Ron Bottoms
Kevin Troller
Ignacio Ramirez
Leticia Brysch
Keith Dougherty
City Manager
Deputy City Manager
Assistant City Manager
City Attorney
City Clerk
Sergeant at Arms
Mayor DonCarlos convened the March 13, 2014, City Council Regular Work Session with a
quorum present at 5:30 P.M., all members were present with the exception of Council Member
Renteria who was absent and Council Member Hoskins who arrived at 5:32 P.M.
DISCUSSIONS
a. Discuss an ordinance amending Chapter 20 "Businesses" of the Code of
Ordinances, Baytown, Texas, to add a new article to be numbered and entitled Article II
"Credit Access Businesses" to establish registration requirements and credit extension
guidelines for credit access businesses.
City Manager Leiper presented the agenda item and stated that the ordinance for discussion is
modeled after TML's recommended form. He stated that TML is not recommending that this be
adopted, but if the city decides to adopt the recommended regulations that this model be
followed for consistency purposes. He stated that this does not outlaw payday lenders nor does it
do any banking type regulations. City Manager Leiper stated that the ordinance includes the
following:
• A credit access business must apply for and receive a certificate of registration from the
city;
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Meeting Minutes
March 13, 2014
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• A credit access business must maintain complete records of all loans made by the
business for at least three years and make the records available to the city for inspection
upon request;
• The amount of a payday loan may not exceed 20 percent of the consumer's gross
monthly income;
• The amount of an auto title loan may not exceed the lesser of three percent of the
consumer's gross annual income or 70 percent of the retail value of the motor vehicle;
• Any loan from a credit access business that provides for repayment in installments may
not be payable in more than four installments, and the proceeds from each installment
must be used to repay at least 25 percent of the principal amount of the loan. No renewals
or refinancing of installment - payment loans are permitted;
• Any loan from a credit access business that provides for a single lump sum repayment
may not be refinanced or renewed more than three times, and the proceeds from each
refinancing or renewal must be used to repay at least 25 percent of the principal amount
of the loan; and
• Any loan made to a consumer within seven days of a previous loan has been paid by the
consumer constitutes a refinancing or renewal;
• It will restrict a payday or auto title loan, new business, from being located within 1,000
feet of another business.
City Manager Leiper stated that existing loans would be grandfathered in.
During the discussion, there were inquiries on whether the proposed ordinance would have
provisions regarding the number of loans a person can have at one time, and how the regulations
would be enforced. City Manager Leiper stated that the business would be regulated by routine
inspections or inspection by complaint. The consensus of the Council Members was that they
were in support of the recommended ordinance.
In an effort to address the inquiry regarding a person receiving loans from multiple businesses,
Mike Gamer, the Municipal Court Prosecutor, stated that his concern would be that this would
go beyond TML's recommendation at this time, and recommended not including that type of
regulation in the new ordinance, in order to limit opportunities for lawsuits.
In conclusion, City Manager Leiper stated that the recommendation was to adopt the
recommended TML regulations regarding this item, for the purpose of consistency. He further
stated that this item would be place on the City Council's agenda for action in the first meeting in
April.
b. Discuss an ordinance amending Chapter 42 "Health and Sanitation," Article 111
"Smoking" of the Code of Ordinances, Baytown, Texas, to prohibit the sale and possession
of electronic cigarettes and liquid nicotine by minors and the smoking of electronic
cigarettes in public places.
City Manager Leiper presented the agenda item and stated that at this lime, there is no state or
federal regulations for electronic cigarettes (e- cigarettes). He further stated that e- cigarettes are a
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Meeting Minutes
March 13, 2014
Page 3 of 3
nicotine product that produce nicotine vapor. He stated that other products could also be placed
inside of the e- cigarettes for smoking purposes. City Manager Leiper stated that this proposed
ordinance prohibits minors from possessing, consuming and purchasing e- cigarettes and liquid
nicotine; prohibits the sale of e- cigarettes and liquid nicotine to minors; prohibits self - service
merchandising of these products; and also expands the definition of smoking to include the use
of e- cigarettes so that the regulations in place for tobacco products extend to e- cigarettes and
liquid nicotine.
The consensus from the Council is that the proposed ordinance should prohibit minors from
possessing, consuming, or purchasing e- cigarettes. However, after further discussion, the
Council requested additional information from staff in regards to treating e- cigarettes the same as
tobacco products and this limiting their use in all public places, restaurants and bars.
City Manager Leiper stated that staff would provide Council more data prior to the item being
added to an agenda for consideration. He further stated that at the first meeting in April, there
will be an item on the agenda that will contain components for prohibiting minors' involvement
with e- cigarettes and regulating e- cigarettes the same as for tobacco products for Council to
further review, discuss and consider further action.
2. ADJOURN
With there being no further business to discuss, Mayor DonCarlos adjourned the March 13,
2014, City Council Regular Work Session at 5:56 P.M.
Leticia Brysch, City Clerk {' f
City of Baytown t� •.•• •:A