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City&Region

Front Page > City&Region > The High Cost of Being Poor
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Licenses sought in check-cashing crackdown


Council plan would put city out front in targeting businesses that prey on poor

By BRIAN MEYER
News Staff Reporter
6/28/2006
Businesses that offer customers check-cashing services would have to get special licenses from City Hall under a proposal that is being reviewed by the Common Council.

Majority Leader Dominic J. Bonifacio Jr. of the Niagara District, the bill's sponsor, thinks the move would create a new hammer for cracking down on unscrupulous businesses that charge people illegally high fees to cash checks.

Bonifacio filed his proposal with the Council on Tuesday, a week after a Buffalo News investigation revealed neighborhood stores and gas minimarts cashing checks without a state license and charging people far more than the 99 cents that state law allows.

Bonifacio thinks the city could be a more effective enforcer than the state, noting that Buffalo already has the power to pull a business' food store license.

"If businesses are going to be cashing checks, the city should know about it," he said before Tuesday's meeting.

Bonifacio said constituents have reported paying exorbitant fees to cash checks at stores. He added that perhaps the city could impose its own regulations defining what it feels a fair charge would be to cash a check. Currently, only state-licensed check-cashers can charge more than 99 cents, and their fees are capped at 1.64 percent of the check's value.

David J. State, the Council's chief legal adviser, said he will research the city's regulatory powers. But he said municipalities must be careful when venturing into territory where the state already has comprehensive rules. The bill has been sent to the Legislation Committee.

In another matter, the Council approved a proposal to allow a high-performing charter school to take over a nearby vacant public library. Westminster Community Charter School will pay $1 a year for the former Kensington Library, with plans to connect it to the school via a walkway. The shuttered building at 106 Westminster Ave. will be converted into a school library.

Westminster is a backed by M&T Bank. David P. Rutecki, vice president for government banking at M&T and a former city lawmaker, met with Council members. Westminster has agreed to pay for building repairs and maintenance, as well as utilities.

University Council Member Bonnie E. Russell, who represents the school's Kensington-Bailey neighborhood, praised the reuse plan.

"It's sure better than having a vacant building rotting in the area. Then what do you get? A lot of complaints from residents," she said.

Russell praised the school for offering to let community groups use the library for events after hours.

Also Tuesday, lawmakers:

• Followed through on a committee vote last week to shelve Seneca Gaming's request for city funds to pay for road and utility improvements on land leading to a proposed downtown casino. The Council also received and filed Seneca Gaming's push to gain control of a stretch of Fulton Street, which runs through the middle of the site.

Bonifacio and Lovejoy Council Member Richard A. Fontana opposed receiving and filing the requests. Fontana called the action premature.

"We're still in negotiations. It's kind of like taking a cake out of the oven before it's baked," he said.

Even some lawmakers who voted to shelve the request are open to negotiating. Council President David A. Franczyk of the Fillmore District, for example, said he might support abandoning Fulton Street if the Senecas were willing to make a $1 million annual payment to the city for an extended period, perhaps 99 years. Bonifacio noted that there is nothing stopping the Senecas from resubmitting the requests.

• Adopted a bill backing efforts to hold owners of gas stations and food stores accountable for noise violations caused by customers. But the Law Department said the Council must pass an ordinance before the city could fine business owners for repeated noise violations caused by patrons.

• Sent to committee a proposal by South Council Member Michael P. Kearns to change the way Council vacancies are filled. If approved, the city would have to publicize midterm vacancies. Candidates would be required to submit resumes and attend a Council meeting. Kearns says the changes would make the process easier for political "outsiders" to be considered. The Council has typically followed recommendations from political leaders to make appointments to vacant seats.


e-mail: bmeyer@buffnews.com


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