Ward 10 --------------- 3
Departmental input
Legal
The extent of municipal authority to regulate PLE’s is described above. In summary, a municipality:
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Can restrict the maximum number of PLE’s within its boundaries, subject to not banning PLE’s outright within its boundary;
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Can restrict the number of PLE’s within defined areas in a municipality, e.g. within a ward;
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Can restrict where PLE’s operate within its boundaries.
Furthermore, should Co uncil decide to restrict the number of PLE’s, any existing PLE’s licensed under the Payday Loans Act will be grandfathered and, assuming they are located in an appropriately zoned location, will be allowed to continue to operate in that location.
Licensing
Ontario’s Payday Loans Act, 2008 requires PLE’s to obtain a provincial licence and operate in compliance with specific rules outlined under the Act. The legislation does not regulate the restriction on the number of PLE’s or where these establishments c an operate within the boundaries of a municipality.
The City’s current licensing regime does not regulate PLE’s. The Municipal Act provides the authority for the municipality to decide what types of businesses should obtain a licence. Generally speaking, municipal licences are issued to ensure health & safety, to provide consumer protection and to prevent public nuisance. Municipal business licences are often subject to various inspections and in almost all cases, require a zoning approval. Should Council decide that a municipal licensing program is required to further regulate these types of establishments, the costs associated would then need to be recovered under licence fees.
From a licensing perspective, capping can lead to monopolies and the benefits versus the costs of capping should be weighed.