1Authorizing certain financial institutions to conduct savings
2promotion raffles; and providing for enforcement by the
3Department of Banking and Securities.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Short title.

7This act shall be known and may be cited as the Savings
8Promotion Raffle Authorization Act.

9Section 2. Legislative intent.

10The intent of this act is to authorize and provide a
11regulatory framework for financial institutions to conduct
12savings promotion raffles to encourage robust saving habits and
13improve financial literacy.

14Section 3. Definitions.

15The following words and phrases when used in this act shall
16have the meanings given to them in this section unless the
17context clearly indicates otherwise:

18"Eligible financial institution." Any of the following:

1(1) A federally chartered credit union.

2(2) A State-charted credit union.

3(3) A State-chartered bank, bank and trust company,
4savings bank or private bank.

5(4) A national bank.

6(5) A federally chartered savings association.

7(6) A State-chartered savings association.

8(7) A subsidiary of any of the entities listed under
9this definition.

10"Eligible individual." An individual who:

11(1) is at least 18 years of age;

12(2) is a member or customer of the eligible financial
13institution conducting the savings promotion raffle program;
14and

15(3) maintains a qualified account with the eligible
16financial institution conducting the savings promotion
17raffle.

18"Qualified account." A savings account, time deposit or
19savings program offered to an eligible individual by an eligible
20financial institution pursuant to a savings promotion raffle.
21The term includes a share account and an account where the
22eligible individual has an interest individually or jointly with
23another eligible individual.

24"Qualified financial program." A program offered by an
25eligible financial institution under section 6.

26"Savings promotion raffle." A raffle conducted by a
27qualified financial institution under section 4.

28Section 4. Savings promotion raffle.

29(a) Authorization.--An eligible financial institution may
30conduct a savings promotion raffle in which the sole

1consideration required for a chance to win a designated prize is
2one or both of the following:

3(1) The deposit of a minimum specified amount of money
4in a qualified account for a minimum length of time.

5(2) Participation in a qualified financial program
6offered by the eligible financial institution.

7(b) Requirements.--The following shall apply to a savings
8promotion raffle:

9(1) Each entry must have an equal chance of being drawn.

10(2) An eligible financial institution may limit the
11number of entries issued to an eligible individual.

12(3) An eligible financial institution may not conduct a
13savings promotion raffle in a way that jeopardizes the
14eligible financial institution's safety and soundness or
15misleads an eligible individual or the public.

16(c) Third-party participants.--An eligible financial
17institution may offer a savings promotion raffle in conjunction
18with a third-party participant that provides administrative
19support, funding or other service.

20Section 5. Participation by federally regulated institutions.

21An eligible financial institution which is regulated by
22Federal law may offer a savings promotion raffle only to the
23extent permitted by Federal law.

24Section 6. Qualified financial program.

25A qualified financial program offered pursuant to section 4
26(a)(2) must include programs to encourage an eligible individual
27to do at least one of the following:

28(1) Deposit or transfer money into a qualified account
29on a recurring or automatic basis.

30(2) Refinance or consolidate existing debt to obtain a

1lower interest rate.

2(3) Pay off or reduce outstanding balances to lower the
3eligible individual's total debt ratio or revolving debt
4ratio.

5(4) Prepare a budget or a debt-reduction plan.

6(5) Attend financial literacy seminars or counseling
7sessions sponsored by the eligible financial institution that
8are offered free of charge.

9(6) Use free online financial education, budgeting or
10debt-reduction tools.

11Section 7. Terms and conditions.

12(a) Disclosure.--An eligible financial institution
13conducting a savings promotion raffle shall disclose to the
14public and each participant the terms and conditions of the
15savings promotion raffle. The terms and conditions shall be
16posted in any location where entries may be submitted and shall
17be included in any printed materials or electronic media
18promoting the savings promotion raffle.

19(b) Content.--Terms and conditions for a savings promotion
20raffle shall include language specifying that:

21(1) No other action, purchase or other consideration is
22necessary for an entry in the savings promotion raffle.

23(2) No action or purchase of goods or services improves
24the odds of winning.

25(3) Each entry has the same odds of winning the savings
26promotion raffle.

27(4) The odds of winning the savings promotion raffle
28will be determined based on the number of entries received.

29Section 8. Maintenance of books and records.

30An eligible financial institution that conducts a savings

1promotion raffle under this act shall maintain books and records
2relating to the conduct of the savings promotion raffle
3sufficient to facilitate an audit of the savings promotion
4raffle.

5Section 9. Enforcement.

6The Department of Banking and Securities shall enforce the
7requirements of this act and may use any of its powers under the
8act of May 15, 1933 (P.L.565, No.111), known as the Department
9of Banking and Securities Code, for that purpose.

10Section 10. Effective date.

11This act shall take effect in 60 days.