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PRINTER'S NO. 1203
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1039
Session of
2017
INTRODUCED BY R. BROWN, CALTAGIRONE, DAY, A. HARRIS, MACKENZIE,
MURT, NEILSON, ROZZI, SCHLOSSBERG AND TOPPER, MARCH 31, 2017
REFERRED TO COMMITTEE ON COMMERCE, MARCH 31, 2017
AN ACT
Authorizing certain financial institutions to conduct savings
promotion raffles; and providing for enforcement by the
Department of Banking and Securities.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Savings
Promotion Raffle Authorization Act.
Section 2. Legislative intent.
The intent of this act is to authorize and provide a
regulatory framework for financial institutions to conduct
savings promotion raffles to encourage robust saving habits and
improve financial literacy.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Eligible financial institution." Any of the following:
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(1) an insured credit union; or
(2) an insured depository institution.
"Eligible individual." An individual who:
(1) is at least 18 years of age;
(2) is a member or customer of the eligible financial
institution conducting the savings promotion raffle program;
and
(3) maintains a qualified account with the eligible
financial institution conducting the savings promotion
raffle.
"Insured credit union." As defined in section 101 of the
Federal Credit Union Act (48 Stat. 1216, 12 U.S.C. § 1752).
"Insured depository institution." As defined in section 3 of
the Federal Deposit Insurance Act (64 Stat. 873, 12 U.S.C §
1813).
"Prudential regulator." As defined in section 1002 of the
Consumer Financial Protection Act of 2010 (124 Stat. 1962, 12
U.S.C. § 5481).
"Qualified account." A savings account, time deposit or
savings program offered to an eligible individual by an eligible
financial institution pursuant to a savings promotion raffle.
The term includes a share account and an account where the
eligible individual has an interest individually or jointly with
another eligible individual.
"Qualified financial program." A program offered by an
eligible financial institution under section 6.
"Savings promotion raffle." A contest in which the sole
consideration required for a chance of winning designated prizes
is obtained by the deposit of a specified amount of money in a
qualified account or other savings program of which each ticket
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or entry has an equal chance of being drawn.
Section 4. Savings promotion raffle.
(a) Authorization.--Notwithstanding any prohibitions on
lotteries or gambling provided by the laws of this Commonwealth,
including 18 Pa.C.S. section §§ 5512 (relating to lotteries,
etc.), section 5513 (relating to gambling devices, gambling,
etc.) and section 5514 (relating to pool selling and
bookmaking), an eligible financial institution may conduct a
savings promotion raffle and any activity conducted in
connection with the savings promotion raffle, including, but not
limited to:
(1) the deposit of a minimum specified amount of money
in a qualified account for a minimum length of time;
(2) the participation in a qualified financial program
offered by the eligible financial institution;
(3) the transmission of any advertisement, list of
prizes or other information concerning the savings promotion
raffle;
(4) the offering, facilitation, and acceptance of
deposits, withdrawals or other transactions in connection
with the savings promotion raffle;
(5) the transmission of any information relating to the
savings promotion raffle, including account balance and
transaction information;
(6) the deposit or transmission of prizes awarded in the
savings promotion raffle as well as notification or
publication of the deposit or transmission; and
(7) the establishment and operation of qualified
financial programs.
(b) Limitation.--An eligible financial institution may not
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conduct a savings promotion raffle in a way that jeopardizes the
eligible financial institution's safety and soundness or
misleads an eligible individual or the public.
(c) Third-party participants.--An eligible financial
institution may offer a savings promotion raffle in conjunction
with a third-party participant that provides administrative
support, funding or other service.
Section 5. Compliance with Federal regulations.
An eligible financial institution may offer a savings
promotion raffle only to the extent permitted by Federal law,
including any regulations promulgated by the institution's
appropriate prudential regulator.
Section 6. Qualified financial program.
A qualified financial program offered under section 4(a)(2)
must include programs to encourage an eligible individual to do
at least one of the following:
(1) Deposit or transfer money into a qualified account
on a recurring or automatic basis.
(2) Refinance or consolidate existing debt to obtain a
lower interest rate.
(3) Pay off or reduce outstanding balances to lower the
eligible individual's total debt ratio or revolving debt
ratio.
(4) Prepare a budget or a debt-reduction plan.
(5) Attend financial literacy seminars or counseling
sessions sponsored by the eligible financial institution that
are offered free of charge.
(6) Use free online financial education, budgeting or
debt-reduction tools.
Section 7. Terms and conditions.
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(a) Disclosure.--An eligible financial institution
conducting a savings promotion raffle shall disclose to the
public and each participant the terms and conditions of the
savings promotion raffle. The terms and conditions shall be
posted in a location where entries may be submitted and shall be
included in printed materials or electronic media promoting the
savings promotion raffle.
(b) Content.--Terms and conditions for a savings promotion
raffle shall include language specifying that:
(1) No other action, purchase or other consideration is
necessary for an entry in the savings promotion raffle.
(2) No action or purchase of goods or services improves
the odds of winning.
(3) Each entry has the same odds of winning the savings
promotion raffle.
(4) The odds of winning the savings promotion raffle
will be determined based on the number of entries received.
(5) The winner is responsible for all applicable
Federal, State and local taxes.
(6) Participation in a qualified financial program is
offered to any qualified individual participating in the
savings promotion raffle.
Section 8. Maintenance of books and records.
An eligible financial institution that conducts a savings
promotion raffle under this act shall maintain books and records
relating to the conduct of the savings promotion raffle
sufficient to facilitate an audit of the savings promotion
raffle.
Section 9. Regulations and enforcement.
(a) Regulations.--The Department of Banking and Securities
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shall have the power to promulgate rules and regulations
governing the establishment and operation of savings promotion
raffles.
(b) Enforcement.--The Department of Banking and Securities
shall enforce the requirements of this act with respect to
insured credit unions and insured depository institutions
established under the laws of this Commonwealth and may use the
department's powers under the act of May 15, 1933 (P.L.565,
No.111), known as the Department of Banking and Securities Code,
and 17 Pa.C.S. (relating to credit unions) for that purpose.
(c) Federal regulations.--Except as provided under
subsection (b) and section 4 of this act, upon the adoption of
regulations for savings promotion raffles by any prudential
regulator of eligible financial institutions, the department
shall, by notice published in the Pennsylvania Bulletin
designate the regulations of the prudential regulator as
superseding:
(1) the provisions of this act with respect to
institutions subject to the Federal regulations; and
(2) regulations adopted by the Department of Banking and
Securities under subsection (a) as applied to institutions
subject to the Federal regulations.
Section 10. Effective date.
This act shall take effect in 60 days.
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