Regular Session 2015-2016 House Bill 0837 P.N. 1316

PRIOR PRINTER'S NO. 1005

PRINTER'S NO. 1316

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

837

Session of

2015

INTRODUCED BY R. BROWN, COHEN, SCHLEGEL CULVER, DIAMOND,

EVERETT, KINSEY, KLUNK, LONGIETTI, MACKENZIE, MAJOR, MILLARD,

MOUL, MURT, SCHLOSSBERG, GIBBONS AND KORTZ, MARCH 24, 2015

AS REPORTED FROM COMMITTEE ON COMMERCE, HOUSE OF

REPRESENTATIVES, AS AMENDED, APRIL 20, 2015

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:

(1) A federally chartered credit union.

(2) A State-charted credit union.

(3) A State-chartered bank, bank and trust company,

savings bank or private bank.

(4) A national bank.

(5) A federally chartered savings association.

(6) A State-chartered savings association.

(7) A subsidiary of any of the entities listed under

this definition.

"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.

"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 raffle conducted by a

qualified financial institution under section 4.

Section 4. Savings promotion raffle.

(a) Authorization.--An eligible financial institution may

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conduct a savings promotion raffle in which the sole

consideration required for a chance to win a designated prize is

one or both of the following:

(1) The deposit of a minimum specified amount of money

in a qualified account for a minimum length of time.

(2) Participation in a qualified financial program

offered by the eligible financial institution.

(b) Requirements.--The following shall apply to a savings

promotion raffle:

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

(2) An eligible financial institution may limit the

number of entries issued to an eligible individual.

(3) An eligible financial institution may not 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.

institution may offer a savings promotion raffle in conjunction

with a third-party participant that provides administrative

support, funding or other service.

Section 5. Participation by federally regulated institutions.

An eligible financial institution which is regulated by

Federal law may offer a savings promotion raffle only to the

extent permitted by Federal law.

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.

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(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.

(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 any location where entries may be submitted and shall

be included in any 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

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FEDERAL, STATE AND LOCAL TAXES.

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. Enforcement.

The Department of Banking and Securities shall enforce the

SECTION 9. REGULATIONS AND ENFORCEMENT.

(A) REGULATIONS.--THE DEPARTMENT OF BANKING AND SECURITIES

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 and may use any of

its 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.

Section 10. Effective date.

This act shall take effect in 60 days.

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