|Posted:||December 30, 2016 12:56 PM|
|From:||Representative Rosemary M. Brown|
|To:||All House members|
|Subject:||Prize Linked Savings - Former HB837|
|Please join me as a cosponsor of legislation to authorize and regulate savings promotion raffles in Pennsylvania. Savings promotion raffles are financial products offered by banks or credit unions that give depositors a chance to win prizes as they build savings. These financial products are sometimes called “no-lose lotteries” because the depositor’s balance is never at risk.
Michigan launched the first savings promotion raffle program in 2009. Data from 2013 show that financially vulnerable participants increased their savings by 30% over a 12-month period. Based on that success, 10 other states have since enacted similar legislation, and legislation has been introduced in Congress to expand the concept at the national level.
Savings promotion raffles can be a building block for families to start building a financial reserve. For many families who experience an unexpected financial emergency, having a financial cushion of 3 months’ worth of expenses can mean the difference between falling into escalating financial distress or not.
Introduced as HB1039