PRINTER'S NO. 306
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
331
Session of
2021
INTRODUCED BY R. BROWN, HILL-EVANS, OWLETT, SCHLOSSBERG, MERSKI,
CIRESI, LONGIETTI, NEILSON AND FREEMAN, JANUARY 29, 2021
REFERRED TO COMMITTEE ON COMMERCE, JANUARY 29, 2021
AN ACT
Authorizing certain financial institutions to conduct savings
promotion programs.
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 Incentive-
based Savings Program 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 programs 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) an insured credit union; or
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(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 program; and
(3) maintains a qualified account with the eligible
financial institution conducting the savings promotion
program.
"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. 1955, 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 program.
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 program." 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
or entry has an equal chance of being drawn.
Section 4. Savings promotion program.
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(a) Authorization.--Notwithstanding any prohibitions on
lotteries or gambling provided by the laws of this Commonwealth,
including 18 Pa.C.S. §§ 5512 (relating to lotteries, etc.), 5513
(relating to gambling devices, gambling, etc.) and 5514
(relating to pool selling and bookmaking), an eligible financial
institution may conduct a savings promotion program and any
activity conducted in connection with the savings promotion
program, 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
program;
(4) the offering, facilitation and acceptance of
deposits, withdrawals or other transactions in connection
with the savings promotion program;
(5) the transmission of any information relating to the
savings promotion program, including account balance and
transaction information;
(6) the deposit or transmission of prizes awarded in the
savings promotion program 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
conduct a savings promotion program in a way that jeopardizes
the eligible financial institution's safety and soundness or
misleads an eligible individual or the public.
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(c) Third-party participants.--An eligible financial
institution may offer a savings promotion program 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 program 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.
(a) Disclosure.--An eligible financial institution
conducting a savings promotion program shall disclose to the
public and each participant the terms and conditions of the
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savings promotion program. 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 program.
(b) Content.--Terms and conditions for a savings promotion
program shall include language specifying that:
(1) No other action, purchase or other consideration is
necessary for an entry in the savings promotion program.
(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 program.
(4) The odds of winning the savings promotion program
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 program.
(7) Participation in a savings promotion program
presents no financial risk to an eligible individual.
Section 8. Maintenance of books and records.
An eligible financial institution that conducts a savings
promotion program under this act shall maintain books and
records relating to the conduct of the savings promotion program
sufficient to facilitate an audit of the savings promotion
program. The financial institution shall keep a record of the
names of winners of all savings promotion programs, which shall
be available for inspection by the financial institution's
customers.
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Section 9. Effective date.
This act shall take effect in 60 days.
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