Bill Text: IA HSB62 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act authorizing savings promotion drawings under specified conditions, and making penalties applicable.

Spectrum: Committee Bill

Status: (N/A - Dead) 2020-02-12 - Subcommittee recommends amendment and passage. [HSB62 Detail]

Download: Iowa-2019-HSB62-Introduced.html
House Study Bill 62 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act authorizing savings promotion drawings under specified 1 conditions, and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1370YC (3) 88 gh/rn
H.F. _____ Section 1. Section 99B.1, Code 2019, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 15A. “Financial institution” means a state 3 or federally chartered credit union as defined in 533.102 or 4 a state or federally chartered bank as defined in section 5 524.103, which is located in this state. 6 Sec. 2. Section 99B.1, subsection 27, Code 2019, is amended 7 to read as follows: 8 27. “Raffle” means a lottery in which each participant buys 9 an entry for a chance at a prize with the winner determined by 10 a random method and the winner is not required to be present to 11 win. “Raffle” does not include a slot machine. “Raffle” does 12 not include a savings promotion drawing. 13 Sec. 3. Section 99B.1, Code 2019, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 28. “Savings promotion drawing” means a 16 drawing conducted by a financial institution or a group of 17 financial institutions in which a designated prize or prizes 18 may be won by the deposit of a specified amount of money in a 19 savings account, time deposit, or other savings program offered 20 through that financial institution or group of financial 21 institutions. 22 Sec. 4. NEW SECTION . 99B.63 Savings promotion drawings. 23 1. For purposes of this section, “participant” means a 24 person who is at least eighteen years of age and who has opened 25 a savings promotion drawing account at a financial institution. 26 2. A savings promotion drawing may lawfully be conducted 27 by a financial institution or group of financial institutions 28 without a license under this chapter if all of the following 29 conditions are met: 30 a. The savings promotion drawing includes the distribution 31 of the financial institution’s savings promotion drawing rules 32 to all participants in the savings promotion drawing. 33 b. The savings promotion drawing is open to all participants 34 as provided in the rules established for the savings promotion 35 -1- LSB 1370YC (3) 88 gh/rn 1/ 4
H.F. _____ drawing by the financial institution conducting the savings 1 promotion drawing. Savings promotion drawings shall not be 2 open to members of the public who are not participants pursuant 3 to the savings promotion drawing rules of the financial 4 institution. 5 c. The financial institution conducting the savings 6 promotion drawing maintains records regarding the savings 7 promotion drawing and the number of participants. 8 d. The savings promotion drawing is conducted in a fair and 9 honest manner. The financial institution shall not conduct 10 a savings promotion drawing in a manner that jeopardizes the 11 financial institution’s safety and financial soundness or 12 misleads its participants. 13 3. a. A financial institution shall provide an annual 14 report to the department for each year in which the financial 15 institution conducts a savings promotion drawing. If multiple 16 financial institutions combine efforts to conduct one more 17 collective savings promotion drawings between participants, the 18 participating financial institutions may file a joint annual 19 report. 20 b. The report shall include the number of savings promotion 21 drawings conducted during the year, the date the savings 22 promotion drawings were conducted, a description and value 23 of the prize or prizes offered, the names and addresses of 24 participants who won prizes, a copy of the savings promotion 25 drawing rules, and the names and addresses of two witnesses to 26 the savings promotion drawing. 27 4. Prizes awarded in a savings promotion drawing may be in 28 cash or any other form of property and shall not be subject to 29 any limits on quantity. 30 5. A financial institution or group of financial 31 institutions may compensate employees of the financial 32 institution, or may hire a third-party operator, to conduct a 33 savings promotion drawing pursuant to this section. 34 EXPLANATION 35 -2- LSB 1370YC (3) 88 gh/rn 2/ 4
H.F. _____ The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill allows a financial institution or multiple 3 financial institutions to conduct savings promotion drawings 4 without a license under specified conditions. 5 The bill defines “financial institution” to mean a state or 6 federally chartered credit union or bank which is located in 7 Iowa. The bill defines “savings promotion drawing” to mean 8 a drawing conducted by a financial institution or group of 9 financial institutions in which a designated prize or prizes 10 may be won by the deposit of a specified amount of money in a 11 savings account, time deposit, or other savings program. The 12 bill defines “participant” to mean a person who is at least 18 13 years of age and who has opened a savings promotion drawing 14 account at a financial institution. 15 The bill allows a financial institution or group of 16 financial institutions to conduct a savings promotion drawing 17 without licensure if all of the following conditions are 18 met: the drawing includes the distribution of the financial 19 institution’s drawing rules to all participants; the drawing 20 is open to all participants as provided in the drawing rules, 21 but must not be open to members of the public who are not 22 participants pursuant to the drawing rules; the financial 23 institution maintains records regarding the drawing and the 24 number of participants; and the drawing is conducted in a 25 fair and honest manner, without jeopardizing the financial 26 institution’s safety and financial soundness or misleading its 27 participants. 28 The bill requires a financial institution to provide an 29 annual report to the department of inspections and appeals 30 for each year in which the financial institution conducts a 31 savings promotion drawing. If multiple financial institutions 32 conduct a drawing, the financial institutions may file a 33 joint annual report. The report shall include the number of 34 drawings conducted during the year, the date the drawings were 35 -3- LSB 1370YC (3) 88 gh/rn 3/ 4
H.F. _____ conducted, a description and value of the prizes offered, the 1 names and addresses of participants who won prizes, a copy of 2 the drawing rules, and the names and addresses of two witnesses 3 to the drawing. 4 The bill provides that prizes awarded in a savings promotion 5 drawing may be in cash or any other form of property, and shall 6 not be subject to any limits on quantity. The bill provides 7 that a financial institution may compensate employees of the 8 financial institution, or may hire a third-party operator, to 9 conduct a drawing. 10 Under Code section 99B.4, a person who knowingly fails to 11 comply with Code chapter 99B commits a serious misdemeanor. A 12 serious misdemeanor is punishable by confinement for no more 13 than one year and a fine of at least $315 but not more than 14 $1,875. 15 -4- LSB 1370YC (3) 88 gh/rn 4/ 4
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