Bill Text: IA SSB1124 | 2021-2022 | 89th 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: (Introduced - Dead) 2021-02-09 - Subcommittee recommends passage. [SSB1124 Detail]
Download: Iowa-2021-SSB1124-Introduced.html
Senate
Study
Bill
1124
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
SCHULTZ)
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
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Section
1.
Section
99B.1,
Code
2021,
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
2021,
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
2021,
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
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drawing
by
the
financial
institution
conducting
the
savings
1
promotion
drawing.
A
savings
promotion
drawing
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.
A
participant
shall
not
submit
more
than
ten
5
entries
for
participation
in
a
savings
promotion
drawing
in
a
6
calendar
month.
7
c.
The
financial
institution
conducting
the
savings
8
promotion
drawing
maintains
records
regarding
the
savings
9
promotion
drawing
and
the
number
of
participants.
10
d.
The
savings
promotion
drawing
is
conducted
in
a
fair
and
11
honest
manner.
The
financial
institution
shall
not
conduct
12
a
savings
promotion
drawing
in
a
manner
that
jeopardizes
the
13
financial
institution’s
safety
and
financial
soundness
or
14
misleads
its
participants.
15
3.
a.
A
financial
institution
shall
provide
an
annual
16
report
to
the
credit
union
division
of
the
department
of
17
commerce
or
banking
division
of
the
department
of
commerce,
as
18
applicable,
for
each
year
in
which
the
financial
institution
19
conducts
a
savings
promotion
drawing.
If
multiple
financial
20
institutions
combine
efforts
to
conduct
one
more
collective
21
savings
promotion
drawings
between
participants,
the
22
participating
financial
institutions
may
file
a
joint
annual
23
report.
24
b.
The
annual
report
shall
include
the
number
of
savings
25
promotion
drawings
conducted
during
the
year,
the
date
the
26
savings
promotion
drawings
were
conducted,
a
description
and
27
value
of
the
prize
or
prizes
offered,
the
names
and
addresses
28
of
participants
who
won
prizes,
a
copy
of
the
savings
promotion
29
drawing
rules,
and
the
names
and
addresses
of
two
witnesses
to
30
the
savings
promotion
drawing.
31
4.
Prizes
awarded
in
a
savings
promotion
drawing
may
be
in
32
cash
or
any
other
form
of
property.
A
financial
institution
33
shall
not
award
a
monthly
prize
in
a
savings
promotion
drawing
34
that
exceeds
two
hundred
fifty
dollars
in
value.
A
financial
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institution
shall
not
award
a
quarterly
prize
in
a
savings
1
promotion
drawing
that
exceeds
five
thousand
dollars
in
value.
2
A
financial
institution
shall
not
award
an
annual
prize
in
a
3
savings
promotion
drawing
that
exceeds
ten
thousand
dollars
in
4
value.
5
5.
A
financial
institution
or
group
of
financial
6
institutions
may
compensate
employees
of
the
financial
7
institution,
or
may
hire
a
third-party
operator,
to
conduct
a
8
savings
promotion
drawing
pursuant
to
this
section.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
allows
a
financial
institution
or
multiple
13
financial
institutions
to
conduct
savings
promotion
drawings
14
without
a
license
under
specified
conditions.
15
The
bill
defines
“financial
institution”
to
mean
a
state
or
16
federally
chartered
credit
union
or
bank
which
is
located
in
17
Iowa.
The
bill
defines
“savings
promotion
drawing”
to
mean
18
a
drawing
conducted
by
a
financial
institution
or
group
of
19
financial
institutions
in
which
a
designated
prize
or
prizes
20
may
be
won
by
the
deposit
of
a
specified
amount
of
money
in
a
21
savings
account,
time
deposit,
or
other
savings
program.
The
22
bill
defines
“participant”
to
mean
a
person
who
is
at
least
18
23
years
of
age
and
who
has
opened
a
savings
promotion
drawing
24
account
at
a
financial
institution.
25
The
bill
allows
a
financial
institution
or
group
of
26
financial
institutions
to
conduct
a
savings
promotion
drawing
27
without
licensure
if
all
of
the
following
conditions
are
28
met:
the
drawing
includes
the
distribution
of
the
financial
29
institution’s
drawing
rules
to
all
participants;
the
drawing
30
is
open
to
all
participants
as
provided
in
the
drawing
rules,
31
but
must
not
be
open
to
members
of
the
public
who
are
not
32
participants
pursuant
to
the
drawing
rules;
participants
33
shall
not
submit
more
than
10
entries
for
participation
in
a
34
savings
promotion
drawing
in
a
calendar
month;
the
financial
35
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institution
maintains
records
regarding
the
drawing
and
the
1
number
of
participants;
and
the
drawing
is
conducted
in
a
2
fair
and
honest
manner,
without
jeopardizing
the
financial
3
institution’s
safety
and
financial
soundness
or
misleading
its
4
participants.
5
The
bill
requires
a
financial
institution
to
provide
an
6
annual
report
to
the
credit
union
division
of
the
department
of
7
commerce
or
banking
division
of
the
department
of
commerce,
as
8
applicable,
for
each
year
in
which
the
financial
institution
9
conducts
a
savings
promotion
drawing.
If
multiple
financial
10
institutions
conduct
a
drawing,
the
financial
institutions
may
11
file
a
joint
annual
report.
The
annual
report
shall
include
12
the
number
of
drawings
conducted
during
the
year,
the
date
13
the
drawings
were
conducted,
a
description
and
value
of
the
14
prizes
offered,
the
names
and
addresses
of
participants
who
15
won
prizes,
a
copy
of
the
drawing
rules,
and
the
names
and
16
addresses
of
two
witnesses
to
the
drawing.
17
The
bill
provides
that
prizes
awarded
in
a
savings
promotion
18
drawing
may
be
in
cash
or
any
other
form
of
property.
A
19
financial
institution
shall
not
award
a
monthly
prize
in
20
a
savings
promotion
drawing
that
exceeds
$250
in
value,
a
21
quarterly
prize
that
exceeds
$5,000
in
value,
or
an
annual
22
prize
that
exceeds
$10,000
in
value.
The
bill
provides
that
a
23
financial
institution
may
compensate
employees
of
the
financial
24
institution,
or
may
hire
a
third-party
operator,
to
conduct
a
25
drawing.
26
Under
Code
section
99B.4,
a
person
who
knowingly
fails
to
27
comply
with
Code
chapter
99B
commits
a
serious
misdemeanor.
A
28
serious
misdemeanor
is
punishable
by
confinement
for
no
more
29
than
one
year
and
a
fine
of
at
least
$430
but
not
more
than
30
$2,560.
31
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