Bill Text: NY A07341 | 2013-2014 | General Assembly | Introduced

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Bill Title: Amends the banking law, in relation to permitting the offering of savings promotion raffles by authorized banking organizations.

Spectrum: Slight Partisan Bill (Republican 7-4)

Status: (Introduced - Dead) 2013-06-18 - substituted by s5145 [A07341 Detail]

Download: New_York-2013-A07341-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7341
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                     May 13, 2013
                                      ___________
       Introduced  by  M. of A. ROBINSON, RAIA -- read once and referred to the
         Committee on Banks
       AN ACT to amend the banking  law,  in  relation  to  authorizing  credit
         unions to conduct savings promotion prize giveaways
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The banking law is amended by adding a new section  9-v  to
    2  read as follows:
    3    S  9-V.    SAVINGS  PROMOTION PRIZE GIVEAWAY.   A BANKING ORGANIZATION
    4  ORGANIZED UNDER OR SUBJECT TO THE PROVISIONS OF THIS CHAPTER MAY CONDUCT
    5  A SAVINGS PROMOTION IN ACCORDANCE WITH THE PROVISIONS OF  THIS  SECTION,
    6  TO THE EXTENT IT IS NOT PROHIBITED BY FEDERAL LAW OR REGULATION.
    7    1. DEFINITIONS. AS USED IN THIS SECTION THE FOLLOWING TERMS SHALL HAVE
    8  THE FOLLOWING MEANINGS:
    9    A. THE TERM "SAVINGS PROMOTION" MEANS A CONTEST OR PROMOTION SPONSORED
   10  BY A BANKING ORGANIZATION IN WHICH A CHANCE OF WINNING DESIGNATED PRIZES
   11  IS  OBTAINED  BY THE DEPOSIT OF A SPECIFIED AMOUNT OF MONEY IN A SAVINGS
   12  ACCOUNT, SHARE ACCOUNT, SHARE CERTIFICATE, OR OTHER SAVINGS  PRODUCT  OR
   13  PROGRAM.
   14    B.  THE  TERM  "QUALIFYING  ACCOUNT"  MEANS  A  SAVINGS ACCOUNT, SHARE
   15  ACCOUNT, SHARE CERTIFICATE, OR OTHER SAVINGS PRODUCT OR PROGRAM  OFFERED
   16  BY A BANKING ORGANIZATION THROUGH WHICH DEPOSITORS MAY OBTAIN CHANCES TO
   17  WIN PRIZES IN A SAVINGS PROMOTION BY DEPOSITING SPECIFIED SUMS OF MONEY.
   18    C.  THE  TERM  "NON-QUALIFYING ACCOUNT" MEANS A SAVINGS ACCOUNT, SHARE
   19  ACCOUNT, CERTIFICATE OF DEPOSIT, OR OTHER  SAVINGS  PRODUCT  OR  PROGRAM
   20  OFFERED BY A BANKING ORGANIZATION THAT IS NOT A QUALIFYING ACCOUNT.
   21    2.  RULES  OF  OPERATION. A. PARTICIPANTS IN A SAVINGS PROMOTION SHALL
   22  NOT BE REQUIRED TO PROVIDE ANY CONSIDERATION IN ORDER TO OBTAIN  ENTRIES
   23  TO WIN. FOR PURPOSES OF THIS PARAGRAPH, PARTICIPANTS SHALL NOT BE DEEMED
   24  TO  HAVE PROVIDED CONSIDERATION DUE TO THE REQUIREMENT THAT THEY DEPOSIT
   25  MONEY IN A QUALIFYING ACCOUNT TO OBTAIN ENTRIES TO WIN, SO LONG AS:  (I)
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10869-01-3
       A. 7341                             2
    1  THE  INTEREST  RATE  ASSOCIATED  WITH ANY SUCH QUALIFYING ACCOUNT IS NOT
    2  EXPRESSLY REDUCED TO ACCOUNT FOR THE POSSIBILITY OF  DEPOSITORS  WINNING
    3  SPECIFIED  PRIZES;  AND  (II)  ANY  FEES CHARGED IN CONNECTION WITH SUCH
    4  QUALIFYING  ACCOUNT  ARE APPROXIMATELY OF A KIND AND APPROXIMATELY IN AN
    5  AMOUNT CHARGED IN CONNECTION WITH COMPARABLE NON-QUALIFYING ACCOUNTS, IF
    6  ANY, OFFERED BY THE BANKING ORGANIZATION.
    7    B. A SAVINGS PROMOTION SHALL BE CONDUCTED SUCH THAT EACH ENTRY IN  THE
    8  SAVINGS PROMOTION HAS AN EQUAL CHANCE OF BEING DRAWN.
    9    C.  PARTICIPANTS  IN  A  SAVINGS PROMOTION SHALL NOT BE REQUIRED TO BE
   10  PRESENT AT A PRIZE DRAWING IN ORDER TO WIN.
   11    D. THE OFFERING OF A SAVINGS PROMOTION SHALL  BE  SUBJECT  TO  SECTION
   12  THREE  HUNDRED  SIXTY-NINE-E  OF  THE  GENERAL  BUSINESS LAW IN THE SAME
   13  MANNER AS OTHER PROMOTIONS REGULATED THEREUNDER.  FOR  PURPOSES  OF  THE
   14  GENERAL  BUSINESS  LAW AND THE PENAL LAW, A SAVINGS PROMOTION OFFERED IN
   15  ACCORDANCE WITH THIS CHAPTER SHALL NOT BE DEEMED TO ENTAIL CONSIDERATION
   16  OR THE PROMOTION OF GAMBLING OR A LOTTERY.
   17    S 2. Section 96 of the banking law is amended by adding a new subdivi-
   18  sion 15 to read as follows:
   19    15. TO ENGAGE IN A  "SAVINGS  PROMOTION  RAFFLE"  IN  ACCORDANCE  WITH
   20  SECTION NINE-V OF THIS CHAPTER.
   21    S  3. Section 234 of the banking law is amended by adding a new subdi-
   22  vision 26 to read as follows:
   23    26. TO ENGAGE IN A  "SAVINGS  PROMOTION  RAFFLE"  IN  ACCORDANCE  WITH
   24  SECTION NINE-V OF THIS CHAPTER.
   25    S  4. Section 383 of the banking law is amended by adding a new subdi-
   26  vision 17 to read as follows:
   27    17. TO ENGAGE IN A  "SAVINGS  PROMOTION  RAFFLE"  IN  ACCORDANCE  WITH
   28  SECTION NINE-V OF THIS CHAPTER.
   29    S  5. Section 454 of the banking law is amended by adding a new subdi-
   30  vision 37 to read as follows:
   31    37. TO ENGAGE IN A  "SAVINGS  PROMOTION  RAFFLE"  IN  ACCORDANCE  WITH
   32  SECTION NINE-V OF THIS CHAPTER.
   33    S 6. This act shall take effect immediately.