Bill Text: TX HB471 | 2017-2018 | 85th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to permitting credit unions and other financial institutions to award prizes by lot to promote savings.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2017-06-15 - Effective on adoption of const. amendment [HB471 Detail]
Download: Texas-2017-HB471-Engrossed.html
Bill Title: Relating to permitting credit unions and other financial institutions to award prizes by lot to promote savings.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2017-06-15 - Effective on adoption of const. amendment [HB471 Detail]
Download: Texas-2017-HB471-Engrossed.html
85R19112 EES-D | ||
By: Johnson of Dallas | H.B. No. 471 |
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relating to permitting credit unions and other financial | ||
institutions to award prizes by lot to promote savings. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The legislature finds that: | ||
(1) many Texans have little experience with mainstream | ||
financial services, such as checking and savings accounts; | ||
(2) an estimated one in three households in the state | ||
does not have a savings account and an estimated one-half of all | ||
households in the state do not have sufficient savings to pay for | ||
basic expenses for three months in case of an emergency; | ||
(3) Texans' inexperience with mainstream financial | ||
services and lack of savings has many negative consequences, | ||
including causing financially vulnerable Texans to turn to | ||
predatory lenders outside of the mainstream financial system for | ||
credit; | ||
(4) mainstream financial institutions in states | ||
across the country offer savings promotion raffles to help | ||
familiarize people with the mainstream financial system and to | ||
encourage people to open savings accounts and to save money; | ||
(5) savings promotion raffles are normal financial | ||
products offered by mainstream financial institutions, like | ||
traditional savings accounts, with the added feature of offering | ||
chances to win prizes for saving money; | ||
(6) savings promotion raffles are not lotteries but | ||
are pro-savings alternatives to lotteries; | ||
(7) unlike lotteries, savings promotion raffles do not | ||
require consideration for the chance to win a prize; | ||
(8) unlike lotteries, savings promotion raffles have | ||
the purpose and effect of increasing an individual's savings and | ||
financial security; and | ||
(9) encouraging people to save money is in the | ||
interest of the state. | ||
SECTION 2. Subchapter B, Chapter 622, Business & Commerce | ||
Code, is amended by adding Section 622.0545 to read as follows: | ||
Sec. 622.0545. SAVINGS PROMOTION RAFFLE. This chapter does | ||
not apply to a savings promotion raffle authorized under Chapter | ||
280, Finance Code. | ||
SECTION 3. Subtitle Z, Title 3, Finance Code, is amended by | ||
adding Chapter 280 to read as follows: | ||
CHAPTER 280. SAVINGS PROMOTION RAFFLE | ||
Sec. 280.001. SHORT TITLE. This chapter may be cited as the | ||
Texas Savings Promotion Act. | ||
Sec. 280.002. DEFINITIONS. In this chapter: | ||
(1) "Credit union" means: | ||
(A) a credit union as defined by Section 121.002; | ||
or | ||
(B) a federal credit union doing business in this | ||
state. | ||
(2) "Deposit," with respect to a financial | ||
institution, has the meaning assigned by Section 31.002. | ||
(3) "Finance commission" means the Finance Commission | ||
of Texas. | ||
(4) "Financial institution" has the meaning assigned | ||
by Section 31.002. | ||
(5) "Savings promotion raffle" means a raffle | ||
conducted by a credit union or financial institution in which the | ||
sole action required for a chance of winning a designated prize is | ||
the deposit of at least a specified amount of money in a savings | ||
account or other savings program offered by the credit union or | ||
financial institution. | ||
Sec. 280.003. SAVINGS PROMOTION RAFFLE BY CREDIT UNION. | ||
(a) A credit union may conduct a savings promotion raffle if: | ||
(1) each ticket or token representing an entry in the | ||
raffle has an equal probability of being drawn; and | ||
(2) the raffle is conducted in a manner that: | ||
(A) does not jeopardize the ability of the credit | ||
union to operate in a safe and sound manner; and | ||
(B) does not mislead the credit union's members. | ||
(b) A credit union may not require consideration for | ||
participation in a savings promotion raffle. A deposit of an amount | ||
of money in a savings account or other savings program that results | ||
in an entry in a savings promotion raffle is not consideration. | ||
(c) A credit union may not require a person to pay a premium | ||
or fee for opening or using a savings account or other savings | ||
program that is subject to a savings promotion raffle, unless the | ||
premium or fee is commensurate with the premium or fee that the | ||
credit union charges for opening or using comparable savings | ||
accounts or savings programs that are not subject to a savings | ||
promotion raffle. | ||
(d) A credit union may not limit the withdrawal of money | ||
from a savings account or other savings program that is subject to a | ||
savings promotion raffle, unless the withdrawal limits are | ||
commensurate with the withdrawal limits that the credit union | ||
imposes on comparable savings accounts or savings programs that are | ||
not subject to a savings promotion raffle. This subsection does not | ||
prohibit a credit union from requiring a deposit of an amount of | ||
money to remain in a savings account or other savings program for a | ||
certain period of time in order for the deposit to represent an | ||
entry in a savings promotion raffle. | ||
(e) A credit union shall pay interest or dividends on a | ||
savings account or other savings program that is subject to a | ||
savings promotion raffle at a rate that is commensurate with the | ||
interest or dividend rate that the credit union pays on comparable | ||
savings accounts or savings programs that are not subject to a | ||
savings promotion raffle. | ||
(f) A credit union that conducts a savings promotion raffle | ||
under this section shall maintain all records that the Credit Union | ||
Commission determines are necessary for the Credit Union Department | ||
to examine the raffle. | ||
(g) The provisions of this section applicable to a credit | ||
union apply to an organization composed exclusively of credit | ||
unions. | ||
(h) The Credit Union Commission shall adopt rules and | ||
procedures for the administration of this section. | ||
Sec. 280.004. SAVINGS PROMOTION RAFFLE BY FINANCIAL | ||
INSTITUTION. (a) A financial institution may conduct a savings | ||
promotion raffle if: | ||
(1) each ticket or token representing an entry in the | ||
raffle has an equal probability of being drawn; and | ||
(2) the raffle is conducted in a manner that: | ||
(A) does not jeopardize the ability of the | ||
financial institution to operate in a safe and sound manner; and | ||
(B) does not mislead the institution's | ||
depositors. | ||
(b) A financial institution may not require consideration | ||
for participation in a savings promotion raffle. A deposit of an | ||
amount of money in a savings account or other savings program that | ||
results in an entry in a savings promotion raffle is not | ||
consideration. | ||
(c) A financial institution may not require a person to pay | ||
a premium or fee for opening or using a savings account or other | ||
savings program that is subject to a savings promotion raffle, | ||
unless the premium or fee is commensurate with the premium or fee | ||
that the financial institution charges for opening or using | ||
comparable savings accounts or savings programs that are not | ||
subject to a savings promotion raffle. | ||
(d) A financial institution may not limit the withdrawal of | ||
money from a savings account or other savings program that is | ||
subject to a savings promotion raffle, unless the withdrawal limits | ||
are commensurate with the withdrawal limits that the financial | ||
institution imposes on comparable savings accounts or savings | ||
programs that are not subject to a savings promotion raffle. This | ||
subsection does not prohibit a financial institution from requiring | ||
a deposit of an amount of money to remain in a savings account or | ||
other savings program for a certain period of time in order for the | ||
deposit to represent an entry in a savings promotion raffle. | ||
(e) A financial institution shall pay interest or dividends | ||
on a savings account or other savings program that is subject to a | ||
savings promotion raffle at a rate that is commensurate with the | ||
interest or dividend rate that the financial institution pays on | ||
comparable savings accounts or savings programs that are not | ||
subject to a savings promotion raffle. | ||
(f) A financial institution that conducts a savings | ||
promotion raffle under this section shall maintain all records that | ||
the finance commission determines are necessary for the financial | ||
regulatory agency of this state having regulatory jurisdiction over | ||
that financial institution to examine the raffle. | ||
(g) The provisions of this section applicable to a financial | ||
institution apply to an organization composed exclusively of | ||
financial institutions. | ||
(h) The finance commission shall adopt rules and procedures | ||
for the administration of this section. | ||
Sec. 280.005. ACCOUNT OR DEPOSIT NOT CONSIDERATION. For | ||
purposes of Chapter 47, Penal Code, or other state law, opening or | ||
making a deposit in an account is not considered a purchase, | ||
payment, or provision of a thing of value for participation in a | ||
savings promotion raffle and is not considered to require a | ||
substantial expenditure of time, effort, or inconvenience. | ||
SECTION 4. Subchapter A, Chapter 2002, Occupations Code, is | ||
amended by adding Section 2002.005 to read as follows: | ||
Sec. 2002.005. APPLICABILITY. This chapter does not apply | ||
to a savings promotion raffle authorized under Chapter 280, Finance | ||
Code. | ||
SECTION 5. Section 47.09(a), Penal Code, is amended to read | ||
as follows: | ||
(a) It is a defense to prosecution under this chapter that | ||
the conduct: | ||
(1) was authorized under: | ||
(A) Chapter 2001, Occupations Code; | ||
(B) Chapter 2002, Occupations Code; | ||
(C) Chapter 2004, Occupations Code; [ |
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(D) the Texas Racing Act (Article 179e, Vernon's | ||
Texas Civil Statutes); or | ||
(E) Chapter 280, Finance Code; | ||
(2) consisted entirely of participation in the state | ||
lottery authorized by Chapter 466, Government Code; or | ||
(3) was a necessary incident to the operation of the | ||
state lottery and was directly or indirectly authorized by: | ||
(A) Chapter 466, Government Code; | ||
(B) the lottery division of the Texas Lottery | ||
Commission; | ||
(C) the Texas Lottery Commission; or | ||
(D) the director of the lottery division of the | ||
Texas Lottery Commission. | ||
SECTION 6. Chapter 47, Penal Code, is amended by adding | ||
Section 47.11 to read as follows: | ||
Sec. 47.11. DEPOSITS IN CERTAIN ACCOUNTS NOT CONSIDERATION. | ||
For purposes of this chapter, opening or making a deposit in a | ||
savings account or other savings program subject to a savings | ||
promotion raffle under Chapter 280, Finance Code, does not | ||
constitute consideration. | ||
SECTION 7. This Act takes effect on the date the | ||
constitutional amendment proposed by the 85th Legislature, Regular | ||
Session, 2017, relating to legislative authority to permit credit | ||
unions and other financial institutions to award prizes by lot to | ||
promote savings is approved by the voters. If that amendment is not | ||
approved by the voters, this Act has no effect. |