Bill Text: TX HB471 | 2017-2018 | 85th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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85R19112 EES-D
By: Johnson of Dallas H.B. No. 471

A BILL TO BE ENTITLED
AN ACT
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; [or]
(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.