House File 405 S-3265 Amend House File 405, as passed by the House, as 1 follows: 2 1. Page 1, after line 33 by inserting: 3 < Sec. ___. NEW SECTION . 524.802A Savings promotion 4 drawings. 5 1. A state bank is authorized, in addition to the 6 powers granted in sections 524.801 and 524.802, and 7 any other powers granted by this chapter, to conduct a 8 savings promotion drawing. 9 2. For the purposes of this section, unless the 10 context otherwise requires: 11 a. “Participant” means a person who is at least 12 eighteen years of age and who has opened a savings 13 promotion drawing account at a state bank. 14 b. “Savings promotion drawing” means a drawing 15 conducted by a state bank, or a group of state banks, 16 in which a designated prize or prizes may be won by the 17 deposit of a specified amount of money in a savings 18 account, time deposit, or other savings program offered 19 through that state bank group of state banks. 20 3. A savings promotion drawing may lawfully be 21 conducted by a state bank or group of state banks if 22 all of the following conditions are met: 23 a. The savings promotion drawing conducted includes 24 the distribution of the state bank’s savings promotion 25 drawing rules to all participants in the savings 26 promotion drawing. 27 b. The savings promotion drawing is open to all 28 participants as provided in the rules established 29 for the savings promotion drawing by the state bank 30 conducting the savings promotion drawing. Savings 31 promotion drawings shall not be open to members of the 32 public who are not participants pursuant to the savings 33 promotion drawing rules of the state bank. 34 c. The state bank offering the savings promotion 35 drawing maintains records regarding its savings 36 promotion drawing and the number of participants. 37 d. The savings promotion drawing is conducted in 38 a fair and honest manner. The state bank shall not 39 conduct a savings promotion drawing in a manner that 40 jeopardizes the state bank’s safety and financial 41 soundness or misleads its participants. 42 e. The state bank offering the savings promotion 43 drawing account does not reduce any interest rate or 44 charge participants any additional fees as a means of 45 funding such promotion when compared to other similar 46 savings accounts, time deposits, or other savings 47 programs offered by the state bank. 48 f. The state bank offering the savings promotion 49 drawing account provides all participants with a clear 50 -1- HF405.2604 (2) 84 rn/nh 1/ 4 #1.

and conspicuous disclosure when opening a savings 1 promotion drawing account. This disclosure shall 2 provide all participants with clear information on the 3 chances or odds of winning any prize offered pursuant 4 to the savings promotion drawing account. 5 4. A state bank shall provide an annual report to 6 the division for each year in which a savings promotion 7 drawing was held. This report shall include the number 8 of savings promotion drawings held during the year, 9 when the savings promotion drawings were held, the 10 description and value of the prize or prizes offered, 11 the names and addresses of participants who won prizes, 12 a copy of the savings promotion drawing rules, and the 13 names and addresses of two witnesses to the drawing. 14 If multiple state banks combine efforts for one or 15 more collective savings promotion drawings between 16 participants, they may file a joint annual report. 17 5. Prizes awarded in a savings promotion drawing 18 may be in cash or any other form of property and, 19 subject to the other provisions of this section, shall 20 not be subject to limits on quantity. A state bank 21 may not award a single prize in a savings promotion 22 drawing that is more than twenty-five thousand dollars 23 in value. However, if four or more state banks combine 24 efforts for a joint savings promotion drawing, then the 25 value of any single prize awarded through the joint 26 drawing shall not exceed one hundred thousand dollars. 27 6. A state bank or group of state banks may 28 compensate employees of the state bank, or may hire a 29 third-party operator, to conduct a savings promotion 30 drawing. 31 Sec. ___. NEW SECTION . 533.301A Savings promotion 32 drawings. 33 1. A state credit union is authorized, in addition 34 to the powers granted in section 533.301, and any other 35 powers granted by this chapter, to conduct a savings 36 promotion drawing. 37 2. For the purposes of this section, unless the 38 context otherwise requires: 39 a. “Participant” means a person who is at least 40 eighteen years of age and who has opened a savings 41 promotion drawing account at a state credit union. 42 b. “Savings promotion drawing” means a drawing 43 conducted by a state credit union, or a group of state 44 credit unions, in which a designated prize or prizes 45 may be won by the deposit of a specified amount of 46 money in a savings account, time deposit, or other 47 savings program offered through that state credit union 48 or group of state credit unions. 49 3. A savings promotion drawing may lawfully be 50 -2- HF405.2604 (2) 84 rn/nh 2/ 4

conducted by a state credit union or group of state 1 credit unions if all of the following conditions are 2 met: 3 a. The savings promotion drawing conducted includes 4 the distribution of the state credit union’s savings 5 promotion drawing rules to all participants in the 6 savings promotion drawing. 7 b. The savings promotion drawing is open to all 8 participants as provided in the rules established for 9 the savings promotion drawing by the state credit union 10 conducting the savings promotion drawing. Savings 11 promotion drawings shall not be open to members of the 12 public who are not participants pursuant to the savings 13 promotion drawing rules of the state credit union. 14 c. The state credit union offering the savings 15 promotion drawing maintains records regarding 16 its savings promotion drawing and the number of 17 participants. 18 d. The savings promotion drawing is conducted in a 19 fair and honest manner. The state credit union shall 20 not conduct a savings promotion drawing in a manner 21 that jeopardizes the state credit union’s safety and 22 financial soundness or misleads its participants. 23 e. The state credit union offering the savings 24 promotion drawing account does not reduce any interest 25 rate or charge participants any additional fees as a 26 means of funding such promotion when compared to other 27 similar savings accounts, time deposits, or other 28 savings programs offered by the state credit union. 29 f. The state credit union offering the savings 30 promotion drawing account provides all participants 31 with a clear and conspicuous disclosure when opening 32 a savings promotion drawing account. This disclosure 33 shall provide all participants with clear information 34 on the chances or odds of winning any prize offered 35 pursuant to the savings promotion drawing account. 36 4. A state credit union shall provide an annual 37 report to the division for each year in which a savings 38 promotion drawing was held. This report shall include 39 the number of savings promotion drawings held during 40 the year, when the savings promotion drawings were 41 held, the description and value of the prize or prizes 42 offered, the names and addresses of participants who 43 won prizes, a copy of the savings promotion drawing 44 rules, and the names and addresses of two witnesses to 45 the drawing. If multiple state credit unions combine 46 efforts for one or more collective savings promotion 47 drawings between participants, they may file a joint 48 annual report. 49 5. Prizes awarded in a savings promotion drawing 50 -3- HF405.2604 (2) 84 rn/nh 3/ 4

may be in cash or any other form of property and, 1 subject to the other provisions of this section, 2 shall not be subject to limits on quantity. A state 3 credit union may not award a single prize in a savings 4 promotion drawing that is more than twenty-five 5 thousand dollars in value. However, if four or more 6 state credit unions combine efforts for a joint savings 7 promotion drawing, then the value of any single prize 8 awarded through the joint drawing shall not exceed one 9 hundred thousand dollars. 10 6. A state credit union or group of state credit 11 unions may compensate employees of the state credit 12 union, or may hire a third-party operator, to conduct a 13 savings promotion drawing. > 14 2. Title page, by striking lines 1 through 3 15 and inserting < An Act relating to requirements and 16 authorization applicable to state banks and state 17 credit unions. > 18 ______________________________ JEFF DANIELSON ______________________________ KENT SORENSON -4- HF405.2604 (2) 84 rn/nh 4/ 4 #2.