Amend House File 405, as passed by the House, as follows:
   1.  Page 1, after line 33 by inserting: 
   <Sec. ___.  NEW SECTION.  524.802A  Savings promotion drawings.
   1.  A state bank is authorized, in addition to the powers granted in sections 524.801 and 524.802, and any other powers granted by this chapter, to conduct a savings promotion drawing.
   2.  For the purposes of this section, unless the context otherwise requires:
   a.  “Participant” means a person who is at least eighteen years of age and who has opened a savings promotion drawing account at a state bank.
   b.  “Savings promotion drawing” means a drawing conducted by a state bank, or a group of state banks, in which a designated prize or prizes may be won by the deposit of a specified amount of money in a savings account, time deposit, or other savings program offered through that state bank group of state banks.
   3.  A savings promotion drawing may lawfully be conducted by a state bank or group of state banks if all of the following conditions are met:
   a.  The savings promotion drawing conducted includes the distribution of the state bank’s savings promotion drawing rules to all participants in the savings promotion drawing.
   b.  The savings promotion drawing is open to all participants as provided in the rules established for the savings promotion drawing by the state bank conducting the savings promotion drawing. Savings promotion drawings shall not be open to members of the public who are not participants pursuant to the savings promotion drawing rules of the state bank.
   c.  The state bank offering the savings promotion drawing maintains records regarding its savings promotion drawing and the number of participants.
   d.  The savings promotion drawing is conducted in a fair and honest manner. The state bank shall not conduct a savings promotion drawing in a manner that jeopardizes the state bank’s safety and financial soundness or misleads its participants.
   e.  The state bank offering the savings promotion drawing account does not reduce any interest rate or charge participants any additional fees as a means of funding such promotion when compared to other similar savings accounts, time deposits, or other savings programs offered by the state bank.
   f.  The state bank offering the savings promotion drawing account provides all participants with a clear and conspicuous disclosure when opening a savings promotion drawing account. This disclosure shall provide all participants with clear information on the chances or odds of winning any prize offered pursuant to the savings promotion drawing account.
   4.  A state bank shall provide an annual report to the division for each year in which a savings promotion drawing was held. This report shall include the number of savings promotion drawings held during the year, when the savings promotion drawings were held, the description and value of the prize or prizes offered, the names and addresses of participants who won prizes, a copy of the savings promotion drawing rules, and the names and addresses of two witnesses to the drawing. If multiple state banks combine efforts for one or more collective savings promotion drawings between participants, they may file a joint annual report.
   5.  Prizes awarded in a savings promotion drawing may be in cash or any other form of property and, subject to the other provisions of this section, shall not be subject to limits on quantity. A state bank may not award a single prize in a savings promotion drawing that is more than twenty-five thousand dollars in value. However, if four or more state banks combine efforts for a joint savings promotion drawing, then the value of any single prize awarded through the joint drawing shall not exceed one hundred thousand dollars.
   6.  A state bank or group of state banks may compensate employees of the state bank, or may hire a third-party operator, to conduct a savings promotion drawing.
   Sec. ___.  NEW SECTION.  533.301A  Savings promotion drawings.
   1.  A state credit union is authorized, in addition to the powers granted in section 533.301, and any other powers granted by this chapter, to conduct a savings promotion drawing.
   2.  For the purposes of this section, unless the context otherwise requires:
   a.  “Participant” means a person who is at least eighteen years of age and who has opened a savings promotion drawing account at a state credit union.
   b.  “Savings promotion drawing” means a drawing conducted by a state credit union, or a group of state credit unions, in which a designated prize or prizes may be won by the deposit of a specified amount of money in a savings account, time deposit, or other savings program offered through that state credit union or group of state credit unions.
   3.  A savings promotion drawing may lawfully be conducted by a state credit union or group of state credit unions if all of the following conditions are met:
   a.  The savings promotion drawing conducted includes the distribution of the state credit union’s savings promotion drawing rules to all participants in the savings promotion drawing.
   b.  The savings promotion drawing is open to all participants as provided in the rules established for the savings promotion drawing by the state credit union conducting the savings promotion drawing. Savings promotion drawings shall not be open to members of the public who are not participants pursuant to the savings promotion drawing rules of the state credit union.
   c.  The state credit union offering the savings promotion drawing maintains records regarding its savings promotion drawing and the number of participants.
   d.  The savings promotion drawing is conducted in a fair and honest manner. The state credit union shall not conduct a savings promotion drawing in a manner that jeopardizes the state credit union’s safety and financial soundness or misleads its participants.
   e.  The state credit union offering the savings promotion drawing account does not reduce any interest rate or charge participants any additional fees as a means of funding such promotion when compared to other similar savings accounts, time deposits, or other savings programs offered by the state credit union.
   f.  The state credit union offering the savings promotion drawing account provides all participants with a clear and conspicuous disclosure when opening a savings promotion drawing account. This disclosure shall provide all participants with clear information on the chances or odds of winning any prize offered pursuant to the savings promotion drawing account.
   4.  A state credit union shall provide an annual report to the division for each year in which a savings promotion drawing was held. This report shall include the number of savings promotion drawings held during the year, when the savings promotion drawings were held, the description and value of the prize or prizes offered, the names and addresses of participants who won prizes, a copy of the savings promotion drawing rules, and the names and addresses of two witnesses to the drawing. If multiple state credit unions combine efforts for one or more collective savings promotion drawings between participants, they may file a joint annual report.
   5.  Prizes awarded in a savings promotion drawing may be in cash or any other form of property and, subject to the other provisions of this section, shall not be subject to limits on quantity. A state credit union may not award a single prize in a savings promotion drawing that is more than twenty-five thousand dollars in value. However, if four or more state credit unions combine efforts for a joint savings promotion drawing, then the value of any single prize awarded through the joint drawing shall not exceed one hundred thousand dollars.
   6.  A state credit union or group of state credit unions may compensate employees of the state credit union, or may hire a third-party operator, to conduct a savings promotion drawing.>
   2.  Title page, by striking lines 1 through 3 and inserting <An Act relating to requirements and authorization applicable to state banks and state credit unions.>

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JEFF DANIELSON

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KENT SORENSON