H.F. _____ Section 1. Section 99B.1, Code 2022, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 15A. “Financial institution” means a state 3 or federally chartered credit union as defined in section 4 533.102 or a state or federally chartered bank as defined in 5 section 524.103, which is located in this state and which 6 receives money for deposit. 7 Sec. 2. Section 99B.1, subsection 28, Code 2022, is amended 8 to read as follows: 9 28. “Raffle” means a lottery in which each participant buys 10 an entry for a chance at a prize with the winner determined by 11 a random method and the winner is not required to be present to 12 win. “Raffle” does not include a slot machine. “Raffle” does 13 not include a savings promotion drawing. 14 Sec. 3. Section 99B.1, Code 2022, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 28A. “Savings promotion drawing” means a 17 drawing conducted by a financial institution or a group of 18 financial institutions in which a designated prize or prizes 19 may be won by the deposit of a specified amount of money in a 20 savings account, time deposit, or other savings program offered 21 through that financial institution or group of financial 22 institutions. 23 Sec. 4. NEW SECTION . 99B.63 Savings promotion drawings. 24 1. For purposes of this section, “participant” means a 25 person who is at least eighteen years of age and who has opened 26 a savings promotion drawing account at a financial institution. 27 2. A savings promotion drawing may lawfully be conducted 28 by a financial institution or group of financial institutions 29 without a license under this chapter if all of the following 30 conditions are met: 31 a. The savings promotion drawing includes the distribution 32 of the financial institution’s savings promotion drawing rules 33 to all participants in the savings promotion drawing. 34 b. The savings promotion drawing is open to all participants 35 -1- LSB 5564YC (4) 89 es/rn 1/ 4

H.F. _____ as provided in the rules established for the savings promotion 1 drawing by the financial institution conducting the savings 2 promotion drawing. A savings promotion drawing shall not be 3 open to members of the public who are not participants pursuant 4 to the savings promotion drawing rules of the financial 5 institution. A participant shall not submit more than ten 6 entries for participation in a savings promotion drawing in a 7 calendar month. 8 c. The financial institution conducting the savings 9 promotion drawing maintains records regarding the savings 10 promotion drawing and the number of participants. 11 d. The savings promotion drawing is conducted in a fair and 12 honest manner. The financial institution shall not conduct 13 a savings promotion drawing in a manner that jeopardizes the 14 financial institution’s safety and financial soundness or 15 misleads its participants. 16 e. The financial institution conducting the savings 17 promotion drawing does not charge a fee to a participant to 18 withdraw money from the participant’s savings promotion drawing 19 account. 20 3. Prizes awarded in a savings promotion drawing may be in 21 cash or any other form of property. A financial institution 22 shall not award a monthly prize in a savings promotion drawing 23 that exceeds two hundred fifty dollars in value. A financial 24 institution shall not award a quarterly prize in a savings 25 promotion drawing that exceeds five thousand dollars in value. 26 A financial institution shall not award an annual prize in a 27 savings promotion drawing that exceeds ten thousand dollars in 28 value. 29 4. A financial institution or group of financial 30 institutions may compensate employees of the financial 31 institution, or may hire a third-party operator, to conduct a 32 savings promotion drawing pursuant to this section. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -2- LSB 5564YC (4) 89 es/rn 2/ 4

H.F. _____ the explanation’s substance by the members of the general assembly. 1 This bill allows a financial institution or multiple 2 financial institutions to conduct savings promotion drawings 3 without a license under specified conditions. 4 The bill defines “financial institution” to mean a state or 5 federally chartered credit union or bank which is located in 6 Iowa and which receives money for deposit. The bill defines 7 “savings promotion drawing” to mean a drawing conducted by a 8 financial institution or group of financial institutions in 9 which a designated prize or prizes may be won by the deposit of 10 a specified amount of money in a savings account, time deposit, 11 or other savings program. The bill defines “participant” to 12 mean a person who is at least 18 years of age and who has opened 13 a savings promotion drawing account at a financial institution. 14 The bill allows a financial institution or group of 15 financial institutions to conduct a savings promotion drawing 16 without licensure if all of the following conditions are 17 met: the drawing includes the distribution of the financial 18 institution’s drawing rules to all participants; the drawing 19 is open to all participants as provided in the drawing rules, 20 but must not be open to members of the public who are not 21 participants pursuant to the drawing rules; participants 22 shall not submit more than 10 entries for participation in a 23 savings promotion drawing in a calendar month; the financial 24 institution maintains records regarding the drawing and the 25 number of participants; the financial institution does not 26 charge a fee to a participant withdrawing money from the 27 participant’s promotion account and the drawing is conducted in 28 a fair and honest manner, without jeopardizing the financial 29 institution’s safety and financial soundness or misleading its 30 participants. 31 The bill provides that prizes awarded in a savings promotion 32 drawing may be in cash or any other form of property. A 33 financial institution shall not award a monthly prize in 34 a savings promotion drawing that exceeds $250 in value, a 35 -3- LSB 5564YC (4) 89 es/rn 3/ 4

H.F. _____ quarterly prize that exceeds $5,000 in value, or an annual 1 prize that exceeds $10,000 in value. The bill provides that a 2 financial institution may compensate employees of the financial 3 institution, or may hire a third-party operator, to conduct a 4 drawing. 5 Under Code section 99B.4, a person who knowingly fails to 6 comply with Code chapter 99B commits a serious misdemeanor. A 7 serious misdemeanor is punishable by confinement for no more 8 than one year and a fine of at least $430 but not more than 9 $2,560. 10 -4- LSB 5564YC (4) 89 es/rn 4/ 4