S.F. 86 Section 1. Section 99B.1, Code 2021, 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 533.102 or 4 a state or federally chartered bank as defined in section 5 524.103, which is located in this state. 6 Sec. 2. Section 99B.1, subsection 27, Code 2021, is amended 7 to read as follows: 8 27. “Raffle” means a lottery in which each participant buys 9 an entry for a chance at a prize with the winner determined by 10 a random method and the winner is not required to be present to 11 win. “Raffle” does not include a slot machine. “Raffle” does 12 not include a savings promotion drawing. 13 Sec. 3. Section 99B.1, Code 2021, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 28. “Savings promotion drawing” means a 16 drawing conducted by a financial institution or a group of 17 financial institutions in which a designated prize or prizes 18 may be won by the deposit of a specified amount of money in a 19 savings account, time deposit, or other savings program offered 20 through that financial institution or group of financial 21 institutions. 22 Sec. 4. NEW SECTION . 99B.63 Savings promotion drawings. 23 1. For purposes of this section, “participant” means a 24 person who is at least eighteen years of age and who has opened 25 a savings promotion drawing account at a financial institution. 26 2. A savings promotion drawing may lawfully be conducted 27 by a financial institution or group of financial institutions 28 without a license under this chapter if all of the following 29 conditions are met: 30 a. The savings promotion drawing includes the distribution 31 of the financial institution’s savings promotion drawing rules 32 to all participants in the savings promotion drawing. 33 b. The savings promotion drawing is open to all participants 34 as provided in the rules established for the savings promotion 35 -1- LSB 1274XS (1) 89 jda/rn 1/ 4

S.F. 86 drawing by the financial institution conducting the savings 1 promotion drawing. A savings promotion drawing shall not be 2 open to members of the public who are not participants pursuant 3 to the savings promotion drawing rules of the financial 4 institution. A participant shall not submit more than ten 5 entries for participation in a savings promotion drawing in a 6 calendar month. 7 c. The financial institution conducting the savings 8 promotion drawing maintains records regarding the savings 9 promotion drawing and the number of participants. 10 d. The savings promotion drawing is conducted in a fair and 11 honest manner. The financial institution shall not conduct 12 a savings promotion drawing in a manner that jeopardizes the 13 financial institution’s safety and financial soundness or 14 misleads its participants. 15 3. a. A financial institution shall provide an annual 16 report to the credit union division of the department of 17 commerce or banking division of the department of commerce, as 18 applicable, for each year in which the financial institution 19 conducts a savings promotion drawing. If multiple financial 20 institutions combine efforts to conduct one more collective 21 savings promotion drawings between participants, the 22 participating financial institutions may file a joint annual 23 report. 24 b. The annual report shall include the number of savings 25 promotion drawings conducted during the year, the date the 26 savings promotion drawings were conducted, a description and 27 value of the prize or prizes offered, the names and addresses 28 of participants who won prizes, a copy of the savings promotion 29 drawing rules, and the names and addresses of two witnesses to 30 the savings promotion drawing. 31 4. Prizes awarded in a savings promotion drawing may be in 32 cash or any other form of property. A financial institution 33 shall not award a monthly prize in a savings promotion drawing 34 that exceeds two hundred fifty dollars in value. A financial 35 -2- LSB 1274XS (1) 89 jda/rn 2/ 4

S.F. 86 institution shall not award a quarterly prize in a savings 1 promotion drawing that exceeds five thousand dollars in value. 2 A financial institution shall not award an annual prize in a 3 savings promotion drawing that exceeds ten thousand dollars in 4 value. 5 5. A financial institution or group of financial 6 institutions may compensate employees of the financial 7 institution, or may hire a third-party operator, to conduct a 8 savings promotion drawing pursuant to this section. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill allows a financial institution or multiple 13 financial institutions to conduct savings promotion drawings 14 without a license under specified conditions. 15 The bill defines “financial institution” to mean a state or 16 federally chartered credit union or bank which is located in 17 Iowa. The bill defines “savings promotion drawing” to mean 18 a drawing conducted by a financial institution or group of 19 financial institutions in which a designated prize or prizes 20 may be won by the deposit of a specified amount of money in a 21 savings account, time deposit, or other savings program. The 22 bill defines “participant” to mean a person who is at least 18 23 years of age and who has opened a savings promotion drawing 24 account at a financial institution. 25 The bill allows a financial institution or group of 26 financial institutions to conduct a savings promotion drawing 27 without licensure if all of the following conditions are 28 met: the drawing includes the distribution of the financial 29 institution’s drawing rules to all participants; the drawing 30 is open to all participants as provided in the drawing rules, 31 but must not be open to members of the public who are not 32 participants pursuant to the drawing rules; participants 33 shall not submit more than 10 entries for participation in a 34 savings promotion drawing in a calendar month; the financial 35 -3- LSB 1274XS (1) 89 jda/rn 3/ 4

S.F. 86 institution maintains records regarding the drawing and the 1 number of participants; and the drawing is conducted in a 2 fair and honest manner, without jeopardizing the financial 3 institution’s safety and financial soundness or misleading its 4 participants. 5 The bill requires a financial institution to provide an 6 annual report to the credit union division of the department of 7 commerce or banking division of the department of commerce, as 8 applicable, for each year in which the financial institution 9 conducts a savings promotion drawing. If multiple financial 10 institutions conduct a drawing, the financial institutions may 11 file a joint annual report. The annual report shall include 12 the number of drawings conducted during the year, the date 13 the drawings were conducted, a description and value of the 14 prizes offered, the names and addresses of participants who 15 won prizes, a copy of the drawing rules, and the names and 16 addresses of two witnesses to the drawing. 17 The bill provides that prizes awarded in a savings promotion 18 drawing may be in cash or any other form of property. A 19 financial institution shall not award a monthly prize in 20 a savings promotion drawing that exceeds $250 in value, a 21 quarterly prize that exceeds $5,000 in value, or an annual 22 prize that exceeds $10,000 in value. The bill provides that a 23 financial institution may compensate employees of the financial 24 institution, or may hire a third-party operator, to conduct a 25 drawing. 26 Under Code section 99B.4, a person who knowingly fails to 27 comply with Code chapter 99B commits a serious misdemeanor. A 28 serious misdemeanor is punishable by confinement for no more 29 than one year and a fine of at least $430 but not more than 30 $2,560. 31 -4- LSB 1274XS (1) 89 jda/rn 4/ 4