SENATE FILE 490

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO SSB 1019)

(As Amended and Passed by the Senate 2011-03-15)

A BILL FOR

An Act authorizing and regulating savings promotion drawings, and granting licensing authority to the department of inspections and appeals.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 99B.1, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  14A.  “Financial institution” means a state or federally chartered credit union as defined in section 533.102 or a state or federally chartered bank as defined in section 524.103, which is located within the state of Iowa.
   Sec. 2.  Section 99B.1, subsection 26, Code 2011, is amended to read as follows:
   26.  “Raffle” means a lottery in which each participant buys a ticket for a chance at a prize with the winner determined by a random method and the winner is not required to be present to win.“Raffle” does not include a slot machine.  “Raffle” does not include a savings promotion drawing.
   Sec. 3.  Section 99B.1, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  26A.  “Savings promotion drawing” means a drawing conducted by a financial institution, or a group of financial institutions, 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 financial institution or group of financial institutions.
   Sec. 4.  Section 99B.7, subsection 1, unnumbered paragraph 1, Code 2011, is amended to read as follows:
   Except as otherwise provided in section 99B.7C or 99B.8, games of skill, games of chance, and raffles lawfully may be conducted at a specified location meeting the requirements of subsection 2 of this section, but only if all of the following are complied with:
   Sec. 5.  NEW SECTION.  99B.7C  Savings promotion drawings.
   1.  For the purposes of this section, a“participant” is a person who is at least eighteen years of age and who has opened a savings promotion drawing account at a financial institution.
   2.  A savings promotion drawing may lawfully be conducted by a financial institution or group of financial institutions if all of the following conditions are met:
   a.  The savings promotion drawing conducted includes the distribution of the financial institution’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 financial institution 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 financial institution.
   c.  The financial institution 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 financial institution shall not conduct a savings promotion drawing in a manner that jeopardizes the financial institution’s safety and financial soundness or misleads its participants.
   3.  A financial institution shall provide an annual report to the department 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 financial institutions combine efforts for one or more collective savings promotion drawings between participants, they may file a joint annual report.
   4.  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 financial institution 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 financial institutions 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.
   5.  A financial institution or group of financial institutions may compensate employees of the financial institution, or may hire a third-party operator, to conduct a savings promotion drawing.
   Sec. 6.  Section 99B.9, subsection 1, unnumbered paragraph 1, Code 2011, is amended to read as follows:
   Except as otherwise permitted by section 99B.3, 99B.5, 99B.6, 99B.7, 99B.7B, 99B.7C, 99B.8, 99B.11, or 99B.12A, it is unlawful to permit gambling on any premises owned, leased, rented, or otherwise occupied by a person other than a government, governmental agency, or governmental subdivision, unless all of the following are complied with: