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Senate Study Bill 1191 - IntroducedA Bill ForAn Act 1authorizing savings promotion drawings under specified
2conditions, and making penalties applicable.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 99B.1, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 15A. “Financial institution” means a state
4or federally chartered credit union as defined in 533.102 or
5a state or federally chartered bank as defined in section
6524.103, which is located in this state.
7 Sec. 2. Section 99B.1, subsection 27, Code 2019, is amended
8to read as follows:
927. “Raffle” means a lottery in which each participant buys
10an entry for a chance at a prize with the winner determined by
11a random method and the winner is not required to be present to
12win. “Raffle” does not include a slot machine. “Raffle” does
13not include a savings promotion drawing.
14 Sec. 3. Section 99B.1, Code 2019, is amended by adding the
15following new subsection:
16 NEW SUBSECTION. 28. “Savings promotion drawing” means a
17drawing conducted by a financial institution or a group of
18financial institutions in which a designated prize or prizes
19may be won by the deposit of a specified amount of money in a
20savings account, time deposit, or other savings program offered
21through that financial institution or group of financial
22institutions.
23 Sec. 4. NEW SECTION. 99B.63 Savings promotion drawings.
241. For purposes of this section, “participant” means a
25person who is at least eighteen years of age and who has opened
26a savings promotion drawing account at a financial institution.
272. A savings promotion drawing may lawfully be conducted
28by a financial institution or group of financial institutions
29without a license under this chapter if all of the following
30conditions are met:
31a. The savings promotion drawing includes the distribution
32of the financial institution’s savings promotion drawing rules
33to all participants in the savings promotion drawing.
34b. The savings promotion drawing is open to all participants
35as provided in the rules established for the savings promotion
-1-1drawing by the financial institution conducting the savings
2promotion drawing. Savings promotion drawings shall not be
3open to members of the public who are not participants pursuant
4to the savings promotion drawing rules of the financial
5institution.
6c. The financial institution conducting the savings
7promotion drawing maintains records regarding the savings
8promotion drawing and the number of participants.
9d. The savings promotion drawing is conducted in a fair and
10honest manner. The financial institution shall not conduct
11a savings promotion drawing in a manner that jeopardizes the
12financial institution’s safety and financial soundness or
13misleads its participants.
143. a. A financial institution shall provide an annual
15report to the department for each year in which the financial
16institution conducts a savings promotion drawing. If multiple
17financial institutions combine efforts to conduct one more
18collective savings promotion drawings between participants, the
19participating financial institutions may file a joint annual
20report.
21b. The report shall include the number of savings promotion
22drawings conducted during the year, the date the savings
23promotion drawings were conducted, a description and value
24of the prize or prizes offered, the names and addresses of
25participants who won prizes, a copy of the savings promotion
26drawing rules, and the names and addresses of two witnesses to
27the savings promotion drawing.
284. Prizes awarded in a savings promotion drawing may be in
29cash or any other form of property and shall not be subject to
30any limits on quantity.
315. A financial institution or group of financial
32institutions may compensate employees of the financial
33institution, or may hire a third-party operator, to conduct a
34savings promotion drawing pursuant to this section.
35EXPLANATION
-2-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill allows a financial institution or multiple
4financial institutions to conduct savings promotion drawings
5without a license under specified conditions.
6The bill defines “financial institution” to mean a state or
7federally chartered credit union or bank which is located in
8Iowa. The bill defines “savings promotion drawing” to mean
9a drawing conducted by a financial institution or group of
10financial institutions in which a designated prize or prizes
11may be won by the deposit of a specified amount of money in a
12savings account, time deposit, or other savings program. The
13bill defines “participant” to mean a person who is at least 18
14years of age and who has opened a savings promotion drawing
15account at a financial institution.
16The bill allows a financial institution or group of
17financial institutions to conduct a savings promotion drawing
18without licensure if all of the following conditions are
19met: the drawing includes the distribution of the financial
20institution’s drawing rules to all participants; the drawing
21is open to all participants as provided in the drawing rules,
22but must not be open to members of the public who are not
23participants pursuant to the drawing rules; the financial
24institution maintains records regarding the drawing and the
25number of participants; and the drawing is conducted in a
26fair and honest manner, without jeopardizing the financial
27institution’s safety and financial soundness or misleading its
28participants.
29The bill requires a financial institution to provide an
30annual report to the department of inspections and appeals
31for each year in which the financial institution conducts a
32savings promotion drawing. If multiple financial institutions
33conduct a drawing, the financial institutions may file a
34joint annual report. The report shall include the number of
35drawings conducted during the year, the date the drawings were
-3-1conducted, a description and value of the prizes offered, the
2names and addresses of participants who won prizes, a copy of
3the drawing rules, and the names and addresses of two witnesses
4to the drawing.
5The bill provides that prizes awarded in a savings promotion
6drawing may be in cash or any other form of property, and shall
7not be subject to any limits on quantity. The bill provides
8that a financial institution may compensate employees of the
9financial institution, or may hire a third-party operator, to
10conduct a drawing.
11Under Code section 99B.4, a person who knowingly fails to
12comply with Code chapter 99B commits a serious misdemeanor. A
13serious misdemeanor is punishable by confinement for no more
14than one year and a fine of at least $315 but not more than
15$1,875.
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2conditions, and making penalties applicable.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 99B.1, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 15A. “Financial institution” means a state
4or federally chartered credit union as defined in 533.102 or
5a state or federally chartered bank as defined in section
6524.103, which is located in this state.
7 Sec. 2. Section 99B.1, subsection 27, Code 2019, is amended
8to read as follows:
927. “Raffle” means a lottery in which each participant buys
10an entry for a chance at a prize with the winner determined by
11a random method and the winner is not required to be present to
12win. “Raffle” does not include a slot machine. “Raffle” does
13not include a savings promotion drawing.
14 Sec. 3. Section 99B.1, Code 2019, is amended by adding the
15following new subsection:
16 NEW SUBSECTION. 28. “Savings promotion drawing” means a
17drawing conducted by a financial institution or a group of
18financial institutions in which a designated prize or prizes
19may be won by the deposit of a specified amount of money in a
20savings account, time deposit, or other savings program offered
21through that financial institution or group of financial
22institutions.
23 Sec. 4. NEW SECTION. 99B.63 Savings promotion drawings.
241. For purposes of this section, “participant” means a
25person who is at least eighteen years of age and who has opened
26a savings promotion drawing account at a financial institution.
272. A savings promotion drawing may lawfully be conducted
28by a financial institution or group of financial institutions
29without a license under this chapter if all of the following
30conditions are met:
31a. The savings promotion drawing includes the distribution
32of the financial institution’s savings promotion drawing rules
33to all participants in the savings promotion drawing.
34b. The savings promotion drawing is open to all participants
35as provided in the rules established for the savings promotion
-1-1drawing by the financial institution conducting the savings
2promotion drawing. Savings promotion drawings shall not be
3open to members of the public who are not participants pursuant
4to the savings promotion drawing rules of the financial
5institution.
6c. The financial institution conducting the savings
7promotion drawing maintains records regarding the savings
8promotion drawing and the number of participants.
9d. The savings promotion drawing is conducted in a fair and
10honest manner. The financial institution shall not conduct
11a savings promotion drawing in a manner that jeopardizes the
12financial institution’s safety and financial soundness or
13misleads its participants.
143. a. A financial institution shall provide an annual
15report to the department for each year in which the financial
16institution conducts a savings promotion drawing. If multiple
17financial institutions combine efforts to conduct one more
18collective savings promotion drawings between participants, the
19participating financial institutions may file a joint annual
20report.
21b. The report shall include the number of savings promotion
22drawings conducted during the year, the date the savings
23promotion drawings were conducted, a description and value
24of the prize or prizes offered, the names and addresses of
25participants who won prizes, a copy of the savings promotion
26drawing rules, and the names and addresses of two witnesses to
27the savings promotion drawing.
284. Prizes awarded in a savings promotion drawing may be in
29cash or any other form of property and shall not be subject to
30any limits on quantity.
315. A financial institution or group of financial
32institutions may compensate employees of the financial
33institution, or may hire a third-party operator, to conduct a
34savings promotion drawing pursuant to this section.
35EXPLANATION
-2-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill allows a financial institution or multiple
4financial institutions to conduct savings promotion drawings
5without a license under specified conditions.
6The bill defines “financial institution” to mean a state or
7federally chartered credit union or bank which is located in
8Iowa. The bill defines “savings promotion drawing” to mean
9a drawing conducted by a financial institution or group of
10financial institutions in which a designated prize or prizes
11may be won by the deposit of a specified amount of money in a
12savings account, time deposit, or other savings program. The
13bill defines “participant” to mean a person who is at least 18
14years of age and who has opened a savings promotion drawing
15account at a financial institution.
16The bill allows a financial institution or group of
17financial institutions to conduct a savings promotion drawing
18without licensure if all of the following conditions are
19met: the drawing includes the distribution of the financial
20institution’s drawing rules to all participants; the drawing
21is open to all participants as provided in the drawing rules,
22but must not be open to members of the public who are not
23participants pursuant to the drawing rules; the financial
24institution maintains records regarding the drawing and the
25number of participants; and the drawing is conducted in a
26fair and honest manner, without jeopardizing the financial
27institution’s safety and financial soundness or misleading its
28participants.
29The bill requires a financial institution to provide an
30annual report to the department of inspections and appeals
31for each year in which the financial institution conducts a
32savings promotion drawing. If multiple financial institutions
33conduct a drawing, the financial institutions may file a
34joint annual report. The report shall include the number of
35drawings conducted during the year, the date the drawings were
-3-1conducted, a description and value of the prizes offered, the
2names and addresses of participants who won prizes, a copy of
3the drawing rules, and the names and addresses of two witnesses
4to the drawing.
5The bill provides that prizes awarded in a savings promotion
6drawing may be in cash or any other form of property, and shall
7not be subject to any limits on quantity. The bill provides
8that a financial institution may compensate employees of the
9financial institution, or may hire a third-party operator, to
10conduct a drawing.
11Under Code section 99B.4, a person who knowingly fails to
12comply with Code chapter 99B commits a serious misdemeanor. A
13serious misdemeanor is punishable by confinement for no more
14than one year and a fine of at least $315 but not more than
15$1,875.
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