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House Study Bill 584 - 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 2022, 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 section
5533.102 or a state or federally chartered bank as defined in
6section 524.103, which is located in this state and which
7receives money for deposit.
8 Sec. 2. Section 99B.1, subsection 28, Code 2022, is amended
9to read as follows:
1028. “Raffle” means a lottery in which each participant buys
11an entry for a chance at a prize with the winner determined by
12a random method and the winner is not required to be present to
13win. “Raffle” does not include a slot machine. “Raffle” does
14not include a savings promotion drawing.
15 Sec. 3. Section 99B.1, Code 2022, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 28A. “Savings promotion drawing” means a
18drawing conducted by a financial institution or a group of
19financial institutions in which a designated prize or prizes
20may be won by the deposit of a specified amount of money in a
21savings account, time deposit, or other savings program offered
22through that financial institution or group of financial
23institutions.
24 Sec. 4. NEW SECTION. 99B.63 Savings promotion drawings.
251. For purposes of this section, “participant” means a
26person who is at least eighteen years of age and who has opened
27a savings promotion drawing account at a financial institution.
282. A savings promotion drawing may lawfully be conducted
29by a financial institution or group of financial institutions
30without a license under this chapter if all of the following
31conditions are met:
32a. The savings promotion drawing includes the distribution
33of the financial institution’s savings promotion drawing rules
34to all participants in the savings promotion drawing.
35b. The savings promotion drawing is open to all participants
-1-1as provided in the rules established for the savings promotion
2drawing by the financial institution conducting the savings
3promotion drawing. A savings promotion drawing shall not be
4open to members of the public who are not participants pursuant
5to the savings promotion drawing rules of the financial
6institution. A participant shall not submit more than ten
7entries for participation in a savings promotion drawing in a
8calendar month.
9c. The financial institution conducting the savings
10promotion drawing maintains records regarding the savings
11promotion drawing and the number of participants.
12d. The savings promotion drawing is conducted in a fair and
13honest manner. The financial institution shall not conduct
14a savings promotion drawing in a manner that jeopardizes the
15financial institution’s safety and financial soundness or
16misleads its participants.
17e. The financial institution conducting the savings
18promotion drawing does not charge a fee to a participant to
19withdraw money from the participant’s savings promotion drawing
20account.
213. Prizes awarded in a savings promotion drawing may be in
22cash or any other form of property. A financial institution
23shall not award a monthly prize in a savings promotion drawing
24that exceeds two hundred fifty dollars in value. A financial
25institution shall not award a quarterly prize in a savings
26promotion drawing that exceeds five thousand dollars in value.
27A financial institution shall not award an annual prize in a
28savings promotion drawing that exceeds ten thousand dollars in
29value.
304. A financial institution or group of financial
31institutions may compensate employees of the financial
32institution, or may hire a third-party operator, to conduct a
33savings promotion drawing pursuant to this section.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-2-1the explanation’s substance by the members of the general assembly.
2This bill allows a financial institution or multiple
3financial institutions to conduct savings promotion drawings
4without a license under specified conditions.
5The bill defines “financial institution” to mean a state or
6federally chartered credit union or bank which is located in
7Iowa and which receives money for deposit. The bill defines
8“savings promotion drawing” to mean a drawing conducted by a
9financial institution or group of financial institutions in
10which a designated prize or prizes may be won by the deposit of
11a specified amount of money in a savings account, time deposit,
12or other savings program. The bill defines “participant” to
13mean a person who is at least 18 years of age and who has opened
14a savings promotion drawing account at a financial institution.
15The bill allows a financial institution or group of
16financial institutions to conduct a savings promotion drawing
17without licensure if all of the following conditions are
18met: the drawing includes the distribution of the financial
19institution’s drawing rules to all participants; the drawing
20is open to all participants as provided in the drawing rules,
21but must not be open to members of the public who are not
22participants pursuant to the drawing rules; participants
23shall not submit more than 10 entries for participation in a
24savings promotion drawing in a calendar month; the financial
25institution maintains records regarding the drawing and the
26number of participants; the financial institution does not
27charge a fee to a participant withdrawing money from the
28participant’s promotion account and the drawing is conducted in
29a fair and honest manner, without jeopardizing the financial
30institution’s safety and financial soundness or misleading its
31participants.
32The bill provides that prizes awarded in a savings promotion
33drawing may be in cash or any other form of property. A
34financial institution shall not award a monthly prize in
35a savings promotion drawing that exceeds $250 in value, a
-3-1quarterly prize that exceeds $5,000 in value, or an annual
2prize that exceeds $10,000 in value. The bill provides that a
3financial institution may compensate employees of the financial
4institution, or may hire a third-party operator, to conduct a
5drawing.
6Under Code section 99B.4, a person who knowingly fails to
7comply with Code chapter 99B commits a serious misdemeanor. A
8serious misdemeanor is punishable by confinement for no more
9than one year and a fine of at least $430 but not more than
10$2,560.
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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 2022, 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 section
5533.102 or a state or federally chartered bank as defined in
6section 524.103, which is located in this state and which
7receives money for deposit.
8 Sec. 2. Section 99B.1, subsection 28, Code 2022, is amended
9to read as follows:
1028. “Raffle” means a lottery in which each participant buys
11an entry for a chance at a prize with the winner determined by
12a random method and the winner is not required to be present to
13win. “Raffle” does not include a slot machine. “Raffle” does
14not include a savings promotion drawing.
15 Sec. 3. Section 99B.1, Code 2022, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 28A. “Savings promotion drawing” means a
18drawing conducted by a financial institution or a group of
19financial institutions in which a designated prize or prizes
20may be won by the deposit of a specified amount of money in a
21savings account, time deposit, or other savings program offered
22through that financial institution or group of financial
23institutions.
24 Sec. 4. NEW SECTION. 99B.63 Savings promotion drawings.
251. For purposes of this section, “participant” means a
26person who is at least eighteen years of age and who has opened
27a savings promotion drawing account at a financial institution.
282. A savings promotion drawing may lawfully be conducted
29by a financial institution or group of financial institutions
30without a license under this chapter if all of the following
31conditions are met:
32a. The savings promotion drawing includes the distribution
33of the financial institution’s savings promotion drawing rules
34to all participants in the savings promotion drawing.
35b. The savings promotion drawing is open to all participants
-1-1as provided in the rules established for the savings promotion
2drawing by the financial institution conducting the savings
3promotion drawing. A savings promotion drawing shall not be
4open to members of the public who are not participants pursuant
5to the savings promotion drawing rules of the financial
6institution. A participant shall not submit more than ten
7entries for participation in a savings promotion drawing in a
8calendar month.
9c. The financial institution conducting the savings
10promotion drawing maintains records regarding the savings
11promotion drawing and the number of participants.
12d. The savings promotion drawing is conducted in a fair and
13honest manner. The financial institution shall not conduct
14a savings promotion drawing in a manner that jeopardizes the
15financial institution’s safety and financial soundness or
16misleads its participants.
17e. The financial institution conducting the savings
18promotion drawing does not charge a fee to a participant to
19withdraw money from the participant’s savings promotion drawing
20account.
213. Prizes awarded in a savings promotion drawing may be in
22cash or any other form of property. A financial institution
23shall not award a monthly prize in a savings promotion drawing
24that exceeds two hundred fifty dollars in value. A financial
25institution shall not award a quarterly prize in a savings
26promotion drawing that exceeds five thousand dollars in value.
27A financial institution shall not award an annual prize in a
28savings promotion drawing that exceeds ten thousand dollars in
29value.
304. A financial institution or group of financial
31institutions may compensate employees of the financial
32institution, or may hire a third-party operator, to conduct a
33savings promotion drawing pursuant to this section.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-2-1the explanation’s substance by the members of the general assembly.
2This bill allows a financial institution or multiple
3financial institutions to conduct savings promotion drawings
4without a license under specified conditions.
5The bill defines “financial institution” to mean a state or
6federally chartered credit union or bank which is located in
7Iowa and which receives money for deposit. The bill defines
8“savings promotion drawing” to mean a drawing conducted by a
9financial institution or group of financial institutions in
10which a designated prize or prizes may be won by the deposit of
11a specified amount of money in a savings account, time deposit,
12or other savings program. The bill defines “participant” to
13mean a person who is at least 18 years of age and who has opened
14a savings promotion drawing account at a financial institution.
15The bill allows a financial institution or group of
16financial institutions to conduct a savings promotion drawing
17without licensure if all of the following conditions are
18met: the drawing includes the distribution of the financial
19institution’s drawing rules to all participants; the drawing
20is open to all participants as provided in the drawing rules,
21but must not be open to members of the public who are not
22participants pursuant to the drawing rules; participants
23shall not submit more than 10 entries for participation in a
24savings promotion drawing in a calendar month; the financial
25institution maintains records regarding the drawing and the
26number of participants; the financial institution does not
27charge a fee to a participant withdrawing money from the
28participant’s promotion account and the drawing is conducted in
29a fair and honest manner, without jeopardizing the financial
30institution’s safety and financial soundness or misleading its
31participants.
32The bill provides that prizes awarded in a savings promotion
33drawing may be in cash or any other form of property. A
34financial institution shall not award a monthly prize in
35a savings promotion drawing that exceeds $250 in value, a
-3-1quarterly prize that exceeds $5,000 in value, or an annual
2prize that exceeds $10,000 in value. The bill provides that a
3financial institution may compensate employees of the financial
4institution, or may hire a third-party operator, to conduct a
5drawing.
6Under Code section 99B.4, a person who knowingly fails to
7comply with Code chapter 99B commits a serious misdemeanor. A
8serious misdemeanor is punishable by confinement for no more
9than one year and a fine of at least $430 but not more than
10$2,560.
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