Relates to permitting the offering of savings promotion raffles by authorized banking organizations.
Ayes (62): Adams, Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Excused (1): Martins
TITLE OF BILL: An act to amend the banking law, in relation to authorizing credit unions to conduct savings promotion prize giveaways
Purpose Or General Idea Of Bill:
To authorize banking organizations to establish Prize Linked Savings accounts to give incentives to customers to save money by giving them the opportunity to win promotional prizes.
Summary Of Specific Provisions:
Section adds a new § 9-V to the Banking Law to provide that banking organizations may conduct a savings promotion. This section defines the following terms:
1."Savings promotion"- means a contest or promotion sponsored by a banking organization in which a chance of winning designated prizes is obtained by the deposit of specified amount of money in a saving account, share account, share certificate, or other savings products or program;
2."Qualifying account" - means a savings account, share account, share certificate, or other savings product or program offered by a banking organization through which depositors may obtain chances to win prizes in a savings promotion by depositing specified sums of money;
3. "Non-qualifying account" - means a savings account, share account, certificate of deposit, or other savings product or program offered by a banking organization that is not a qualifying account.
Section 2: amends various sections of the Banking Law to authorize each banking organization to conduct a savings promotion.
Prize-linked savings programs are accounts that provide the chance to win prizes simply by saving money. Programs like these have proven to be successful in several other states and countries, resulting in higher numbers of new savings accounts and larger amounts saved. By depositing the requisite minimal monthly amount, depositors are enrolled in the promotion and are given the chance to win designated prizes by their financial institution. This greatly benefits not only the individual, but local and State economies as a whole.
Prior Legislative History:
This is new legislation.
Fiscal Implications For State And Local Governments:
None to the State.
This act will take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5145 2013-2014 Regular Sessions IN SENATE May 10, 2013 ___________Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to authorizing credit unions to conduct savings promotion prize giveaways THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The banking law is amended by adding a new section 9-v to read as follows: S 9-V. SAVINGS PROMOTION PRIZE GIVEAWAY. A BANKING ORGANIZATION ORGANIZED UNDER OR SUBJECT TO THE PROVISIONS OF THIS CHAPTER MAY CONDUCT A SAVINGS PROMOTION IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION, TO THE EXTENT IT IS NOT PROHIBITED BY FEDERAL LAW OR REGULATION. 1. DEFINITIONS. AS USED IN THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: A. THE TERM "SAVINGS PROMOTION" MEANS A CONTEST OR PROMOTION SPONSORED BY A BANKING ORGANIZATION IN WHICH A CHANCE OF WINNING DESIGNATED PRIZES IS OBTAINED BY THE DEPOSIT OF A SPECIFIED AMOUNT OF MONEY IN A SAVINGS ACCOUNT, SHARE ACCOUNT, SHARE CERTIFICATE, OR OTHER SAVINGS PRODUCT OR PROGRAM. B. THE TERM "QUALIFYING ACCOUNT" MEANS A SAVINGS ACCOUNT, SHARE ACCOUNT, SHARE CERTIFICATE, OR OTHER SAVINGS PRODUCT OR PROGRAM OFFERED BY A BANKING ORGANIZATION THROUGH WHICH DEPOSITORS MAY OBTAIN CHANCES TO WIN PRIZES IN A SAVINGS PROMOTION BY DEPOSITING SPECIFIED SUMS OF MONEY. C. THE TERM "NON-QUALIFYING ACCOUNT" MEANS A SAVINGS ACCOUNT, SHARE ACCOUNT, CERTIFICATE OF DEPOSIT, OR OTHER SAVINGS PRODUCT OR PROGRAM OFFERED BY A BANKING ORGANIZATION THAT IS NOT A QUALIFYING ACCOUNT. 2. RULES OF OPERATION. A. PARTICIPANTS IN A SAVINGS PROMOTION SHALL NOT BE REQUIRED TO PROVIDE ANY CONSIDERATION IN ORDER TO OBTAIN ENTRIES TO WIN. FOR PURPOSES OF THIS PARAGRAPH, PARTICIPANTS SHALL NOT BE DEEMED TO HAVE PROVIDED CONSIDERATION DUE TO THE REQUIREMENT THAT THEY DEPOSIT MONEY IN A QUALIFYING ACCOUNT TO OBTAIN ENTRIES TO WIN, SO LONG AS: (I)EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10869-01-3 S. 5145 2
THE INTEREST RATE ASSOCIATED WITH ANY SUCH QUALIFYING ACCOUNT IS NOT EXPRESSLY REDUCED TO ACCOUNT FOR THE POSSIBILITY OF DEPOSITORS WINNING SPECIFIED PRIZES; AND (II) ANY FEES CHARGED IN CONNECTION WITH SUCH QUALIFYING ACCOUNT ARE APPROXIMATELY OF A KIND AND APPROXIMATELY IN AN AMOUNT CHARGED IN CONNECTION WITH COMPARABLE NON-QUALIFYING ACCOUNTS, IF ANY, OFFERED BY THE BANKING ORGANIZATION. B. A SAVINGS PROMOTION SHALL BE CONDUCTED SUCH THAT EACH ENTRY IN THE SAVINGS PROMOTION HAS AN EQUAL CHANCE OF BEING DRAWN. C. PARTICIPANTS IN A SAVINGS PROMOTION SHALL NOT BE REQUIRED TO BE PRESENT AT A PRIZE DRAWING IN ORDER TO WIN. D. THE OFFERING OF A SAVINGS PROMOTION SHALL BE SUBJECT TO SECTION THREE HUNDRED SIXTY-NINE-E OF THE GENERAL BUSINESS LAW IN THE SAME MANNER AS OTHER PROMOTIONS REGULATED THEREUNDER. FOR PURPOSES OF THE GENERAL BUSINESS LAW AND THE PENAL LAW, A SAVINGS PROMOTION OFFERED IN ACCORDANCE WITH THIS CHAPTER SHALL NOT BE DEEMED TO ENTAIL CONSIDERATION OR THE PROMOTION OF GAMBLING OR A LOTTERY. S 2. Section 96 of the banking law is amended by adding a new subdivi- sion 15 to read as follows: 15. TO ENGAGE IN A "SAVINGS PROMOTION RAFFLE" IN ACCORDANCE WITH SECTION NINE-V OF THIS CHAPTER. S 3. Section 234 of the banking law is amended by adding a new subdi- vision 26 to read as follows: 26. TO ENGAGE IN A "SAVINGS PROMOTION RAFFLE" IN ACCORDANCE WITH SECTION NINE-V OF THIS CHAPTER. S 4. Section 383 of the banking law is amended by adding a new subdi- vision 17 to read as follows: 17. TO ENGAGE IN A "SAVINGS PROMOTION RAFFLE" IN ACCORDANCE WITH SECTION NINE-V OF THIS CHAPTER. S 5. Section 454 of the banking law is amended by adding a new subdi- vision 37 to read as follows: 37. TO ENGAGE IN A "SAVINGS PROMOTION RAFFLE" IN ACCORDANCE WITH SECTION NINE-V OF THIS CHAPTER. S 6. This act shall take effect immediately.