AB 283

This bill allows banks, credit unions, savings banks, and savings and loan

associations organized under this state's law (state-chartered financial institutions)

to conduct or participate in savings promotion programs. A “savings promotion" is

a contest or promotion to encourage savings deposits that is sponsored by one or more

state-chartered financial institutions of the same type, or by a financial institution

trade association or its subsidiary in conjunction with one or more state-chartered

financial institutions of the same type, and in which depositors are offered a chance

to win designated prizes. A “qualifying account" is a savings account (in the broad

sense, including money market and certificate of deposit accounts) through which

depositors may obtain chances to win prizes in a savings promotion, and a

“nonqualifying account" is a savings account that is not a qualifying account. A

state-chartered financial institution may sponsor or participate in a savings

promotion if 1) depositors are not required to pay any fee or otherwise provide any

consideration in order to enter the savings promotion; 2) all fees charged in

connection with a qualifying account are comparable with all fees charged in

connection with comparable nonqualifying accounts; 3) each entry in the savings

promotion has an equal chance of winning; and 4) participants in the savings

promotion are not required to be present at a prize drawing in order to win.

The bill specifies that a savings promotion program is not betting, a lottery, or

a raffle. The bill also specifies that a program sponsored by a federally chartered

financial institution, or in which a federally chartered financial institution

participates, that meets all requirements for a savings promotion program is not

betting, a lottery, or a raffle. Under current law, making a bet; receiving, recording,

or forwarding a bet or offer to bet for gain; conducting a lottery; or engaging in other

gambling activities is illegal.