senate Bill S5145

2013-2014 Legislative Session

Permits the offering of savings promotion raffles by authorized banking organizations

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Archive: Last Bill Status - Vetoed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Sep 27, 2013 vetoed memo.229
Sep 17, 2013 delivered to governor
Jun 18, 2013 returned to senate
passed assembly
ordered to third reading rules cal.353
substituted for a7341
Jun 10, 2013 referred to banks
delivered to assembly
passed senate
Jun 03, 2013 advanced to third reading
May 30, 2013 2nd report cal.
May 29, 2013 1st report cal.769
May 10, 2013 referred to banks

Votes

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S5145 - Bill Details

See Assembly Version of this Bill:
A7341
Law Section:
Banking Law
Laws Affected:
Add §9-v, amd §§96, 234, 383 & 454, Bank L

S5145 - Bill Texts

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Relates to permitting the offering of savings promotion raffles by authorized banking organizations.

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BILL NUMBER:S5145

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.

Justification:

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.

Effective Date:

This act will take effect immediately.


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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5145

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              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.

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