senate Bill S6805A

Signed By Governor
2013-2014 Legislative Session

Authorizes financial institutions to conduct savings promotion prize giveaways

download bill text pdf

Sponsored By

Archive: Last Bill Status Via A9037 - Signed by Governor


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

do you support this bill?

Actions

view actions (14)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Sep 23, 2014 signed chap.370
Sep 11, 2014 delivered to governor
May 28, 2014 returned to assembly
passed senate
May 20, 2014 3rd reading cal.597
substituted for s6805b
May 20, 2014 substituted by a9037a
May 13, 2014 advanced to third reading
amended 6805b
May 12, 2014 2nd report cal.
May 07, 2014 1st report cal.597
Apr 28, 2014 print number 6805a
amend and recommit to banks
Mar 12, 2014 referred to banks

Votes

view votes

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

S6805 - Bill Details

Law Section:
Banking Law
Laws Affected:
Add §9-v, amd §§96, 234, 383 & 454, Bank L

S6805 - Bill Texts

view summary

Authorizes financial institutions to conduct savings promotion prize giveaways.

view sponsor memo
BILL NUMBER:S6805

TITLE OF BILL: An act to amend the banking law, in relation to
authorizing financial institutions 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 1: 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 in
obtained by the deposit of specified amount of money in a savings
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; and

3. "Non-qualifying account' - means a savings account, share account,
share certificate, 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, as well as
allow the Superintendent of the Department of Financial Services to
promulgate rules and regulations.

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 (Michigan and Connecticut) 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:

A.7341 of 2013 - Veto Memo 229

Fiscal Implications For State And Local Governments:


None to the State.

Effective Date:

180th day after enactment.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6805

                            I N  S E N A T E

                             March 12, 2014
                               ___________

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  financial
  institutions 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,  FEDERAL
CREDIT  UNION,  FEDERAL  SAVINGS  BANK, FEDERAL SAVINGS AND LOAN ASSOCI-
ATION, OR NATIONAL BANK ASSOCIATION 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, FEDERAL CREDIT UNION, FEDERAL  SAVINGS  BANK,
FEDERAL  SAVINGS  AND  LOAN ASSOCIATION, OR NATIONAL BANK ASSOCIATION IN
WHICH A CHANCE OF WINNING DESIGNATED PRIZES IS OBTAINED  BY  ITS  DEPOS-
ITORS  FOR  THE PURPOSES OF ENCOURAGING DEPOSITORS TO BUILD AND MAINTAIN
SAVINGS DEPOSITS.
  B. THE TERM  "QUALIFYING  ACCOUNT"  MEANS  A  SAVINGS  ACCOUNT,  SHARE
ACCOUNT,  SHARE CERTIFICATE, OR OTHER SAVINGS PRODUCT OR PROGRAM OFFERED
BY A BANKING ORGANIZATION, FEDERAL CREDIT UNION, FEDERAL  SAVINGS  BANK,
FEDERAL  SAVINGS  AND  LOAN  ASSOCIATION,  OR  NATIONAL BANK ASSOCIATION
THROUGH WHICH DEPOSITORS MAY OBTAIN CHANCES TO WIN PRIZES IN  A  SAVINGS
PROMOTION.
  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, FEDERAL CREDIT UNION, FEDERAL SAVINGS
BANK, FEDERAL SAVINGS AND LOAN ASSOCIATION, OR NATIONAL BANK ASSOCIATION
THAT IS NOT A QUALIFYING ACCOUNT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13805-02-4

S. 6805                             2

  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)
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)  NO  BANKING  ORGANIZATION,  FEDERAL  CREDIT
UNION,  FEDERAL  SAVINGS  BANK, FEDERAL SAVINGS AND LOAN ASSOCIATION, OR
NATIONAL BANK ASSOCIATION MAY CHARGE A FEE FOR ENTRY.  FEES  CHARGED  IN
CONNECTION  WITH  SUCH  QUALIFYING  ACCOUNT  SHALL  BE  COMPARABLE  WITH
NON-QUALIFYING ACCOUNTS, IF ANY, OFFERED BY  THE  BANKING  ORGANIZATION,
FEDERAL  CREDIT  UNION,  FEDERAL  SAVINGS BANK, FEDERAL SAVINGS AND LOAN
ASSOCIATION, OR NATIONAL BANK ASSOCIATION.
  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"  IN  ACCORDANCE  WITH  SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.
  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"  IN  ACCORDANCE  WITH  SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.
  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"  IN  ACCORDANCE  WITH  SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.
  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"  IN  ACCORDANCE  WITH  SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.
  S 6. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

Co-Sponsors

S6805A - Bill Details

Law Section:
Banking Law
Laws Affected:
Add §9-v, amd §§96, 234, 383 & 454, Bank L

S6805A - Bill Texts

view summary

Authorizes financial institutions to conduct savings promotion prize giveaways.

view sponsor memo
BILL NUMBER:S6805A

TITLE OF BILL: An act to amend the banking law, in relation to author-
izing financial institutions to conduct savings promotion prize give-
aways

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 1: 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. In addition,
authorizes the Superintended to promulgate rules and regulations, howev-
er, requires consultation with the State Gaming Commission before
proposing any newly enacted rules or regulations.

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 the 180th day after it shall
become law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6805--A

                            I N  S E N A T E

                             March 12, 2014
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be  committed  to  the  Committee  on  Banks  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend the banking law, in relation to authorizing financial
  institutions 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, FEDERAL
CREDIT UNION, FEDERAL SAVINGS BANK, FEDERAL  SAVINGS  AND  LOAN  ASSOCI-
ATION,  OR  NATIONAL BANK ASSOCIATION 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, FEDERAL CREDIT UNION, FEDERAL SAVINGS BANK,
FEDERAL SAVINGS AND LOAN ASSOCIATION, OR NATIONAL  BANK  ASSOCIATION  IN
WHICH  A  CHANCE  OF WINNING DESIGNATED PRIZES IS OBTAINED BY ITS DEPOS-
ITORS FOR THE PURPOSES OF ENCOURAGING DEPOSITORS TO BUILD  AND  MAINTAIN
SAVINGS DEPOSITS.
  B.  THE  TERM  "QUALIFYING  ACCOUNT"  MEANS  A  SAVINGS ACCOUNT, SHARE
ACCOUNT, SHARE CERTIFICATE, OR OTHER SAVINGS PRODUCT OR PROGRAM  OFFERED
BY  A  BANKING ORGANIZATION, FEDERAL CREDIT UNION, FEDERAL SAVINGS BANK,
FEDERAL SAVINGS AND  LOAN  ASSOCIATION,  OR  NATIONAL  BANK  ASSOCIATION
THROUGH  WHICH  DEPOSITORS MAY OBTAIN CHANCES TO WIN PRIZES IN A SAVINGS
PROMOTION.
  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, FEDERAL CREDIT UNION, FEDERAL SAVINGS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13805-04-4

S. 6805--A                          2

BANK, FEDERAL SAVINGS AND LOAN ASSOCIATION, OR NATIONAL BANK ASSOCIATION
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)
THE  INTEREST  RATE  ASSOCIATED  WITH ANY SUCH QUALIFYING ACCOUNT IS NOT
REDUCED WHEN COMPARED  WITH  OTHER  COMPARABLE  NON-QUALIFYING  ACCOUNTS
OFFERED  BY  ANY  BANKING  ORGANIZATION,  FEDERAL  CREDIT UNION, FEDERAL
SAVINGS BANK, FEDERAL SAVINGS AND  LOAN  ASSOCIATION  OR  NATIONAL  BANK
ASSOCIATION, TO ACCOUNT FOR THE POSSIBILITY OF DEPOSITORS WINNING SPECI-
FIED  PRIZES;  AND  (II)  NO BANKING ORGANIZATION, FEDERAL CREDIT UNION,
FEDERAL SAVINGS BANK, FEDERAL SAVINGS AND LOAN ASSOCIATION, OR  NATIONAL
BANK  ASSOCIATION  MAY  CHARGE  A  FEE  FOR  ENTRY.  ALL FEES CHARGED IN
CONNECTION WITH SUCH QUALIFYING ACCOUNT SHALL  BE  COMPARABLE  WITH  ALL
FEES   CHARGED   IN  CONNECTION  WITH  OTHER  COMPARABLE  NON-QUALIFYING
ACCOUNTS, IF ANY, OFFERED BY ANY BANKING  ORGANIZATION,  FEDERAL  CREDIT
UNION,  FEDERAL  SAVINGS  BANK, FEDERAL SAVINGS AND LOAN ASSOCIATION, OR
NATIONAL BANK ASSOCIATION.
  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"  IN  ACCORDANCE  WITH  SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.   THE SUPERINTENDENT SHALL CONSULT WITH THE STATE GAMING
COMMISSION BEFORE PROPOSING ANY SUCH REGULATIONS OR ANY AMENDMENTS THER-
ETO. SUCH REGULATIONS SHALL ENSURE THAT:
  A. NO PARTICIPANT IN A SAVINGS PROMOTION IS CHARGED ANY FEE THAT WOULD
CONSTITUTE, DIRECTLY OR INDIRECTLY, CONSIDERATION FOR  PARTICIPATION  IN
SUCH SAVINGS PROMOTION; AND
  B.  NO  PARTICIPANT IN A SAVINGS PROMOTION FOREGOES, DIRECTLY OR INDI-
RECTLY, ANY INTEREST THAT WOULD  CONSTITUTE  CONSIDERATION  FOR  PARTIC-
IPATION IN SUCH SAVINGS PROMOTION.
  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"  IN  ACCORDANCE  WITH  SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.   THE SUPERINTENDENT SHALL CONSULT WITH THE STATE GAMING
COMMISSION BEFORE PROPOSING ANY SUCH REGULATIONS OR ANY AMENDMENTS THER-
ETO. SUCH REGULATIONS SHALL ENSURE THAT:
  A. NO PARTICIPANT IN A SAVINGS PROMOTION IS CHARGED ANY FEE THAT WOULD
CONSTITUTE, DIRECTLY OR INDIRECTLY, CONSIDERATION FOR  PARTICIPATION  IN
SUCH SAVINGS PROMOTION; AND
  B.  NO  PARTICIPANT IN A SAVINGS PROMOTION FOREGOES, DIRECTLY OR INDI-
RECTLY, ANY INTEREST THAT WOULD  CONSTITUTE  CONSIDERATION  FOR  PARTIC-
IPATION IN SUCH SAVINGS PROMOTION.

S. 6805--A                          3

  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" IN ACCORDANCE WITH SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.  THE SUPERINTENDENT SHALL CONSULT WITH THE STATE  GAMING
COMMISSION BEFORE PROPOSING ANY SUCH REGULATIONS OR ANY AMENDMENTS THER-
ETO. SUCH REGULATIONS SHALL ENSURE THAT:
  A. NO PARTICIPANT IN A SAVINGS PROMOTION IS CHARGED ANY FEE THAT WOULD
CONSTITUTE,  DIRECTLY  OR INDIRECTLY, CONSIDERATION FOR PARTICIPATION IN
SUCH SAVINGS PROMOTION; AND
  B. NO PARTICIPANT IN A SAVINGS PROMOTION FOREGOES, DIRECTLY  OR  INDI-
RECTLY,  ANY  INTEREST  THAT  WOULD CONSTITUTE CONSIDERATION FOR PARTIC-
IPATION IN SUCH SAVINGS PROMOTION.
  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" IN ACCORDANCE WITH SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.  THE SUPERINTENDENT SHALL CONSULT WITH THE STATE  GAMING
COMMISSION BEFORE PROPOSING ANY SUCH REGULATIONS OR ANY AMENDMENTS THER-
ETO. SUCH REGULATIONS SHALL ENSURE THAT:
  A. NO PARTICIPANT IN A SAVINGS PROMOTION IS CHARGED ANY FEE THAT WOULD
CONSTITUTE,  DIRECTLY  OR INDIRECTLY, CONSIDERATION FOR PARTICIPATION IN
SUCH SAVINGS PROMOTION; AND
  B. NO PARTICIPANT IN A SAVINGS PROMOTION FOREGOES, DIRECTLY  OR  INDI-
RECTLY,  ANY  INTEREST  THAT  WOULD CONSTITUTE CONSIDERATION FOR PARTIC-
IPATION IN SUCH SAVINGS PROMOTION.
  S 6. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

Co-Sponsors

S6805B (ACTIVE) - Bill Details

Law Section:
Banking Law
Laws Affected:
Add §9-v, amd §§96, 234, 383 & 454, Bank L

S6805B (ACTIVE) - Bill Texts

view summary

Authorizes financial institutions to conduct savings promotion prize giveaways.

view sponsor memo
BILL NUMBER:S6805B

TITLE OF BILL: An act to amend the banking law, in relation to
authorizing financial institutions 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 1. 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 in
obtained by the deposit of specified amount of money in a savings
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; and

3. "Non-qualifying account" - means a savings account, share account,
share certificate, or other savings product or program offered by a
banking organization that is not a qualifying account.

Section 2. - Section 5.- amends various sections of the Banking Law to
authorize each banking organization (banks and trust, savings banks,
savings and loan associations, and credit unions) to conduct a savings
promotion, as well as allow the Superintendent of the Department of
Financial Services to promulgate rules and regulations.

Section 6. Provides that this act shall take effect one year after is
shall become law.

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 (Michigan and Connecticut) 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:


S.5145 / A.7341 of 2013 - Veto Memo 229

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None to the State.

EFFECTIVE DATE:

This act shall take effect one year after it shall have become law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6805--B
    Cal. No. 597

                            I N  S E N A T E

                             March 12, 2014
                               ___________

Introduced  by  Sens.  LANZA, KENNEDY, RITCHIE -- read twice and ordered
  printed, and when printed to be committed to the Committee on Banks --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted  to said committee -- reported favorably from said commit-
  tee, ordered to first and second report,  amended  on  second  report,
  ordered  to a third reading, and to be reprinted as amended, retaining
  its place in the order of third reading

AN ACT to amend the banking law, in relation  to  authorizing  financial
  institutions 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,  FEDERAL
CREDIT  UNION,  FEDERAL  SAVINGS  BANK, FEDERAL SAVINGS AND LOAN ASSOCI-
ATION, OR NATIONAL BANK ASSOCIATION 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, FEDERAL CREDIT UNION, FEDERAL  SAVINGS  BANK,
FEDERAL  SAVINGS  AND  LOAN ASSOCIATION, OR NATIONAL BANK ASSOCIATION IN
WHICH A CHANCE OF WINNING DESIGNATED PRIZES IS OBTAINED  BY  ITS  DEPOS-
ITORS  FOR  THE PURPOSES OF ENCOURAGING DEPOSITORS TO BUILD AND MAINTAIN
SAVINGS DEPOSITS.
  B. THE TERM  "QUALIFYING  ACCOUNT"  MEANS  A  SAVINGS  ACCOUNT,  SHARE
ACCOUNT,  SHARE CERTIFICATE, OR OTHER SAVINGS PRODUCT OR PROGRAM OFFERED
BY A BANKING ORGANIZATION, FEDERAL CREDIT UNION, FEDERAL  SAVINGS  BANK,
FEDERAL  SAVINGS  AND  LOAN  ASSOCIATION,  OR  NATIONAL BANK ASSOCIATION
THROUGH WHICH DEPOSITORS MAY OBTAIN CHANCES TO WIN PRIZES IN  A  SAVINGS
PROMOTION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13805-06-4

S. 6805--B                          2

  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, FEDERAL CREDIT UNION, FEDERAL SAVINGS
BANK, FEDERAL SAVINGS AND LOAN ASSOCIATION, OR NATIONAL BANK ASSOCIATION
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)
THE  INTEREST  RATE  ASSOCIATED  WITH ANY SUCH QUALIFYING ACCOUNT IS NOT
REDUCED WHEN COMPARED  WITH  OTHER  COMPARABLE  NON-QUALIFYING  ACCOUNTS
OFFERED  BY  ANY  BANKING  ORGANIZATION,  FEDERAL  CREDIT UNION, FEDERAL
SAVINGS BANK, FEDERAL SAVINGS AND  LOAN  ASSOCIATION  OR  NATIONAL  BANK
ASSOCIATION, TO ACCOUNT FOR THE POSSIBILITY OF DEPOSITORS WINNING SPECI-
FIED  PRIZES;  AND  (II)  NO BANKING ORGANIZATION, FEDERAL CREDIT UNION,
FEDERAL SAVINGS BANK, FEDERAL SAVINGS AND LOAN ASSOCIATION, OR  NATIONAL
BANK  ASSOCIATION  MAY  CHARGE  A  FEE  FOR  ENTRY.  ALL FEES CHARGED IN
CONNECTION WITH SUCH QUALIFYING ACCOUNT SHALL  BE  COMPARABLE  WITH  ALL
FEES   CHARGED   IN  CONNECTION  WITH  OTHER  COMPARABLE  NON-QUALIFYING
ACCOUNTS, IF ANY, OFFERED BY ANY BANKING  ORGANIZATION,  FEDERAL  CREDIT
UNION,  FEDERAL  SAVINGS  BANK, FEDERAL SAVINGS AND LOAN ASSOCIATION, OR
NATIONAL BANK ASSOCIATION.
  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"  IN  ACCORDANCE  WITH  SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.   THE SUPERINTENDENT SHALL CONSULT WITH THE STATE GAMING
COMMISSION BEFORE PROPOSING ANY SUCH REGULATIONS OR ANY AMENDMENTS THER-
ETO. SUCH REGULATIONS SHALL ENSURE THAT:
  A. NO PARTICIPANT IN A SAVINGS PROMOTION IS CHARGED ANY FEE THAT WOULD
CONSTITUTE, DIRECTLY OR INDIRECTLY, CONSIDERATION FOR  PARTICIPATION  IN
SUCH SAVINGS PROMOTION; AND
  B.  NO  PARTICIPANT IN A SAVINGS PROMOTION FOREGOES, DIRECTLY OR INDI-
RECTLY, ANY INTEREST THAT WOULD  CONSTITUTE  CONSIDERATION  FOR  PARTIC-
IPATION IN SUCH SAVINGS PROMOTION.
  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"  IN  ACCORDANCE  WITH  SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.   THE SUPERINTENDENT SHALL CONSULT WITH THE STATE GAMING
COMMISSION BEFORE PROPOSING ANY SUCH REGULATIONS OR ANY AMENDMENTS THER-
ETO. SUCH REGULATIONS SHALL ENSURE THAT:
  A. NO PARTICIPANT IN A SAVINGS PROMOTION IS CHARGED ANY FEE THAT WOULD
CONSTITUTE, DIRECTLY OR INDIRECTLY, CONSIDERATION FOR  PARTICIPATION  IN
SUCH SAVINGS PROMOTION; AND

S. 6805--B                          3

  B.  NO  PARTICIPANT IN A SAVINGS PROMOTION FOREGOES, DIRECTLY OR INDI-
RECTLY, ANY INTEREST THAT WOULD  CONSTITUTE  CONSIDERATION  FOR  PARTIC-
IPATION IN SUCH SAVINGS PROMOTION.
  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"  IN  ACCORDANCE  WITH  SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.   THE SUPERINTENDENT SHALL CONSULT WITH THE STATE GAMING
COMMISSION BEFORE PROPOSING ANY SUCH REGULATIONS OR ANY AMENDMENTS THER-
ETO. SUCH REGULATIONS SHALL ENSURE THAT:
  A. NO PARTICIPANT IN A SAVINGS PROMOTION IS CHARGED ANY FEE THAT WOULD
CONSTITUTE, DIRECTLY OR INDIRECTLY, CONSIDERATION FOR  PARTICIPATION  IN
SUCH SAVINGS PROMOTION; AND
  B.  NO  PARTICIPANT IN A SAVINGS PROMOTION FOREGOES, DIRECTLY OR INDI-
RECTLY, ANY INTEREST THAT WOULD  CONSTITUTE  CONSIDERATION  FOR  PARTIC-
IPATION IN SUCH SAVINGS PROMOTION.
  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"  IN  ACCORDANCE  WITH  SECTION
NINE-V OF THIS CHAPTER AND SUBJECT TO ANY REGULATIONS PROMULGATED BY THE
SUPERINTENDENT.   THE SUPERINTENDENT SHALL CONSULT WITH THE STATE GAMING
COMMISSION BEFORE PROPOSING ANY SUCH REGULATIONS OR ANY AMENDMENTS THER-
ETO. SUCH REGULATIONS SHALL ENSURE THAT:
  A. NO PARTICIPANT IN A SAVINGS PROMOTION IS CHARGED ANY FEE THAT WOULD
CONSTITUTE, DIRECTLY OR INDIRECTLY, CONSIDERATION FOR  PARTICIPATION  IN
SUCH SAVINGS PROMOTION; AND
  B.  NO  PARTICIPANT IN A SAVINGS PROMOTION FOREGOES, DIRECTLY OR INDI-
RECTLY, ANY INTEREST THAT WOULD  CONSTITUTE  CONSIDERATION  FOR  PARTIC-
IPATION IN SUCH SAVINGS PROMOTION.
  S  6. This act shall take effect one year after it shall have become a
law.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.