SSB 1191

The bill defines “participant” to mean a person who is at least years of age and who has opened a savings promotion drawing account at a financial institution. The bill allows a financial institution or group of financial institutions to conduct a savings promotion drawing without licensure if all of the following conditions are met: the drawing includes the distribution of the financial institution’s drawing rules to all participants; the drawing is open to all participants as provided in the drawing rules, but must not be open to members of the public who are not participants pursuant to the drawing rules; the financial institution maintains records regarding the drawing and the number of participants; and the drawing is conducted in a fair and honest manner, without jeopardizing the financial institution’s safety and financial soundness or misleading its participants. The bill requires a financial institution to provide an annual report to the department of inspections and appeals for each year in which the financial institution conducts a savings promotion drawing. If multiple financial institutions conduct a drawing, the financial institutions may file a joint annual report. _____ conducted, a description and value of the prizes offered, the names and addresses of participants who won prizes, a copy of the drawing rules, and the names and addresses of two witnesses to the drawing. The bill provides that prizes awarded in a savings promotion drawing may be in cash or any other form of property, and shall not be subject to any limits on quantity. The bill provides that a financial institution may compensate employees of the financial institution, or may hire a third-party operator, to conduct a drawing.4, a person who knowingly fails to comply with Code chapter 99B commits a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $315 but not more than $1,875.