Authorizing savings promotion drawings under specified conditions, and making penalties applicable

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. 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 credit union division of the department of commerce or banking division of the department of commerce, as applicable, 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. The annual report shall include the number of drawings conducted during the year, the date the drawings were 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. A financial institution shall not award a monthly prize in a savings promotion drawing that exceeds $250 in value, a quarterly prize that exceeds $5,000 in value, or an annual prize that exceeds $10,000 in value. 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 $430 but not more than $2,560.