BILL ANALYSIS |
C.S.H.B. 1628 |
By: Johnson |
Investments & Financial Services |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties have expressed concerns regarding the financial vulnerability of many Texans who lack significant savings and have little experience with mainstream financial institutions such as banks and credit unions. The parties assert that other states have authorized banks and credit unions to implement programs that encourage people to save by offering them prizes for making deposits into their savings accounts. C.S.H.B. 1628 seeks to address this issue and encourage Texans to engage with mainstream financial institutions and to save additional money.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is expressly granted to the Credit Union Commission and to the Finance Commission of Texas in SECTION 3 of this bill.
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ANALYSIS
C.S.H.B. 1628 amends the Finance Code to authorize a credit union or financial institution to conduct a savings promotion raffle if each ticket or token representing an entry in the raffle has an equal probability of being drawn and the raffle is conducted in a manner that does not jeopardize the ability of the credit union or financial institution to operate in a safe and sound manner and does not mislead the credit union's members or the financial institution's depositors, as applicable. The bill defines "savings promotion raffle" as a raffle conducted by a credit union or financial institution in which the sole action required for a chance of winning a designated prize is the deposit of at least a specified amount of money in a savings account or other savings program offered by the credit union or financial institution.
C.S.H.B. 1628 prohibits a credit union or financial institution from requiring consideration for participation in a savings promotion raffle but establishes that a deposit of an amount of money in a savings account or other savings program that results in an entry in a savings promotion raffle is not consideration. The bill prohibits a credit union or financial institution from requiring a person to pay a premium or fee for opening or using a savings account or other savings program that is subject to a savings promotion raffle, unless the premium or fee is commensurate with the premium or fee that the credit union or financial institution charges for opening or using comparable savings accounts or savings programs that are not subject to a savings promotion raffle.
C.S.H.B. 1628 prohibits a credit union or financial institution from limiting the withdrawal of money from a savings account or other savings program that is subject to a savings promotion raffle, unless the withdrawal limits are commensurate with the withdrawal limits that the credit union or financial institution imposes on comparable savings accounts or savings programs that are not subject to a savings promotion raffle, but establishes that such prohibition does not prohibit a credit union or financial institution from requiring a deposit of an amount of money to remain in a savings account or other savings program for a certain period of time in order for the deposit to represent an entry in a savings promotion raffle. The bill requires a credit union or financial institution to charge an interest rate on a savings account or other savings program that is commensurate with the interest rate that the credit union or financial institution charges on comparable savings accounts or savings programs that are not subject to a savings promotion raffle.
C.S.H.B. 1628 requires a credit union or financial institution that conducts a savings promotion raffle under the bill's provisions to maintain all records that the Credit Union Commission or the Finance Commission of Texas, respectively, determines are necessary for the Credit Union Department or applicable financial regulatory agency to examine the raffle. The bill's provisions regarding credit unions apply to an organization composed exclusively of credit unions, and the bill's provisions regarding financial institutions apply to an organization composed exclusively of financial institutions. The bill requires the Credit Union Commission to adopt rules and procedures for the administration of the savings promotion raffles conducted by credit unions and requires the finance commission to adopt rules and procedures for the administration of the savings promotion raffles conducted by financial institutions.
C.S.H.B. 1628 establishes that, for purposes of Penal Code provisions relating to gambling or other state law, opening or making a deposit in an account is neither considered a purchase, payment, or provision of a thing of value for participation in a savings promotion raffle nor considered to require a substantial expenditure of time, effort, or inconvenience.
C.S.H.B. 1628 amends the Business & Commerce Code to exempt a savings promotion raffle from statutory provisions governing sweepstakes.
C.S.H.B. 1628 amends the Occupations Code to exempt a savings promotion raffle from the Charitable Raffle Enabling Act.
C.S.H.B. 1628 amends the Penal Code to establish a defense to prosecution for a gambling offense if the conduct was authorized under the bill's provisions governing a savings promotion raffle and to establish that opening or making a deposit in a savings account or other savings program subject to a savings promotion raffle does not constitute consideration for purposes of Penal Code gambling offenses.
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EFFECTIVE DATE
September 1, 2015.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 1628 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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