BILL ANALYSIS

Senate Research Center	H.J.R. 37
85R4673 EES-D	By: Johnson, Eric (Hancock)
	Business & Commerce
	5/12/2017
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Interested parties contend that Texas should follow the example of other states that have authorized banks and credit unions to institute programs encouraging citizens to save by offering them certain prizes for depositing funds into their savings accounts. H.J.R. 37 seeks to incentivize saving among Texans by proposing a constitutional amendment to authorize financial institutions and credit unions to offer prize-linked savings programs with legislative permission.

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H.J.R. 37 proposes a constitutional amendment relating to legislative authority to permit credit unions and other financial institutions to award prizes by lot to promote savings.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 47, Article III, Texas Constitution, by adding Subsection (d-2), to provide that Subsection (a) (relating to the legislature passing laws to prohibit certain lotteries and gift enterprises) of this section (Lotteries and Gift Enterprises; Bingo Games) does not prohibit the legislature from authorizing credit unions and other financial institutions to conduct, under the terms and conditions imposed by general law, promotional activities to promote savings in which prizes are awarded to one or more of the credit union's or financial institution's depositors selected by lot.

SECTION 2. Requires that the proposed constitutional amendment be submitted to the voters at an election to be held November 7, 2017. Sets forth the required language of the ballot.