HARTFORD, Conn. (4/26/13)--The Connecticut of House of Representatives passed legislation Wednesday that would allow the state's credit unions and community banks to offer savings promotions raffles, under certain conditions.
House Bill 5564 now goes to the state Senate for consideration (Associated Press April 25).
The Credit Union League of Connecticut supported the bill, Kelly Fuhlbrigge, league vice president of government relations, told News Now. "We lobbied in support of the bill and submitted testimony as well," she said.
"We are committed to educating our members, and potential members, to become better educated consumers of financial services," Anthony L. Emerson, president/CEO of the league, told News Now. "We support this bill because it embodies the mission of credit unions to help and educate our members."
The league sent out a release to state member credit unions Wednesday. It read: " ... the state House of Representatives unanimously passed House Bill 5564, An Act Encouraging Increased Savings Deposits. This bill, if also passed by the Senate and then signed into law by the governor, would encourage individuals who are age 18 or older, who don't normally save money, to begin making or to increase the frequency of their deposits into a savings account or other savings program offered by a Connecticut credit union or community bank through a lottery type program.
"This bill was based on a National Credit Union Foundation program and promotes savings by allowing credit unions and community banks, who choose to provide this program, yet another vehicle through which they can reach out and educate members on the importance of saving," the league added.
House Bill 5564 stipulates that participating credit unions and community banks would have to disclose the terms and conditions of the raffle and maintain records that could be audited, if necessary, said the AP. Only financial institutions that have secure finances, as determined by the state's banking commissioner, could offer raffles.
Participants who deposit a minimum amount in a savings account or program would have the chance to win designated prizes, the AP added.
Several other states, including Michigan, Nebraska, North Carolina and Washington, offer savings raffle programs (News Now March 28).