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Removing Barriers Blog

Texas Slated to Permit Prize-Linked Savings Programs
Posted November 13, 2017 by CUNA Advocacy

With CUNA’s Member Activation Program (MAP), CUNA, the Cornerstone Credit Union League (CCUL) and credit unions successfully supported an amendment to the Texas constitution that will lead to Texas to becoming the 22nd state to permit prize-linked savings programs.

The amendment authorizes Texas credit unions, banks, and savings banks to conduct raffles to promote savings by offering their customers prizes drawn at random.

In 2015, prize-linked savings legislation was vetoed because Governor Abbot maintained that the Texas Constitution authorizes raffles to be conducted only for charitable purposes and that an amendment to the state’s constitution was required to grant prize-linked savings authority.

CUNA and CCUL also supported another successful amendment which would modernize home equity lending law by giving borrowers the option to refinance a home equity loan into a conventional loan, providing access to additional options and lower rate products, rather than being limited to only refinancing into a home equity loan.

In addition to MAP, CUNA and CCUL engaged in social media advertisements and direct mail efforts to garner support for the two initiatives.