LRB-2774/1
ARG&SWB:emw&ahe
2017 - 2018 LEGISLATURE
April 24, 2017 - Introduced by Representatives Stafsholt, Fields, Ballweg, R.
Brooks, Crowley, Genrich, Horlacher, Kooyenga, Kremer, Krug, Macco,
Murphy, Novak, Petryk, Rohrkaste, Sanfelippo, Skowronski, Spreitzer,
Thiesfeldt, Tusler and Vruwink, cosponsored by Senators Kapenga, L.
Taylor, Craig, Feyen, Lasee, Marklein, Nass, Stroebel, Testin and Wirch.
Referred to Committee on Financial Institutions.
AB283,1,4
1An Act to amend 186.118 (1), 563.03 (12r) and 945.01 (5) (am); and
to create
2186.114, 214.595, 215.137, 221.0329, 945.01 (1) (g) and 945.01 (5) (b) 2. i. of the
3statutes;
relating to: authorizing financial institutions to conduct savings
4promotion prize programs.
Analysis by the Legislative Reference Bureau
This bill allows banks, credit unions, savings banks, and savings and loan
associations organized under this state's law (state-chartered financial institutions)
to conduct or participate in savings promotion programs. A “savings promotion" is
a contest or promotion to encourage savings deposits that is sponsored by one or more
state-chartered financial institutions of the same type, or by a financial institution
trade association or its subsidiary in conjunction with one or more state-chartered
financial institutions of the same type, and in which depositors are offered a chance
to win designated prizes. A “qualifying account" is a savings account (in the broad
sense, including money market and certificate of deposit accounts) through which
depositors may obtain chances to win prizes in a savings promotion, and a
“nonqualifying account" is a savings account that is not a qualifying account. A
state-chartered financial institution may sponsor or participate in a savings
promotion if 1) depositors are not required to pay any fee or otherwise provide any
consideration in order to enter the savings promotion; 2) all fees charged in
connection with a qualifying account are comparable with all fees charged in
connection with comparable nonqualifying accounts; 3) each entry in the savings
promotion has an equal chance of winning; and 4) participants in the savings
promotion are not required to be present at a prize drawing in order to win.
The bill specifies that a savings promotion program is not betting, a lottery, or
a raffle. The bill also specifies that a program sponsored by a federally chartered
financial institution, or in which a federally chartered financial institution
participates, that meets all requirements for a savings promotion program is not
betting, a lottery, or a raffle. Under current law, making a bet; receiving, recording,
or forwarding a bet or offer to bet for gain; conducting a lottery; or engaging in other
gambling activities is illegal.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB283,1
1Section 1
. 186.114 of the statutes is created to read:
AB283,2,2
2186.114 Savings promotion prize programs. (1) In this section:
AB283,2,43
(a) “Member” means any person holding an account authorized under s.
4186.113.
AB283,2,65
(b) “Nonqualifying account" means a deposit account that is not a qualifying
6account.
AB283,2,87
(c) “Qualifying account" means a deposit account through which a credit
8union's members may obtain chances to win prizes in a savings promotion.
AB283,2,129
(d) “Savings promotion" means a contest or promotion to encourage savings
10deposits that is sponsored by one or more credit unions, or by a credit union trade
11association or its subsidiary in conjunction with one or more credit unions, and in
12which credit union members are offered a chance to win designated prizes.
AB283,2,14
13(2) A credit union may sponsor, or participate in, a savings promotion if all of
14the following requirements are satisfied:
AB283,2,1615
(a) Credit union members are not required to pay any fee or otherwise provide
16any consideration in order to enter the savings promotion.
AB283,3,3
1(b) All fees charged by a credit union in connection with a qualifying account
2are comparable with all fees charged in connection with comparable nonqualifying
3accounts offered by the credit union.
AB283,3,44
(c) Each entry in the savings promotion has an equal chance of winning.
AB283,3,65
(d) Participants in the savings promotion are not required to be present at a
6prize drawing in order to win.
AB283,3,12
7(3) For purposes of sub. (2) (a), a member's deposit of at least a specified amount
8of money for at least a specified time in a qualifying account, which is required in
9order to enter the savings promotion, is not consideration if the interest rate
10associated with the qualifying account is not reduced, as compared to comparable
11nonqualifying accounts offered by the credit union, to account for the possibility of
12winning a prize.
AB283,2
13Section 2
. 186.118 (1) of the statutes is amended to read:
AB283,3,1714
186.118
(1) In addition to any activity or power authorized under ss. 186.098,
15186.11, 186.113,
186.114, 186.115, and 186.235 (21), a credit union organized under
16s. 186.02 may engage in any activity or exercise any power that is listed by the office
17of credit unions under sub. (2) (a) or (3) (b) 1.
AB283,3
18Section 3
. 214.595 of the statutes is created to read:
AB283,3,19
19214.595 Savings promotion prize programs. (1) In this section:
AB283,3,2120
(a) “Nonqualifying account" means a deposit account, other than a demand
21account, that is not a qualifying account.
AB283,3,2422
(b) “Qualifying account" means a deposit account, other than a demand
23account, through which a savings bank's depositors may obtain chances to win prizes
24in a savings promotion.
AB283,4,4
1(c) “Savings promotion" means a contest or promotion to encourage savings
2deposits that is sponsored by one or more savings banks, or by a banking trade
3association or its subsidiary in conjunction with one or more savings banks, and in
4which savings bank depositors are offered a chance to win designated prizes.
AB283,4,6
5(2) A savings bank may sponsor, or participate in, a savings promotion if all of
6the following requirements are satisfied:
AB283,4,87
(a) Savings bank depositors are not required to pay any fee or otherwise provide
8any consideration in order to enter the savings promotion.
AB283,4,119
(b) All fees charged by a savings bank in connection with a qualifying account
10are comparable with all fees charged in connection with comparable nonqualifying
11accounts offered by the savings bank.
AB283,4,1212
(c) Each entry in the savings promotion has an equal chance of winning.
AB283,4,1413
(d) Participants in the savings promotion are not required to be present at a
14prize drawing in order to win.
AB283,4,20
15(3) For purposes of sub. (2) (a), a depositor's deposit of at least a specified
16amount of money for at least a specified time in a qualifying account, which is
17required in order to enter the savings promotion, is not consideration if the interest
18rate associated with the qualifying account is not reduced, as compared to
19comparable nonqualifying accounts offered by the savings bank, to account for the
20possibility of winning a prize.
AB283,4
21Section 4
. 215.137 of the statutes is created to read:
AB283,4,22
22215.137 Savings promotion prize programs. (1) In this section:
AB283,4,2423
(a) “Nonqualifying account" means a savings account that is not a qualifying
24account.
AB283,5,2
1(b) “Qualifying account" means a savings account through which savers may
2obtain chances to win prizes in a savings promotion.
AB283,5,73
(c) “Savings promotion" means a contest or promotion to encourage savings
4deposits that is sponsored by one or more savings and loan associations, or by a
5banking or thrift trade association or its subsidiary in conjunction with one or more
6savings and loan associations, and in which savers are offered a chance to win
7designated prizes.
AB283,5,9
8(2) A savings and loan association may sponsor, or participate in, a savings
9promotion if all of the following requirements are satisfied:
AB283,5,1110
(a) Savers are not required to pay any fee or otherwise provide any
11consideration in order to enter the savings promotion.
AB283,5,1412
(b) All fees charged by a savings and loan association in connection with a
13qualifying account are comparable with all fees charged in connection with
14comparable nonqualifying accounts offered by the savings and loan association.
AB283,5,1515
(c) Each entry in the savings promotion has an equal chance of winning.
AB283,5,1716
(d) Participants in the savings promotion are not required to be present at a
17prize drawing in order to win.
AB283,5,23
18(3) For purposes of sub. (2) (a), a saver's deposit of at least a specified amount
19of money for at least a specified time in a qualifying account, which is required in
20order to enter the savings promotion, is not consideration if the interest rate
21associated with the qualifying account is not reduced, as compared to comparable
22nonqualifying accounts offered by the savings and loan association, to account for the
23possibility of winning a prize.
AB283,5
24Section 5
. 221.0329 of the statutes is created to read:
AB283,5,25
25221.0329 Savings promotion prize programs. (1) In this section:
AB283,6,2
1(a) “Nonqualifying account" means a savings, time, or money market account
2that is not a qualifying account.
