[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1597 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1597

    To provide for the use of savings promotion raffle products by 
  financial institutions to encourage savings, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 29, 2013

 Mr. Moran (for himself and Mr. Brown) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
    To provide for the use of savings promotion raffle products by 
  financial institutions to encourage savings, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Savings Promotion Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the annual savings rate in the United States was 4.1 
        percent in 2012;
            (2) more than 40 percent of American households lack the 
        savings to cover basic expenses for 3 months, if an unexpected 
        event leads to a loss of stable income;
            (3) personal savings provide Americans with the financial 
        resources to meet future needs, including higher education and 
        homeownership, while also providing a safety net to weather 
        unexpected financial shocks;
            (4) prize-linked savings products are typical savings 
        products offered by financial institutions, like savings 
        accounts, certificates of deposit, and savings bonds, with the 
        added feature of offering chances to win prizes based on 
        deposit activity;
            (5) the State of Michigan was the first State to allow 
        credit unions to offer prize-linked savings products, and in 
        2009 launched the first large-scale prize-linked savings 
        product in the United States;
            (6) the States of Connecticut, Michigan, Maine, Maryland, 
        Nebraska, North Carolina, Rhode Island, and Washington all have 
        laws that allow financial institutions to offer prize-linked 
        savings products;
            (7) in the States of Michigan and Nebraska, more than 
        42,000 individuals have opened prize-linked savings accounts 
        and saved more than $72,000,000;
            (8) prize-linked savings products have been shown to 
        successfully attract non-savers, the asset poor, and low-to-
        moderate income groups, providing individuals with a new tool 
        to build personal savings; and
            (9) encouraging personal savings is in the national 
        interest of the United States.

SEC. 3. AMENDMENT TO DEFINITIONS OF ``LOTTERY''.

    (a) National Banks.--Section 5136B(c) of the Revised Statutes of 
the United States (12 U.S.C. 25a(c)) is amended--
            (1) in paragraph (2), by inserting ``, other than a savings 
        promotion raffle,'' before ``whereby''; and
            (2) by adding at the end the following:
            ``(4) The term `savings promotion raffle' means a contest 
        in which the sole consideration required for a chance of 
        winning designated prizes is obtained by the deposit of a 
        specified amount of money in a savings account or other savings 
        program, where each ticket or entry has an equal chance of 
        being drawn, such contest being subject to regulations that may 
        from time to time be promulgated by the appropriate prudential 
        regulator (as defined in section 1002 of the Consumer Financial 
        Protection Act of 2010 (12 U.S.C. 5481)).''.
    (b) Federal Reserve Banks.--Section 9A(c) of the Federal Reserve 
Act (12 U.S.C. 339(c)) is amended--
            (1) in paragraph (2), by inserting ``, other than a savings 
        promotion raffle,'' before ``whereby''; and
            (2) by adding at the end the following:
            ``(4) The term `savings promotion raffle' means a contest 
        in which the sole consideration required for a chance of 
        winning designated prizes is obtained by the deposit of a 
        specified amount of money in a savings account or other savings 
        program, where each ticket or entry has an equal chance of 
        being drawn, such contest being subject to regulations that may 
        from time to time be promulgated by the appropriate prudential 
        regulator (as defined in section 1002 of the Consumer Financial 
        Protection Act of 2010 (12 U.S.C. 5481)).''.
    (c) Insured Depository Institutions.--Section 20(c) of the Federal 
Deposit Insurance Act (12 U.S.C. 1829a(c)) is amended--
            (1) in paragraph (2), by inserting ``, other than a savings 
        promotion raffle,'' before ``whereby''; and
            (2) by adding at the end the following:
            ``(4) The term `savings promotion raffle' means a contest 
        in which the sole consideration required for a chance of 
        winning designated prizes is obtained by the deposit of a 
        specified amount of money in a savings account or other savings 
        program, where each ticket or entry has an equal chance of 
        being drawn, such contest being subject to regulations that may 
        from time to time be promulgated by the appropriate prudential 
        regulator (as defined in section 1002 of the Consumer Financial 
        Protection Act of 2010 (12 U.S.C. 5481)).''.
    (d) Federal Savings and Loan Associations.--Section 4(e)(3) of the 
Home Owners' Loan Act (12 U.S.C. 1463(e)(3)) is amended--
            (1) in subparagraph (B), by inserting ``, other than a 
        savings promotion raffle,'' after ``arrangement''; and
            (2) by adding at the end the following:
                    ``(D) Savings promotion raffle.--The term `savings 
                promotion raffle' means a contest in which the sole 
                consideration required for a chance of winning 
                designated prizes is obtained by the deposit of a 
                specified amount of money in a savings account or other 
                savings program, where each ticket or entry has an 
                equal chance of being drawn, such contest being subject 
                to regulations that may from time to time be 
                promulgated by the appropriate prudential regulator (as 
                defined in section 1002 of the Consumer Financial 
                Protection Act of 2010 (12 U.S.C. 5481)).''.

SEC. 4. CRIMINAL PROVISIONS.

    (a) In General.--Chapter 61 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 1308. Limitation of applicability
    ``(a) Limitation of Applicability.--Sections 1301, 1302, 1303, 
1304, and 1306 shall not apply--
            ``(1) to a savings promotion raffle conducted by an insured 
        depository institution or an insured credit union; or
            ``(2) to any activity conducted in connection with any such 
        savings promotion raffle, including, without limitation, to 
        the--
                    ``(A) transmission of any advertisement, list of 
                prizes, or other information concerning the savings 
                promotion raffle;
                    ``(B) offering, facilitation, and acceptance of 
                deposits, withdrawals, or other transactions in 
                connection with the savings promotion raffle;
                    ``(C) transmission of any information relating to 
                the savings promotion raffle, including account balance 
                and transaction information; and
                    ``(D) deposit or transmission of prizes awarded in 
                the savings promotion raffle as well as notification or 
                publication thereof.
    ``(b) Definitions.--In this section--
            ``(1) the term `insured credit union' shall have the 
        meaning given the term in section 101 of the Federal Credit 
        Union Act (12 U.S.C. 1752);
            ``(2) the term `insured depository institution' shall have 
        the meaning given the term in section 3 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813); and
            ``(3) the term `savings promotion raffle' means a contest 
        in which the sole consideration required for a chance of 
        winning designated prizes is obtained by the deposit of a 
        specified amount of money in a savings account or other savings 
        program, where each ticket or entry has an equal chance of 
        being drawn, such contest being subject to regulations that may 
        from time to time be promulgated by the appropriate prudential 
        regulator (as defined in section 1002 of the Consumer Financial 
        Protection Act of 2010 (12 U.S.C. 5481)).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 61 of title 18, United States Code, is amended by adding after 
the item relating to section 1307 the following:

``1308. Limitation of applicability.''.

SEC. 5. RACKETEERING.

    Chapter 95 of title 18, United States Code, is amended--
            (1) in section 1952, by adding at the end the following:
    ``(e)(1) This section shall not apply to a savings promotion raffle 
conducted by an insured depository institution or an insured credit 
union.
    ``(2) In this subsection--
            ``(A) the term `insured credit union' shall have the 
        meaning given the term in section 101 of the Federal Credit 
        Union Act (12 U.S.C. 1752);
            ``(B) the term `insured depository institution' shall have 
        the meaning given the term in section 3 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813); and
            ``(C) the term `savings promotion raffle' means a contest 
        in which the sole consideration required for a chance of 
        winning designated prizes is obtained by the deposit of a 
        specified amount of money in a savings account or other savings 
        program, where each ticket or entry has an equal chance of 
        being drawn, such contest being subject to regulations that may 
        from time to time be promulgated by the appropriate prudential 
        regulator (as defined in section 1002 of the Consumer Financial 
        Protection Act of 2010 (12 U.S.C. 5481)).'';
            (2) in section 1953--
                    (A) in subsection (b), by striking ``or (5)'' and 
                inserting ``(5) equipment, tickets, or materials used 
                or designed for use in a savings promotion raffle 
                operated by an insured depository institution or an 
                insured credit union, or (6)''; and
                    (B) by striking subsections (d) and (e) and 
                inserting the following:
    ``(d) For purposes of this section--
            ``(1) the term `foreign country' means any empire, country, 
        dominion, colony, or protectorate, or any subdivision thereof 
        (other than the United States, its territories or possessions);
            ``(2) the term `insured credit union' shall have the 
        meaning given the term in section 101 of the Federal Credit 
        Union Act (12 U.S.C. 1752);
            ``(3) the term `insured depository institution' shall have 
        the meaning given the term in section 3 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813);
            ``(4) the term `lottery'--
                    ``(A) means the pooling of proceeds derived from 
                the sale of tickets or chances and allotting those 
                proceeds or parts thereof by chance to one or more 
                chance takers or ticket purchasers; and
                    ``(B) does not include the placing or accepting of 
                bets or wagers on sporting events or contests;
            ``(5) the term `savings promotion raffle' means a contest 
        in which the sole consideration required for a chance of 
        winning designated prizes is obtained by the deposit of a 
        specified amount of money in a savings account or other savings 
        program, where each ticket or entry has an equal chance of 
        being drawn, such contest being subject to regulations that may 
        from time to time be promulgated by the appropriate prudential 
        regulator (as defined in section 1002 of the Consumer Financial 
        Protection Act of 2010 (12 U.S.C. 5481)); and
            ``(6) the term `State' means a State of the United States, 
        the District of Columbia, the Commonwealth of Puerto Rico, or 
        any territory or possession of the United States.''; and
            (3) in section 1955--
                    (A) in subsection (b)--
                            (i) by redesignating paragraph (2) as 
                        paragraph (4);
                            (ii) by redesignating paragraph (3) as 
                        paragraph (6);
                            (iii) by inserting after paragraph (1) the 
                        following:
            ``(2) `insured credit union' shall have the meaning given 
        the term in section 101 of the Federal Credit Union Act (12 
        U.S.C. 1752).
            ``(3) `insured depository institution' shall have the 
        meaning given the term in section 3 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813).''; and
                            (iv) by inserting after paragraph (4), as 
                        redesignated, the following:
            ``(5) `savings promotion raffle' means a contest in which 
        the sole consideration required for a chance of winning 
        designated prizes is obtained by the deposit of a specified 
        amount of money in a savings account or other savings program, 
        where each ticket or entry has an equal chance of being drawn, 
        such contest being subject to regulations that may from time to 
        time be promulgated by the appropriate prudential regulator (as 
        defined in section 1002 of the Consumer Financial Protection 
        Act of 2010 (12 U.S.C. 5481)).''.
                                 <all>