II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Savings Pro5 motion Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 

8 (1) the annual savings rate in the United States 

9 was 4.1 percent in 2012; 


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1 (2) more than 40 percent of American house2 holds lack the savings to cover basic expenses for 3 

3 months, if an unexpected event leads to a loss of sta4 ble income; 

5 (3) personal savings provide Americans with the 

6 financial resources to meet future needs, including 

7 higher education and homeownership, while also pro8 viding a safety net to weather unexpected financial 

9 shocks; 

10 (4) prize-linked savings products are typical 

11 savings products offered by financial institutions, 

12 like savings accounts, certificates of deposit, and 

13 savings bonds, with the added feature of offering 

14 chances to win prizes based on deposit activity; 

15 (5) the State of Michigan was the first State to 

16 allow credit unions to offer prize-linked savings 

17 products, and in 2009 launched the first large-scale 

18 prize-linked savings product in the United States; 

19 (6) the States of Connecticut, Michigan, Maine, 

20 Maryland, Nebraska, North Carolina, Rhode Island, 

21 and Washington all have laws that allow financial 

22 institutions to offer prize-linked savings products; 

23 (7) in the States of Michigan and Nebraska, 

24 more than 42,000 individuals have opened prizeVerDate Mar 15 2010 02:10 Oct 30, 2013 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1597.IS S1597

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1 linked savings accounts and saved more than 

2 $72,000,000; 

3 (8) prize-linked savings products have been 

4 shown to successfully attract non-savers, the asset 

5 poor, and low-to-moderate income groups, providing 

6 individuals with a new tool to build personal savings; 

7 and 

8 (9) encouraging personal savings is in the na9 tional interest of the United States. 

10 SEC. 3. AMENDMENT TO DEFINITIONS OF ‘‘LOTTERY’’. 

11 (a) NATIONAL BANKS.—Section 5136B(c) of the Re12 vised Statutes of the United States (12 U.S.C. 25a(c)) is 

13 amended— 

14 (1) in paragraph (2), by inserting ‘‘, other than 

15 a savings promotion raffle,’’ before ‘‘whereby’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(4) The term ‘savings promotion raffle’ means 

18 a contest in which the sole consideration required for 

19 a chance of winning designated prizes is obtained by 

20 the deposit of a specified amount of money in a sav21 ings account or other savings program, where each 

22 ticket or entry has an equal chance of being drawn, 

23 such contest being subject to regulations that may 

24 from time to time be promulgated by the appropriate 

25 prudential regulator (as defined in section 1002 of 


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1 the Consumer Financial Protection Act of 2010 (12 

2 U.S.C. 5481)).’’. 

3 (b) FEDERAL RESERVE BANKS.—Section 9A(c) of 

4 the Federal Reserve Act (12 U.S.C. 339(c)) is amended— 

5 (1) in paragraph (2), by inserting ‘‘, other than 

6 a savings promotion raffle,’’ before ‘‘whereby’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(4) The term ‘savings promotion raffle’ means 

9 a contest in which the sole consideration required for 

10 a chance of winning designated prizes is obtained by 

11 the deposit of a specified amount of money in a sav12 ings account or other savings program, where each 

13 ticket or entry has an equal chance of being drawn, 

14 such contest being subject to regulations that may 

15 from time to time be promulgated by the appropriate 

16 prudential regulator (as defined in section 1002 of 

17 the Consumer Financial Protection Act of 2010 (12 

18 U.S.C. 5481)).’’. 

19 (c) INSURED DEPOSITORY INSTITUTIONS.—Section 

20 20(c) of the Federal Deposit Insurance Act (12 U.S.C. 

21 1829a(c)) is amended— 

22 (1) in paragraph (2), by inserting ‘‘, other than 

23 a savings promotion raffle,’’ before ‘‘whereby’’; and 

24 (2) by adding at the end the following: 


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1 ‘‘(4) The term ‘savings promotion raffle’ means 

2 a contest in which the sole consideration required for 

3 a chance of winning designated prizes is obtained by 

4 the deposit of a specified amount of money in a sav5 ings account or other savings program, where each 

6 ticket or entry has an equal chance of being drawn, 

7 such contest being subject to regulations that may 

8 from time to time be promulgated by the appropriate 

9 prudential regulator (as defined in section 1002 of 

10 the Consumer Financial Protection Act of 2010 (12 

11 U.S.C. 5481)).’’. 

12 (d) FEDERAL SAVINGS AND LOAN ASSOCIATIONS.— 

13 Section 4(e)(3) of the Home Owners’ Loan Act (12 U.S.C. 

14 1463(e)(3)) is amended— 

15 (1) in subparagraph (B), by inserting ‘‘, other 

16 than a savings promotion raffle,’’ after ‘‘arrange17 ment’’; and 

18 (2) by adding at the end the following: 

19 ‘‘(D) SAVINGS PROMOTION RAFFLE.—The 

20 term ‘savings promotion raffle’ means a contest 

21 in which the sole consideration required for a 

22 chance of winning designated prizes is obtained 

23 by the deposit of a specified amount of money 

24 in a savings account or other savings program, 

25 where each ticket or entry has an equal chance 


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1 of being drawn, such contest being subject to 

2 regulations that may from time to time be pro3 mulgated by the appropriate prudential regu4 lator (as defined in section 1002 of the Con5 sumer Financial Protection Act of 2010 (12 

6 U.S.C. 5481)).’’. 

7 SEC. 4. CRIMINAL PROVISIONS. 

8 (a) IN GENERAL.—Chapter 61 of title 18, United 

9 States Code, is amended by adding at the end the fol10 lowing: 

11 ‘‘§ 1308. Limitation of applicability 

12 ‘‘(a) LIMITATION OF APPLICABILITY.—Sections 

13 1301, 1302, 1303, 1304, and 1306 shall not apply— 

14 ‘‘(1) to a savings promotion raffle conducted by 

15 an insured depository institution or an insured credit 

16 union; or 

17 ‘‘(2) to any activity conducted in connection 

18 with any such savings promotion raffle, including, 

19 without limitation, to the— 

20 ‘‘(A) transmission of any advertisement, 

21 list of prizes, or other information concerning 

22 the savings promotion raffle; 

23 ‘‘(B) offering, facilitation, and acceptance 

24 of deposits, withdrawals, or other transactions 

25 in connection with the savings promotion raffle; 


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1 ‘‘(C) transmission of any information relat2 ing to the savings promotion raffle, including 

3 account balance and transaction information; 

4 and 

5 ‘‘(D) deposit or transmission of prizes 

6 awarded in the savings promotion raffle as well 

7 as notification or publication thereof. 

8 ‘‘(b) DEFINITIONS.—In this section— 

9 ‘‘(1) the term ‘insured credit union’ shall have 

10 the meaning given the term in section 101 of the 

11 Federal Credit Union Act (12 U.S.C. 1752); 

12 ‘‘(2) the term ‘insured depository institution’ 

13 shall have the meaning given the term in section 3 

14 of the Federal Deposit Insurance Act (12 U.S.C. 

15 1813); and 

16 ‘‘(3) the term ‘savings promotion raffle’ means 

17 a contest in which the sole consideration required for 

18 a chance of winning designated prizes is obtained by 

19 the deposit of a specified amount of money in a sav20 ings account or other savings program, where each 

21 ticket or entry has an equal chance of being drawn, 

22 such contest being subject to regulations that may 

23 from time to time be promulgated by the appropriate 

24 prudential regulator (as defined in section 1002 of 


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1 the Consumer Financial Protection Act of 2010 (12 

2 U.S.C. 5481)).’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

4 The table of sections for chapter 61 of title 18, United 

5 States Code, is amended by adding after the item relating 

6 to section 1307 the following: 

‘‘1308. Limitation of applicability.’’. 

7 SEC. 5. RACKETEERING. 

8 Chapter 95 of title 18, United States Code, is amend9 ed— 

10 (1) in section 1952, by adding at the end the 

11 following: 

12 ‘‘(e)(1) This section shall not apply to a savings pro13 motion raffle conducted by an insured depository institu14 tion or an insured credit union. 

15 ‘‘(2) In this subsection— 

16 ‘‘(A) the term ‘insured credit union’ shall have 

17 the meaning given the term in section 101 of the 

18 Federal Credit Union Act (12 U.S.C. 1752); 

19 ‘‘(B) the term ‘insured depository institution’ 

20 shall have the meaning given the term in section 3 

21 of the Federal Deposit Insurance Act (12 U.S.C. 

22 1813); and 

23 ‘‘(C) the term ‘savings promotion raffle’ means 

24 a contest in which the sole consideration required for 

25 a chance of winning designated prizes is obtained by 


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1 the deposit of a specified amount of money in a sav2 ings account or other savings program, where each 

3 ticket or entry has an equal chance of being drawn, 

4 such contest being subject to regulations that may 

5 from time to time be promulgated by the appropriate 

6 prudential regulator (as defined in section 1002 of 

7 the Consumer Financial Protection Act of 2010 (12 

8 U.S.C. 5481)).’’; 

9 (2) in section 1953— 

10 (A) in subsection (b), by striking ‘‘or (5)’’ 

11 and inserting ‘‘(5) equipment, tickets, or mate12 rials used or designed for use in a savings pro13 motion raffle operated by an insured depository 

14 institution or an insured credit union, or (6)’’; 

15 and 

16 (B) by striking subsections (d) and (e) and 

17 inserting the following: 

18 ‘‘(d) For purposes of this section— 

19 ‘‘(1) the term ‘foreign country’ means any em20 pire, country, dominion, colony, or protectorate, or 

21 any subdivision thereof (other than the United 

22 States, its territories or possessions); 

23 ‘‘(2) the term ‘insured credit union’ shall have 

24 the meaning given the term in section 101 of the 

25 Federal Credit Union Act (12 U.S.C. 1752); 


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1 ‘‘(3) the term ‘insured depository institution’ 

2 shall have the meaning given the term in section 3 

3 of the Federal Deposit Insurance Act (12 U.S.C. 

4 1813); 

5 ‘‘(4) the term ‘lottery’— 

6 ‘‘(A) means the pooling of proceeds derived 

7 from the sale of tickets or chances and allotting 

8 those proceeds or parts thereof by chance to 

9 one or more chance takers or ticket purchasers; 

10 and 

11 ‘‘(B) does not include the placing or ac12 cepting of bets or wagers on sporting events or 

13 contests; 

14 ‘‘(5) the term ‘savings promotion raffle’ means 

15 a contest in which the sole consideration required for 

16 a chance of winning designated prizes is obtained by 

17 the deposit of a specified amount of money in a sav18 ings account or other savings program, where each 

19 ticket or entry has an equal chance of being drawn, 

20 such contest being subject to regulations that may 

21 from time to time be promulgated by the appropriate 

22 prudential regulator (as defined in section 1002 of 

23 the Consumer Financial Protection Act of 2010 (12 

24 U.S.C. 5481)); and 


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1 ‘‘(6) the term ‘State’ means a State of the 

2 United States, the District of Columbia, the Com3 monwealth of Puerto Rico, or any territory or pos4 session of the United States.’’; and 

5 (3) in section 1955— 

6 (A) in subsection (b)— 

7 (i) by redesignating paragraph (2) as 

8 paragraph (4); 

9 (ii) by redesignating paragraph (3) as 

10 paragraph (6); 

11 (iii) by inserting after paragraph (1) 

12 the following: 

13 ‘‘(2) ‘insured credit union’ shall have the mean14 ing given the term in section 101 of the Federal 

15 Credit Union Act (12 U.S.C. 1752). 

16 ‘‘(3) ‘insured depository institution’ shall have 

17 the meaning given the term in section 3 of the Fed18 eral Deposit Insurance Act (12 U.S.C. 1813).’’; and 

19 (iv) by inserting after paragraph (4), 

20 as redesignated, the following: 

21 ‘‘(5) ‘savings promotion raffle’ means a contest 

22 in which the sole consideration required for a chance 

23 of winning designated prizes is obtained by the de24 posit of a specified amount of money in a savings ac25 count or other savings program, where each ticket or 


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1 entry has an equal chance of being drawn, such con2 test being subject to regulations that may from time 

3 to time be promulgated by the appropriate pruden4 tial regulator (as defined in section 1002 of the Con5 sumer Financial Protection Act of 2010 (12 U.S.C. 

6 5481)).’’. 

Æ 


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