IIB 

113TH CONGRESS 

2D SESSION H. R. 3374 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 16, 2014 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘American Savings Pro3 motion Act’’. 

4 SEC. 2. FINDINGS. 

5 Congress finds that— 

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

7 was 4.1 percent in 2012; 

8 (2) more than 40 percent of American house9 holds lack the savings to cover basic expenses for 3 

10 months, if an unexpected event leads to a loss of sta11 ble income; 

12 (3) personal savings provide Americans with the 

13 financial resources to meet future needs, including 

14 higher education and homeownership, while also pro15 viding a safety net to weather unexpected financial 

16 shocks; 

17 (4) prize-linked savings products are typical 

18 savings products offered by financial institutions, 

19 like savings accounts, certificates of deposit, and 

20 savings bonds, with the added feature of offering 

21 chances to win prizes based on deposit activity; 

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

23 allow credit unions to offer prize-linked savings 

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

25 prize-linked savings product in the United States; 


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

2 Maryland, Nebraska, North Carolina, Rhode Island, 

3 and Washington all have laws that allow financial 

4 institutions to offer prize-linked savings products; 

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

6 more than 42,000 individuals have opened prize7 linked savings accounts and saved more than 

8 $72,000,000; 

9 (8) prize-linked savings products have been 

10 shown to successfully attract non-savers, the asset 

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

12 individuals with a new tool to build personal savings; 

13 and 

14 (9) encouraging personal savings is in the na15 tional interest of the United States. 

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

17 (a) NATIONAL BANKS.—Section 5136B(c) of the Re18 vised Statutes of the United States (12 U.S.C. 25a(c)) is 

19 amended— 

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

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

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

23 ‘‘(4) 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 (b) FEDERAL RESERVE BANKS.—Section 9A(c) of 

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

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

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

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

14 ‘‘(4) 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)).’’. 


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1 (c) INSURED DEPOSITORY INSTITUTIONS.—Section 

2 20(c) of the Federal Deposit Insurance Act (12 U.S.C. 

3 1829a(c)) is amended— 

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

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

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

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

8 a contest in which the sole consideration required for 

9 a chance of winning designated prizes is obtained by 

10 the deposit of a specified amount of money in a sav11 ings account or other savings program, where each 

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

13 such contest being subject to regulations that may 

14 from time to time be promulgated by the appropriate 

15 prudential regulator (as defined in section 1002 of 

16 the Consumer Financial Protection Act of 2010 (12 

17 U.S.C. 5481)).’’. 

18 (d) FEDERAL SAVINGS AND LOAN ASSOCIATIONS.— 

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

20 1463(e)(3)) is amended— 

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

22 than a savings promotion raffle,’’ after ‘‘arrange23 ment’’; and 

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


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

2 term ‘savings promotion raffle’ means a contest 

3 in which the sole consideration required for a 

4 chance of winning designated prizes is obtained 

5 by the deposit of a specified amount of money 

6 in a savings account or other savings program, 

7 where each ticket or entry has an equal chance 

8 of being drawn, such contest being subject to 

9 regulations that may from time to time be pro10 mulgated by the appropriate prudential regu11 lator (as defined in section 1002 of the Con12 sumer Financial Protection Act of 2010 (12 

13 U.S.C. 5481)).’’. 

14 SEC. 4. CRIMINAL PROVISIONS. 

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

16 States Code, is amended by adding at the end the fol17 lowing: 

18 ‘‘§ 1308. Limitation of applicability 

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

20 1301, 1302, 1303, 1304, and 1306 shall not apply— 

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

22 an insured depository institution or an insured credit 

23 union; or 


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

2 with any such savings promotion raffle, including, 

3 without limitation, to the— 

4 ‘‘(A) transmission of any advertisement, 

5 list of prizes, or other information concerning 

6 the savings promotion raffle; 

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

8 of deposits, withdrawals, or other transactions 

9 in connection with the savings promotion raffle; 

10 ‘‘(C) transmission of any information relat11 ing to the savings promotion raffle, including 

12 account balance and transaction information; 

13 and 

14 ‘‘(D) deposit or transmission of prizes 

15 awarded in the savings promotion raffle as well 

16 as notification or publication thereof. 

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

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

19 the meaning given the term in section 101 of the 

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

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

22 shall have the meaning given the term in section 3 

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

24 1813); and 


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1 ‘‘(3) 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 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

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

15 to section 1307 the following: 

‘‘1308. Limitation of applicability.’’. 

16 SEC. 5. RACKETEERING. 

17 Chapter 95 of title 18, United States Code, is amend18 ed— 

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

20 following: 

21 ‘‘(e)(1) This section shall not apply to a savings pro22 motion raffle conducted by an insured depository institu23 tion or an insured credit union. 

24 ‘‘(2) In this subsection— 


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

2 the meaning given the term in section 101 of the 

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

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

5 shall have the meaning given the term in section 3 

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

7 1813); and 

8 ‘‘(C) 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 (2) in section 1953— 

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

21 and inserting ‘‘(5) equipment, tickets, or mate22 rials used or designed for use in a savings pro23 motion raffle operated by an insured depository 

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

25 and 


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

2 inserting the following: 

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

4 ‘‘(1) the term ‘foreign country’ means any em5 pire, country, dominion, colony, or protectorate, or 

6 any subdivision thereof (other than the United 

7 States, its territories or possessions); 

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

9 the meaning given the term in section 101 of the 

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

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

12 shall have the meaning given the term in section 3 

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

14 1813); 

15 ‘‘(4) the term ‘lottery’— 

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

17 from the sale of tickets or chances and allotting 

18 those proceeds or parts thereof by chance to 

19 one or more chance takers or ticket purchasers; 

20 and 

21 ‘‘(B) does not include the placing or ac22 cepting of bets or wagers on sporting events or 

23 contests; 

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

25 a contest in which the sole consideration required for 


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1 a chance of winning designated prizes is obtained by 

2 the deposit of a specified amount of money in a sav3 ings account or other savings program, where each 

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

5 such contest being subject to regulations that may 

6 from time to time be promulgated by the appropriate 

7 prudential regulator (as defined in section 1002 of 

8 the Consumer Financial Protection Act of 2010 (12 

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

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

11 United States, the District of Columbia, the Com12 monwealth of Puerto Rico, or any territory or pos13 session of the United States.’’; and 

14 (3) in section 1955— 

15 (A) in subsection (b)— 

16 (i) by redesignating paragraph (2) as 

17 paragraph (4); 

18 (ii) by redesignating paragraph (3) as 

19 paragraph (6); 

20 (iii) by inserting after paragraph (1) 

21 the following: 

22 ‘‘(2) ‘insured credit union’ shall have the mean23 ing given the term in section 101 of the Federal 

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


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

2 the meaning given the term in section 3 of the Fed3 eral Deposit Insurance Act (12 U.S.C. 1813).’’; and 

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

5 as redesignated, the following: 

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

7 in which the sole consideration required for a chance 

8 of winning designated prizes is obtained by the de9 posit of a specified amount of money in a savings ac10 count or other savings program, where each ticket or 

11 entry has an equal chance of being drawn, such con12 test being subject to regulations that may from time 

13 to time be promulgated by the appropriate pruden14 tial regulator (as defined in section 1002 of the Con15 sumer Financial Protection Act of 2010 (12 U.S.C. 

16 5481)).’’; and 

17 (B) in subsection (e)— 

18 (i) by striking ‘‘shall not apply to any 

19 bingo’’ and inserting the following: ‘‘shall 

20 not apply to— 

21 ‘‘(1) any bingo’’; 

22 (ii) by striking the period and insert23 ing ‘‘; or’’; and 

24 (iii) by adding at the end the fol25 lowing: 


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1 ‘‘(2) any savings promotion raffle.’’. 

Passed the House of Representatives September 15, 

2014. 

Attest: KAREN L. HAAS, 

Clerk. 


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