I 

113TH CONGRESS 

1ST SESSION H. R. 3374 

To provide for the use of savings promotion raffle products by financial 

institutions to encourage savings, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 29, 2013 

Mr. KILMER (for himself, Mr. COTTON, and Ms. TSONGAS) introduced the following bill; which was referred to the Committee on Financial Services, 

and in addition to the Committee on the Judiciary, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

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— 


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

2 was 4.1 percent in 2012; 

3 (2) more than 40 percent of American house4 holds lack the savings to cover basic expenses for 3 

5 months, if an unexpected event leads to a loss of sta6 ble income; 

7 (3) personal savings provide Americans with the 

8 financial resources to meet future needs, including 

9 higher education and homeownership, while also pro10 viding a safety net to weather unexpected financial 

11 shocks; 

12 (4) prize-linked savings products are typical 

13 savings products offered by financial institutions, 

14 like savings accounts, certificates of deposit, and 

15 savings bonds, with the added feature of offering 

16 chances to win prizes based on deposit activity; 

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

18 allow credit unions to offer prize-linked savings 

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

20 prize-linked savings product in the United States; 

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

22 Maryland, Nebraska, North Carolina, Rhode Island, 

23 and Washington all have laws that allow financial 

24 institutions to offer prize-linked savings products; 


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

2 more than 42,000 individuals have opened prize3 linked savings accounts and saved more than 

4 $72,000,000; 

5 (8) prize-linked savings products have been 

6 shown to successfully attract non-savers, the asset 

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

8 individuals with a new tool to build personal savings; 

9 and 

10 (9) encouraging personal savings is in the na11 tional interest of the United States. 

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

13 (a) NATIONAL BANKS.—Section 5136B(c) of the Re14 vised Statutes of the United States (12 U.S.C. 25a(c)) is 

15 amended— 

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

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

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

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

20 a contest in which the sole consideration required for 

21 a chance of winning designated prizes is obtained by 

22 the deposit of a specified amount of money in a sav23 ings account or other savings program, where each 

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

25 such contest being subject to regulations that may 


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1 from time to time be promulgated by the appropriate 

2 prudential regulator (as defined in section 1002 of 

3 the Consumer Financial Protection Act of 2010 (12 

4 U.S.C. 5481)).’’. 

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

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

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

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

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

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

11 a contest in which the sole consideration required for 

12 a chance of winning designated prizes is obtained by 

13 the deposit of a specified amount of money in a sav14 ings account or other savings program, where each 

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

16 such contest being subject to regulations that may 

17 from time to time be promulgated by the appropriate 

18 prudential regulator (as defined in section 1002 of 

19 the Consumer Financial Protection Act of 2010 (12 

20 U.S.C. 5481)).’’. 

21 (c) INSURED DEPOSITORY INSTITUTIONS.—Section 

22 20(c) of the Federal Deposit Insurance Act (12 U.S.C. 

23 1829a(c)) is amended— 

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

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


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

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

3 a contest in which the sole consideration required for 

4 a chance of winning designated prizes is obtained by 

5 the deposit of a specified amount of money in a sav6 ings account or other savings program, where each 

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

8 such contest being subject to regulations that may 

9 from time to time be promulgated by the appropriate 

10 prudential regulator (as defined in section 1002 of 

11 the Consumer Financial Protection Act of 2010 (12 

12 U.S.C. 5481)).’’. 

13 (d) FEDERAL SAVINGS AND LOAN ASSOCIATIONS.— 

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

15 1463(e)(3)) is amended— 

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

17 than a savings promotion raffle,’’ after ‘‘arrange18 ment’’; and 

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

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

21 term ‘savings promotion raffle’ means a contest 

22 in which the sole consideration required for a 

23 chance of winning designated prizes is obtained 

24 by the deposit of a specified amount of money 

25 in a savings account or other savings program, 


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1 where each ticket or entry has an equal chance 

2 of being drawn, such contest being subject to 

3 regulations that may from time to time be pro4 mulgated by the appropriate prudential regu5 lator (as defined in section 1002 of the Con6 sumer Financial Protection Act of 2010 (12 

7 U.S.C. 5481)).’’. 

8 SEC. 4. CRIMINAL PROVISIONS. 

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

10 States Code, is amended by adding at the end the fol11 lowing: 

12 ‘‘§ 1308. Limitation of applicability 

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

14 1301, 1302, 1303, 1304, and 1306 shall not apply— 

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

16 an insured depository institution or an insured credit 

17 union; or 

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

19 with any such savings promotion raffle, including, 

20 without limitation, to the— 

21 ‘‘(A) transmission of any advertisement, 

22 list of prizes, or other information concerning 

23 the savings promotion raffle; 


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

2 of deposits, withdrawals, or other transactions 

3 in connection with the savings promotion raffle; 

4 ‘‘(C) transmission of any information relat5 ing to the savings promotion raffle, including 

6 account balance and transaction information; 

7 and 

8 ‘‘(D) deposit or transmission of prizes 

9 awarded in the savings promotion raffle as well 

10 as notification or publication thereof. 

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

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

13 the meaning given the term in section 101 of the 

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

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

16 shall have the meaning given the term in section 3 

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

18 1813); and 

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

20 a contest in which the sole consideration required for 

21 a chance of winning designated prizes is obtained by 

22 the deposit of a specified amount of money in a sav23 ings account or other savings program, where each 

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

25 such contest being subject to regulations that may 


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1 from time to time be promulgated by the appropriate 

2 prudential regulator (as defined in section 1002 of 

3 the Consumer Financial Protection Act of 2010 (12 

4 U.S.C. 5481)).’’. 

5 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

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

8 to section 1307 the following: 

‘‘1308. Limitation of applicability.’’. 

9 SEC. 5. RACKETEERING. 

10 Chapter 95 of title 18, United States Code, is amend11 ed— 

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

13 following: 

14 ‘‘(e)(1) This section shall not apply to a savings pro15 motion raffle conducted by an insured depository institu16 tion or an insured credit union. 

17 ‘‘(2) In this subsection— 

18 ‘‘(A) 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 ‘‘(B) 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 ‘‘(C) 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 (2) in section 1953— 

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

14 and inserting ‘‘(5) equipment, tickets, or mate15 rials used or designed for use in a savings pro16 motion raffle operated by an insured depository 

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

18 and 

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

20 inserting the following: 

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

22 ‘‘(1) the term ‘foreign country’ means any em23 pire, country, dominion, colony, or protectorate, or 

24 any subdivision thereof (other than the United 

25 States, its territories or possessions); 


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1 ‘‘(2) 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 ‘‘(3) 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); 

8 ‘‘(4) the term ‘lottery’— 

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

10 from the sale of tickets or chances and allotting 

11 those proceeds or parts thereof by chance to 

12 one or more chance takers or ticket purchasers; 

13 and 

14 ‘‘(B) does not include the placing or ac15 cepting of bets or wagers on sporting events or 

16 contests; 

17 ‘‘(5) 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)); and 

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

4 United States, the District of Columbia, the Com5 monwealth of Puerto Rico, or any territory or pos6 session of the United States.’’; and 

7 (3) in section 1955— 

8 (A) in subsection (b)— 

9 (i) by redesignating paragraph (2) as 

10 paragraph (4); 

11 (ii) by redesignating paragraph (3) as 

12 paragraph (6); 

13 (iii) by inserting after paragraph (1) 

14 the following: 

15 ‘‘(2) ‘insured credit union’ shall have the mean16 ing given the term in section 101 of the Federal 

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

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

19 the meaning given the term in section 3 of the Fed20 eral Deposit Insurance Act (12 U.S.C. 1813).’’; and 

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

22 as redesignated, the following: 

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

24 in which the sole consideration required for a chance 

25 of winning designated prizes is obtained by the deVerDate Mar 15 2010 18:50 Nov 01, 2013 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3374.IH H3374

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1 posit of a specified amount of money in a savings ac2 count or other savings program, where each ticket or 

3 entry has an equal chance of being drawn, such con4 test being subject to regulations that may from time 

5 to time be promulgated by the appropriate pruden6 tial regulator (as defined in section 1002 of the Con7 sumer Financial Protection Act of 2010 (12 U.S.C. 

8 5481)).’’. 

Æ 


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