Sens. Terry Bruce (R-Nickerson), Elaine Bowers (R-Concordia) and Rick Wilborn (R-McPherson) introduced SB 387 in the Kansas Legislature last week, according to a report from KSNT-TV.
“We look forward to supporting this bill as it moves throughout the legislative process,” said the Heartland Credit Union Association in a statement to News Now. “The proven success of PLS programs to encourage consumer savings is something we hope to bring to Kansas credit union members and consumers.”
PLS accounts encourage positive savings behavior by offering savers entries into cash-prize raffles each time they save a certain amount of money. Most PLS programs hold raffles monthly, quarterly, and annually. The product’s kicker is that, even if a member or consumer doesn’t snag the cash prize, they still win by building healthier savings accounts.
“With higher personal savings, every American can have more financial security and a better quality of life,” said U.S. Sen. Jerry Moran (R-Kan.), who played a critical role in lifting the federal ban on the product. “These benefits of savings offer our entire country a brighter economic future. Policies that encourage saving, even a little each month, should be pursued.”
A Missouri bill authorizing PLS accounts continues to work through the legislative process as well. The bill is currently going through several rounds of committee hearings in both the Senate and House.
“Having PLS legislation introduced in both states is good news for credit unions and consumers in Missouri and Kansas, and hopefully we will be able to bring the program to both states,” the association said.
Sixteen states now authorize financial institutions to offer this product, including New Jersey, Michigan, Rhode Island, Maine, Washington, North Carolina, Nebraska, Maryland, Connecticut, Indiana, New York, Arkansas, Illinois, Minnesota, Oregon and Virginia.