ST. PAUL, Minn. (5/11/15)--On a unanimous vote, the Minnesota Senate Friday passed a Minnesota Credit Union Network-sponsored (MnCUN) prize-linked savings bill.
H.F. 1127/S.F. 1043, authored by Sen. Vicki Jensen (Democrat Farm Labor Party-Owatonna), allows credit unions to offer accounts that essentially treat qualified deposits as a ticket in a drawing.
“On behalf of Minnesota credit unions and their members, we would like to thank the Minnesota Senate for passing this bill,” said MnCUN President/CEO Mark Cummins. “Prize-linked savings accounts will help individuals and families all across Minnesota build a stronger financial foundation.”
The PLS bill was a key focus for the MnCUN this legislative session. The House passed its version of the bill, authored by Rep. Jennifer Loon (R-Eden Prairie), by a 125-2 vote on April 30. The legislation now goes to Gov. Mark Dayton for his approval.
Savings promotion raffles, also known as PLS accounts, encourage credit union members to save by incentivizing them with opportunities to win cash each time they put away a set amount of money each month.
Under PLS accounts, while not every member who saves money wins a cash prize, they still will have built up their savings account and bolstered their savings habits.
Since 2009, credit unions in the United States offering PLS accounts have helped more than 50,000 members save a total of $94 million.
In a PLS development in Oregon, HB 2893, the PLS bill promoted by the Northwest Credit Union Association, passed the State Senate Business and Transportation Committee by a vote of 5-0, sending it to the Senate floor as its final stop before the governor’s office (Anthem May 8).
HB 2893 permits financial institutions to conduct savings promotion raffles subject to specified conditions, and allows the Director of Department of Consumer and Business Services to adopt rules regarding savings promotion raffles.