Lawmakers gave first-round approval March 14 to a bill that would allow credit unions to conduct a savings promotion raffle.<\/p>\n
Under LB524, introduced by Lincoln Sen. Amanda McGill, savings promotion raffles would be added to the definition of a gift enterprise. Currently, credit unions are authorized to conduct a gift enterprise \u2013 a business promotion contest or game of chance \u2013 under Nebraska law.<\/p>\n
According to McGill, a savings promotion raffle is a contest where depositing a specific amount of money into a savings account or program earns an individual a chance at winning a designated prize. Each entry must have an equal chance of winning.<\/p>\n
McGill said a pilot program in Michigan helped participants save over $28 million dollars last year. Participants earned a chance at winning a prize each time they made a deposit to a savings account, she explained, with the prize money supplied by credit unions.<\/p>\n
\u201c[LB524] is an innovative and fun idea to encourage people to save more money,\u201d McGill said. \u201cFifty-six percent of the people who opened these savings products had never saved before.\u201d<\/p>\n
A General Affairs Committee amendment, adopted 35-0, prohibits credit union employees from participating in a savings promotion raffle, requires disclosure of raffle terms and conditions to participants and allows credit unions to limit the number of chances to win a prize but not the number of deposits.<\/p>\n
Omaha Sen. Jeremy Nordquist supported the bill, saying the Michigan pilot project demonstrated that such programs encourage people to save who normally do not. The bill would incentivize low-income Nebraskans to accumulate assets and save for future needs, he said.<\/p>\n
\u201cWhen people have assets they think about the long term,\u201d Nordquist said.<\/p>\n
Sen. Bob Krist of Omaha also supported the measure, saying it would help establish trust in financial institutions, which could encourage savings further.<\/p>\n
\u201cWe have a financial literacy problem all over this country,\u201d he said.<\/p>\n
LB524 advanced to select file on a 38-0 vote.<\/p>\n","protected":false},"excerpt":{"rendered":"
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