HARRISBURG, Penn.—The Pennsylvania House Commerce Committee has unanimously passed prize-linked savings legislation out of committee.
The legislation, HB 837, would permit certain financial institutions, like credit unions, to offer savings promotion raffles to encourage savings.
HB 861 is sponsored by Rep. Rosemary Brown (R-Monroe), a member of the House Commerce Committee and an advocate of financial education. The Pennsylvania CU Association said it has been working with Rep. Brown and other key members throughout the legislative process.
“Prize-linked savings programs have proven to encourage savings among consumers who are least likely to save,” said Christina Mihalik, VP, governmental affairs, in a statement first reported by the PCUA. “There are a number of credit unions with extremely successful prize-linked savings programs in several states that have already authorized the product.”