2011 -- S 0797
A N A C T
RELATING TO FINANCIAL INSTITUTIONS -- CREDIT UNIONS
Introduced By: Senator Maryellen Goodwin
Date Introduced: March 24, 2011
It is enacted by the General Assembly as follows:
SECTION 1. Section 19-5-29 of the General Laws in Chapter 19-5 entitled "Credit
Unions" is hereby amended to read as follows:
19-5-29. Savings promotion raffle. -- (a) If authorized by the credit union board of
directors, a credit union registered to do business in the
savings promotion raffle, provided that it has given the department of business regulation prior
written notice of its intent to conduct such a raffle. Said notice shall include an attestation that the
raffle meets all requirements of all applicable laws and regulations including, but not limited to,
the national credit union administration (NCUA) regulations and guidelines related to such
contests; that the raffle will be administered in a manner that is fair and non-discriminatory to
credit union members; and that there will be no adverse impact on the financial condition of the
credit union as a result of the proposed savings promotion raffle. The credit union shall conduct a
savings promotion raffle so that each token or ticket representing an entry in the raffle has an
equal chance of being drawn. A credit union shall not conduct a savings promotion raffle in a
manner that jeopardizes the credit union's safety and financial soundness or misleads its
(b) Pursuant to his or
her supervisory powers the director of
state lotteries shall the
department of business regulation may examine the conduct of a savings promotion raffle at any
time. The director may issue a cease and desist order for a violation of this section.
(c) A credit union shall maintain records sufficient to facilitate an audit of a savings
(d) As used in this section, "savings promotion raffle" means a raffle conducted by a
credit union where the sole consideration required for a chance of winning designated prizes is
the deposit of at least a specified amount of money in a savings account or other savings program
offered by the credit union.
SECTION 2. Section 42-61-18 of the General Laws in Chapter 42-61 entitled "State
Lottery" is hereby repealed.
Credit union savings lottery authorized. -- Credit unions
organized pursuant to chapter 19-5 of the general laws are hereby
authorized to conduct lotteries in accordance with section 19-5-29 of the general laws.
SECTION 3. This act shall take effect upon passage.