BANKS: LOAN PROMOTION RAFFLES
House Bill 5251 as introduced
Sponsor: Rep. Brandt Iden
Committee: Financial Services
Complete to 1-27-16
SUMMARY:
House Bill 5251 would amend the Banking Code to say that, if authorized by its board of directors, a bank could conduct a loan promotion raffle where each token or ticket representing any entry in the raffle has an equal chance of being drawn. A bank could not conduct a loan promotion raffle in a manner that jeopardizes the bank's safety and soundness or misleads it customers. In addition, a bank would have to maintain records sufficient to facilitate an examination of a loan promotion raffle.
Under the same section of the Banking Code, banks can already conduct savings promotion raffles.
The bill would define "Loan Promotion Raffle" to mean a raffle conducted by a bank where the sole consideration required for a chance of winning designated prizes is the closing on a loan with the bank of at least a specified amount
The bills is tie-barred to House Bills 5022 (credit unions) and 5147 (gambling provisions in the Penal Code), each of which has already been reported from the House Financial Services Committee.
MCL 487.14111
FISCAL IMPACT:
The bill would not have a significant fiscal impact on the Department of Insurance and Financial Services.
Fiscal Analyst: Paul B.A. Holland
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.