LOAN PROMOTION RAFFLES                                                                   S.B. 751 & 752:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bills 751 and 752 (as reported without amendment)

Sponsor:  Senator Margaret E. O'Brien (S.B. 751)

               Senator Peter MacGregor (S.B. 752)

Committee:  Banking and Financial Institutions

CONTENT

Senate Bill 751 would amend the Banking Code to allow a bank to conduct a loan promotion raffle, if it met all of the following conditions:

-- The bank would have to conduct the raffle so that each token or ticket representing an entry had an equal chance of being drawn.

-- The bank could not conduct the raffle in a manner that jeopardized the bank's safety and soundness, misled its customers, or violated Federal law.

-- The bank would have to maintain records sufficient to facilitate an examination of a loan promotion raffle.

"Loan promotion raffle" would mean a raffle conducted by a bank where the sole consideration required for a chance at winning designated prizes is the closing on a loan with the bank of at least a specified amount of money.

Senate Bill 752 would amend the Michigan Penal Code to provide that Chapter 44 (Gambling) and Chapter 55 (Lottery) of the Code would not apply to a loan promotion raffle conducted by a State bank under Section 4111 of the Banking Code (the section that Senate Bill 751 would amend).

The bills are tie-barred, and each bill would take effect 90 days after its enactment.

MCL 487.14111 (S.B. 751)                                                 Legislative Analyst:  Jeff Mann

       750.315a & 750.376a (S.B. 752)

FISCAL IMPACT

The bills would have no fiscal impact on State or local government.

Date Completed:  3-1-16                                                   Fiscal Analyst:  Glenn Steffens

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.