HB-5022, As Passed House, May 31, 2016HB-5022, As Passed Senate, May 18, 2016

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5022

     A bill to amend 2003 PA 215, entitled

"Credit union act,"

by amending section 411 (MCL 490.411).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 411. (1) If authorized by the credit union board, a

domestic credit union may conduct a savings promotion raffle. All

of the following apply to a savings promotion raffle conducted

under this subsection:

     (a) The domestic 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 domestic credit

union shall not conduct a savings promotion raffle in a manner that

jeopardizes the domestic credit union's safety and soundness or

misleads its members.

(b) (2) Pursuant to his or her supervisory powers under

article 2, the commissioner director may examine the conduct of a

savings promotion raffle. The commissioner director may issue a

cease and desist order for a violation of this section subsection

under article 2.

(c) (3) A domestic credit union shall maintain records

sufficient to facilitate an audit of a savings promotion raffle.

     (2) If authorized by the credit union board, a domestic credit

union may conduct a loan promotion raffle. All of the following

apply to a loan promotion raffle conducted under this subsection:

     (a) The domestic credit union shall conduct a loan promotion

raffle so that each token or ticket representing an entry in the

raffle has an equal chance of being drawn. A domestic credit union

shall not conduct a loan promotion raffle in a manner that

jeopardizes the domestic credit union's safety and soundness or

misleads its members.

     (b) Pursuant to his or her supervisory powers under article 2,

the director may examine the conduct of a loan promotion raffle.

The director may issue a cease and desist order for a violation of

this subsection under article 2.

     (c) A domestic credit union shall maintain records sufficient

to facilitate an audit of a savings promotion raffle.

(3) (4) As used in this section, "savings section:

     (a) "Loan promotion raffle" means a raffle conducted by a

domestic credit union where the sole consideration required for a

chance of winning designated prizes is the closing on a loan with

the domestic credit union of at least a specified amount.

     (b) "Savings promotion raffle" means a raffle conducted by a

domestic 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 domestic credit union.

     Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.

     Enacting section 2. This amendatory act does not take effect

unless all of the following bills of the 98th Legislature are

enacted into law:

     (a) House Bill No. 5017.

     (b) House Bill No. 5018.

     (c) House Bill No. 5019.

     (d) House Bill No. 5020.

     (e) House Bill No. 5021.