Apr. 22, 2015
HARRISBURG – Rep. Rosemary M. Brown (R-Monroe/Pike) is the sponsor of a proposal which would authorize and regulate savings promotion raffles in Pennsylvania. Brown’s
House Bill 837 passed the House Commerce Committee on Monday.
“Savings promotion raffles are financial products offered by banks or credit unions that give depositors a chance to win prizes as they build savings,” Brown explained. “These financial products are sometimes called ‘no-lose lotteries’ because the depositors’ balance is never at risk.”
Michigan launched the first savings promotion raffle program in 2009. Data from 2013 displayed that financially vulnerable participants increased their savings by 30 percent during a 12-month period. Due to Michigan’s success, 10 other states have created similar legislation.
“I introduced this legislation in Pennsylvania because savings promotion raffles can be a building block for families to start establishing their own financial reserves,” Brown said. “I understand the challenges families are facing as we continue through this weakened national economy, and this legislation is intended to allow institutions to motivate and excite Pennsylvania households to save, encouraging them to increase their financial literacy and stability.”
Studies have confirmed that nearly half of American households have insufficient savings to cover three months of expenses, and approximately nine million American households are unbanked, meaning they do not have any accounts at a bank or credit union, Brown stated.
The House Commerce Committee included two amendments to Brown’s bill. The first would require the banks or credit unions to disclose that winnings may be subject to federal, state and local tax on disclosure statements. The second clarified the role of the PA Department of Banking and Securities.
For more information about House Bill 837, or any state-related issue, contact Brown’s district office in East Stroudsburg located at 143 Seven Bridge Road, by calling 570-420-8301. Information about current legislation can also be found on
www.RepBrown.com and
www.Facebook.com/RepRosemaryBrown.
Representative Rosemary M. Brown
189th District
Pennsylvania House of Representatives
Media Contact: Krisinda Corbin
717.705.2032
KCorbin@pahousegop.com
RepBrown.com /
Facebook.com/RepRosemaryBrown