The American Savings Promotion Act (; ) is a United States

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that authorizes some financial institutions to conduct a contest, known as a "savings promotion raffle," in which the sole consideration required for a chance of winning designated prizes is obtained by the deposit of a specified amount of money in a savings account or program, where each ticket or entry has an equal chance of being drawn. The bill was introduced into the

United States House of Representatives The United States House of Representatives, often referred to as the House of Representatives, the U.S. House, or simply the House, is the Lower house, lower chamber of the United States Congress, with the United States Senate, Senate being ...

during the

113th United States Congress The 113th United States Congress was a meeting of the legislative branch of the United States federal government, from January 3, 2013, to January 3, 2015, during the fifth and sixth years of Presidency of Barack Obama, Barack Obama's presiden ...

by Rep.

Derek Kilmer Derek Christian Kilmer (born January 1, 1974) is an American politician who has been the U.S. representative for Washington's 6th congressional district since 2013. A member of the Democratic Party, he served as a member of the Washington House ...

(D, WA-6). A companion piece of legislation was introduced into the

United States Senate The United States Senate is the upper chamber of the United States Congress, with the House of Representatives being the lower chamber. Together they compose the national bicameral legislature of the United States. The composition and pow ...

by Senators Jerry Moran (R-KS) and

Sherrod Brown Sherrod Campbell Brown (; born November 9, 1952) is an American politician serving as the senior United States senator from Ohio, a seat which he has held since 2007. A member of the Democratic Party, he was the U.S. representative for Ohio's ...

(D-OH). The bill passed the House on a

voice vote In parliamentary procedure, a voice vote (from the Latin ''viva voce'', meaning "live voice") or acclamation is a voting method in deliberative assemblies (such as legislatures) in which a group vote is taken on a topic or motion by responding vo ...

on September 15, 2014 and passed the Senate by unanimous consent on December 10, 2014. It was signed into law by President

Barack Obama Barack Hussein Obama II ( ; born August 4, 1961) is an American politician who served as the 44th president of the United States from 2009 to 2017. A member of the Democratic Party, Obama was the first African-American president of the U ...

on December 18, 2014 and became Public Law No: 113-251.

Background

In October 2013, there were eight states that had laws which allowed banks and credit unions to run contests that rewarded customers who saved money.

Provisions of the bill

''This summary is based largely on the summary provided by the

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, a

public domain The public domain (PD) consists of all the creative work A creative work is a manifestation of creative effort including fine artwork (sculpture, paintings, drawing, sketching, performance art), dance, writing (literature), filmmaking, ...

source.'' The American Savings Promotion Act would amend the

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, the

Federal Reserve Act The Federal Reserve Act was passed by the 63rd United States Congress and signed into law by President Woodrow Wilson on December 23, 1913. The law created the Federal Reserve System, the central banking system of the United States. The Panic ...

, the

Federal Deposit Insurance Act The Federal Deposit Insurance Act of 1950, , is a statute that governs the Federal Deposit Insurance Corporation (FDIC). The FDIC was originally created by the Banking Act of 1933, which amended the Federal Reserve Act The Federal Reserve Act ...

, and the

Home Owners' Loan Act The Homeowners Refinancing Act (also known as the Home Owners' Loan Act of 1933 and the Home Owners' Loan Corporation Act) was an Act of Congress of the United States passed as part of Franklin Delano Roosevelt's New Deal during the Great Depres ...

to authorize covered financial institutions to conduct a contest, known as a "savings promotion raffle," in which the sole consideration required for a chance of winning designated prizes is obtained by the deposit of a specified amount of money in a savings account or program, where each ticket or entry has an equal chance of being drawn. Subjects such a drawing contest to regulations promulgated by the appropriate prudential regulator. The bill would exclude such a "savings promotion raffle" from the prohibition against a covered financial institution's dealing in "lottery" tickets. The bill would amend the federal criminal code to exempt savings promotion raffles conducted by an insured depository institution or an insured credit union from specified prohibitions against interstate and foreign travel or transportation in aid of

racketeering Racketeering is a type of organized crime in which the perpetrators set up a coercive, fraudulent, extortionary, or otherwise illegal coordinated scheme or operation (a "racket") to repeatedly or consistently collect a profit. Originally and of ...

enterprises.

Procedural history

The American Savings Promotion Act was introduced into the

on October 29, 2013 by Rep. Derek Kilmer (D, WA-6). Representatives

Tom Cotton Thomas Bryant Cotton (born May 13, 1977) is an American politician, attorney, and former military officer serving as the junior United States senator for Arkansas since 2015. A member of the Republican Party, he served in the U.S. House of R ...

(R-AR) and

Niki Tsongas Nicola Dickson "Niki" Sauvage Tsongas (; born April 26, 1946) is an American politician who served as a U.S. Representative from Massachusetts from 2007 to 2019. She held the seat formerly held by her husband, the late Paul Tsongas, for the dis ...

(D-MA) were initial co-sponsors of the bill. The bill was referred to the

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, the

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, the

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, and the

United States House Financial Services Subcommittee on Financial Institutions and Consumer Credit The United States House Financial Services Subcommittee on Consumer Protection and Financial Institutions is a subcommittee of the House Committee on Financial Services. Jurisdiction The subcommittee oversees all financial regulators, such as the ...

. On September 15, 2014, the House agreed on a motion to suspend the rules and to pass the bill by

. The American Savings Promotion Act was received in the

on September 16, 2014 and referred it to the

United States Senate Committee on Banking, Housing, and Urban Affairs The United States Senate Committee on Banking, Housing, and Urban Affairs (formerly the Committee on Banking and Currency), also known as the Senate Banking Committee, has jurisdiction over matters related to banks and banking, price controls, ...

. On December 10, 2014, the Banking, Housing, and Urban Affairs Committee

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the bill by unanimous consent and on that same day, the Senate passed the bill without amendment by unanimous consent. The American Savings Promotion Act was presented to President Barack Obama on December 12, 2014 and signed into law by the president on December 18, 2014, which is when it became .http://arkansasnews.com/news/arkansas/obama-signs-savings-promotion-bill-law

Debate and discussion

Senator Jerry Moran (R-KS) praised the passage of the bill, describing it as "common sense." Moran argued that the bill "has broad bipartisan support and represents smart and sensible policy that ought not be derailed by campaign politics."

References

External links

Library of Congress - Thomas H.R. 3374beta.congress.gov H.R. 3374GovTrack.us H.R. 3374OpenCongress.org H.R. 3374
{{DEFAULTSORT:American Savings Promotion Act (H.R. 3374 113th Congress) Acts of the 113th United States Congress