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Prize-Linked Savings Account Bills Heard in Texas House Committee
Wednesday, March 22, 2017 6:50 AM

HJR 37 and HB 471 by Rep. Eric Johnson (D-Dallas) received a hearing Tuesday in the House Investments and Financial Services committee. HB 471 creates the statutory framework for credit unions to offer prize-linked savings accounts, which allows credit unions to offer members chances to receive prizes for adding to their savings accounts.

The Legislature passed a similar bill during the last session, but it was vetoed by Gov. Greg Abbott, who said the bill would violate the constitutional prohibition on raffles. To address the constitutional issue, Rep. Johnson has filed HJR 37 to amend the constitution, authorizing credit unions and other financial institutions to offer prize-linked savings accounts.

The Texas Credit Union Association testified in support of both measures, requesting some technical corrections to HB 471. The committee had several questions about how the PLSAs would work, and TCUA President Jeff Huffman offered explanations to the committee. 

Johnson said, "I love this bill. It is rare where the Legislature is able to pass a bill that allows people to do something to help themselves and doesn't require more regulations." He urged the committee to give favorable consideration to both pieces of legislation.

The bills were left pending to allow Johnson to make the technical changes to the bill.

For more information, please contact Texas Credit Union Association President Jeff Huffman at 469-385-6488 or jhuffman@txcua.coop.