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Prize-Linked Savings Accounts Bills Approved by Texas Senate
Monday, May 22, 2017 6:45 AM

HJR 37 and HB 471 by Rep. Eric Johnson (D-Dallas) were approved by the Senate on Friday. 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, Johnson 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 supported Johnson’s bills. “We thank Rep. Johnson for his efforts to pass this legislation," said Texas Credit Union Association President Jeff Huffman. "Everyone benefits because it increases options for credit unions to promote savings and makes saving more attractive to members, all without creating any new regulations."

HJR 37 will be on the ballot in November and, if approved by the voters, HB 471 will become law.

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