Chapter 059

2011 -- S 0797

Enacted 06/08/11

A N A C T

RELATING TO FINANCIAL INSTITUTIONS -- CREDIT UNIONS

Introduced By: Senator Maryellen Goodwin

Date Introduced: March 24, 2011

It is enacted by the General Assembly as follows:

SECTION 1. Section 19-5-29 of the General Laws in Chapter 19-5 entitled "Credit

Unions" is hereby amended to read as follows:

19-5-29. Savings promotion raffle. -- (a) If authorized by the credit union board of

directors, a credit union registered to do business in the State of Rhode Island may conduct a

savings promotion raffle, provided that it has given the department of business regulation prior

written notice of its intent to conduct such a raffle. Said notice shall include an attestation that the

raffle meets all requirements of all applicable laws and regulations including, but not limited to,

the national credit union administration (NCUA) regulations and guidelines related to such

contests; that the raffle will be administered in a manner that is fair and non-discriminatory to

credit union members; and that there will be no adverse impact on the financial condition of the

credit union as a result of the proposed savings promotion raffle. The 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 credit union shall not conduct a savings promotion raffle in a

manner that jeopardizes the credit union's safety and financial soundness or misleads its

members.

      (b) Pursuant to his or her supervisory powers the director of state lotteries shall the

department of business regulation may examine the conduct of a savings promotion raffle at any

time. The director may issue a cease and desist order for a violation of this section.

      (c) A credit union shall maintain records sufficient to facilitate an audit of a savings

promotion raffle.

      (d) As used in this section, "savings promotion raffle" means a raffle conducted by a

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 credit union.

SECTION 2. Section 42-61-18 of the General Laws in Chapter 42-61 entitled "State

Lottery" is hereby repealed.

42-61-18. Credit union savings lottery authorized. -- Credit unions organized pursuant

to chapter 19-5 of the general laws are hereby authorized to conduct lotteries in accordance with

section 19-5-29 of the general laws.

SECTION 3. This act shall take effect upon passage.

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LC02076

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