Connecticut Senate Bill SB00372

Connecticut 2014 Regular Session

• Introduced: 3/4/14
• Refer: 3/4/14

Caption

An Act Expanding Savings Promotion Raffles.

Impact

The proposed changes are expected to have a positive impact on savings rates among residents by encouraging higher participation in savings programs through the use of raffles. This could potentially foster a culture of saving within communities and financial institutions. By enabling community banks to participate, SB00372 broadens the scope of financial entities that can help promote savings opportunities, thus enhancing accessibility for the public. The Banking Commissioner is granted authority to adopt regulations that would ensure these operations are conducted responsibly and consistently, adding a layer of oversight to the process.

Summary

SB00372, titled 'An Act Expanding Savings Promotion Raffles,' seeks to amend the existing statutes regarding savings promotion raffles in Connecticut. The bill allows both credit unions and community banks to conduct such raffles as a means to incentivize individuals to save money. A significant change in this legislation is the explicit inclusion of community banks, which were previously excluded from conducting these raffles. The bill lays out a framework for how these raffles should be conducted, emphasizing the importance of fair play and transparency in the raffle process.

Contention

Despite its potential benefits, the bill might face some criticism regarding the ethical implications of using raffles to incentivize savings. Questions may arise about whether such promotions could lead to irresponsible financial behavior among individuals, especially those who might not have established savings habits. Additionally, establishing equitable access to such raffles among community banks and ensuring consumers fully understand the terms may present challenges that lawmakers and regulators will need to address proactively.