SB 1055: Banks and credit unions: savings promotions.

The Banking Law provides for the regulation of banks by the Commissioner of Business Oversight, and the California Credit Union Law provides for the regulation of credit unions by the commissioner. Except as specified, the California Constitution prohibits the Legislature from authorizing lotteries in California. Existing statutory law, subject to specified exceptions, makes it a crime for a person to contrive, prepare, set up, propose, or draw any lottery, whether it is called a lottery, raffle, gift enterprise, or other name.

This bill would authorize a bank and a credit union to sponsor or participate in a savings promotion that provides savings account depositors with a chance to win designated prizes, if the bank or credit union satisfies certain requirements. The bill would prohibit these savings promotions from being considered a lottery or raffle with the meaning of those aforementioned criminal provisions, as provided.