HB355 Alabama 2017 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Merika ColemanSenator
Democrat
Session: Regular Session 2017
Title: Banking, savings promotion contests authorized, not gambling or lottery pursuant to Section 65 of Constitution
Summary: HB355 allows Alabama financial institutions to run savings promotion contests to encourage saving, clarifying that these contests are not gambling or lotteries.
What This Bill Does
If enacted, it authorizes banks, savings institutions, and credit unions to conduct savings promotion contests and sets rules to protect consumers. The rules include no required payment to participate, equal odds for winning, online posting of terms and participating locations, and oversight by the appropriate regulatory agency. Prizes are funded by the interest from the pool and are capped at $12,500, with the contest not considered gambling or a lottery; the institution must maintain records and follow consumer protection laws.

Who It Affects
Depositors/consumers who participate in savings promotion contests and could win prizes funded by the interest from the deposited funds, with participation allowed through deposits or product participation and no extra entry fees beyond normal account activity.
Financial institutions in Alabama (banks, savings institutions, and credit unions) that offer savings promotion contests and must follow the outlined rules, post terms online, maintain records, and be overseen by the appropriate regulatory agency.

Key Provisions
Authorizes financial institutions to conduct savings promotion contests to encourage deposits, under supervision of the appropriate federal or state regulatory agency.
Defines key terms: depositor, qualifying account, savings promotion account, entry, and participating financial institution.
Establishes contest conditions: no required consideration beyond normal deposits; equal chance for entries; ability for multiple institutions to participate; online posting of terms and locations; recordkeeping for audits; compliance with consumer protection laws; no additional fees beyond those for similar nonqualifying accounts.
Prize limit of $12,500 and explicit statement that the contest is not gambling or a lottery under Section 65 of the Alabama Constitution.
Effective date: January 1, 2018, with repeal of conflicting laws.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Banking Department