SB279 Alabama 2017 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

Republican

Session

Regular Session 2017

Title

Banking, savings promotion contests authorized, not gambling or lottery pursuant to Section 65 of Constitution

Summary

SB279 would authorize Alabama financial institutions to run savings promotion contests to encourage saving, while clarifying they are not gambling or lotteries.

What This Bill Does

If enacted, the bill would allow banks, savings institutions, and credit unions doing business in Alabama to run savings promotion contests for their depositors to boost personal savings. Entrants earn chances by meeting deposit or program participation requirements, with no payment required to enter and each entry having an equal chance. The contests would be overseen by the appropriate regulatory agency, require record-keeping and online posting of terms and locations, and must protect safety and comply with consumer protection laws; prizes would be funded from the interest earned by the pool of participating accounts.

Who It Affects

• Depositors and customers of participating Alabama financial institutions who may be eligible to win prizes by meeting deposit or program requirements.
• Participating financial institutions (banks, savings institutions, and credit unions) that sponsor savings promotion contests, and their regulators who oversee compliance and safety.

Key Provisions

• Allows financial institutions in Alabama to conduct savings promotion contests, including joint participation with other institutions, under regulatory supervision.
• Defines terms such as depositor, qualifying account, savings promotion account, entry, and participating financial institution, and sets rules governing how entries are earned (deposits or program participation) and that no payment is required to enter.
• Requires all consumer protection laws to be followed, maintains records for audits, and mandates online posting of contest terms and entry locations.
• Entries must have equal opportunity, contests must not require physical presence at a drawing, and prizes are funded by interest from the pooled deposits.
• Specifies that savings promotion contests are not gambling or lotteries under Section 65 of the Alabama Constitution and sets an effective date of January 1, 2018.

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