Oregon Legislative Update: NWCUA’s Prize-Linked Savings Bill Passes Committee

House Bill 2893, the bill that permits financial institutions to conduct savings promotion raffles—known as prized-linked savings—passed the House Business and Labor Committee by a unanimous vote on Monday.

“Prize-linked savings is a great way to encourage Oregonians to save, adding strength to the financial foundations of our communities,” said Representative John Davis, one of the bill’s sponsors. “I am glad to see that the Business and Labor committee voted unanimously to send it to the floor for a vote.”

Prize-linked savings accounts are a tested, successful concept in which consumers earn chances to win by saving in insured financial institutions or through government-offered products. By injecting the fun and excitement of winning into the habit of savings, prize-linked savings products have incentivized first time savers and resulted in long-term savings.

Prize-linked savings products have proven to engage financially vulnerable consumers in the act of saving and help them build financial security. Prize linked-savings accounts:

  • Make savings fun;
  • Provide an incentive for people to save more;
  • Help financially vulnerable families become more financially secure; and
  • Create a no-lose proposition for savers.

Everyone who enters the “saving promotional raffle,” as it’s called, keeps 100% of the money they invest in order to enter plus whatever interest they accrue, whether or not they win additional prizes.

The bill was sent to the House floor for a vote and it is expected to come up later this week or early next week.

The Northwest Credit Union Association has been very busy providing testimony on several other bills before the Oregon Legislature. Here are a few:

HB2282-2 Amendment – ODOT Electronic Documents

In 2014, Oregon credit unions began the process of discussing a variety of legislative and regulatory issues that could be addressed in the 2015 legislative session to help them better serve credit union members. One issue that kept coming up was the process for submitting documentation to the Department of Motor Vehicles (DMV) to change ownership and lien information on vehicle title certificates. Because this is a key part of the process for completing a car loans, our members asked that we begin discussions with DMV on the issue of electronic titling along with electronic signatures. The -2 amendment which replaces HB2282, allows ODOT to receive electronic transmitted documents.

HB2889 – Foster Youth Accounts

The Northwest Credit Union Association has been pleased to work with Children First for Oregon and other interested parties to make it easier for Oregon foster youth to open and maintain savings accounts. The -1 amendment to HB2889, as proposed, is the result of collaborative efforts to achieve the common objectives and address the reasonable concerns of all interested parties. This goal of the bill is to support Oregon’s foster youth is opening up savings accounts.

SB601 – Identity Theft and Data Breaches

SB 601 is a bill to expand the current Oregon Consumer Identity Theft Protection Act. The bill will improve enforcement and notification requirements for breaches of security involving personal information and give the Attorney General’s office tools to track and enforce data breaches in our state. Credit unions are very interested in this issue because what we have seen in the past few years as a rise in data breaches.

Data Breaches

With the news of the Target, Home Depot, and many other data breaches, elected leaders are considering what they can do to protect the consumer’s personal information. Major merchant data breaches expose credit unions to significant monetary costs and reputational risk. Contrary to what many think, when a merchant data breach occurs, credit unions bear the actual costs of the breach, including not only fraud costs but also costs of blocking transactions, reissuing cards, increasing staffing at call centers, and monitoring accounts.

Questions about this story? Contact James Pearson: 206.340.4790, jpearson@nwcua.org.

Posted in Advocacy News.