Amended
IN
Senate
March 26, 2020 |
Introduced by Senator Portantino (Principal coauthor: Assembly Member Grayson) |
February 14, 2020 |
Existing 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. The CCUL authorizes 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 credit union satisfies certain requirements and prohibits these savings promotions from being considered a lottery or raffle within the meaning of those aforementioned criminal provisions, as provided.
This bill would specify that those provisions apply to any credit union authorized to do business in the state that is chartered under the laws of this state, another state, or specified federal law.
(2)A member expelled pursuant to this subdivision shall have the right to appeal that expulsion to the supervisory or audit committee, as applicable.
(c)
(1)The chairperson of a membership committee or an executive committee.
(2)An officer, director, committee member, or employee, pursuant to a written membership plan adopted by the board of
directors.
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(a)A credit union may expel members as provided in Section 14456 of this division and Section 7341 of the Corporations Code.
(b)A member who is expelled by the board of directors, or by the person or committee to whom that authority has been delegated pursuant to Section 14456, shall have the right to appeal that expulsion to the supervisory or audit committee, as applicable.
(c)Notwithstanding Section 7341 of the Corporations Code, an expulsion pursuant to subparagraph (D) of paragraph (1) of subdivision (b) of Section 14456 may take effect immediately and without advance notice or an opportunity to be heard, if the board of directors, or its designee pursuant to Section 14456, determines that immediate expulsion is reasonably necessary for the protection of the credit union or its staff, volunteers, or members. A member expelled pursuant to subparagraph (D) of paragraph (1) of subdivision (b) of Section 14456 shall be provided written notice within five days after the effective date of that expulsion.
(a)For purposes of this section, the following definitions apply:
(1)“Credit union” means a credit union chartered under this division or under the Federal Credit Union Act (12 U.S.C. Sec. 1751 et seq.) or a credit union chartered under the credit union law of another state and authorized to do business in this state.
(2)“Nonqualifying account” means a deposit account, other than a demand deposit account, that is not a qualifying account.
(3)“Qualifying account” means a deposit account, other than a demand deposit account, through which a credit union’s depositors may obtain chances to win prizes in a savings promotion.
(4)“Savings
promotion” means a contest or promotion to encourage savings deposits that is sponsored by one or more credit unions, or by a credit union trade association or its subsidiary in conjunction with one or more credit unions, and in which credit union depositors are offered a chance to win designated prizes.
(b)A credit union may sponsor or participate in a savings promotion if all of the following requirements are satisfied:
(1)Credit union depositors are not required to pay any fee or otherwise provide any consideration in order to enter the savings promotion.
(2)All material terms of, and fees charged by a credit union in connection with, a qualifying account are comparable to those of comparable nonqualifying accounts offered by the credit union.
(3)Each entry in the savings promotion has an equal chance of winning.
(4)Participants in the savings promotion are not required to be present at a prize drawing in order to win.
(c)For purposes of this section, a depositor’s deposit of at least a specified amount of money in a qualifying account, which is required in order to enter the savings promotion, is not consideration if the interest rate associated with the qualifying account is not reduced, as compared to comparable nonqualifying accounts offered by the credit union, to account for the possibility of winning a prize.
(d)A savings promotion offered by a credit union shall not be considered a lottery within the meaning of Section 319 or 319.3 of the Penal
Code or a raffle within the meaning of Section 320.5 of the Penal Code.