COLUMBIA, Md.—Maryland Gov. Larry Hogan has signed into law legislation that will allow prize-linked savings accounts in the state.
With the new law in place, credit unions in Maryland will be able to offer raffle-style programs that encourage sound, consistent saving habits among members.
The Senate version of the legislation was introduced and championed by Sen. Kathy Klausmeier (District 8, Baltimore Co.) and the House version by Del. Luke Clipper (District 46, Baltimore City). The bill passed without opposition near the end of the legislature session, according to the Maryland/DC Credit Union Association, which had earlier testified in support of the legislation.
The Association said it worked closely with Sen. Klausmeier to support a key provision in the bill that allows only member account holders to participate in the savings accounts at their respective credit unions and helped to ensure the law’s passage. Previous language allowed non-members to randomly participate in raffle programs, which had effectively acted as a hindrance to credit union participation.