ST. LOUIS–Legislation has been signed by Missouri Gov. Jay Nixon (D) that will allow prize-linked savings accounts to be offered in the state. The Missouri Savings Promotion Act will become law in Missouri on August 28.
The Heartland Credit Union Association, along with CommunityAmerica Credit Union, Mazuma Credit Union, Neighbors Credit Union and United Credit Union, sent letters to the governor in support of the legislation following its passage.
“This was a great team victory for credit unions in Missouri. Thank you to the credit unions who wrote to Governor Nixon in support and helped usher in a positive savings tool for credit unions in our state,” said David Kent, director of state legislative affairs for Missouri with the Heartland CU Association. “HCUA also thanks the bill sponsors and handlers, as well as Governor Nixon for signing it into law.”
The Missouri governor’s action means credit unions in both Missouri and Kansas, which is also represented by the HCUA, will be able to offer savings promotion programs, also known as prize-linked savings (PLS) programs, to their members.
Kansas Gov. Sam Brownback (R) signed SB 390, the Kansas Savings Promotions Act legislation, in May. The bill goes into effect in Kansas on July 1. Kansas U.S. Senator Jerry Moran (R) sponsored the federal legislation passed in 2014 that broadened accessibility to PLS programs.
“Credit unions are focused on helping people save, and this will provide more opportunities for consumers to save in both Kansas and Missouri,” said Brad Douglas, president/CEO of the Heartland Credit Union Association. “These programs have been a valuable tool for credit unions across the country, and we look forward to working with our credit unions to help members get in the habit of saving money and building a financial safety net.”
Other states that are authorized include Louisiana, New Jersey, Michigan, Rhode Island, Maine, Washington, North Carolina, Nebraska, Maryland, Connecticut, Indiana, New York, Arkansas, Illinois, Minnesota, Oregon, South Carolina and Virginia.