TRENTON, N.J.–Legislation that would authorize New Jersey’s state-chartered credit unions and banks to offer prize-linked savings accounts has been introduced in the General Assembly here and will be considered during a session today.
The legislation, which is backed by the New Jersey Credit Union League, is sponsored by Assemblymen Herb Conaway (D-7), Troy Singleton (D-7), Tim Eustace (D-38) and Craig Coughlin (D-19)
The Senate passed its version (S-2495) of the bill sponsored by Senators Richard Codey (D-27) and Ronald Rice (D-28) on May 18. The legislation is expected to clear the full Assembly without difficulty and be sent to Gov. Chris Christie for his consideration, according to the league.
Legislation in several other states has already been enacted after first being pioneered in Michigan. The goal is to spur people to save more money by offering chances to win prizes.
In 2014 President Obama signed legislation to allow federally chartered financial institutions to offer prize-linked accounts.