HARRISBURG, Penn.–Pennsylvania’s House of Representatives has passed legislation that would allow for financial institutions to offer prize-linked savings accounts. Included in the bill is language that would protect financial institutions and insurers from providing services to legitimate cannabis based businesses.
According to the CrossState Credit Union Association, thelanguage authorizes, but does not require, financial institutions and insurers to provide services to state-legal cannabis businesses. The bill also protects against state penalties for banks and insurers that service the industry.
"This codifies the existing climate of regulatory non-enforcement," the association said.
The earlier House bill included several amendments not in the Senate version and had to be returned to the House for reconsideration. The language in the bill was then included in the bill allowing for prize-linked savings accounts.
That bill makes Pennsylvania the latest to allow financial institutions to offer “savings promotions raffles,” better known as prize-linked savings accounts.
"I want to applaud the PA General Assembly, Rep. Rosemary Brown and Sens. John DiSanto and Sharif Street for the quick passage of HB 331,” said Patrick C. Conway, CrossState president & CEO. “This legislation will expand credit unions' ability to improve the financial well-being of their members while protecting credit unions in servicing legitimate cannabis-based businesses."
CUToday.info reporting shows the efforts in the state legislature to permit the saving accounts, which hold drawings offering cash prizes in order to encourage people to save, have been ongoing for at least six years.
The concept originated in Minnesota, where the Minnesota Credit Union Network offers a prize-linked savings program to credit unions to purchase and use, and has since spread to numerous other states.
The Pennsylvania bill has now gone to the governor for his consideration.
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