AUSTIN, Texas—Prize-linked savings accounts are getting closer to becoming a reality in Texas. HB 1628 by Rep. Eric Johnson (D-Dallas) and Sen. Jose Rodriguez (D-El Paso) was voted out of the Senate Business and Commerce Committee last week.
The bill allows credit unions and other financial institutions to conduct savings promotion raffles without running afoul of the anti-raffle laws.
As is the case in other states, the goal is to encourage greater saving levels, particularly in financially vulnerable populations. Research in other states where the accounts are permitted has found that 67% of the money deposited in them ends up staying in the credit union.
The Texas Credit Union Association testified in support of the bill, which goes to the full Senate.