HB 1163 Summary

• Authorizes depository financial institutions in Hawaii to conduct savings promotion or prize-linked savings contests where account holders compete for designated prizes based on savings deposits.

• Requires institutions offering these contests to ensure equal chances of winning based on number of entries, maintain comparable interest rates to non-contest savings accounts, and fully disclose all terms and conditions to account holders.

• Requires participating institutions to maintain audit records and comply with the federal American Savings Promotion Act (Public Law 113-251) and applicable federal regulations.

• Clarifies that savings promotion contests are not gambling or lotteries, and that deposits, earned interest, and maintenance fees do not constitute consideration for purposes of gambling laws.

• Aligns Hawaii law with 29 other states that have passed similar legislation to promote personal savings, particularly among non-savers and low- to moderate-income individuals.