US Vote Smart

Home » 2017-11-07 election » Texas » Proposition 7 - MCTP PAC Rating: AGAINST

Proposition 7 - MCTP PAC Rating: AGAINST


Proposition 7 - MCTP PAC Rating: AGAINST


The constitutional amendment relating to legislative authority to permit credit unions and other financial institutions to award prizes by lot to promote savings.



Vetting Committee Recommendation: AGAINST Source

Submitted by john wertz on 2017-11-05 19:47:30

 25% For;  75% Against


Major Issues

Texans for Fiscal Responsibility (Empower Texans)

This amendment would allow banks, credit unions, and other financial institutions to conduct promotional activities such as “savings promotion raffles.” TFR Stance: Neutral on Prop 7

Supporters say: This amendment would give banks and credit unions the ability to host savings promotion raffles, also known as prize-linked savings accounts (PLSAs), which offer incentives to save rather than spend or gamble away earnings. Critics say: This amendment amounts to a carve-out for one industry to do a raffle and would be the only non-charitable raffle allowed in the state.


North Texas Citizens Lobby

1.) Is it “constitutional”? (Does it support the constitutional republic) - NEUTRAL There are questions as to what business the state has in deciding such transactions that carry little to no risk for the consumer.

2.) Is there a need? (Do all the People have a need for and benefit from the proposed government intervention?) NO

3.) Affordability? (Can the People afford it? Is the cost equal and uniform?) YES

Reportedly there is no cost to the consumer, just a business expense to the financial institution however; there will be additional government costs to administer and police this activity. Prop 7 passed unanimously in the House (141-0), and passed with 1 Nay vote in the Senate, that of Sen Burton. Her staff responded when asked the reason for her no vote with “Sen. Burton opposed the bill because the operation of raffles for any purpose constitute a game of chance played for a monetary reward which is gambling. While this legislation does not permit casino-style gambling, it further normalizes games of chance played for money that is against the spirit of the state’s constitutional ban on gambling.”


Dennis Tibbs - MCTP PAC Vetting Committee Member

AGAINST - Credit Unions and other financial institutions need to stick to their fundamental business of loaning, saving & managing clients money. Giving away toasters and other small appliances is just a gimmick. While there's nothing wrong with a free toaster, it's a diversion that takes resources away from the main focus of the institutions. This could become a “mini state lottery” and deserves a vote Against.