WASHINGTON, D.C. – Tonight, the U.S. Senate passed the American Savings Promotion Act (S. 1597/H.R. 3374) by unanimous consent. U.S. Senators Jerry Moran (R-Kan.) and Sherrod Brown (D-Ohio), members of the Senate Economic Mobility Caucus, introduced the American Savings Promotion Act in October 2013 to allow the creation of prize-linked savings accounts (PLS). PLS accounts would incentivize personal savings by offering participants chances to win prizes based on savings account deposit activity while never putting their savings at risk. The legislation passed the House in September 2014 and now heads to the President.

“With broad support, Congress has sent to President Obama the American Savings Promotion Act, bipartisan legislation that clears the way for banks and other financial institutions to promote personal savings,” Sen. Moran said. “This policy will help American families become more financially secure and upwardly mobile. In passing the American Savings Promotion Act, the House and Senate have shown that good ideas may still have a chance in Washington.”

“Too many families in Ohio – and across the nation – are living paycheck to paycheck,” Sen. Brown said. “Between stagnant wages and an insufficient minimum wage, it’s hard for families to prioritize savings. That’s why this legislation is so important. Families should be encouraged and excited to save. This bill accomplishes that and I am proud to have worked with Sen. Moran to get this bill passed.”

The American Savings Promotion Act would promote savings by creating a narrow exemption for prize-linked-savings (PLS) products. By removing federal barriers to banks and thrifts offering PLS products, the legislation clears the way for states to enable all interested financial institutions under their jurisdiction to offer these valuable financial tools. Forty-four percent of American households lack the savings needed to cover basic expenses for three months, leaving families vulnerable to financial uncertainty. In 2013, the personal savings rate dipped to just 3.8 percent, down from 10.5 percent in 1963.

Prize-linked saving has been identified as an attractive way to incentivize saving by a broad range academics and financial policy professionals:

• Stuart Butler of the Heritage Foundation and author of Boosting Economic Savings Through Prize-Linked Savings: “The dearth of savings in America, particularly among lower-income Americans, is a major obstacle to upward mobility and achieving the American Dream. The creative idea of prize-linked savings has proved to be very successful in boosting savings, but red tape blocks federally chartered financial institutions from offering these pro-savings products.”
• In a 2011 Financial Times op-ed, former Obama OMB Director Peter Orszag advocated for PLS: “In the coming decade, we need a comprehensive effort to raise household savings. As part of that push, let’s give savings accounts linked to lotteries a chance.”
• Tim Flacke, Executive Director of D2D Fund: “Based on our last five years of work on prize-linked savings, we believe this is a proven and promising innovation to help engage Americans to save. We applaud the leadership of Senators Moran and Brown to help expand PLS through this bill so that more Americans can experience a fun and successful way to save.”

Chanute- A Kansas man was injured in an accident just before 3 p.m. on Thursday in Neosho County.

The Kansas Highway Patrol reported a 2005 Chevy Silverado driven by Jack E. Haverty, 56, Colony, was southbound on Harper Road three miles north of Chanute.

The truck left the road, struck a tree and caught fire.
Haverty was transported to the Neosho County Hospital.
The KHP reported he was not wearing a seat belt.

JOSH BOAK, AP Economics Writer

WASHINGTON (AP) — A new government report shows that nearly 20 percent of U.S. consumers — nearly 43 million people — have unpaid medical debts.

The findings from the Consumer Financial Protection Bureau suggest that many Americans are being trapped by debt because they are confused by the notices they get from hospitals and insurance companies about the cost of treatment.

As a result, millions of Americans may be surprised to find they are stuck with lower credit scores, making it harder for them to borrow to buy a home or an automobile.

The report by the federal regulator indicates that much of this trouble could be avoided. About half of consumers who only carry medical debt have no other signs of being under financial distress.

TOPEKA, Kan. (AP) — Prosecutors say a man has punched his defense attorney during his rape trial in northeast Kansas.

The Topeka Capital-Journal reports that attorney David McDonald was taken by ambulance to a hospital during the fourth day of Lance Franklin’s trial in Shawnee County District Court.

Assistant district attorney Mike Kagay said he heard a smacking sound after McDonald finished questioning the rape victim.

Senior assistant district attorney Dustin Curry said he had stood to question the witness and turned around to find McDonald on the floor. Curry said a corrections officer grabbed Franklin.

Prosecutor’s office spokesman Lee McGowan told The Associated Press no charges have been filed over the courtroom incident. The senior partner for McDonald’s firm, Tenopir & Huerter, said through a staff member that he didn’t want to comment.

DAVID A. LIEB, Associated Press

Lower oil prices are raising new financial worries in some states that rely on oil taxes to pay for roads and other government services.

With oil prices around a five-year low, budget officials in about a half-dozen states have begun paring back projections for a continued gusher of revenues. Spending cuts have started in some places, and more reductions could be necessary if oil prices remain at lower levels during the coming year.

How well the oil-rich states survive the downturn may hinge on how much they have saved and how greatly they depend on oil revenues for basic services.

Texas has diversified its economy since oil prices crashed in the mid-1980s and isn’t expressing concern. But Alaska remains heavily dependent on oil and will have to tap into savings.

TOPEKA, Kan. (AP) — Kansas has started issuing gender-neutral marriage forms amid ongoing litigation over its same-sex marriage ban.

Copies of the new forms were included in a motion that seeks to have former Kansas Department of Health and Environment Secretary Robert Moser dismissed from the litigation.

The motion, which was filed Wednesday, notes that Moser has resigned and that new marriage forms delete all references to husbands and wives. Applicants seeking to wed now fill in information under the headings “Party A” or “Party B.” They can select whether they want to be referred to as a bride, groom or simply a spouse.

The forms were changed last month after the U.S. Supreme Court denied Kansas’ request to prevent gay and lesbian couples from marrying while the state fights the issue in court.

TOPEKA, Kan. (AP) — The Kansas Corporation Commission and natural gas companies are working together to find a way to replace aging gas pipes in a less expensive way.

Kansas natural gas companies currently add a fee, called the gas service reliability surcharge, to customers’ bills to cover projects required by safety regulations or related public works projects.

But the Legislature-approved charge doesn’t cover preventative work like replacing old cast iron and steel pipes before they break. Officials say that kind of work is cheaper and causes less disruption than an emergency pipe repair.

Commissioner Pat Apple tells The Topeka Capital-Journal  that amending the GSRS to pay for pipe-replacement work requires legislative approval. But commissioners say they think they can set up a separate process without sending it to the Legislature.

LONDON (AP) — Swiss researchers have suspended the testing of one of the leading Ebola vaccine candidates after some volunteers reported unexpected side effects.

In a statement issued on Thursday, the Hopitaux Universitaires de Geneve said the trial had been suspended “as a precautionary measure.” The study involving 59 people began in November.

Researchers reported four cases of mild joint pain in the hands and feet in people who got the shot 10 to 15 days earlier. Officials will stop giving the vaccine next week to get more data and liaise with others who are testing the vaccine in the U.S., Canada, Germany and Gabon.

The vaccine was developed by the Canadian government and is licensed to two U.S. companies, NewLink and Merck

The trial is scheduled to resume in January in Geneva.