H. B. 2807
(By Delegates Iaquinta, Amores,
Boggs, Canterbury and Pethtel)
[Introduced February 2, 2007; referred to the
Committee on Government Organization then Finance.]
A BILL to amend and reenact §12-3-10a, §12-3-10d and §12-3-10e of
the Code of West Virginia, 1931, as amended, all relating to
state purchasing cards generally; allowing for purchases
authorized by Auditor; providing that certain purchasing rules
be followed; changing the qualifications for selecting a
charge card vendor; allowing certain funds to be used by the
Auditor for general office expenses; providing for a new
Special Revenue Revolving Fund in the State Treasury to be
administered by the Department of Administration; and adding
three new members to the Purchase Card Advisory Committee.
Be it enacted by the Legislature of West Virginia:
That §12-3-10a, §12-3-10d and §12-3-10e of the Code of West
Virginia, 1931, as amended, be amended and reenacted, all to read
as follows:
ARTICLE 3. APPROPRIATIONS, EXPENDITURES AND DEDUCTIONS.
§12-3-10a. Purchasing card program.
Notwithstanding the provisions of section ten of this article,
payment of claims may be made through the use of the state
purchasing card program authorized by the provisions of this
section. The Auditor, in cooperation with the Secretary of the
Department of Administration, may establish a state purchasing card
program for the purpose of authorizing all spending units of state
government to use a purchasing card as an alternative payment
method.
when making small purchases The purchasing card program
shall be conducted so that procedures and controls for the
procurement and payment of goods and services are made more
efficient. The program shall permit spending units to use a
purchase charge card to purchase goods and services.
Notwithstanding any other code provisions to the contrary, The
amount of any one purchases may be made with the purchase charge
card
shall not exceed the amount contained in the jointly proposed
rules of the Auditor and the Purchasing Division of the Department
of Administration proposed in accordance with the provisions of
article three, chapter twenty-nine-a of this code for any payment
authorized by the Auditor, including regular routine payments,
travel and emergency payments, and shall be set at an amount to be
determined by the Auditor: Provided, That purchasing cards may not
be utilized for the purpose of obtaining cash advances, whether the
advances are made in cash or by other negotiable instrument:
Provided further, That purchasing cards may be used for cash
advances for travel purchases upon approval of the Auditor.
Purchases of goods and services must be received either in advance
of or simultaneously with the use of a state purchasing card for
payment for those goods or services:
Provided further, That the
laws, rules of the Purchasing Division shall be followed for all
nonexempt purchases when the purchasing card is used. The Auditor,
by legislative rule, may eliminate the requirement for vendor
invoices and provide a procedure for consolidating multiple vendor
payments into one monthly payment to a charge card vendor.
Selection of a charge card vendor to provide state purchase cards
shall
be based upon expressions of interest submitted by charge
card vendors. accomplished by competitive bid The
Purchasing
Division of the Department of Administration Auditor shall contract
with the successful
bidder institution for provision of state
purchasing cards.
The selection shall be based upon the
combination of competence and qualification in the provision of
services and a determination of the best financial arrangement for
the state. Purchase charge cards issued under the program shall be
used for official state purchases only. The Auditor
and the
director of the Purchasing Division of the Department of
Administration shall
jointly propose rules for promulgation in
accordance with the provisions of article three, chapter
twenty-nine-a of this code to govern the implementation of the purchase card program.
§12-3-10d. Purchasing card fund created; expenditures.
All money received by the state pursuant to any agreement with
vendors providing purchasing charge cards, and any interest or
other return earned on the money, shall be deposited in a Special
Revenue Revolving Fund, designated the "Purchasing Card
Administration Fund," in the State Treasury to be administered by
the Auditor.
The fund shall be used to pay all expenses
incurred
by the Auditor in the implementation and operation of the
purchasing card program
shall be paid from the fund and may be used
to pay expenses related to the general operation of the Auditor's
office. The Auditor may also utilize the fund to pay agency
expenses associated with the use of the card, including inspection
and monitoring of compliance with all applicable rules and
procedures. The Auditor shall transfer fifteen and one half
percent of the rebate moneys received by the Auditor from state
agency purchasing card purchases to a new Special Revenue Revolving
Fund in the State Treasury called the "Purchasing Reform Fund" to
be administered by the Department of Administration. Expenditures
from the fund shall be made in accordance with appropriations by
the Legislature pursuant to the provisions of article three,
chapter twelve of this code and upon fulfillment of the provisions
of article two, chapter five-a of this code.
§12-3-10e. Purchasing card advisory committee created; purpose; membership; expenses.
There is created a purchasing card advisory committee to
enhance the development and implementation of the purchasing card
program. The committee shall solicit input from state agencies and
make recommendations to improve the performance of the purchasing
card program. The committee consists of
eleven fourteen members to
be appointed as follows:
(1) The Auditor shall serve as chairperson of the committee
and shall appoint
three four members from the state college system
of West Virginia and the university system of West Virginia, one
member from the Department of Health and Human Resources,
and one
member from the Division of Highways
and the Auditor shall appoint
two additional members selected at-large from other state agencies;
(2) The secretary of the Department of Administration shall
appoint one member from the Information Services and Communications
Division, one member from the financial accounting and reporting
section, and one member from the purchasing division;
(3) The secretary of the Department of
Tax and Revenue shall
appoint one member from the Department of
Tax and Revenue; and
(4) The State Treasurer shall appoint one member from that
office.
Committee members shall be appointed for a term of one year.
commencing on the first day of July, one thousand nine hundred
ninety-eight Committee members shall receive reimbursement for
expenses actually incurred in the performance of their duties on the committee.
NOTE: The purpose of this bill is to allow state agency
purchases as authorized by the Auditor. The bill provides that
certain rules established by the purchasing division be followed
and it changes the qualifications for selecting a charge card
vendor. In addition, the bill allows certain funds to be used by
the Auditor for general office expenses and it establishes a new
Special Revenue Revolving Fund in the State Treasury to be
administered by the Department of Administration. Under the bill,
three new members are added to the purchase card advisory
committee.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.