H. B. 4396
(By Delegate Warner)
[Passed March 11, 2000; in effect ninety days from passage.]
AN ACT to amend and reenact sections ten-a, ten-b and ten-d,
article three, chapter twelve of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, all relating
the state purchasing card program; authorizing the auditor to
promulgate rules; providing criminal penalties and requiring
restitution; and authorizing the recovery of lost rebates,
discounts and revenues.
Be it enacted by the Legislature of West Virginia:
That sections ten-a, ten-b and ten-d, article three, chapter
twelve of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted, to read as
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. The amount of
any one purchase made with the purchase charge card shall not
exceed the amount contained in rules proposed for legislative
promulgation by the auditor in accordance with the provisions of
article three, chapter twenty-nine-a of this code: 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. 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. 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 accomplished by competitive bid. The purchasing division
of the department of administration shall contract with the
successful bidder for provision of state purchase charge cards.
Purchase charge cards issued under the program shall be used for
official state purchases only. The auditor shall propose rules for
legislative 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.
§12-3-10b. Fraudulent or unauthorized use of purchasing card
(a) It is unlawful for any person to use a state purchase
card, issued in accordance with the provisions of section ten-a of
this article, to make any purchase of goods or services in a manner
which is contrary to the provisions of section ten-a of this
article or the rules promulgated pursuant to that section.
(b) Any person who violates the provisions of this section is
guilty of a misdemeanor where the value, as determined solely by
reference to the dollar amount or amounts purchased through misuse
of the state purchasing card and reflected upon any billing or
accounts issued in conjunction with the purchase card, of a single
purchase or of a series of purchases occurring within a two hour
time period or occurring from the same vendor within a twenty-four
hour time period is less than one thousand dollars, and, upon
conviction thereof, shall be confined in jail for a term not to exceed six months, or fined not less than one hundred dollars nor
more than five hundred dollars, or both fined and imprisoned. Each
misuse of the state purchasing card which occurs on a different
calendar day is a separate offense.
(c) Any person who violates the provisions of this section,
where the value of the purchases, as determined solely by reference
to the dollar amount or amounts purchased through misuse of the
state purchasing card and reflected upon any billing or accounts
issued in conjunction with the purchase card, of a single purchase
or of a series of purchases occurring within a two hour time period
or occurring from the same vendor within a twenty-four hour time
period is more than one thousand dollars is guilty of a felony,
and, upon conviction thereof, shall be confined in the penitentiary
not less than one nor more than five years, or fined not more than
five thousand dollars, or both fined and imprisoned.
(d) In all cases, any person violating the provisions of this
section shall make restitution to the State of West Virginia for
the full value of all purchases, including any interest charges.
(e) It is unlawful for any person to use a state purchasing
card for expenses, including mileage, to attend a funeral.
§12-3-10d. Purchasing card fund created; expenditures.
All money received by the state pursuant to any agreement with
vendors providing purchasing charge cards, including but not
limited to any rebates, discounts or revenues earned for prompt payment, 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 auditor may deduct
from a state agency unclassified account the amount of any
purchasing card rebate, discount or other revenue not earned
because of late payment by the state agency to the purchasing card
provider and deposit the amount in the Purchasing Card
Administration Fund. All expenses by the auditor in the
implementation and operation of the purchasing card program shall
be paid from the fund. 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