H. B. 4432
(By Mr. Speaker, Mr. Kiss and Delegates Cann,
Michael, Kominar and Fragale)
[Introduced February 12, 2004; referred to the
Committee on Government Organization then Finance.]
A BILL to amend and reenact §12-3-10a, §12-3-10b and §12-3-10e of
the code of West Virginia, 1931, as amended, all relating to
the clarification of duties, responsibilities and rights
regarding administration of the purchase card program; raising
the transaction limit; providing the auditor authority to
select vendors; providing for attachment of pension benefits
in the event of fraud; and adding members to the purchasing
card advisory committee.
Be it enacted by the Legislature of West Virginia:
That §12-3-10a, §12-3-10b 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. The amount of
any one purchase made with the purchase charge card shall not
exceed five thousand dollars, except where provided for by 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: 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 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
purchase charge 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.
§12-3-10b. Fraudulent or unauthorized use of purchasing card
prohibited; penalties.
(1) 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. Any
person who violates the provisions of this section is guilty of a
felony and, upon conviction thereof, shall be confined in the penitentiary a state correctional facility not less than one nor
more than five years, or fined no more than five thousand dollars,
or both fined and imprisoned.
(2) Any person who violates section ten-a of this article or
applicable rules and who thereby receives goods or services for
personal use or benefit shall be required to pay restitution to the
state in the amount of the cost of such goods and services.
Notwithstanding any other provision to the contrary, upon
determination by the state auditor that a person has received goods
or services for personal use, the employer shall have the right of
setoff and attachment of the pension benefits of any such person.
§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 members to be
appointed as follows:
(1) The auditor shall serve as chairperson of the committee
and shall appoint three 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;
(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;
(5) The director of the department of military affairs and
public safety shall appoint one member from that department; and
(6) The director of the higher education policy committee
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 raise the purchase card
transaction limit, authorize the auditor to select vendors,
allowing attachment of pension benefits to reimburse for fraud and
to add members to the advisory committee.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.