Senate Bill No. 428
(By Senators Minard, White, Love, Fanning, Chafin and Hunter)
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[Introduced January 30, 2006; referred to the Committee
on Government Organization; and then to the Committee on
Finance.]
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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
providing purchasing card procedural uniformity throughout
agencies.
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.
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, however, That the
laws, rules and regulations 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 and may promulgate emergency rules for
emergency payments to effectuate the provision of such services.
§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 establish procedures for revenue sharing
with agencies to cover expenses associated with the use of the
card, including inspection and monitoring of compliance with all
applicable rules and procedures. 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 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 two additional members at
large from any state agency;
(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 provide purchasing card
procedural uniformity throughout the agencies.
Strike-throughs indicate language that would be stricken from
the present law and underscoring indicates new language that would
be added.