ENGROSSED
Senate Bill No. 203
(By Senators Tomblin, Mr. President, and Caruth,
By Request of the Executive)
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[Introduced January 24, 2007; referred to the Committee on
Finance.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §5A-3-58; and to
amend and reenact §12-3-10a, §12-3-10d and §12-3-10e of said
code, all relating to the state Purchasing Card Program;
creating the Purchasing Improvement Fund; authorizing use of
purchasing cards for regular routine payments, travel and
emergency purchases and cash advances for travel purchases;
authorizing expenditures from the Purchasing Card
Administration Fund to pay expenses related to the use of the
card and the general operation of the Auditor's office;
providing expenditure from the fund for the Hatfield-McCoy
Regional Recreation Authority; and adding members to the
Purchasing Card Advisory Committee.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §5A-3-58; and that
§12-3-10a, §12-3-10d and §12-3-10e of said code be amended and
reenacted, all to read as follows:
CHAPTER 5A. DEPARTMENT OF ADMINISTRATION.
ARTICLE 3. PURCHASING DIVISION.
§5A-3-58. Creation of the Purchasing Improvement Fund.
There is hereby created in the State Treasury a special
revenue account to be known as the Purchasing Improvement Fund.
The Purchasing Improvement Fund shall receive funds transferred
from the Purchasing Card Administration Fund by the Auditor
pursuant to section ten-d, article three, chapter twelve of this
code and shall be administered by the secretary. Expenditures from
the fund shall be for the purposes set forth in this article and
are not authorized from collections but are to be made only in
accordance with appropriation by the Legislature and in accordance
with the provisions of article three, chapter twelve of this code
and upon fulfillment of the provisions of article two, chapter
eleven-b of this code:
Provided, That for the fiscal year ending
the thirtieth day of June, two thousand eight, expenditures are
authorized from collections rather than pursuant to appropriation
by the Legislature.
CHAPTER 12. PUBLIC MONEY AND SECURITIES.
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 purchasing card to
purchase pay for goods and
services.
The amount of any one purchase 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:
Provided, That purchasing Notwithstanding any other provision of
this code to the contrary, a purchasing card may be used to make
any payment authorized by the Auditor, including regular routine
payments and travel and emergency payments, and such payments shall
be set at an amount to be determined by the Auditor. 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, 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. 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 purchasing cards.
Purchase charge Purchasing 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.
(a) 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 also may use the fund to pay expenses incurred
by spending units associated with the use of the card, including
system and program enhancements, and 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.
(b) Within three days of receiving rebate moneys resulting
from state spending unit purchasing card purchases, the Auditor
shall transfer fifteen and one-half percent of such rebate moneys
to the Purchasing Improvement Fund created pursuant to section
fifty-eight, article three, chapter five-a of this code.
(c) Within three days of receiving rebate moneys resulting
from state spending unit purchasing card purchases, the Auditor
shall transfer fifteen and one-half percent of such rebate moneys
to the Hatfield-McCoy Regional Recreation Authority.
§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 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.