House Bill 1113

Chair's Name: David Ralston

Committee: Judiciary Non-Civil

House Sponsor: John Heard

This bill restricts the use of purchasing cards used by state agencies. It will only allow those employees whose job duties require the use of a purchasing card to be issued one, and will require each employee who receives a purchasing card to sign an ethical agreement for the use of the card. The legislation will require each department or agency to review all purchases and maintain receipts for each purchase. Purchases made will be reviewed by supervisors at least quarterly. Purchases must be accompanied by a receipt or other documentation listing each item purchased, the price, and any applicable taxes, fees or other amounts paid in connection with the purchase. Employees who do not provide the required documentation will be held personally responsible for the purchase.

Purchases over $500.00 will be restricted unless the items are purchased pursuant to a valid state contract and purchased in compliance with state procurement policy. Any rebates or refunds will become the property of the state and be turned in to the state treasury. Employees who demonstrate consistently low use of purchasing cards will have theirs eliminated, and departments and agencies will review, at least annually, all cards issued to their employees.

Purchasing cards should, to the extent necessary, not be used to purchase gift cards, alcoholic beverages, tobacco products or personal items that are not job related. Employees hired for positions which require the use of a purchasing card will be required to submit to a criminal background check and a credit check, and cards will only be issued to those employees whose positions are state funded. Any employee who knowingly uses a purchasing card for personal gain or purchases unauthorized items or purchases items in violation of the Code section, or retains a refund or rebate will be subject to (1) immediate termination of employment, (2) restitution for the amount of the purchase, and (3) criminal penalties. Any supervisor of an employee who intentionally, knowingly, willfully, wantonly or recklessly allows or who conspires with an employee to purchase unauthorized items will be subject to (1) immediate termination of employment, (2) restitution for the amount of the purchase, and (3) criminal penalties.

Criminal Penalties: If the aggregate value of the items is less than $500.00 the offender will be guilty of a misdemeanor of a high and aggravated nature if the aggregate value of the items is less than $500.00. If the value is greater than $500.00 the punishment will be for a felony with a prison sentence of up to 20 years and a fine not to exceed $50,000.00.

This bill comes to the Floor under the Open Rule.

Further Action

The Senate added a new Section 1, which dealt with penalties for using goods or services for personal benefit. The Senate also removed the provision related to returning refunds or rebates to the state treasury (p.2, l.17-19) and, in Section 3, added language regarding travel advances. The House disagreed to the Senate Substitute.