SENATE BILL REPORT

                  SSB 5370

                As Passed Senate, March 8, 1995

Title:  An act relating to the use of credit cards by local governments.

Brief Description:  Authorizing use of credit cards by local governments.

Sponsors:  Senate Committee on Government Operations (originally sponsored by Senators Hale, Winsley, Haugen and Wood).

Brief History:

Committee Activity:  Government Operations:  2/1/95, 2/21/95 [DPS].

Passed Senate, 3/8/95, 44-4.

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  That Substitute Senate Bill No. 5370 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Drew, Hale, Heavey, McCaslin and Winsley.

Staff:  Diane Smith (786-7410)

Background:  In 1984, municipal corporations and political subdivisions were given the authority to allow officers and employees to use charge cards to pay for authorized travel expenses.

The officer's or employee's travel expense voucher must be submitted within ten days of the billing date for the charge card.

Summary of Bill:   Local governments and political subdivisions have the option of using credit cards for official governmental purchases or acquisitions.  Local government is empowered to contract for the issuance of the credit cards.  The legislative body of the local government establishes the credit limits, implements and administers the system.  Cash advances are prohibited.

Any system that is adopted is subject to examination by the State Auditor.

The phrase "credit card" is broadly defined.

Appropriation:  None.

Fiscal Note:  Requested on January 20, 1995.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The bill would streamline the procurement systems of local governments and would trim costs for smaller jurisdictions.

Testimony Against:  None.

Testified:  PRO:  Jim Rowland, WPPSS; Dave Arbaugh, WA PUD Assn.; Kristen Harte, Snohomish County PUD; Stan Finkelstein, AWC.