SENATE BILL REPORT

SB 5523

BYSenators Halsan, Zimmerman, Garrett and Rasmussen; by request of Department of General Administration

Revising provisions on the administration of the use of credit cards for state institutions.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 18, 1987

Majority Report:  Do pass.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, McCaslin, Talmadge, Zimmerman.

Senate Staff:Walt Corneille (786-7452); Sam Thompson (786-7754)

                  March 10, 1987

AS PASSED SENATE, MARCH 9, 1987

BACKGROUND:

The Director of the Department of General Administration is required to develop a system for the use of credit cards by state agencies to make purchases.  The Director is required to adopt rules governing the use of these credit cards.

Currently, the Director is restricted to contracting with financial institutions within the state to administer credit cards used by state agencies.  It has been suggested that cost savings and improved management and administration could be realized by not restricting the Director to contracting with in-state financial institutions for credit card administration.

SUMMARY:

The Director of General Administration is no longer required to contract with financial institutions within the state to administer credit cards used by state agencies.  The Director is permitted to contract with any type of entity regardless of location for administration of the state credit card program.

Fiscal Note:      none requested

Senate Committee - Testified: Meredith Jennings, Department of General Administration