House Study Bill 266



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            GOVERNMENT OVERSIGHT BILL
                                            BY CHAIRPERSON ALONS)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to purchases made by state agencies using a state
  2    procurement card.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 3194HC 81
  5 jr/cf/24

PAG LIN



  1  1    Section 1.  Section 8A.302, subsection 1, Code 2005, is
  1  2 amended to read as follows:
  1  3    1.  a.  Providing a system of uniform standards and
  1  4 specifications for purchasing.  When the system is developed,
  1  5 all items of general use shall be purchased by state agencies
  1  6 through the department, except items used by the state
  1  7 department of transportation, institutions under the control
  1  8 of the state board of regents, the department for the blind,
  1  9 and any other agencies exempted by law.  However, items of
  1 10 general use may be purchased through the department by any
  1 11 governmental entity.
  1 12    b.  In addition to this system, the department shall adopt
  1 13 rules, pursuant to chapter 17A, establishing standards for the
  1 14 organization and operation of a procurement card program.  The
  1 15 program shall be the sole source of procurement cards for
  1 16 state agencies, notwithstanding any other provision of this
  1 17 subsection to the contrary.  The goal of the program is to
  1 18 facilitate purchasing of items costing less than one thousand
  1 19 dollars by state agencies, which are not otherwise available
  1 20 through the system or otherwise through a state contract.
  1 21 Agency participation in the program is subject to annual
  1 22 authorization by the department.  An agency shall not be
  1 23 authorized to participate in the procurement card program
  1 24 unless it demonstrates, to the satisfaction of the department,
  1 25 that the cost of procurement card purchases would be
  1 26 comparable in cost to purchases made through a state contract
  1 27 or other procurement procedures.
  1 28    The standards shall be designed to promote economy,
  1 29 accountability, and efficiency in the procurement process and
  1 30 shall include, but not be limited to, the following:
  1 31    (1)  Annual limits for the aggregate value of purchases
  1 32 made by each agency under the program and specific limits for
  1 33 each card and the number of cards that may be issued to an
  1 34 agency and an individual employed by the agency.
  1 35    (2)  Approval by the department of every card account that
  2  1 is established and approval of any individual employee who is
  2  2 to be issued a procurement card.
  2  3    (3)  Internal management and auditing procedures that each
  2  4 agency must follow to ensure proper usage of the program.
  2  5    (4)  A monitoring process to be used by the department to
  2  6 prevent abuse of the program.
  2  7    (5)  An annual report to the department, by each
  2  8 participating agency, detailing purchases made under the
  2  9 program.
  2 10                           EXPLANATION
  2 11    This bill establishes a program to be administered by the
  2 12 department of administrative services for the use of
  2 13 procurement cards by state agencies in making purchases of
  2 14 items costing less than $1,000.  The cards are to be used as
  2 15 an alternative to purchasing through a state contract or some
  2 16 other procurement process.  The department of administrative
  2 17 services is required to promulgate rules detailing the
  2 18 organization and operation of the program, and must annually
  2 19 authorize each agency wishing to participate in the program.
  2 20 LSB 3194HC 81
  2 21 jr:nh/cf/24