Substitute House Bill 312 regulates the use of credit cards and debit cards by school districts and other political subdivisions. School districts must now adopt a credit card account policy before obtaining a credit card account. If a school district has an active credit card account on or before November 2, 2018, the district must adopt a credit card account policy by February 2, 2019. The policy must include provisions addressing each of the following items:
• The officers or positions authorized to use the credit card account;
• The types of expenses for which the account may be used;
• The procedure for acquiring, using, and managing the credit card account and presentation instruments related to it, such as physical credit cards and checks;
• The procedure for submitting itemized receipts to the treasurer or treasurer’s designee;
• The procedure for issuing, reissuing, and canceling a credit card and the process for reporting lost or stolen credit cards;
• The account's maximum credit limit; and
• The actions or omissions by an officer or employee that qualify as misuse of a credit card.
The school district’s name must also appear on each credit card and every check related to the credit card account.
If the school district treasurer does not retain general possession and control of the credit card account or physical cards or checks, the board must appoint a compliance officer tasked with reviewing officer and employee use of credit card accounts under the school district’s policy. The compliance officer must review the following items at least every six months: (a) the number of cards and accounts issued, (b) the number of active cards and accounts issued, (c) the cards' and accounts' expiration dates, and (d) the cards' and accounts' credit limits.
The compliance officer cannot be the school district’s treasurer but could be the superintendent. The compliance officer, unless it is the superintendent, cannot use the credit card account or authorize officers or employees to use it. If the superintendent, while serving as compliance officer, uses the credit card account, the treasurer (or treasurer’s designee) on a monthly basis must review the credit card account transaction detail and sign an attestation stating the treasurer/designee reviewed the credit card account transaction detail.
The treasurer must also file a report with the board detailing all rewards earned through the use of the credit card account.
The use of a credit card account by an officer or employee for expenses beyond those authorized by the board constitutes the criminal offense of misuse of a credit cards, which can result in a charge ranging from a misdemeanor to a felony.
A “credit card account” includes any bank-issued, store-issued, financial institution-issued, financial depository-issued, or affinity credit card account. It also includes any other card account that allows holders to purchase goods or services on credit or to transact with the account, and any debit or gift card account related to the receipt of grant moneys. However, procurement card accounts and gasoline or telephone credit card accounts are specifically excluded.
HB 312 also includes important provisions related to debit cards. All political subdivisions, including school districts, are prohibited from holding or using debit card accounts unless for law enforcement purposes or a debit card account related to the receipt of grant money. A political subdivision that uses a debit card account for any other purpose is guilty of the crime of misuse of credit cards.
Schools should consult policy providers and legal counsel to ensure compliance with these changes.