Use of Credit Cards
Introduction
Prior to 1995, there was no express authorization for local government, including counties, cities, towns, special purpose districts, municipal and quasi-municipal corporations, to use credit cards as a customary business practice. Use of city credit cards for travel purposes was fairly common, but use of such cards for ordinary purchases was not.
The 1995 legislature passed and the governor signed legislation making the following finding:
- Findings---1995 c 30: "The legislature finds that (1) the use of credit cards is a customary and economical business practice to improve cash management, reduce costs, and increase efficiency; and (2) local governments should consider and use credit cards when appropriate." [1995 c 30 §1.]
The legislation was then codified and appears in the state codes as RCW 43.09.2855, as follows:
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(1) Local governments, including counties, cities, towns, special purpose districts,
municipal and quasi-municipal corporations, and political subdivisions, are
authorized to use credit cards for official government purchases and acquisitions.
(2) A local government may contract for issuance of the credit cards.
(3) The legislative body shall adopt a system for:
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(a) The distribution of the credit cards;
(b) The authorization and control of the use of credit card funds;
(c) The credit limits available on the credit cards;
(d) Payment of the bills; and
(e) Any other rule necessary to implement or administer the system under this section.
(4) As used in this section, "credit card" means a card or device issued under an arrangement pursuant to which the issuer gives to a card holder the privilege of obtaining credit from the issuer.
(5) Any credit card system adopted under this section is subject to examination by the state auditor's office pursuant to chapter 43.09 RCW.
(6) Cash advances on credit cards are prohibited. [1995 c 30 § 2. Formerly RCW 39.58.180.]