Chapter 9-D: State Credit Card Contracts

Notwithstanding any law to the contrary, fees, charges, assessments, penalties, and other costs incurred by the state in accordance with contracts entered into by the department of administrative services for credit card services under RSA 21-I:11, II(f) may be paid by the state from revenue to be received under these contracts.

I. Rebates received from contracts for credit card services entered into by the division of procurement and support services under RSA 21-I shall be applied in the following manner:

(a) Amounts which are paid to the state as rebates for its purchases shall be deposited in the payment and procurement card fund established in RSA 9-D:3.

(b) Amounts which represent the added rebate benefit attributable to the consolidation of calculations under contracts allowing for the independent participation of the legislative or judicial branches, or the independent participation of non-state entities under RSA 21-I:17, I-a(a) shall be paid by the card issuer directly to the branches or non-state entities which independently participated in the purchases.

II. Contracts for credit card services entered into by the division of procurement and support services under RSA 21-I shall contain such provisions as are necessary to apply rebates, if any, in the manner specified under paragraph I. Application of rebates in the foregoing manner shall not be required in the case of cards:

(a) Intended only for the procurement of fuel;

(b) Entered into by the division of procurement and support services which relate to a specific seller of goods or services;

(c) Obtained by the division under contracts specifically providing for another method of handling or applying rebates; or

(d) Entered into prior to the effective date of this section.

I. There is hereby established in the office of the state treasurer the payment and procurement card fund, which shall be a revolving fund administered by the department of administrative services. The department of administrative services may make expenditures of up to $100,000 in anticipation of revenue which may be received by this fund.

II. The fund established under paragraph I may be maintained at such a level as to cover the necessary costs of the administration and management of the credit, payment, or procurement card programs handled by the department of administrative services, to cover other amounts which may be payable under paragraph III, and to allow the accumulation of a working capital reserve which is no greater than $25,000. The department of administrative services is authorized to establish one or more positions to administer and manage the procurement card program. No position shall be staffed unless and until sufficient funds exist in the fund established under paragraph I to cover the necessary costs of the administration and management of the program, including the funding of such positions.

III. All funds accumulated from rebates under RSA 9-D:2, I(a) or (b) shall be deposited in the fund established in paragraph I. Expenditures from the fund shall be restricted to the following purposes:

(a) Paying the necessary costs of administration and management of the credit, payment, or procurement card programs handled by the department of administrative services and maintaining a working capital reserve in an amount, not to exceed $25,000, which is deemed sufficient by the division of procurement and support services to cover the costs of the programs and to pay amounts under subparagraphs (b)(1) and (2).

(b) After deducting the foregoing amounts, making such payments, if any, that the department of administrative services concludes are appropriately payable:

(1) By an entity which is part of the state to any credit, payment, or procurement card issuer under contracts secured by the division of procurement and support services pursuant to RSA 21-I, including but not limited to payments for purchases and payments which must be made in order for the state to obtain available rebates, or to avoid incurring, or to pay, interest, penalties, or other costs imposed on the state by issues of credit, payment, or procurement cards.

(2) To the department of administrative services to address its procurement-related needs or expenses. The department may use rebate amounts to fund its administration, management, operations, positions, activities or capital, or other needs, or the needs of any of its divisions, bureaus, units or subunits, relating to the procurement of goods or services.

IV. In the event that any entity which is part of the state fails to make or authorize required payments to any credit, payment, or procurement card issuer which has been secured through the department of administrative services, regardless of whether such failure has or may result in the imposition of interest, penalties or other costs, or loss of rebates, the commissioner of administrative services is authorized to charge the amount owed, plus any interest, penalties, or other costs, against any money appropriated to the agency to pay for the goods or services purchased; to transfer those funds to the payment and procurement card fund; and to pay from that fund the amount necessary to avoid or address the agency's failure.

V. At the end of each biennium, any funds remaining in excess of $25,000 after expenses paid in accordance with paragraph III shall lapse to the general fund.

The department of administrative services, division of procurement and support services, shall consult with the office of the state treasurer before entering into contracts for credit card services intended to facilitate the process by which the state conducts and pays for its purchases or transactions. Agencies shall not independently enter into single agency service contracts for credit card services to pay for purchases or transactions, including but not limited to purchases for commodities or services intended solely for use of a single agency, without the approval of the office of the state treasurer and the department of administrative services. If approved to use credit card services secured by or through the division of procurement and support services, an agency shall not use other cards unless authorized to do so by the division or granted a waiver under RSA 21-I:17-c.