New Credit Card Rules for Political Subdivisions
Governor John Kasich signed HB 312 into law last month, and with it came sweeping mandatory changes to how all political subdivisions use credit cards. HB 312 takes effect on November 2, 2018, and by January 31, 2018 all counties, cities, villages, townships, park boards, and even regional water and sewer districts must have a policy for the use of credit card accounts. If a political subdivision does not have a credit card, it must adopt a policy before holding its first credit card account.
If you currently have a credit card policy, be sure to find it, dust it off, and ask for a legal review. Odds are good that your simple policy does not comply with the new regulations. For example, the new policy must include provisions that address many things including:
- individuals who are authorized to use the credit card;
- type of expense for which the credit card may be used;
- maximum credit limit; and
- procedure for submitted itemized receipts.
In addition to the new provisions, a compliance office must be appointed if the fiscal officer or clerk does not keep possession of or have control of the credit cards. And, all officers and employees must understand – they will be personally liable to reimburse the treasury for the amounts charged when no itemized receipt has been presented.