Close Window

The Ohio General Assembly Establishes Procedures Designed To Curb The Misuse Of Credit Cards

UPDATED: The Ohio General Assembly Establishes Procedures Designed To Curb The Misuse Of Credit Cards

House Bill 312, which goes into effect on November 2, 2018, establishes new procedures that political subdivisions must follow when using credit card accounts.

The Act requires political subdivisions to adopt a policy regarding the use of credit cards before the political subdivision opens a credit card account or, if the political subdivision already holds a credit card account, to adopt a policy within three months of November 2, 2018, regarding the use of credit cards. The policy must contain the following provisions:

  • Which officers or positions are authorized to use the credit card;
  • The types of expenses for which the credit card may be used;
  • The procedure for acquiring, using, and managing the credit card;
  • The procedure for submitting itemized receipts to the fiscal officer;
  • The procedure for issuing, reissuing, and cancelling the credit card and the process for reporting lost or stolen cards;
  • The credit limit of the credit card; and
  • The actions or omissions that qualify as the misuse of a credit card.

In addition to adopting a policy, the name of the political subdivision must appear on all instruments related to the credit card. If the fiscal officer of the political subdivision does not retain general possession and control of the credit card, the political subdivision must appoint a compliance officer to review the use of the credit card. The compliance officer may not use the credit card except in limited circumstances.

The Act also makes it a criminal offense for an officer or employee to knowingly misuse a credit card.

McGown & Markling attorneys are adept at assisting our clients in establishing and maintaining effective, clearly written policies. Please contact our attorneys for assistance in developing a policy regarding the use of credit cards.

The Final Bill Analysis of House Bill 312 can be found here.

UPDATED: On November 30, 2018, the Auditor of State released guidance on adhering to House Bill 312 and the new credit card account requirements. To read this guidance, click here.

Authors: Matthew John Markling, Patrick Vrobel and John T. Sulik, Jr.

Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.