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40.10
General Provisions

40.10.10
Oct. 1, 2000
Policies in this chapter are minimum standards

This chapter contains policies and requirements for the acceptance and/or disbursement by state agencies of state funds/benefits via electronic means, including Internet transactions, also referred to as electronic commerce (e-commerce). This includes, but is not limited to, acceptance of credit cards and debit cards, use of purchase cards and payments by electronic fund transfer (EFT) and electronic benefit transfer (EBT). The policies and procedures in this chapter are the minimum requirements that all state agencies must meet. An agency may establish additional policies and requirements, as long as the agency meets the required minimum standards.

40.10.20
June 1, 2004
Authority for these policies

40.10.20.a
RCW 43.41.110(14) states that:

"The office of financial management shall be the official state agency to estimate and manage the cash flow of all public funds as provided in chapter 43.88 RCW. To this end, the office shall adopt rules as are necessary to manage the cash flow of public funds."

40.10.20.b
RCW 43.41.180 states that:

"(1) The office of financial management is authorized to approve the use of electronic and other technological means to transfer both funds and information whenever economically feasible, to eliminate paper documentation wherever possible, and to provide greater fiscal responsibility. This authorization includes but is not limited to the authority to approve use of electronic means to transfer payroll, vendor payments, and benefit payments and acceptance of credit cards, debit cards, and other consumer debt instruments for payment of taxes, licenses, and fees. The office of financial management shall adopt rules under RCW 43.41.110(14) to specify the manner in which electronic and other technological means, including credit cards, are available to state agencies.
(2) No state agency may use electronic or other technological means, including credit cards, without specific continuing authorization from the office of financial management."

40.10.20.c
RCW 43.08.015 states that:

"Within the policies and procedures established pursuant to RCW 43.41.110(14) and 43.88.160(1), the state treasurer shall take such actions as are necessary to ensure the effective cash management of public funds. This cash management shall include the authority to represent the state in all contractual relationships with financial institutions. The state treasurer may delegate cash management responsibilities to the affected agencies with the concurrence of the office of financial management."

40.10.20.d
RCW 43.88.160(5d) states that:

"The treasurer shall coordinate agencies' acceptance and use of credit cards and other payment methods, if the agencies have received authorization under RCW 43.41.180."

40.10.30
Oct. 1, 2000
Applicability

This section applies to all agencies of the state of Washington, unless otherwise exempted by statute or rule. The Budget and Accounting Act (RCW 43.88.020) defines the term "agency" to mean and include "every state office, officer, each institution, whether educational, correctional or other, and every department, division, board and commission, except as otherwise provided."

Agencies may request a waiver from complying with specific requirements of this chapter. Refer to Subsection 1.10.40 for information on how to request a waiver.

40.10.40
June 1, 2004
Responsibilities of the Office of Financial Management

The Office of Financial Management (OFM) has the following responsibilities related to e-commerce activities by state agencies:

Develop administrative and accounting policies and procedures for acceptance and/or disbursement of state funds/benefits via electronic means.
Approve, prior to implementation, the application and its expansions, if appropriate, for acceptance and/or disbursement of state funds/benefits via electronic means when economically feasible. Approval is required for both pilot and permanent applications.

Provide assistance to agencies in preparing an economic feasibility study (EFS) for e-commerce activities. Agencies are encouraged to work closely with their assigned OFM Accounting Consultant and the OFM E-Government Accounting Consultant. Additional resources are available on the OFM Administrative and Accounting Resources website at http://www.ofm.wa.gov/resources/default.asp.
Work with the Office of the State Treasurer (OST) to respond to requests for fiscal information, as needed, on the usage of electronic transfers of funds/benefits.

40.10.50
June 1, 2004
Responsibilities of the Office of the State Treasurer

The OST has the following responsibilities related to electronic transfers of funds/benefits:

Negotiate master contracts or other contracts for receipts and disbursements by credit cards, debit cards, EFT, or other electronic or technological means. Master contracts negotiated include, but are not limited to, depository and banking services, credit and debit card acceptance, lockbox and automated remittance advice services, and automated clearing house (ACH) file processing. This responsibility may be delegated to agencies with OFM's concurrence. An agency delegated this responsibility should use its best efforts to minimize the financial impact of electronic transfers on the state agency, taxpayers, and the public who use its services.
Work with OFM and state agencies in implementing new technologies for acceptance and/or disbursement of state funds/benefits via electronic means which include, but are not limited, to the following:

EFTs for both revenue collections and disbursements; and,

Credit cards and/or debit cards used with Internet and/or point of sale (POS) applications.

Advise agencies of new cash management techniques, practices, procedures, and other efficient methods of collecting and disbursing state money to ensure maximum return on state investments.

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40.10.20.a	RCW 43.41.110(14) states that: "The office of financial management shall be the official state agency to estimate and manage the cash flow of all public funds as provided in chapter 43.88 RCW. To this end, the office shall adopt rules as are necessary to manage the cash flow of public funds."
40.10.20.b	RCW 43.41.180 states that: "(1) The office of financial management is authorized to approve the use of electronic and other technological means to transfer both funds and information whenever economically feasible, to eliminate paper documentation wherever possible, and to provide greater fiscal responsibility. This authorization includes but is not limited to the authority to approve use of electronic means to transfer payroll, vendor payments, and benefit payments and acceptance of credit cards, debit cards, and other consumer debt instruments for payment of taxes, licenses, and fees. The office of financial management shall adopt rules under RCW 43.41.110(14) to specify the manner in which electronic and other technological means, including credit cards, are available to state agencies. (2) No state agency may use electronic or other technological means, including credit cards, without specific continuing authorization from the office of financial management."
40.10.20.c	RCW 43.08.015 states that: "Within the policies and procedures established pursuant to RCW 43.41.110(14) and 43.88.160(1), the state treasurer shall take such actions as are necessary to ensure the effective cash management of public funds. This cash management shall include the authority to represent the state in all contractual relationships with financial institutions. The state treasurer may delegate cash management responsibilities to the affected agencies with the concurrence of the office of financial management."
40.10.20.d	RCW 43.88.160(5d) states that: "The treasurer shall coordinate agencies' acceptance and use of credit cards and other payment methods, if the agencies have received authorization under RCW 43.41.180."