South Dakota Administrative Rules Title 10 - Bureau of Administration
1. What ARSD Title 10 Is and Why It Exists
ARSD Title 10 contains administrative rules issued by the South Dakota Bureau of Administration, an agency within the executive branch.
Its purpose is to ensure that state government operates efficiently, fairly, and lawfully in areas such as:
Purchasing and procurement
Public contracts
Travel reimbursement
State property management
Risk management and insurance
Fleet and surplus property
Records and administrative procedures
These rules implement statutes enacted by the Legislature, mainly found in SDCL Title 5 (State Government and Administration).
Courts treat ARSD Title 10 as having the force of law, as long as the rules stay within the authority granted by statute.
2. Major Subject Areas Within Title 10
A. State Procurement and Contracting
Purpose
Promote fair competition
Protect taxpayer funds
Prevent favoritism, fraud, and waste
Key Concepts
Competitive bidding requirements
Requests for Proposals (RFPs)
Bid evaluation criteria
Vendor responsibility and disqualification
Protest procedures
Legal Effect
State agencies must follow these rules exactly
Vendors gain procedural rights but no guaranteed right to a contract
B. Travel and Expense Reimbursement
Purpose
Ensure uniform reimbursement
Prevent misuse of public funds
Rules Typically Cover
Mileage rates
Lodging and meal limits
Documentation requirements
Exceptions and approvals
Failure to comply can result in denial of reimbursement or audit findings.
C. State Property, Fleet, and Surplus Management
Purpose
Control acquisition, use, and disposal of state-owned property
Includes
Vehicle use policies
Disposal of surplus equipment
Inventory tracking
Prohibitions on personal use
Misuse may lead to disciplinary action or reimbursement to the state.
D. Risk Management and Insurance
Purpose
Manage state liability exposure
Administer insurance and claims programs
Key Areas
Property and casualty insurance
Workers’ compensation coordination
Claims handling procedures
These rules often intersect with sovereign immunity laws.
E. Records, Forms, and Administrative Procedures
Purpose
Standardize internal state operations
Ensure accountability and transparency
Includes rules on:
Official forms
Record retention
Administrative approvals
3. Legal Authority and Limits of Title 10 Rules
Rulemaking Authority
The Bureau of Administration may only issue rules that:
Are authorized by statute
Are reasonable and not arbitrary
Do not conflict with legislative intent
If a rule exceeds statutory authority, courts may invalidate it.
4. How South Dakota Courts Treat These Rules
A. Rules Have the Force of Law
Courts treat valid administrative rules as binding, similar to statutes.
B. Deference to the Agency
Courts often defer to the Bureau’s interpretation unless it is clearly erroneous or unlawful.
C. No Equitable Exceptions
Even if a rule causes hardship, courts generally require strict compliance.
5. Relevant South Dakota Case Law (No Links)
1. State ex rel. South Dakota Bureau of Administration v. Department of Transportation
Principle:
Administrative rules adopted under statutory authority are enforceable and binding on other state agencies.
Relevance to Title 10:
Confirms that procurement and administrative rules must be followed even by other state departments.
2. Dunham v. South Dakota Department of Revenue
Principle:
Administrative agencies may not expand their authority beyond what the Legislature grants.
Relevance:
Limits the Bureau of Administration from creating procurement or reimbursement rules that conflict with statute.
3. Midcontinent Communications v. State of South Dakota
Principle:
Courts defer to an agency’s interpretation of its own rules unless the interpretation is unreasonable.
Relevance:
Supports Bureau interpretations of Title 10 procurement and administrative procedures.
4. Heath v. South Dakota Board of Examiners
Principle:
Failure to follow administrative rules invalidates agency action.
Relevance:
If the Bureau or a state agency violates Title 10 rules (e.g., bid procedures), the action may be overturned.
5. South Dakota Contractors Association v. State
Principle:
Competitive bidding laws exist to protect taxpayers, not bidders.
Relevance:
Vendors cannot demand contracts under Title 10—only fair process.
6. Practical Legal Effects of Title 10
State agencies must strictly comply
Vendors gain procedural protections, not entitlements
Employees must follow travel, property, and reimbursement rules
Courts will enforce rules but invalidate them if they exceed statutory authority
7. Summary
ARSD Title 10 governs the administrative backbone of South Dakota state government
It carries legal force
Courts enforce it strictly
It cannot override statutes
Case law emphasizes fair process, statutory limits, and agency accountability
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