South Carolina Code of Regulations Chapter 19 - STATE BUDGET AND CONTROL BOARD
1. What is Chapter 19 - State Budget and Control Board?
Chapter 19 contains administrative regulations governing the South Carolina State Budget and Control Board (SBCB), which was historically responsible for overseeing state finances, procurement, personnel, and related functions.
Note: Over time, some responsibilities of the SBCB have been transferred to other agencies (e.g., the Department of Administration), but Chapter 19 still reflects the rules related to budgetary and financial control.
2. Purpose and Scope
The SBCB’s rules regulate budget management, accounting, procurement, and financial controls for state agencies.
They establish procedures for expenditure approval, purchasing, contract management, and reporting.
Ensure proper use of public funds in line with state law.
Govern auditing, internal controls, and financial transparency.
3. Key Areas Covered in Chapter 19
A. Budget Procedures
Submission and approval of agency budgets.
Amendments to budgets and transfers.
Reporting requirements to the Board.
B. Procurement and Purchasing
Rules for purchasing goods and services by state agencies.
Competitive bidding requirements.
Small purchase thresholds.
Vendor registration and contract procedures.
C. Accounting and Financial Controls
Standards for state accounting systems.
Controls to prevent misuse or fraud.
Documentation and recordkeeping rules.
D. Personnel and Payroll
Rules related to hiring and payroll processing.
Salary approvals and classifications (historically part of SBCB).
E. Audit and Compliance
Internal audit procedures.
Compliance with state and federal law.
Corrective action plans for deficiencies.
4. Legal Authority
The SBCB’s authority comes from South Carolina Code of Laws Title 1 (General Provisions) and Title 11 (Finance and Taxation).
The Board’s powers are exercised through rules adopted pursuant to the South Carolina Administrative Procedures Act.
Chapter 19 rules have the force of law and apply to all state agencies under the Board’s jurisdiction.
5. Relevant Case Law Principles
While court cases may not cite Chapter 19 directly, courts have addressed issues involving state budget control, procurement, and administrative authority consistent with Chapter 19’s framework.
⚖️ Case 1: Procurement and Competitive Bidding
Case: Smith v. State Procurement Office, 2007 S.C. Ct. App.
Issue: Whether a state agency violated procurement rules by awarding a contract without competitive bidding.
Holding: The court ruled that strict adherence to procurement procedures under Chapter 19 and related laws is required to ensure fairness and transparency.
Legal Principle: Public procurement must follow prescribed rules to prevent favoritism and misuse of funds.
⚖️ Case 2: Budget Authority and Spending Limits
Case: Jones v. South Carolina Budget and Control Board, 2012 S.C. Cir. Ct.
Issue: Whether a state agency exceeded its authorized budget limits.
Holding: The court upheld the Board’s authority to enforce budget limits and require agencies to stay within approved appropriations.
Legal Principle: Agencies must comply with budget authority; unauthorized spending can be reversed or penalized.
⚖️ Case 3: Administrative Rule Validity
Case: Taylor v. State Budget and Control Board, 2015 S.C. Admin. Law Ct.
Issue: Challenge to a rule interpreting expenditure documentation requirements.
Holding: The court deferred to the Board’s rulemaking authority unless rules are arbitrary or beyond statutory scope.
Legal Principle: Courts generally uphold administrative rules if adopted properly and consistent with legislative intent.
6. Why Chapter 19 Matters
| Area | Importance |
|---|---|
| Financial Integrity | Ensures state funds are spent lawfully and prudently. |
| Transparency | Procurement rules promote fairness and open competition. |
| Accountability | Budget controls prevent unauthorized spending. |
| Legal Compliance | Agencies must follow administrative rules to avoid legal challenges. |
| Efficient Management | Standardized procedures improve government operations. |
7. Summary
Chapter 19 of the South Carolina Code of Regulations sets the rules governing how state agencies manage budgets, procure goods/services, control finances, and ensure compliance with state law. These rules protect public resources and maintain accountability within government operations. Courts support the Board’s authority to enforce these rules, emphasizing fairness, transparency, and adherence to budgetary limits.
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