Does South Dakota Follow Dillon’s Rule? And Why It Matters for Road Districts

When questions arise about what a local government can legally do, one principle often comes up: Dillon’s Rule.

Understanding how this principle applies in South Dakota is key to evaluating actions taken by entities like road districts.

Is Dillon’s Rule Written Into South Dakota Law?

No.

You will not find the term “Dillon’s Rule” anywhere in South Dakota statutes. That’s because it is not a statute—it is a judicial doctrine, meaning it comes from court decisions rather than legislation.

Does South Dakota Follow Dillon’s Rule?

Yes—in substance, even if not by name.

South Dakota courts have consistently held that local governments possess only:

Powers expressly granted by statute
Powers necessarily implied from those statutes

Anything beyond that is not allowed.

This is the core of Dillon’s Rule, even if the courts don’t always use that exact term.

Constitutional Foundation

The principle is reinforced by the structure of state government itself.

Under South Dakota Constitution Article IX, the Legislature has broad authority over local governments.

In practical terms:

Local governments are creations of the state
They only have the powers the Legislature gives them

This aligns directly with the reasoning behind Dillon’s Rule.

What About Home Rule?

South Dakota does allow home rule for certain entities, such as cities and counties.

Home rule generally allows those governments to:

Act freely unless specifically prohibited by state law

However, this is a critical distinction:

Road districts are not home rule entities.

They are created under statute—specifically SDCL Chapter 31-12A—and their authority is limited to what that chapter provides.

Why This Matters for Road Districts

Because road districts are statutory entities:

They do not have broad discretionary authority
They cannot act simply because something is not prohibited
They must point to clear legal authorization for what they do

This leads to a straightforward legal standard:

If a power is not granted in statute, or clearly implied from it, the power does not exist.

Applying This to Current Issues

Several actions raise questions under this framework:

“Special Maintenance Fees”

If SDCL 31-12A authorizes:

Taxes
Special assessments

…but does not mention “special maintenance fees,” then the question becomes:

Where does that authority come from?

Flat Per-Landowner Charges

If fees are imposed as a uniform charge per landowner:

Is that structure authorized by statute?
Or is it being created outside of the traditional concept of special assessments?

Governance and Procedures

If bylaws establish practices such as:

Certain types of meetings
Procedures for decision-making
Restrictions on records access

Each of those must also be grounded in statutory authority.

The Bottom Line

Even though “Dillon’s Rule” is not written into South Dakota law by name, its principle clearly applies:

Local governments only have the powers granted to them
Those powers must be found in statute or clearly implied

For road districts, this limitation is especially strict because they do not have home rule authority.

That makes one question central:

Where, in South Dakota law, is the authority for each of these actions clearly granted?

If no clear answer exists, then the legality of those actions remains open to question.