How Governments Interact

How our Federal Constitution and a ruling from an Iowa judge both influence how governments work together.

Understanding the dynamics between the federal, the states and local governments is crucial to grasping the intricacies of governance in our country. While many may try to paint these relationships with the scientific precision offered by flow charts and organizational charts, the reality is often much different.

The way our units of government often work is more like watching the Electric Slide at a high school homecoming dance. To the unknowing observer, it looks like awkward kids not exactly sure what move to make next. It’s a performance that looks more like art, than rigid social science; more of a game of follow the leader, rather than follow the directions. Oh, and there are plenty of times when toes get stepped on and legs get crossed.

That’s not to say that there aren’t important laws and customs that largely relegate how these units of government work together. The structure and function of all levels of government in our state are deeply influenced by several key legal principles and constitutional provisions. The Dillon Rule, the Commerce Clause, and the Tenth Amendment each play a critical role in defining the relationship between state and local authorities and, by extension, the federal government. Today we will take some time to explore these three elements and show how they collectively shape local governance in Ohio.

The Tenth Amendment: States' Rights and Local Governance

The Tenth Amendment to the U.S. Constitution, ratified in 1791 as part of the Bill of Rights, asserts that the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people. This amendment emphasizes the federalist structure of the U.S. government, affirming that any powers not explicitly granted to the federal government are reserved for the states or the people. The Tenth Amendment not only supports the idea of state sovereignty, allowing states to retain substantial powers to govern themselves without federal interference, but, at least on paper, limits the power of the federal government, especially when it comes to issues within states.

While the Tenth Amendment grants individual states significant authority, it does not explicitly define the relationship between state and local governments; a quick read of the consitutions will not yield one mention of “city” or “county” or “township”. However, it establishes the framework within which states can determine the scope of local governance. In states adhering to the Dillon Rule, like Ohio, the Tenth Amendment's delegation of power to the states results in a more centralized state control over local entities.

The Dillon Rule: A Restriction on Local Authority

The Dillon Rule, named after Judge John Forrest Dillon, asserts that local governments are “creatures of the state“ and possess only those powers explicitly granted to them by state legislatures. Dillon, in his 1868 ruling, outlined three main principles for local government authority: local governments have only the powers expressly granted by the state legislature, powers necessarily or fairly implied from the express powers, and powers essential to the declared objects and purposes of the corporation (the municipality). This rule essentially means that unless a power has been expressly conferred upon local governments by the state, it is presumed not to exist.

In Ohio, as in about three other dozen states, the Dillon Rule restricts municipalities, counties, and townships, requiring them to operate within the confines of state legislation. This principle centralizes authority at the state level, limiting the autonomy of local governments. You may be wondering what about those other states, like Louisiana and Colorado. These states have strong “Home Rule” statutes in their state laws that grant many autonomous powers to counties and cities in those states. Ohio is a bit of a hybrid state; we have both “Home Rule” cities and counites and “Statutory” cities and counties.

The Commerce Clause: Federal Oversight and Local Impact

The Commerce Clause, found in Article I, Section 8, Clause 3 of the U.S. Constitution, grants Congress the power to regulate commerce with foreign nations, and among the several states, and with the Indian tribes. This clause has been interpreted broadly by the U.S. Supreme Court to allow federal regulation of a wide range of economic activities that affect interstate commerce.

The Commerce Clause significantly impacts local government by placing certain activities under federal oversight. For example, local regulations affecting businesses that operate across state lines can be subject to federal law. This can limit the ability of local governments to regulate economic activities within their jurisdictions, as federal law preempts conflicting local regulations.

Impact on Local Government in Ohio

The interplay between the Dillon Rule, the Commerce Clause, and the Tenth Amendment significantly shapes local governance in Ohio.

In terms of zoning and land use, local governments in Ohio must conform to state-enacted zoning laws. While municipalities can develop zoning ordinances, these must align with state guidelines. This constraint can limit local governments' ability to address specific community needs and preferences in land use and urban planning. Additionally, federal regulations under the Commerce Clause can affect local land use decisions, particularly those involving environmental protections or commercial developments.

Regarding taxation and revenue generation, the Dillon Rule restricts local governments' ability to impose taxes or generate revenue independently. Local entities can only levy taxes or fees that are explicitly authorized by the state legislature. This limitation often leads to financial constraints, hindering local governments' ability to fund essential services and infrastructure projects. Federal regulations under the Commerce Clause can also influence local economic policies, particularly those involving interstate commerce and trade.

In the realm of public health and safety, local governments must operate within the confines of state laws and regulations. The Dillon Rule can limit local authorities' flexibility in responding to public health emergencies tailored to their community's specific needs. Federal regulations under the Commerce Clause can also affect public health policies, particularly those involving interstate travel and commerce.

Environmental regulation is another area where local governments may wish to implement stricter standards to address specific local concerns. However, under the Dillon Rule, they must operate within the parameters set by state law. This can prevent local governments from enacting measures like plastic bag bans or stricter emissions standards without state approval. Federal regulations under the Commerce Clause can also affect local environmental policies, particularly those involving interstate commerce and environmental protection.

Case Studies: The Dillon Rule, Commerce Clause, and Tenth Amendment in Action

Several case studies highlight the practical implications of the Dillon Rule, the Commerce Clause, and the Tenth Amendment on local governance in Ohio.

In 2020, Columbus attempted to implement a ban on plastic bags to address environmental concerns. However, the city faced legal challenges asserting that such a ban required state authorization. The Ohio General Assembly later passed legislation preventing local governments from imposing bans on plastic bags, illustrating the Dillon Rule’s limiting effect on local environmental initiatives. Federal regulations under the Commerce Clause also influence local environmental policies, particularly those involving interstate commerce and environmental protection.

In another instance, Cleveland proposed increasing its minimum wage independently. The Ohio legislature quickly passed a law preempting municipalities from setting their minimum wage rates higher than the state level. This move underscored the Dillon Rule's role in maintaining state control over economic regulations. Federal regulations under the Commerce Clause also affect local economic policies, particularly those involving interstate commerce and trade.

Toledo residents passed the Lake Erie Bill of Rights (LEBOR) in 2019, granting the lake legal rights to ensure its protection from pollution. The state of Ohio, invoking the Dillon Rule, challenged the initiative, arguing that such environmental regulations exceeded local government authority. The court sided with the state, invalidating LEBOR and reinforcing the limits on local governance. Federal regulations under the Commerce Clause also influence local environmental policies, particularly those involving interstate commerce and environmental protection.

Balancing State Control and Local Autonomy

The Dillon Rule, the Commerce Clause, and the Tenth Amendment create a complex legal landscape for local governments in Ohio. While the Dillon Rule ensures uniformity and prevents local overreach, it also imposes significant constraints on local autonomy and flexibility. The Tenth Amendment, by reserving powers to the states, provides the legal basis for this centralized control. The Commerce Clause further complicates local governance by placing certain activities under federal oversight.

There is ongoing debate about the appropriate balance between state control and local autonomy. Advocates for greater local control argue that municipalities are better positioned to understand and address the unique needs of their communities. They contend that more local autonomy would enable more responsive and effective governance. On the other hand, proponents of the Dillon Rule argue that state oversight ensures consistency, prevents a patchwork of regulations, and protects against local decisions that could have broader negative implications. They believe that state control is necessary to maintain order and uniformity in governance.

Federal oversight under the Commerce Clause can also influence the balance between state and local authority. While federal regulations can ensure consistency and protect against negative externalities, they can also limit local autonomy and flexibility. The ongoing dialogue about the appropriate balance of power will shape the future of local government in Ohio, determining how effectively it can serve its communities and address their unique needs.

Bringing it All Together

The Dillon Rule, the Commerce Clause, and the Tenth Amendment are foundational principles that significantly impact local government in Ohio. While the Tenth Amendment establishes the framework for state sovereignty, the Dillon Rule delineates the scope of local government authority within that framework. The Commerce Clause further complicates local governance by placing certain activities under federal oversight. Together, these principles shape the balance of power between state and local governments, influencing various aspects of governance, from zoning and taxation to public health and environmental regulation.

As Ohio's communities continue to evolve and face new challenges, the tension between state control and local autonomy will remain a critical issue. Understanding the Dillon Rule, the Commerce Clause, and the Tenth Amendment is essential for anyone involved in local government, policy-making, or community advocacy in Ohio, as these principles fundamentally influence the scope and effectiveness of local governance. The ongoing dialogue about the appropriate balance of power will shape the future of local government in Ohio, determining how effectively it can serve its communities and address their unique needs.

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