The Case for Repeal: Abolishing South Dakota’s Shadow Governments
In South Dakota, we pride ourselves on local control. However, there is a dark side to “local control” when it manifests as Special Purpose Districts (Road, Sanitary, Irrigation). These districts were designed to give neighbors a way to manage shared infrastructure, but the laws governing them—specifically SDCL 31-12A—have created a constitutional crisis in our rural communities.
It is time for the South Dakota Legislature to repeal these outdated statutes and return to a system that respects property rights and the rule of law.
1. Taxation Without Oversight
The most glaring argument for repeal is the lack of a “Safety Net.” In a city or county, voters have clear paths to challenge a tax increase. In many road districts, boards have invented “Special Maintenance Fees” that bypass state-mandated tax caps. When the County Auditor and State’s Attorney refuse to intervene, these boards become mini-monarchies with the power to tax residents out of their homes. A system that allows for taxation without functional oversight is fundamentally unconstitutional.
2. The Collapse of Due Process
Under SDCL 3-4 and SDCL 1-25, elected officials are supposed to be protected from arbitrary removal. Yet, we have seen special districts use “bylaws” to oust elected members in secret meetings, effectively nullifying the will of the voters. When the “Closed Loop” of local government protects these boards, the citizen’s right to due process is extinguished. If the state cannot guarantee the integrity of an election in a special district, the district should not exist.
3. The “Hire a Lawyer” Barrier
The current law forces residents to act as their own private Attorney General. When a district breaks the law, the state’s answer is almost always: “Hire a private lawyer.” This creates a “Pay-to-Play” justice system. If a resident must spend $20,000 in Circuit Court to save $5,000 in unauthorized taxes, the law is no longer a shield—it is a weapon used by the district to bankrupt dissenters.
The Private Alternative: Achieving Goals Without the Government
Opponents of repeal argue that without these districts, roads wouldn’t be fixed. This is a false choice. Residents can achieve their goals more effectively and legally through Private Road Maintenance Agreements (RMAs).
- Contractual Transparency: Unlike a road district, a private agreement is governed by contract law. Every participant knows exactly what they are paying and what they get in return.
- Voluntary Participation: Private agreements rely on the consent of the parties involved, rather than a “hostage” situation where a board can unilaterally impose fees on neighbors who never agreed to them.
- Civil Recourse: In a private agreement, a breach of contract is a clear-cut legal issue that doesn’t involve the “Closed Loop” of the State’s Attorney’s office or the “Jurisdictional Trap” of government immunity.
Conclusion
South Dakota’s special district laws have outlived their usefulness. They have become breeding grounds for small-town corruption and constitutional violations. By repealing these statutes, we can return to a system where property owners manage their own affairs through voluntary, private contracts—restoring both the “local” and the “control” to the people of South Dakota.