What describes the powers a municipality corporation holds regarding its authority?

The correct answer is Dillon's Rule, which is a legal principle that defines the scope of authority granted to local governments, such as municipal corporations. This rule states that municipalities only have those powers that are expressly granted to them by the state government, or those powers that are necessarily implied from granted powers. This means that unless a municipality's authority is clearly delineated by the state law, it cannot assume broader powers or responsibilities.

Dillon's Rule emphasizes the limited autonomy of local governments compared to the authority of the state. It serves as a guideline for understanding the extent of municipal capabilities, ensuring they operate within the framework established by state legislation. This principle is particularly significant in Texas, as it helps define the relationship between state and local governance, maintaining order and clarity regarding what municipalities can and cannot do.

In contrast, constitutional limits refer broadly to the boundaries set by state or federal constitutions, which can encompass various aspects of governance but do not specifically define municipal powers. City code relates to the specific regulations and laws enacted by a municipality but does not describe the overarching authority framework itself. Legislative law encompasses all laws passed by the legislature, without particular reference to the distinction between state and local powers as outlined by Dillon's Rule.