What rule states that municipal governments have only the powers expressly granted by the state?

Dillon's Rule is a legal principle that dictates the extent of powers available to municipal governments. It asserts that municipalities have only those powers that are specifically granted to them by state laws, as well as those that are necessarily implied from the granted powers. This is crucial in distinguishing the authority of local governments from that of state governments, ensuring that municipal operations remain within the confines set by the state legislature.

This rule underscores the idea that local governance is a creation of state authority, meaning municipal regulations, ordinances, and actions must align with the enabling legislation provided by the state. The significance of Dillon's Rule lies in its provision of a clear framework for local officials to operate within, fostering accountability while also delineating the boundaries of their authority.

Other options do not relate directly to the limitation of municipal powers by the state. Terms like "Municipality" and "Venire" refer to general concepts in local governance and jury summoning, respectively, while "The Texas Freedom Act" does not pertain to the powers of municipalities in relation to the state. Thus, Dillon's Rule is the correct choice for outlining the controlled scope of municipal authority.