Final answer:
The idea that the Board cannot refer cases to the AG is false; Boards can take such action if required. Additionally, Dillon's Rule does not provide local governments with freedom and flexibility; it actually restricts their powers to those expressly granted by state law.
Step-by-step explanation:
The statement that the Board is not allowed to refer cases to the Attorney General (AG) for failure to abide by Board orders because they are considered civil penalties is false. The Board does have the authority to enforce its orders, and noncompliance with such orders can potentially lead to referrals to the AG or even to criminal proceedings, depending on the nature of the noncompliance and applicable laws.
As for the concept known as Dillon's Rule, it actually restricts the autonomy of local governments, making the statement that it provides freedom and flexibility false. Under Dillon's Rule, local governments are limited to powers expressly granted by state law, those necessarily or fairly implied in or incident to the powers expressly granted, and those essential to the declared objects and purposes of the corporation, not simply being convenient but indispensable. Any reasonable doubt as to the existence of a power is resolved by the courts against the local government, and the power is denied.