The legislature very much has a say in what its universities can or should do, in any state. The SD universities can't even undertake building projects without legislative approval. And by law the schools cannot give coaches long term contracts (very recently, SDSU and USD coaches worked on one year contracts). I don't think either Dakota legislature has placed any kind of mandate or stipulation on level of competition or tying the Universities together in any way though. The Board of Regents has been more particular about the Division 1 process in SD. When SDSU moved up, the Regents forbade the school from funding the transition or increasing student fees for athletics, at least without the support of the students. When USD moved up, the Regents did not place the same restriction on USD and as a result, USD funds its athletics much more so on the backs of its students than SDSU does.