The state of South Dakota (USA) has it correct.

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South Dakota Statutes and Administrative Rules

The State of South Dakota does not have the authority to regulate the use of airspace.
Where the Federal Congress has expressed an intent to displace state authority within a given subject matter by establishing exclusive federal authority, state action in the field will be deemed preempted and therefore invalid.

Even though South Dakota may not regulate how a drone flies, the State retains authority as to secondary conduct that may be attributed to the actions of the drone.

The following Statutes and Administrative Rules must be abided by at all times when flying a drone on or over Game, Fish and Parks property:
• You cannot use a drone to eavesdrop or engage in any other type of surveillance in a private place. SDCL 22-21-1.
• You cannot fly in a manner that causes serious public inconvenience, annoyance, or alarm to any other person, makes unreasonable noise; disturbs any lawful assembly or meeting of persons, or obstructs vehicular or pedestrian traffic. SDCL 22-18-35.
• You cannot fly in a manner which interferes with the management of the area or the authorized use of the area by others. ARSD 41:03:01:01.

The following statute applies to drone use regardless of what property you are on:
• You cannot use a drone to hunt, kill, take, concentrate, drive, rally, stir up, spot, or locate game birds, or animals. SDCL 41-8-39.

 
Yup. There are some knowledgable Remote Pilots in SD, and they have the legislature's ears.

A great example of how to work with your gov't agencies to make a difference.
 
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