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How are special districts governed and funded?

Principal and Special acts

Special districts are established by a community under the legal authority of state statutes. In California, most special district formations require a thorough process conducted by a Local Agency Formation Commission (LAFCo) whereby the residents who rely upon and fund the services can have the final say.

There are two types of enabling acts, or laws, under which special districts can be formed.

Hover over each box to learn more about the two types of acts.

Principal Acts

Principal acts are key statutes that guide an entire category of special districts. Each type of special district (fire protect, recreation & parks. etc.) has its own principal act.

special acts

Alternatively, the State Legislature can pass a special act which allows for the formation of a new special district for very specific needs within a particular community. There are over 140 special districts in California that were formed by special act.