Special districts are authorized by state law and must have
public foundation,
civil office, and public
accountability.
State law Special districts in the United States are founded by some level of
government in accordance with state law (either constitutional amendment, general law, or special acts) and exist in all states. Special districts are legally separate entities with at least some corporate powers. Districts are created by legislative action, court action, or public
referendum. The procedures for creating a special district may include procedures such as
petitions, hearings, voter or landowner approval, or government approval. Tribal governments may create special districts pursuant to state law and may serve on the boards of special districts.
Public foundation Special districts, like all public entities, have
public foundation. The
landmark case of the
U.S. Supreme Court addressing public versus private charters was
Dartmouth College v. Woodward in 1819. Dartmouth established the fundamental differences between public and private organizations. Critically, a government must be founded by all of the people of a governmental area or by their governmental representatives.
Civil office Special districts possess some form of
civil office, that is, the board has received a delegation of
sovereign power from the state. Some boards may be appointed by only landowners. Private entities may appoint some or all of the members of a special district; however, there must be evidence of civil office. In addition to special districts with privately appointed boards, a special district may have a privately founded board; however, such a board could not be given the power to set a tax.
Accountability There is a citizen-government
fiscal accountability relationship. To maintain accountability for special districts, states must maintain ultimate control (the power to repeal the authorizing law at any time). Due to public foundation and, thus, ultimate control, the state can freely delegate sovereign power (such as the power to tax) to special districts and can allow them to act autonomously with little supervision. ==History==