Board Member Compensation: Special Rules for Special Districts

The California Government Code, through principal or special acts, generally provides special districts with the authority to compensate board members. The first step in understanding what can and cannot be done in terms of compensation is to check the special district’s formation or enabling documents to determine whether the district is governed by a principal act or a special act. Identifying which statutes govern a district is important because these different statutes often determine the maximum amount of compensation a board member may receive, how and if board members can increase compensation, and whether board members may be reimbursed for job-related expenses and receive benefits such as medical, dental, vision, and life insurance.

However, as if often the situation with legislation, some of the principal acts and special acts that regulate special districts can raise more questions than they answer and some statutory language could be open to different interpretations. To help special districts and their boards understand board compensation law, make decisions and solve problems, Meyers Nave Principal Richard Pio Roda prepared a special guide that was published by the California Special Districts Association. The topics covered in Rich’s report include:

1. Which districts are governed by principal or special acts?
2. Is there a maximum or minimum compensation for board members?
3. Are there procedures for increasing board member compensation?
4. What are the considerations for reimbursing job-related expenses?
5. Can board members receive benefits such as medical and dental insurance?
6. How do small districts with small budgets handle board compensation?

Please click here to read Rich’s Special District Board Compensation Guide.