Commencing with Section 56000, the California Government Code exists to provide LAFCO with its powers, procedures and functions. This law gives LAFCO power to "approve or, disapprove with or without amendment, wholly, partially or conditionally" proposals concerning the formation of cities and special districts, and other changes in jurisdiction or organization of local governmental agencies. In reviewing proposals, LAFCO is required to consider certain factors such as the conformity between city and county plans, current levels and need for future services to the area, and the social, physical and economic effects that agency boundary changes present to the community. LAFCO is also given authority to make studies of existing governmental agencies in an effort to improve the efficiency of urban services.
LAFCO must follow the Ralph M. Brown Act.