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. (a) The commission shall adopt annually, following noticed
public hearings, a proposed budget by May 1 and final budget by June
15. At a minimum, the proposed and final budget shall be equal to the
budget adopted for the previous fiscal year unless the commission
finds that reduced staffing or program costs will nevertheless allow
the commission to fulfill the purposes and programs of this chapter.
The commission shall transmit its proposed and final budgets to the
board of supervisors, to each city, and to each independent special
district.
(b) After public hearings, consideration of comments, and adoption
of a final budget by the commission pursuant to subdivision (a), the
auditor shall apportion the net operating expenses of a commission
in the following manner:
(1) (A) In counties in which there is city and independent special
district representation on the commission, the county, cities, and
independent special districts shall each provide a one-third share of
the commission's operational costs.
(B) The cities' share shall be apportioned in proportion to each
city's total revenues, as reported in the most recent edition of the
Cities Annual Report published by the Controller, as a percentage of
the combined city revenues within a county, or by an alternative
method approved by a majority of cities representing the majority of
the combined cities' populations.
(C) The independent special districts' share shall be apportioned
in proportion to each district's total revenues as a percentage of
the combined total district revenues within a county. Except as
provided in subparagraph (D), an independent special district's total
revenue shall be calculated for nonenterprise activities as total
revenues for general purpose transactions less intergovernmental
revenue and for enterprise activities as total operating and
nonoperating revenues less intergovernmental revenue, as reported in
the most recent edition of the "Special Districts Annual Report"
published by the Controller, or by an alternative method approved by
a majority of the agencies, representing a majority of their combined
populations. For the purposes of fulfilling the requirement of this
section, a multicounty independent special district shall be required
to pay its apportionment in its principal county. It is the intent
of the Legislature that no single district or class or type of
district shall bear a disproportionate amount of the district share
of costs.
(D) (i) For purposes of apportioning costs to a health care
district formed pursuant to Division 23 (commencing with Section
32000) of the Health and Safety Code that operates a hospital, a
health care district's share, except as provided in clauses (ii) and
(iii), shall be apportioned in proportion to each district's net from
operations as reported in the most recent edition of the hospital
financial disclosure report form published by the Office of Statewide
Health Planning and Development, as a percentage of the combined
independent special districts' net operating revenues within a
county.
(ii) A health care district for which net from operations is a
negative number may not be apportioned any share of the commission's
operational costs until the fiscal year following positive net from
operations, as reported in the most recent edition of the hospital
financial disclosure report form published by the Office of Statewide
Health Planning and Development.
(iii) A health care district that has filed and is operating under
public entity bankruptcy pursuant to federal bankruptcy law, shall
not be apportioned any share of the commission's operational costs
until the fiscal year following its discharge from bankruptcy.
(iv) As used in this subparagraph "net from operations" means
total operating revenue less total operating expenses.
(E) Notwithstanding the requirements of subparagraph (C), the
independent special districts' share may be apportioned by an
alternative method approved by a majority of the districts,
representing a majority of the combined populations. However, in no
event shall an individual district's apportionment exceed the amount
that would be calculated pursuant to subparagraphs (C) and (D), or in
excess of 50 percent of the total independent special districts'
share, without the consent of that district.
(F) Notwithstanding the requirements of subparagraph (C), no
independent special district shall be apportioned a share of more
than 50 percent of the total independent special districts' share of
the commission's operational costs, without the consent of the
district as otherwise provided in this section. In those counties in
which a district's share is limited to 50 percent of the total
independent special districts' share of the commission's operational
costs, the share of the remaining districts shall be increased on a
proportional basis so that the total amount for all districts equals
the share apportioned by the auditor to independent special
districts.
(2) In counties in which there is no independent special district
representation on the commission, the county and its cities shall
each provide a one-half share of the commission's operational costs.
The cities' share shall be apportioned in the manner described in
paragraph (1).
(3) In counties in which there are no cities, the county and its
special districts shall each provide a one-half share of the
commission's operational costs. The independent special districts'
share shall be apportioned in the manner described for cities'
apportionment in paragraph (1). If there is no independent special
district representation on the commission, the county shall pay all
of the commission's operational costs.
(4) Instead of determining apportionment pursuant to paragraph
(1), (2), or (3), any alternative method of apportionment of the net
operating expenses of the commission may be used if approved by a
majority vote of each of the following: the board of supervisors; a
majority of the cities representing a majority of the total
population of cities in the county; and the independent special
districts representing a majority of the combined total population of
independent special districts in the county. However, in no event
shall an individual district's apportionment exceed the amount that
would be calculated pursuant to subparagraphs (C) and (D) of
paragraph (1), or in excess of 50 percent of the total independent
special districts' share, without the consent of that district.
(c) After apportioning the costs as required in subdivision (b),
the auditor shall request payment from the board of supervisors and
from each city and each independent special district no later than
July 1 of each year for the amount that entity owes and the actual
administrative costs incurred by the auditor in apportioning costs
and requesting payment from each entity. If the county, a city, or an
independent special district does not remit its required payment
within 60 days, the commission may determine an appropriate method of
collecting the required payment, including a request to the auditor
to collect an equivalent amount from the property tax, or any fee or
eligible revenue owed to the county, city, or district. The auditor
shall provide written notice to the county, city, or district prior
to appropriating a share of the property tax or other revenue to the
commission for the payment due the commission pursuant to this
section. Any expenses incurred by the commission or the auditor in
collecting late payments or successfully challenging nonpayment shall
be added to the payment owed to the commission. Between the
beginning of the fiscal year and the time the auditor receives
payment from each affected city and district, the board of
supervisors shall transmit funds to the commission sufficient to
cover the first two months of the commission's operating expenses as
specified by the commission. When the city and district payments are
received by the commission, the county's portion of the commission's
annual operating expenses shall be credited with funds already
received from the county. If, at the end of the fiscal year, the
commission has funds in excess of what it needs, the commission may
retain those funds and calculate them into the following fiscal year'
s budget. If, during the fiscal year, the commission is without
adequate funds to operate, the board of supervisors may loan the
commission funds. The commission shall appropriate sufficient funds
in its budget for the subsequent fiscal year to repay the loan.