Section 2071 Of Article 6. Finances From California Health And Safety Code >> Division 3. >> Chapter 1. >> Article 6.
2071
. (a) In its annual budget, the board of trustees may establish
one or more restricted reserves. When the board of trustees
establishes a restricted reserve, it shall declare the exclusive
purposes for which the funds in the reserve may be spent. The funds
in the restricted reserve shall be spent only for the exclusive
purposes for which the board of trustees established the restricted
reserve. The reserves shall be maintained according to generally
accepted accounting principles.
(b) Any time after the establishment of a restricted reserve, the
board of trustees may transfer any funds to that restricted reserve.
(c) Notwithstanding any other provision of this section, in a
public health emergency, a board of trustees may, by majority vote of
the total membership of the board of trustees, temporarily transfer
funds from other restricted reserves to the restricted reserve for
public health emergencies.
(d) If the board of trustees finds that the funds in a restricted
reserve are no longer required for the purpose for which the
restricted reserve was established, the board of trustees may, by a
four-fifths vote of the total membership of the board of trustees,
discontinue the restricted reserve or transfer the funds that are no
longer required from the restricted reserve to the district's general
fund.