(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 commissionâs operational costs. (B) The citiesâ share shall be apportioned in proportion to each cityâs 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 citiesâ populations. (C) The independent special districtsâ share shall be apportioned in proportion to each districtâs total revenues as a percentage of the combined total district revenues within a county. Except as provided in subparagraph (D), an independent special districtâs 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 âSpecial Districts Annual Reportâ 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 districtâs share, except as provided in clauses (ii) and (iii), shall be apportioned in proportion to each districtâs 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 districtsâ 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 commissionâs 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 commissionâs operational costs until the fiscal year following its discharge from bankruptcy. (iv) As used in this subparagraph ânet from operationsâ means total operating revenue less total operating expenses. (E) Notwithstanding the requirements of subparagraph (C), the independent special districtsâ share may be apportioned by an alternative method approv
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