The commission shall expend only that amount of the funds generated pursuant to this division for staff support, audit, administrative expenses, and contract services that are necessary and reasonable to carry out its responsibilities pursuant to this division. The commission shall not expend more than 1 percent of the funds received from the transactions and use tax levied pursuant to Chapter 4 (commencing with Section 240300) for the salaries and benefits for the commission’s staff.
Chapter 2Administration
Section § 240100
This law means that the commission can only spend a necessary and reasonable amount of the funds they collect on support staff, audits, administration, and contract services. They are also restricted to using no more than 1% of the funds from a specific tax for paying staff salaries and benefits.
commission spending limit staff support expenses audit costs administrative expenses contract services funding tax levy limitations transaction tax distribution use tax allocation salaries cap benefits restriction funds management necessary expenses reasonable expenditures commission responsibilities financial oversight
Section § 240101
This law section requires the commission to manage revenue from specific taxes by doing three main things. First, they must create an annual budget. Second, they have to arrange a yearly financial review by a certified public accountant to ensure all money is handled properly. Finally, they must do everything necessary to meet the goals set out in this part of the law.
The commission shall do all of the following with respect to the revenues derived from the transactions and use tax levied pursuant to Chapter 4 (commencing with Section 240300):
(a)CA Public Utilities Code § 240101(a) Adopt an annual budget.
(b)CA Public Utilities Code § 240101(b) Cause a postaudit of the financial transactions and records of the commission and of all revenues expended pursuant to this division to be made at least annually by a certified public accountant.
(c)CA Public Utilities Code § 240101(c) Do any and all things necessary to carry out the purposes of this division.
transactions and use tax annual budget financial post-audit certified public accountant revenue management financial records expenditure oversight commission responsibilities financial compliance budget adoption audit requirements tax revenue financial transactions commission duties record examination
Section § 240102
The law requires that notice about the time and place for the public hearing on the annual budget must be published at least 15 days before the hearing date.
Additionally, the proposed annual budget must be made available for the public to review at least 15 days before the hearing.
(a)CA Public Utilities Code § 240102(a) The commission shall publish, pursuant to Section 6061 of the Government Code, notice of the time and place of the public hearing for the adoption of the annual budget not later than 15 days prior to the date of the hearing.
(b)CA Public Utilities Code § 240102(b) The proposed annual budget shall be available for public inspection at least 15 days prior to the hearing.
public hearing notice annual budget adoption budget public inspection 15-day notice requirement budget hearing date public review of budget government transparency budget availability hearing announcement public participation in budget commission responsibilities budget planning process citizen access to budget public financial oversight government accountability
Section § 240103
This section allows the commission to approve a local sales tax ordinance and the related voting process. It also permits the commission to organize an election to decide on the tax measure.
The commission may approve a transaction and use tax ordinance and ballot proposition and call an election in accordance with Chapter 4 (commencing with Section 240300).
transaction and use tax ordinance ballot proposition election process approve tax measure local sales tax commission authority call an election tax ordinance approval voting on tax tax proposition local tax decision tax measure election commission powers ballot measure election coordination
