(a) A nonprovider health care district shall not spend more than 20 percent of its annual budget on administrative expenses.

(b) A nonprovider health care district shall spend at least 80 percent of its annual budget on community grants awarded to organizations that provide direct health services.

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(Added by Stats. 2016, Ch. 421, Sec. 1. (AB 2737) Effective January 1, 2017.)