(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.

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