ORDINANCE NO. SCC 2019?05 AN ORDINANCE OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SHASTA ENACTING CHAPTER 3.14 OF THE SHASTA COUNTY CODE IMPOSING A ONE PERCENT TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION FOR CERTAIN PUBLIC SAFETY PURPOSES The Board of Supervisors of the County of Shasta ordains as follows: SECTION 1. Chapter 3.14 is added to the Shasta County Code as follows: Chapter 3.14 TRANSACTIONS AND USE TAX FOR PUBLIC SAFETY Sections: 3.14.010 Title 3.14.020 Operative Date 3.14.030 Purpose 3.14.040 Contract with State 3.14.050 Transactions Tax Rate 3.14.060 Place of Sale 3.14.070 Use Tax Rate 3.14.080 Adoption of Provisions of State Law 3.14.090 Limitations on Adoption of State Law and Collection of Use Taxes 3.14.100 Permit Not Required 3.14.110 Exemptions and Exclusions 3.14.120 Amendments to State Law 3.14.130 Enjoining Collection Forbidden 3.14.140 Severability 3.14.150 Special Tax; Expenditure Plan 3.14.160 Oversight Committee 3.14.170 Special Tax; Annual Report 3.14.180 Effective Date 3.14.190 Reduction of Tax; Termination of Tax 3.14.200 Relationship to Existing Tax 3.14.210 Increase of the Appropriations Limit 3.14.220 Compliance with the California Environmental Quality Act Ordinance No. SCC 2019-05 October 1, 2019 Page 2 of 18 3.14.010 Title. This ordinance shall be known as the Shasta County Public Safety Transactions and Use Tax Ordinance. The County of Shasta hereinafter shall be called "County." This ordinance shall be applicable in the incorporated and unincorporated territory of the County. 3.14.020 Operative Date. "Operative Date" means the ?rst day of the ?rst calendar quarter commencing more than 110 days after March 3, 2020. 3.14.030. Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a special retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.5 of Part 1.7 of Division 2 which authorizes the County to adopt this tax ordinance which shall be operative if a two-thirds 3) majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. The election shall be held on March 3, 2020. B. To adopt a special retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a special retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes. D. To adopt a special retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. Ordinance No. SCC 2019-05 October 1, 2019 Page 3 of 18 3.14.040 Contract with State. A. Prior to the operative date, the County shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the County shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the ?rst day of the ?rst calendar quarter following the execution of such a contract. B. Payment for the costs of contracting with the California Department of Tax and Fee Administration for administration of the tax shall be the responsibility of the County. If the election is successful, the County shall be reimbursed for any fee charged by the California Department of Tax and Fee Administration from the proceeds of the special tax. 3.14.050 Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated and unincorporated territory of the County at the rate of one percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3.14.060 Place of Sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration. 3.14.070 Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the County of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one percent of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. Ordinance No. SCC 2019-05 October 1, 2019 Page 4 of 18 3.14.080 Adoption of PrOvisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.14.090 Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this County shall be substituted therefor. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this County or any agency, of?cer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption ?'om this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. Ordinance No. SCC 2019-05 October 1, 2019 Page 5 of 18 B. 3.14.100 The word "County" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the de?nition of that phrase in Section 6203. l. A ?retailer engaged in business in this County? shall also include any retailer that in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds ?ve hundred thousand dollars For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder. Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor?s permit shall not be required by this ordinance. 3.14.110. A. Exemptions and Exclusions. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley?Bums Uniform Local Sales and Use Tax Law or the amount of any state?administered transactions or use tax. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the County in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. Sales of property to be used outside the County which is shipped to a point outside the County, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the County shall be satis?ed: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels Ordinance No. SCC 2019-05 October 1, 2019 Page 6 of 18 registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-County address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-County and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a ?xed price pursuant to a contract entered into prior to the operative date of this ordinance. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount ?xed by the lease prior to the operative date of this ordinance. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this County of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certi?cate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 63 66 and 6366.1 of the Revenue and Taxation Code of the State of California. . If the purchaser is obligated to purchase the property for a ?xed price pursuant to a contract entered into prior to the operative date of this ordinance. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such Ordinance No. SCC 2019-05 October 1, 2019 Page 7 of 18 property for any period of time for which the lessee is obligated to lease the property for an amount ?xed by a lease prior to the operative date of this ordinance. . For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. . Except as provided in subparagraph (7), a retailer engaged in business in this County shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the County or participates within the County in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the County or through any representative, agent, canvasser, solicitor, subsidiary, or person in the County under the authority of the retailer. retailer engaged in business in this County" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the County. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to the County imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.14.120 Amendments to State Law. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. 3.14.130 Enjoining Collection Forbidden. Ordinance No. SCC 2019-05 October 1, 2019 Page 8 of 18 No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the County, or against any of?cer of the State or the County, to prevent or enjoin'the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.14.140 Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. 3.14.150 Special Tax; Expenditure Plan. A. The transactions and use tax imposed by this ordinance is a special tax for speci?c public safety purposes which are of interest and bene?t to all persons in the County. The proceeds from the special tax, and any interest accruing thereon, shall be deposited into the County Treasury in a separate special fund entitled Special Public Safety Tax Fund, to be used for those public programs as described in Subsection below (the ?Expenditure Plan?). B. The proceeds from the special tax, and any interest accruing thereon, shall be used to pay the following actual administrative costs prior to allocations being made under the Expenditure Plan. 1. Actual costs incurred in the administration of the Oversight Committee established in Section 3.14.160 of this chapter. 2. Actual costs incurred by the Shasta County Auditor-Controller and the Shasta County Treasurer-Tax Collector for administration of the special tax. 3. Actual costs incurred for an annual audit by an independent certi?ed public accountant, who is contracted with the County of Shasta through the Shasta County Administrative Of?ce, that outlines the amount of funds collected and expended from the special tax and the purposes for which suchfunds were expended. The independent certi?ed public accountant will be selected by the Board of Supervisors, after consideration of recommendations from the Oversight Committee. 4. Payments as provided in Section 3.14.040 of this chapter and state law relating to the contract with and costs of the California Department of Tax and Fee Administration for administration of the special tax. C. The Expenditure Plan. Ordinance No. SCC 2019-05 October 1, 2019 Page 9 of 18 - 1. The Expenditure Plan has one fund. The fund has four identi?ed programs. Each program may also have identi?ed program categories and/or identi?ed program subcategories. The Expenditure Plan calls for a speci?c percentage of revenue to be allocated to each of the programs, the program categories . and subcategories as provided in this subsection C. The term ?revenue? means the proceeds from the Special tax, and any interest accruing thereon. The percentage allocations assigned among the programs, the program categories, and the program subcategories may be modi?ed by the Shasta County Board of Supervisors as follows: a. The Shasta County Board of Supervisors, after notice and public hearing, may, by reSolution and a unanimous vote of all members of the Board, modify any of the percentage allocations assigned among the programs and the program categories. This authority includes, but is not limited to, the ability to modify the percentage allocations for the City of Redding Program Category, the City of Anderson Program Category, and the City of Shasta Lake Program Category in the Public Safety Program. The percentage allocation for the City of Redding Program Category shall not be reduced below 14% of revenue received. The percentage allocation for the City of Anderson Program Category shall not be reduced below 1.56 of revenue received. The percentage allocation for the City of Shasta Lake Program Category shall not be reduced below 1.56% of revenue received. b. The Shasta County Board of Supervisors, after notice and public hearing, may be resolution and a majority vote of the Board, modify any of the percentage allocations assigned among the program subcategories. Where state law may require a supermajority vote of the Board of Supervisors, the provisions of state law shall prevail. However, the Shasta County Board of Supervisors shall not have the authority to modify percentage allocations among the program subcategories identi?ed in the City of Redding Program Category, the City of Anderson Program Category, and the City of Shasta Lake Program Category. 3. Any modi?cation to the percentage allocations by any entity shall not occur if to do so would violate any law, including but not limited to Article I, ?10 of the United States Constitution and Article I, ?9 of the California Constitutidn or if prohibited by any covenant made with the holders of any bonds or obligations payable from this transactions and use tax. Such action shall be subject to I California law pertaining to the cancellation of prior contractual obligations. Ordinance No. SCC 2019-05 October 1, 2019 Page 10 of 18 The Board of Supervisors may require any and all recipients of the revenue from the special tax to make written reports to the Board of Supervisors providing in detail the proposed and actual expenditures by the recipient in a manner as established by resolution of the Board of Supervisors. The Expenditure Plan. a. Correctional Program 50.93% of Revenue Received i. ii. Jail Construction Program Subcategory: Construction, repair, renovation and maintenance of existing County jail and adult detention facilities as well as future County jail and adult detention facilities. This program category includes, but is not limited to, capital outlay expenditures pursuant to Chapter 1 (commencing With Section 55800) of Part 3 of Division 2 of Title 5 of the Government Code 50% of the Correctional Program. Jail Operations Program Subcategory: Operation of existing County jail and adult detention facilities as well as future County jail and adult detention facilities, including, but not limited to, the hiring and training of staff, and the providing of inmate food services and inmate health care 40% of the Correctional Program. Alternatives to County Incarceration Program Subcategory: Operation and maintenance of Shasta County Sheriff programs in accordance with law that serve as alternatives to detention or confinement in County jail and adult detention facilities, including, but not limited to, home detention with electronic monitoring or GPS monitoring, work furlough programs, work release programs, and contracts to commit persons to other adult detention facilities as may be authorized by law 10% of the Correctional Program. b. Inmate Rehabilitation Program The operation of rehabilitative programs for persons detained or con?ned in County jail and adult detention facilities, including, but not limited to, medication assisted treatment, training, and other rehabilitative programs, and also including, but not limited to, post-release treatment, training, and other rehabilitative programs 3.98% of Revenue Received. c. Public Safety Program 32.01% of Revenue Received. i. Unincorporated County Program Category: Law enforcement, police protection, and emergency services (including, but not limited to, ?re protection) provided by the County of Shasta, by Ordinance No. SCC 2019-05 October 1, 2019 Page 11 of 18 contract or otherwise, for the unincorporated area of the County 12.34 of Revenue Received. 1. Program Subcategory: Hiring and training of staff by the Shasta County Sheriff?s Of?ce for law enforcement and police protection 80% of the Unincorporated County Program Category II. Program Subcategory: Obtaining equipment by the Shasta County Sheriff?s Of?ce for law enforcement and police protection 10% of the Unincorporated County Program Category. Program Subcategory: Providing emergency services (including, but not limited to, ?re protection) 10% of the Unincorporated County Program Category. ii. City of Redding Program Category: Law enforcement, police protection, and emergency services (including, but not limited to, ?re protection) provided by the City of Redding, by contract or otherwise, for the City of Redding 16.09% of Revenue Received. I. Program Subcategory: Hiring and training of staff for law enforcement and police protection 80% of the City of Redding Program Category. II. Program Subcategory: Obtaining equipment for law enforcement and police protection 10% of the City of Redding Program Category. Program Subcategory: Providing emergency services (including, but not limited to, ?re protection) 10% of the City of Redding Program Category. IV. The City of Redding, after notice and public hearing, may, by resolution and majority vote of the Redding City Council, modify any of the percentage allocations for the program subcategories in this program category. Where state law may require a supermajority vote of the City Council, the provisions of state law shall prevail. The City of Redding is not authorized to alter the percentage allocation for the program category. City of Anderson Program Category: Law enforcement, police protection, and emergency services (including, but not limited to, Ordinance No. SCC 2019-05 October 1, 2019 Page 12 of 18 fire protection) provided by the City of Anderson, by contract or otherwise, for the City of Anderson 1.79 of Revenue Received. I. Program Subcategory: Hiring and training of staff for law enforcement and police protection 80% of the City of Anderson Program Category. II. Program Subcategory: Obtaining equipment for law enforcement and police protection 10% of the City of Anderson Program Category. Program Subcategory: Providing emergency services (including, but not limited to, ?re protection) 10% of the City of Anderson Program Category. IV. The City of Anderson, after notice and public hearing, may by resolution and majority vote of the Anderson City Council, modify any of the percentage allocations for the program subcategories in this program category. Where state law may require a supermajority vote of the City Council, the provisions of state law shall prevail. The City of Anderson is not authorized to alter the percentage allocation for the program category. iv. City of Shasta Lake Program Category: Law enforcement, police protection, and emergency services (including, but not limited to, ?re protection) provided by the City of Shasta Lake, by contract or otherwise, for the City of Shasta Lake 1.79% of Revenue Received. I. Program Subcategory: Hiring and training of staff for law enforcement and police protection 80% of the City of Shasta Lake Program Category. II. Program Subcategory: Obtaining equipment for law enforcement and police protection 10% of the City of Shasta Lake Program Category. Program Subcategory: Providing emergency services (including, but not limited to, ?re protection) 10% of the City of Shasta Lake Program Category IV. The City of Shasta Lake, after notice and public hearing, may, by resolution and majority vote of the Shasta Ordinance No. SCC 2019?05 October 1, 2019 Page 13 of18 Lake City Council, modify any of the percentage allocations for the program subcategories in this program category. Where state law may require a superrnaj ority vote of the City Council, the provisions of state law shall prevail. The City of Shasta Lake is not authorized to alter the percentage allocation for the program category. d. Criminal Justice Program 13.08% of Revenue Received. i. District Attorney Program Category: Law enforcement, police protection, and public prosecutorial functions of the Shasta County District Attorney 6.26% of Revenue Received. 1. Program Subcategory: Hiring and training of staff 90% of the District Attorney Program Category. II. Program Subcategory: Obtaining equipment and supplies 10% of the District Attorney Program Category. ii. Public Defender Program Category: Defense of persons by the Shasta County Public Defender under Government Code section 27706, subdivision 4.25% of Revenue Received. 1. Program Subcategory: Hiring and training of staff 90% of the Public Defender Program Category. II. Program Subcategory: Obtaining equipment and supplies 10% of the Public Defender Program Category. Probation Program Category: The duties of the Chief Probation Of?cer as they relate to adult offenders 2.57% of Revenue Received. 1. Program Subcategory: Hiring and training of staff 90% of the Probation Program Category. II. Program Subcategory: Obtaining equipment and supplies 10% of the Probation Program Category. Pursuant to Chapter 1 (commencing with Section 55800) of Part 3 of Division 2 of Title 5 of the Government Code, the County is authorized to issue bonds payable from the proceeds of the special tax to ?nance capital outlay expenditures as provided for in the Expenditure Plan in the manner prescribed by law. Ordinance No. SCC 2019-05 October 1, 2019 Page 14 of 18 E. F. 3.14.160 A. The proceeds from the special tax, and any interest accruing thereon, shall be used only for the following purposes. 1. To fund the public programs, program categories, and program subcategories identi?ed in the Expenditure Plan. 2. To fund the payment of bonds issued under Subsection of Section 3.14.150 of this chapter. 3. To pay the administrative costs as stated in subsection of Section 3.14.150 of this chapter. The proceeds from the special tax, and any interest accruing thereon, shall not be used to supplant other funding for the programs, program categories, and subcategories identi?ed in the Expenditure Plan. Oversight Committee. Establishment. An Oversight Committee is hereby established and shall remain in existence for as long as the transactions and use tax established by this chapter is in effect. The Oversight Committee's purpose and charge is to advise the Board of Supervisors and the public regarding the expenditure of the transactions and use tax proceeds that will be generated as a result of the approval of this chapter by the Board of Supervisors and the electorate. Responsibilities. 1. The Oversight Committee shall be responsible for: a. Providing the Board of Supervisors and the public with information regarding the manner in which the expenditure of the transactions and use tax proceeds that will be generated as a result of the approval of this chapter has occurred. Reviewing the expenditure of the transactions and use tax proceeds that will be generated as a result of the approval of this chapter, and the proceeds received as a result of the issuance of any bonds or other obligations payable from the transactions and use tax proceeds. Reviewing the annual audit by an independent certi?ed public accountant that outlines the amount of funds collected and expended from the transactions and use tax and the purposes for which such funds were expended. Ordinance No. SCC 2019-05 October 1, 2019 Page 15 of 18 d. Making recommendations to the Board of Supervisors for the Board?s selection of an independent certi?ed public accountant to perform the annual audit. e. Reviewing the ?nancial impact of all projects, planned and approved, utilizing the transactions and use tax proceeds that will be generated as a result of the approval of this chapter, and advising the Board of Supervisors and the public whether such projects are consistent with the purpose, spirit, intent and language of this chapter. f. Informing the public and advising the Board of Supervisors if there is an expenditure of the transactions and use tax that will be generated as a result of the approval of this chapter, which is inconsistent with the purpose and intent of this chapter. g. Meeting not less than twice each calendar year, pursuant to the Ralph M. Brown Open Meeting Act, and inviting public participation and comment with respect to any expenditure or the implementation of any project envisioned by this chapter. The Board of Supervisors may adopt a resolution providing additional responsibilities to the Oversight Committee. The Oversight Committee serves in an advisory capacity to the Board of Supervisors and the public and has no authority to direct, nor shall it direct, County of?cers, agents, employees, and elected of?cials. C. Membership. 1. All members of the Oversight Committee shall be appointed by the Board of Supervisors from recommendations made by public agencies and non- government organizations as identi?ed by resolution of the Board of Supervisors. At minimum, the members of the Oversight Committee shall be appointed by the Board of Supervisors from the following recommendations: a. Two representatives recommended by the City of Anderson City Council. The representatives shall not be an of?cer, agent, employee, or elected of?cial of the City of Anderson. b. Two representatives recommended by the City of Redding City Council. The representative shall not be an of?cer, agent, employee, or elected of?cial of the City of Redding. Ordinance No. SCC 2019-05 October 1, 2019 Page 16 of 18 0. Two representatives recommended by the City of Shasta Lake City Council. The representatives shall not be an of?cer, agent, employee, or elected of?cial of the City of Shasta Lake. d. Two representatives recommended by the Shasta County Board of Supervisors. The representative shall not be an of?cer, agent, employee or elected of?cial of the County of Shasta. e. One representative recommended by a non-government organization as identi?ed by resolution of the Board of Supervisors. 3. Additional members may be appointed by the Board of Supervisors based on recommendations from any of the above entities and from any other entities as identi?ed by resolution of the Board of Supervisors. 4. No member of the Oversight Committee shall receive any salary or compensation for serving on the Oversight Committee. 5. All members of the Oversight Committee shall be individuals who live in the incorporated or unincorporated areas of Shasta County. 6. Members of the Oversight Committee will serve terms of of?ce as established by resolution of the Board of Supervisors. 3.14.170 Special Tax; Annual Report. A. The Shasta County Auditor-Controller shall, within one year after the operative date of this Ordinance, and at least once a year thereafter, submit a report to the Board of Supervisors that shall contain the following information: (1) the amount of funds collected and expended; and (2) the status of any project required or authorized to be funded under this Ordinance. This report from the Auditor-Controller shall be in addition to the annual audit prepared by an independent certi?ed public accountant. B. The independent certi?ed public accountant shall, within one year after the operative date of this Ordinance, and at least once a year thereafter, submit a report to the Board of Supervisors, the Oversight Committee, and the City Councils of Anderson, Redding, and Shasta Lake, which outlines the amount of funds collected and expended from the special tax and the purposes for which such funds were expended. C. If the annual audit by an independent certi?ed public accountant, or the annual report from the Auditor-Controller, demonstrates that any recipient of revenue from the special tax has expended any portion of the recipient?s allocated funds for purposes not in conformity with the requirements of Section 3.14.15 of this chapter, and the Board of Supervisors agrees with that determination, the Board of Supervisors, after notice and public hearing, may by resolution and a majority vote of the Board, modify the recipient?s Ordinance No. SCC 2019?05 October 1, 2019 Page 17 of 18 allocation of funds and, in doing so, may modify any of the percentage allocations for programs, program categories, and program subcategories under the Expenditure Plan. Where the provisions of state law may require a supermajority vote of the Board of - Supervisors, the provisions of state law shall prevail. 1. In exercising this authority, the percentage allocation for the City of Redding Program Category shall not be reduced below 14% of revenue received. The percentage allocation for the City of Anderson Program Category shall not be reduced below 1.56 of revenue received. The percentage allocation for the City of Shasta Lake Program'Category shall not be reduced below 1.56% of revenue received. 2. The Board of Supervisors shall not have the authority under this subsection to modify percentage allocations among the program subcategories identi?ed in the City of Redding Program Category, the City of Anderson Program Category, and the City of Shasta Lake Program Category. 3.14.180 Effective Date. This chapter relates to the levying and collecting of a County transactions and use tax and shall take effect on March 3, 2020, after certi?cation of the vote, if the measure is approved by two-thirds of the electors voting on the measure at the election held that day. 3.14.190 Reduction of Tax; Termination of Tax. The transactions and use tax imposed under this chapter may be reduced or rescinded, after notice and a public hearing, by an ordinance adopted by a four??fths vote of the Board of Supervisors; provided, however that such reduction or rescission shall not occur if to do so would violate any law, including but not limited to Article I, ?10 of the United States Constitution and Article I, ?9 of the California Constitution or if prohibited by any covenant made with the holders of any bonds or obligations payable from this transactions and use tax. Such action shall be subject to California law pertaining to the cancellation of prior cOntractual obligations and the rules and regulations of the State Board of Equalization and the California Department of Tax and Fee Administration. 3.14.200 Relationship to Existing Tax. The transactions and use tax imposed by this ordinance is separate from, and in addition to, any other taxes currently imposed by the County. Nothing in this ordinance shall be interpreted to affect the rate or administration of any tax other than the transactions and use imposed by this ordinance. 3.14.210 Increase of the Appropriations Limit. Ordinance No. SCC 2019-05 October 1, 2019 Page 18 of 18 The appropriations limit of the County shall be increased by the amount of revenue anticipated to be collected by the County from the transactions and use tax to allow spending of the tax for the period allowed by law. 3.14.220 Compliance with the California Environmental Quality Act. Pursuant to California Environmental Quality Act (CEQA) Guidelines sections 15060(c)(2) and 15378(b)(2) and (4), adoption of this Ordinance and Expenditure Plan will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a ?project? subject to the requirements of CEQA. Prior to the commencement of any project included in the Expenditure Plan, any necessary environmental review required by CEQA shall be completed. Estimated costs in the Expenditure Plan include the cost of such environmental review. SECTION II. All former ordinances and resolutions, or parts thereof, con?icting or inconsistent with the provisions of this ordinance are hereby repealed. The Clerk of the Board shall cause this ordinance to be published as required by law. DULY PASSED AND ADOPTED this day of October, 2019, by the Board of Supervisors of the County of Shasta by the following vote: AYES: Supervisors Moty, Rickert, Morgan, Baugh, and Chimenti NOES: None ABSENT: None ABSTAIN: None RECUSE: None LEONARD MOTY, CHAIRMAN Board of Supervisors County of Shasta State of California ATTEST: LAWRENCE G. LEES Clerk of the Board of Supervisors new};