BILL NUMBER: AB 2629	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Morrell

                        FEBRUARY 24, 2012

   An act to amend Section 65966 of the Government Code, relating to
land use.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2629, as introduced, Morrell. Land use: mitigation lands.
   The Planning and Zoning Law provides that if a state or local
agency requires a person to transfer to that agency an interest in
real property to mitigate the environmental impact of a project or
facility, that agency may authorize specified entities to hold title
to and manage that interest in real property, as well as any
accompanying funds, provided those entities meet specified
requirements. Existing law requires any conservation easement created
as a component of satisfying a local or state mitigation requirement
to be perpetual in duration, as specified.
   This bill would make a technical, nonsubstantive change to this
requirement.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 65966 of the Government Code is amended to
read:
   65966.  (a) Any conservation easement created as a component of
satisfying a local or state mitigation requirement shall be perpetual
in duration, whether created pursuant to Section 51075  of
this code  or  pursuant to  Section 815 of the
Civil Code.
   (b) Any local or state agency that requires property to be
protected pursuant to subdivision (a) or (b) of Section 65967 may
identify how the funding needs of the long-term stewardship of the
property will be met. If accompanying funds are conveyed at the time
the property is protected, all of the following shall apply:
   (1) The accompanying funds shall be held, managed, invested, and
disbursed solely for the long-term stewardship of the specific
property for which the funds were set aside.
   (2) The accompanying funds shall be calculated to include a
principal amount that, when managed and invested, will produce
revenues that are reasonably sufficient to cover the annual
stewardship costs of the property in perpetuity.
   (3) The principal amount shall be defined and managed as
permanently restricted funds.
   (4) Any one-time payment, as defined by subdivision (f), and
earnings from the principal shall be managed as temporarily
restricted funds.
   (5) The accompanying funds shall be held, managed, invested, and
disbursed consistent with the Uniform Prudent Management of
Institutional Funds Act (Part 7 (commencing with Section 18501) of
Division 9 of the Probate Code).
   (c) If a local agency holds the accompanying funds, the local
agency shall do all of the following:
   (1) Hold, manage, and invest the accompanying funds consistent
with subdivision (b) to the extent allowed by law.
   (2) Disburse funds on a timely basis to meet the stewardship
expenses of the entity holding the property.
   (3) Utilize accounting standards consistent with standards
promulgated by the Governmental Accounting Standards Board.
   (d) A special district or a nonprofit organization that holds
funds pursuant to this chapter, including, but not limited to,
accompanying funds, moneys to acquire land or easements, or moneys
for initial stewardship costs, shall provide the local or state
agency with an annual fiscal report that contains at least the same
information as required by Internal Revenue Service Form 990
regarding the funds.
   (e) If a state or local agency authorizes a special district or
nonprofit organization to hold property pursuant to subdivision (a)
or (b) of Section 65967, the agency may require an administrative
endowment from the project proponent, as a one-time payment for
reasonable costs associated with reviewing qualifications, approving
holders, and regular oversight of compliance and performance. The
administrative endowment shall be held, managed, and invested to
produce an annual revenue sufficient to cover the costs of reviewing
qualifications, approving holders, and ongoing oversight.
   (f) A local agency may require a project proponent to provide a
one-time payment that will provide for the initial stewardship costs
for up to three years while the endowment begins to accumulate
investment earnings. The funds for the initial stewardship costs are
distinct from the funds that may be conveyed for long-term
stewardship, construction, or other costs. If there are funds
remaining at the completion of the initial stewardship period, the
funds shall be conveyed to the project proponent.
   (g) The local agency may contract with or designate a qualified
third party to do any of the following:
   (1) Review the qualifications of a special district or nonprofit
organization to effectively manage and steward natural land or
resources pursuant to subdivisions (c) and (d) of Section 65967.
   (2) Review the qualifications of a nonprofit to hold and manage
the accompanying funds that are set aside for long-term stewardship
of the property.
   (3) Review reports or other performance indicators to evaluate the
stewardship of lands, natural resources, or funds, and compliance
with the mitigation agreement.
   (h) If a property conserved pursuant to subdivision (a) or (b) of
Section 65967 is condemned, the net proceeds from the condemnation of
the real property interest set aside for mitigation purposes shall
be used for the purchase of property that replaces the natural
resource characteristics the original mitigation was intended to
protect, or as near as reasonably feasible. Any accompanying funds
held for the condemned property shall be held for the long-term
stewardship of the replacement property.
   (i) Unless prohibited by law, no provision in this chapter is
intended to prohibit for-profit entities from holding, acquiring, or
providing property for mitigation purposes.
   (j) Nothing in this section shall prohibit a state agency from
exercising any powers described in subdivisions (c), (e), (f), or
(g).