2011 California Code
Government Code
TITLE 7. PLANNING AND LAND USE [65000 - 66499.58]
CHAPTER 4.6. Mitigation Lands: Nonprofit Organizations
Section 65967

(a) If a state or local agency requires a project proponent to transfer property to mitigate any adverse impact upon natural resources caused by permitting the development of a project or facility, the agency may authorize a special district, a nonprofit organization, a for-profit entity, a person, or another entity to hold title to and manage that property.

(b) If a state or local agency, in the development of its own project, is required to protect property to mitigate an adverse impact upon natural resources, the agency may take any action that the agency deems necessary in order to meet its mitigation obligations, including, but not limited to, the following:

(1) Transfer the interest to a special district or to a nonprofit organization that meets the requirements set forth in subdivision (c).

(2) Provide funds to a nonprofit organization, a special district, a for-profit entity, a person, or other entity to acquire land or easements that satisfy the agency s mitigation obligations.

(c) If a state or local agency authorizes a nonprofit organization to hold title to and manage the property, that nonprofit organization shall meet all of the following requirements:

(1) The nonprofit organization shall be exempt from taxation as an organization described in Section 501(c)(3) of the Internal Revenue Code.

(2) The nonprofit organization shall be qualified to do business in this state.

(3) The nonprofit organization shall be a qualified organization as defined in Section 170(h)(3) of the Internal Revenue Code.

(4) The nonprofit organization shall have as its principal purpose and activity the direct protection or stewardship of land, water, or natural resources, including, but not limited to, agricultural lands, wildlife habitat, wetlands, endangered species habitat, open-space areas, and outdoor recreational areas.

(d) A state or local agency shall exercise due diligence in reviewing the qualifications of a special district or nonprofit organization to effectively manage and steward land, water, or natural resources, as well as the accompanying funds. The local agency may adopt guidelines to assist it in that review process, which may include, but are not limited to, the use of or reliance upon guidelines, standards, or accreditation established by a qualified entity that are in widespread state or national use.

(e) The state or local agency may require the special district or nonprofit organization to submit a report not more than once every 12 months and for the number of years specified in the mitigation agreement that details the stewardship and condition of the property and any other requirements pursuant to the mitigation agreement for the property.

(f) The recorded instrument that places the fee title or partial interest in real property with a special district, nonprofit organization, or for-profit entity, pursuant to subdivision (a) or (b) shall include a provision that if the state or local agency or its successor agency reasonably determines that the property conveyed to meet the mitigation requirement is not being held, monitored, or stewarded for conservation purposes in the manner specified in that instrument or in the mitigation agreement, the property shall revert to the state or local agency, or to another public agency, special district, or nonprofit organization pursuant to subdivisions (c) and (d) and subject to approval by the state or local agency. If a state or local agency determines that a property must revert, it shall work with the parties to the mitigation agreement, or other affected entities, to ensure that any contracts, permits, funding, or other obligations and responsibilities are met.

(Added by Stats. 2011, Ch. 590, Sec. 4. Effective January 1, 2012.)