(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 Chapter 6.6 (commencing with Section 51070) of Part 1 of Division 1 of Title 5 of this code or Chapter 4 (commencing with Section 815) of Title 2 of Part 2 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. Nothing in this chapter shall be construed as otherwise precluding other methods of funding for the long-term stewardship of the property. If an endowment is conveyed or secured at the time the property is protected, all of the following shall apply: (1) The endowment shall be held, managed, invested, and disbursed solely for, and permanently restricted to, the long-term stewardship of the specific property for which the funds were set aside. (2) The endowment shall be calculated to include a principal amount that, when managed and invested, is reasonably anticipated to cover the annual stewardship costs of the property in perpetuity. (3) The endowment shall be held, managed, invested, disbursed, and governed as described in subdivision (a) of Section 65965 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 nonprofit corporation holds the endowment, the nonprofit shall utilize generally accepted accounting practices that are promulgated by the Financial Accounting Standards Board or any successor entity. (d) If a local agency holds the endowment, the local agency shall do all of the following: (1) Hold, manage, and invest the endowment 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 or any successor entity. (e) (1) Unless the mitigation agreement provides that another person or entity shall prepare the annual fiscal report described below, a governmental entity, community foundation, special district, a congressionally chartered foundation, or a nonprofit organization that holds funds pursuant to this chapter, including an endowment or moneys for initial stewardship costs, shall provide the local or state agency that required the endowment with an annual fiscal report that contains at least the following elements with respect to each individual endowment dedicated and held by that entity: (A) The balance of each individual endowment at the beginning of the reporting period. (B) The amount of any contribution to the endowment during the reporting period including, but not limited to, gifts, grants, and contributions received. (C) The net amounts of investment earnings, gains, and losses during the reporting period, including both realized and unrealized amounts. (D) The amounts distributed during the reporting period that accomplish the purpose for which the endowment was established. (E) The administrative expenses charged to the endowment from internal or third-party sources during the reporting period. (F) The balance of the endowment or other fund at the end of the reporting period. (G) The specific asset allocation percentages including, but not limited to, cash, fixed income, equities, and alternative investments. (H) The most recent financial statements for the organization audited by an independent auditor who is, at a minimum, a certified public accountant. (2) If an entity is required to submit an identical annual fiscal report pursuant to paragraph (1) to the Department of Fish and Game and any other state or local agency, then that report shall be provided only to the Department of Fish and Game. In that instance, the Department of
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