AMENDED IN ASSEMBLY JULY 1, 2026

AMENDED IN SENATE APRIL 7, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

97

Introduced by Senator Caballero

(Coauthors: Senators Cortese and Grayson)

February 17, 2026

An act to amend Section 12805 of the Government Code, and to add Division 23.1 (commencing with Section 33230) to the Public Resources Code, relating to conservancies.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

Existing law authorizes various conservancies to acquire, manage, direct the management of, and conserve lands in the state.

This bill would establish the Grassland Ecological Area Conservancy within the Natural Resources Agency, with jurisdiction over the Grassland Ecological Area and the Grassland Focus Area, as defined, for specified purposes, including to protect, conserve, and restore the physical, cultural, archaeological, historical, and living resources of the Grassland Ecological Area and the Grassland Focus Area and to provide increased opportunities for tourism and recreation. The bill would require the conservancy to be governed by a board composed of designated voting members, including certain members appointed by certain local agencies, and nonvoting liaison advisers. The bill would set forth the powers, duties, and limitations of the governing board and the conservancy, as provided. The bill would create the Grassland Ecological Area Conservancy Fund and would make moneys in the fund available for expenditure by the conservancy, upon appropriation by the Legislature, only for the purposes of these provisions. The bill would require all funds or income received by the conservancy, including proceeds from donations or a lease, rental, sale, exchange, or transfer of an interest or option in real property, to be deposited into the fund. By imposing new duties on local agencies, the bill would create a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The people of the State of California do enact as follows:

SECTION 1.

Section 12805 of the Government Code is amended to read:

12805.

(a) The Resources Agency is hereby renamed the Natural Resources Agency. The Natural Resources Agency consists of the departments of Forestry and Fire Protection, Conservation, Fish and Wildlife, Parks and Recreation, and Water Resources; the State Lands Commission; the Colorado River Board; the San Francisco Bay Conservation and Development Commission; the Central Valley Flood Protection Board; the Energy Resources Conservation and Development Commission; the Wildlife Conservation Board; the Delta Protection Commission; Exposition Park; the California Science Center; the California African American Museum; the Native American Heritage Commission; the California Conservation Corps; the California Coastal Commission; the State Coastal Conservancy; the California Tahoe Conservancy; the Santa Monica Mountains Conservancy; the Coachella Valley Mountains Conservancy; the San Joaquin River Conservancy; the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy; the Baldwin Hills and Urban Watersheds Conservancy; the San Diego River Conservancy; and the Sierra Nevada Conservancy. Conservancy; the Salton Sea Conservancy; and the Grassland Ecological Area Conservancy.

(b) Existing supplies, forms, insignias, signs, or logos shall not be destroyed or changed as a result of changing the name of the Resources Agency to the Natural Resources Agency, and those materials shall continue to be used until exhausted or unserviceable.

SECTION 1.SEC. 2.

Division 23.1 (commencing with Section 33230) is added to the Public Resources Code, to read:

Division 23.1. Grassland Ecological Area Conservancy

Chapter 1. General Provisions

33230.

This division shall be known, and may be cited, as the Grassland Ecological Area Conservancy Act.

33231.

The Legislature finds and declares all of the following:

(a) The Grassland Ecological Area is one of the largest remaining contiguous wetland and grassland complexes in California’s Central Valley and is of statewide significance for the conservation of wildlife habitat, biological diversity, and ecological processes.

(b) The Grassland Ecological Area provides critical habitat for migratory birds and other wildlife, including species that depend on managed wetlands and grasslands for breeding, wintering, and migration along the Pacific Flyway.

(c) Wetlands and associated grassland habitats in California’s Central Valley have been substantially reduced and fragmented due to historical land conversion and development, making the long-term protection, restoration, and enhancement of the Grassland Ecological Area a matter of statewide concern.

(d) The Grassland Ecological Area provides important public benefits, including wildlife conservation, ecosystem services, outdoor recreation, education, carbon management, and contributions to the economic vitality of surrounding communities.

(e) The ecological health and sustainability of the Grassland Ecological Area depend on coordinated land management, water management, and conservation efforts among federal, state, regional, and local agencies, nonprofit organizations, and private landowners.

(f) The Grassland Ecological Area is recognized as a wetland of international importance under the Ramsar Convention on Wetlands, a wildlife management area by the United States Fish and Wildlife Service, and an important bird area and a shorebird site of international importance by nonprofit wildlife organizations.

(g) The Grassland Focus Area is the area of land surrounding the Grassland Ecological Area that is recognized as a buffer of agricultural and other working landscapes that are compatible with wetland habitats and functions.

(h) It is in the public interest to establish the Grassland Ecological Area Conservancy to provide a coordinated, landscape-scale framework to conserve, restore, enhance, and manage the ecological, natural, and related resources of the Grassland Ecological Area and the Grassland Focus Area for the benefit of present and future generations.

Chapter 2. Definitions

33232.33235.

For purposes of this division, the following definitions apply:

(a) “Board” means the governing board of the Grassland Ecological Area Conservancy.

(b) “Conservancy” means the Grassland Ecological Area Conservancy.

(c) “Fund” means the Grassland Ecological Area Conservancy Fund created pursuant to Section 33257. 33265.

(d) “Grassland Ecological Area” means the portion of the County of Merced containing described and mapped in the County of Merced’s 2030 General Plan that includes the Grasslands Wildlife Management Area, Grassland Water District, Grassland Resource Conservation District, Los Banos Wildlife Area, Volta Wildlife Area, Great Valley Grasslands State Park, San Luis National Wildlife Refuge, and Merced National Wildlife Refuge, designated on, and specifically set forth in, the map called “Grassland Ecological Area Conservancy,” dated ____ 2026, and placed on file with the Secretary of State. The map shall be publicly posted by the Natural Resources Agency on its internet website. Refuge.

(e) (1) “Grassland Focus Area” means the area of land within the County of Merced surrounding the Grassland Ecological Area that is recognized as a buffer of agricultural and other working landscapes that are compatible with wetland habitats and functions, designated on, and specifically set forth in, the map called “Grassland Ecological Area Conservancy,” dated ____ 2026, and placed on file with the Secretary of State. The map shall be publicly posted by the Natural Resources Agency on its internet website. functions described and mapped in the County of Merced’s 2030 General Plan. The Grassland Focus Area additionally includes all of the following lands east of State Highway Route 99:

(f) “Nonprofit organization” means a private, nonprofit organization that qualifies for exempt status under Section 501(c)(3) of Title 26 of the United States Code, and whose charitable purposes are consistent with the purposes of the conservancy as set forth in this division.

Chapter 3. Governing Board

33234.33240.

(a) The board shall consist of nine voting members and two nonvoting liaison advisers, appointed or designated as follows:

(1) The nine voting members of the board shall consist of all of the following:

(A) The Secretary of the Natural Resources Agency, or their designee.

(B) The Director of Fish and Wildlife, or their designee.

(C) One public member, who is not an elected official, appointed by the Speaker of the Assembly.

(D) One public member, who is not an elected official, appointed by the Senate Committee on Rules.

(E) Five members to represent local and regional interests within or affecting the Grassland Ecological Area and the Grassland Focus Area, as follows:

(i) The General Manager of the Grassland Water District, or their designee.

(ii) A supervisor of the Board of Supervisors of the County of Merced, appointed by that board, or their designee, and a resident of the County of Merced.

(iii) One member appointed by the Governor who is a landowner in the Grassland Ecological Area and owns the land exclusively for the purpose of habitat protection.

(iv) One member appointed by the Governor who is a landowner in the Grassland Ecological Focus Area and owns or operates an agricultural operation.

(v) One member appointed by the Governor who is an employee of a nongovernmental organization that is an active member of the Central Valley Joint Venture.

(2) The two nonvoting liaison advisers, who serve in an advisory, nonvoting capacity, shall consist of both of the following representatives of state or federal agencies with jurisdiction over, regulatory authority concerning, or funding and technical expertise relevant to, wildlife, habitat, wetlands, or water resources within the Grassland Ecological Area and the Grassland Focus Area:

(A) The Regional Director of the United States Fish and Wildlife Service Region 8, or their designee.

(B) The Executive Director of the Wildlife Conservation Board, or their designee.

(b) Appointing powers shall seek to include individuals from a breadth of backgrounds.

(c) Two members of the Senate, appointed by the Senate Committee on Rules, and two members of the Assembly, appointed by the Speaker of the Assembly, shall meet with the conservancy and participate in its activities to the extent that such participation is not incompatible with their respective positions as Members of the Legislature. One appointee from each house of the Legislature shall represent a district either partially or wholly within the Grassland Ecological Area and the Grassland Focus Area and one appointee from each house shall represent a district from outside the Grassland Ecological Area and the Grassland Focus Area.

(d) The conservancy shall use the Governor’s Tribal Advisor and the Native American Heritage Commission to identify and consult with California Indian tribes that may be affected by conservancy activities, in a manner that allows a reasonable opportunity for tribes to comment and participate.

33235.33241.

Members of the board shall serve terms as follows:

(a) The members appointed pursuant to subparagraphs (C) and (D) of paragraph (1) of subdivision (a) of Section 33234 shall serve at the pleasure of the appointing power.

(b) The members appointed pursuant to subparagraph (E) of paragraph (1) of subdivision (a) of Section 33234 shall serve terms of four years and may be reappointed.

(c) No member of the board, whose appointment to the board was contingent upon meeting a condition of eligibility under this division, shall serve beyond the time when the member ceases to meet that condition.

33236.33242.

(a) The voting members appointed or designated under paragraph (1) of subdivision (a) of Section 33234 who are not state employees shall be compensated for attending meetings of the conservancy at the rate of one hundred dollars ($100) per scheduled meeting day.

(b) All members of the board shall be reimbursed for their actual and necessary expenses, including travel expenses, incurred in attending meetings of the conservancy and carrying out the duties of their office.

33237.33243.

Every two years, the voting members of the board shall elect from among the voting members a chairperson and vice chairperson, and other officers as necessary. If the office of the chairperson or vice chairperson becomes vacant, a new chairperson or vice chairperson shall be elected by the voting members of the board to serve for the remainder of the term.

33238.33244.

(a) Five members of the voting members shall constitute a quorum for the transaction of the business of the conservancy. The board shall not transact the business of the conservancy if a quorum is not present at the time a vote is taken. A decision of the board requires an affirmative vote of five of the voting members, and the vote is binding with respect to all matters acted on by the conservancy.

(b) The board shall adopt rules, regulations, and procedures for the conduct of business by the conservancy.

(c) The voting members of the board appointed or designated pursuant to paragraph (1) of subdivision (a) of Section 33234 and the nonvoting advisers selected pursuant to paragraph (2) of subdivision (a) of Section 33234 shall have the right to attend all meetings of the board, including closed sessions.

33239.33245.

The board may establish advisory boards or committees, hold community meetings, and engage in public outreach using advanced forms of technology, in order to facilitate the decisionmaking process. Members of advisory boards or committees may be reimbursed for the actual and necessary expenses, including travel expenses, that they incur in attending regular meetings of the advisory board or committee of which they are a member.

33240.33246.

The board shall establish and maintain a headquarters office within the region. County of Merced. The conservancy may rent or own real and personal property and equipment pursuant to applicable statutes and regulations.

33241.33247.

The board shall determine the qualifications of, and appoint, an executive officer of the conservancy, who shall be exempt from civil service. The board shall employ other staff as necessary to execute the powers and functions provided for under this division.

33242.33248.

The board may enter into contracts with private entities and public agencies to procure consulting and other services necessary to achieve the purposes of this division.

33243.33249.

The conservancy’s expenses for support and administration may be paid from the conservancy’s operating budget and any other funding sources available to the conservancy.

33244.33250.

The board shall conduct business in accordance with the requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).

33245.33251.

The board shall hold its regular meetings within, or near, the region. County of Merced.

33246.33252.

The board shall post agendas for each board meeting on the Natural Resource Resources Agency’s internet website.

Chapter 4. Powers and Duties

33247.33255.

The conservancy’s jurisdiction is limited to the Grassland Ecological Area and the Grassland Focus Area.

33248.33256.

The conservancy shall carry out projects and activities to further the purposes of this division throughout the Grassland Ecological Area and the Grassland Focus Area.

33249.33257.

(a) The conservancy may make grants or loans to public agencies, nonprofit organizations, and tribal organizations in order to carry out the purposes of this division, including grants or loans provided to acquire an interest in real property.

(b) Grant or loan funds shall be disbursed only after the recipient entity has entered into an agreement with the conservancy on the terms and conditions specified by the conservancy.

(c) When awarding grants or making loans pursuant to this division, the conservancy may require repayment of those funds on the terms and conditions it deems appropriate.

(d) The conservancy may provide technical information, expertise, and other nonfinancial assistance to public agencies, nonprofit organizations, and tribal organizations to support planning, project development, and implementation.

(e) The conservancy may apply for and receive grants to carry out the purposes of this division.

33250.33258.

The conservancy may sue and be sued in its own name.

33251.33259.

The conservancy may acquire from willing sellers or transferors an interest in real property in order to carry out the purposes of this division.

33252.33260.

(a) The conservancy shall take whatever actions are reasonably necessary and incidental to the management of lands or interests in lands under its ownership or control and may initiate, negotiate, and participate in agreements for the management of those lands or interests with public agencies or private individuals or entities.

(b) The conservancy may improve, restore, or enhance lands for the purpose of protecting wildlife habitat, conserving natural resources, improving public access or enjoyment of public lands, or otherwise meeting the objectives of this division, and may carry out the planning and design of those improvements or measures.

(c) The conservancy may enter into agreements with public agencies, nonprofit organizations, or private entities for the construction, management, or maintenance of facilities authorized by the conservancy.

33253.33261.

The conservancy shall not exercise the power of eminent domain.

33254.33262.

(a) Notwithstanding any other law, the conservancy may lease, rent, sell, exchange, or otherwise transfer an interest, option, or contractual right in real property acquired under this division, subject to terms and conditions in furtherance of the purposes of this division.

(b) Proceeds from a lease, rental, sale, exchange, or transfer of an interest or option in real property, and all other income, shall be deposited in the Grassland Ecological Area Conservancy Fund.

33255.33263.

In carrying out this division, the conservancy shall cooperate and consult with the city or county where a grant is proposed or an interest in real property is proposed to be acquired, and shall, as necessary or appropriate, coordinate its efforts with other state agencies, in cooperation with the Secretary of the Natural Resources Agency. The conservancy shall, as necessary and appropriate, cooperate and consult with public water and irrigation districts, groundwater sustainability agencies, and other relevant entities where a grant is proposed or an interest in land is proposed to be acquired.

33256.33264.

(a) This division does not grant to the conservancy any of the following powers:

(1) The powers of a city or county to regulate land use.

(2) Authority to regulate activities on land, except as the owner of an interest in land or pursuant to an agreement with, or a license or grant of management authority from, the owner of an interest in land.

(3) Authority over water rights held by others.

(b) This division does not affect the jurisdiction of any other state conservancy.

Chapter 5. Financial and Accountability Provisions

33257.33265.

(a) The Grassland Ecological Area Conservancy Fund is hereby created in the State Treasury.

(b) Moneys in the fund shall be available, upon appropriation by the Legislature, only for the purposes of this division.

(c) All funds or income received by the conservancy, including proceeds from donations or a lease, rental, sale, exchange, or transfer of an interest or option in real property, shall be deposited in the Grassland Ecological Area Conservancy Fund for expenditure for the purposes of this division.

33258.33266.

(a) Notwithstanding Section 10231.5 of the Government Code, beginning January 1, 2028, the conservancy shall submit an annual report to the Legislature and the Secretary of the Natural Resources Agency regarding the activities of the conservancy, including expenditures, land management costs, and administrative costs.

(b) The report shall be submitted in compliance with Section 9795 of the Government Code.

(c) The conservancy shall make the report publicly available, including by posting the report on its internet website, if any.

SEC. 2.SEC. 3.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.