SECTIONS 71560-71562 - California Statutes

PUBLIC RESOURCES CODE

SECTION 71560-71562

71560. (a) The endowment may receive charitable contributions or
any sources of income that may be lawfully received, including loans
from the state.
(b) The endowment shall administer any funds it receives in
accordance with this division.
(c) (1) Except as provided in paragraph (2), the endowment shall
invest and manage any funds it receives so that the investments shall
provide a source of income in perpetuity and the principal amount
consisting of charitable contributions and donations, including cost
savings donated pursuant to Section 6427.3 of the Fish and Game Code,
shall not be spent. Any returns on investments made by the endowment
are the only funds that shall be available for expenditure by the
endowment.
(2) Ten percent of any funds received by the endowment pursuant to
Section 6427.3 of the Fish and Game Code in a calendar year shall be
allocated by the endowment board, pursuant to Section 71552, as
grants for projects or programs consistent with the purpose of this
chapter within 24 months of receipt of the funds. The majority of
these funds shall be granted to state agencies engaged in coastal and
ocean protection.
(d) The endowment shall invest and manage any funds it receives in
accordance with the Nonprofit Public Benefit Corporation Law (Part 2
(commencing with Section 5110) of Division 2 of Title 1 of the
Corporations Code).
(e) The accounts of the endowment shall be audited annually in
accordance with generally accepted auditing standards by independent
certified public accountants.
(f) The financial transactions of the endowment for any fiscal
year may be audited by the Bureau of State Audits.
(g) Each recipient of assistance by grant, contract, or loan
pursuant to this division shall keep records reasonably necessary to
disclose fully the amount of the assistance, the disposition of the
assistance, the total cost of the project or undertaking in
connection with which the assistance is given or used, the amount and
nature of that portion of the cost of the project or undertaking
supplied by other sources, and other records that will facilitate an
effective audit. Each recipient of a fixed price contract awarded
pursuant to competitive bidding procedures is exempt from the
requirements of this subdivision.
(h) The endowment, or its authorized representative, and the
Bureau of State Audits shall have access to any records necessary for
the purpose of auditing and examining all funds received or expended
by the recipients of assistance.

71561. The endowment funds shall be administered and managed in
accordance with all of the following:
(a) Reasonably prudent investor standards that will give the fund
the capacity to achieve reasonable rates of return on investment
similar to those of other prudent investors for long-term
investments.
(b) Use of generally accepted accounting practices, and
expenditure and investing procedures.
(c) Investment policies that are consistent with the Uniform
Prudent Investor Act (Article 2.5 (commencing with Section 16045) of
Chapter 1 of Part 4 of Division 9 of the Probate Code), and with the
Uniform Management of Institutional Funds Act (Part 7 (commencing
with Section 18501) of Division 9 of the Probate Code), as
applicable.

71562. Funds held by the endowment shall revert to the state or to
another public agency or nonprofit organization approved by the state
if the endowment does any of the following:
(a) Ceases operations.
(b) Is dissolved.
(c) Becomes bankrupt or insolvent.
(d) Fails to perform its fiduciary duties.