Pub. Resources Code, § 32649

(a) The conservancy may award grants to any local public agency, state agency, joint powers agency, special district, tribal nation, and nonprofit organization consistent with the purposes of this division.

(b) A grant from the conservancy to an entity described in subdivision (a) for the acquisition of real property or an interest in real property is subject to all of the following conditions:

(1) The purchase price of any interest in land acquired may not exceed fair market value, as established by an appraisal that is approved by the conservancy.

(2) The conservancy shall approve the terms under which the interest in land is acquired.

(3) An interest in land acquired through the use of a grant may not be used as security for any debt to be incurred by the entity.

(4) A transfer of land acquired through the use of a grant is subject to the approval of the conservancy and the execution of an agreement between the conservancy and the transferee sufficient to protect the interest of the people of the state.

(5) The state shall have the right of entry and power of termination over any interest in real property acquired with state funds, and may exercise those rights if any material term or condition of the grant is violated.

(6) If the entity receiving the grant ceases to exist for any reason, the title to all interests in real property acquired with state funds shall immediately vest in the state, except that, prior to that termination, any other public agency or nonprofit organization may receive, upon approval by the conservancy, title to all or a portion of that interest, by recording a written acceptance of title and the conservancy’s written approval with the county recorder’s office of the county with jurisdiction over the property.

(7) If the terms and conditions of the grant are not met, the conservancy may seek repayment of moneys granted pursuant to that grant.

(c) Any deed or other instrument of conveyance evidencing the final acquisition of real property by an entity pursuant to this section shall be recorded with the county recorder’s office in the county with jurisdiction over the property, and shall detail the state’s right of entry and power of termination of any interest in the property.