Each contract shall be for an initial term of three years and shall include the following:

(a) The designation of the owner of record or the lessee, and the legal description and the assessor’s parcel number of the land subject to the contract.

(b) An agreement by the owner or the lessee to restore, enhance, and protect the waterfowl habitat character of an established number of acres of described land that may be annually rotated provided that the minimum contracted acreage amount is achieved for each of the contracted winter flooding seasons.

(c) Specification of the amount and date in each year that the payment is to be made by the department to the owner or lessee, which shall be calculated at the rate or rates that the director determines to be fair and reasonable in consideration of the obligations undertaken by the owner or lessee.

(d) A requirement that the owner or lessee do either of the following:

(1) Refund to the state all payments received under the contract plus interest at the legal rate, as specified in Section 3289 of the Civil Code, upon the owner’s or lessee’s violation of the contract, or any extension thereof, if the director determines that the violation warrants termination of the contract and the director terminates the contract.

(2) Make refunds or accept payment adjustments that the director determines are appropriate, not to exceed the total amount paid by the state to the owner or lessee in the preceding calendar year plus interest at the legal rate, as specified in Section 3289 of the Civil Code, if the director determines that the violation by the owner or lessee does not warrant termination of the contract.

(e) A requirement that the department reduce the amount of any payment to the owner or lessee under subdivision (c) by an amount equal to the portion of any payment under the federal Water Bank Program (16 U.S.C. Sec. 1301 et seq.) that the department determines to be in compensation for the same obligation undertaken by the owner under the water bank program.

(f) In addition to subdivision (e), a requirement that the department reduce the amount of any payment to the owner or lessee under subdivision (c) by an amount equal to the portion of any payment that the department determines to be in compensation for the same obligation undertaken by the owner under any other governmental program.

(g) An authorization for the department to monitor compliance with the contract with the federal Natural Resources Conservation Service, a county agricultural commissioner, or other appropriate agency, entity, or person to monitor compliance with the contract, and a requirement that the owner or lessee allow access for the monitoring.

(h) Any additional provisions that the director determines are desirable to effectuate the purposes of the program or to facilitate its administration.

(Amended by Stats. 2019, Ch. 420, Sec. 2. (AB 256) Effective January 1, 2020.)