Cal. Gov't Code § 16304.3

(a) Notwithstanding Section 16304, an appropriation for an approved cooperative work agreement shall be available for expenditure as provided in this section.
(b) An approved cooperative work agreement is a binding contract or agreement between multiple parties, including the state or other governmental entities, or private nonprofit organizations, for work that cannot be completed for valid and substantial reasons during the period of time for which the funding is available for liquidation, and that meets all of the following criteria:
1. (1) The cooperative work agreement has been approved by the Department of Finance.
2. (2) The work to be completed is consistent with the intent of the original appropriation.
3. (3) The cooperative work agreement is funded only from appropriations for local assistance.
(c) Only that portion of the appropriation already encumbered upon approval of the cooperative work agreement by the Department of Finance shall be available to complete the work specified in the agreement. Any unencumbered or disencumbered balance shall revert to the fund of origin consistent with standard state accounting practices.
(d) The unliquidated balance subject to the approved cooperative work agreement shall revert to the fund of origin no later than eight years from the date of the original appropriation.
(e) This section shall not apply to cooperative work agreements entered into prior to January 1, 2001.