CHAPTER 6.7. Cost Recovery, Enforcement, and Administration [13490. - 13499.4.]

Cal. Water Code - WAT 6.7.
in effect

Cal. Water Code - WAT § 13490. Section 13490.

The purpose of this chapter is to consolidate administrative enforcement authority available to the state board to enforce the terms, conditions, and requirements of its financial assistance programs.

Cal. Water Code - WAT § 13491. Section 13491.

As used in this chapter, the following terms have the following meanings: (a) “Agreement” means any agreement or contract for financial assistance from the state board to an eligible recipient, including, but not limited to, a loan, grant, installment sale agreement, contract, or other form of agreement made for the purpose of providing financial assistance. (b) “Recipient” means any person or entity that receives any financial assistance from the state board, including, but not limited to, a recipient’s contractors or consultants who performs work for a recipient.

Cal. Water Code - WAT § 13492. Section 13492.

(a) The state board may recover any costs incurred in the enforcement of an agreement, including any criminal, civil, or administrative action related to the agreement. (b) (1) The state board may recover any amount of financial assistance provided to a recipient not expended for purposes authorized by the agreement up to the full amount of the agreement. (2) Except as provided in paragraph (3), the Attorney General, upon request of the state board, shall bring an action in superior court to recover costs under this section. (3) The state board may recover costs administratively as civil liability under Article 2.5 (commencing with Section 13323) of Chapter 5. (c) The amount of the costs constitutes a lien on any property, including real property and personal property, obtained through, or improved with the proceeds of, the agreement. For real property liens under this section, the lien shall attach upon service of a copy of the notice of lien on the owner and upon the recordation of a notice of lien, if the notice identifies the property purchased with the financial assistance, the amount of the lien, and the owner of record of the property, in the office of the county recorder of the county in which the property is located. Upon recordation of a real property lien or notice to the recipient of a personal property lien, the lien shall have the same force, effect, and priority as a judgment lien, except that it attaches only to the property posted and described in the notice of lien, and shall continue for 10 years from the time of the recording of the notice, unless sooner released or otherwise discharged. Not later than 45 days from the date of receipt of a notice of lien, the owner may petition the court for an order releasing the property from the lien or reducing the amount of the lien. In that court action, the state board shall establish that the costs were reasonable and necessary. The lien may be foreclosed by an action brought by the state board for a money judgment. The lien shall be renewable at the expiration of each 10-year period from the time of the recording of the notice unless it has been discharged or foreclosed.

Cal. Water Code - WAT § 13493. Section 13493.

(a) (1) Except as provided in subdivisions (b) and (c), if a person is convicted under Section 13499.2 of this code or Section 25299.80.5 of the Health and Safety Code or is found to be civilly liable under Section 13499 of this code or Section 25299.78 or 25299.80 of the Health and Safety Code, the state board may permanently disqualify that person from receiving financial assistance from the state board. If the state board determines that the disqualified person is a contractor or consultant, a recipient shall not submit invoices to the state board for any work performed or directed by that person. (2) For purposes of this section, “contractor or consultant” means a person whose professional services are engaged to perform work for which public moneys are expended. (b) If the person convicted under Section 13499.2 or found to be civilly liable under Section 13499 is a recipient, the state board may permanently disqualify the recipient from further receipt of moneys from the state board, with respect to only the financial assistance programs that are the subject of that conviction under Section 13499.2 or found civilly liable under Section 13499, and only if the state board makes a finding that the alleged violation is knowing, willful, or intentional. (c) If the person convicted under Section 13499.2 of this code or Section 25299.80.5 of the Health and Safety Code or found to be civilly liable under Section 13499 of this code or Section 25299.78 or 25299.80 of the Health and Safety Code is a contractor or consultant, the state board may permanently disqualify the contractor or consultant from requesting reimbursement for work conducted pursuant to any financial assistance program administered by the state board, including participation in work conducted pursuant to financial assistance programs that are not the subject of that conviction under Section 13499.2 of this code or Section 25299.80.5 of the Health and Safety Code or finding of liability under Section 13499 of this code or Section 25299.78 or 25299.80 of the Health and Safety Code, if the state board makes one of the following findings: (1) The alleged violation is knowing, willful, or intentional. (2) The contractor or consultant received a material economic benefit from the action that caused the violation. (3) The alleged violation is chronic or the contractor or consultant is a recalcitrant violator, as determined pursuant to subdivision (g) of Section 13399. (d) In addition to the requirements of subdivisions (b) and (c), in determining the extent to which a person, including, but not limited to, a recipient, contractor, or consultant, convicted under Section 13499.2 of this code or Section 25299.80.5 of the Health and Safety Code or found civilly liable under Section 13499 of this code or Section 25299.78 or 25299.80 of the Health and Safety Code may be disqualified from receiving any funds from the state board, including the extent to which the person may be reimbursed for pending or future claims or disbursement requests from the state board, the state board shall take into account the nature, circumstances, extent, and gravity of the violation, any prior history of misrepresentations by the person to the state board or a local agency, any economic benefits or savings that resulted or would have resulted from the false statement, and any other matters as justice may require.

Cal. Water Code - WAT § 13494. Section 13494.

Upon motion and sufficient showing by any party, the court or board, as appropriate, shall join to the action a person who may be liable for costs or expenditures of the type recoverable under this chapter.

Cal. Water Code - WAT § 13496. Section 13496.

(a) A recipient’s indemnification, hold harmless, conveyance, or similar contract with a third party shall not preclude any liability for costs recoverable under this chapter. This section does not bar any contract to insure, hold harmless, or indemnify a party to the contract. (b) The entry of judgment against any party to the action does not bar any future action by the state board against any person who is later discovered to be potentially liable for costs incurred by the state board related to any financial assistance program. (c) Payment of a claim or disbursement request by the state board under this chapter is subject to the state acquiring by subrogation the rights of the recipient to recover financial assistance moneys from a third party under the financial assistance agreement.

Cal. Water Code - WAT § 13497. Section 13497.

(a) Any person, including a recipient, recipient’s contractor, consultant, employee, agent, assignee, or grantee who violates any requirement or term of a financial assistance agreement is liable for a civil penalty of not more than one thousand dollars ($1,000) for each day of violation, not to exceed 25 percent of the total amount of the financial assistance agreement. (b) The Attorney General, upon request of the state board, shall bring an action in superior court to impose the civil penalty specified in subdivision (a). (c) The state board may impose the civil penalty administratively pursuant to Article 2.5 (commencing with Section 13323) of Chapter 5.

Cal. Water Code - WAT § 13498. Section 13498.

(a) A recipient or a recipient’s consultant or contractor or other agent furnishing any information related to funds disbursed or costs claimed for reimbursement pursuant to a financial assistance agreement under this chapter as the state board may require shall personally attest that the information is true, accurate, and complete to the best of one’s knowledge, under penalty of law. (b) A person who fails or refuses to furnish information under subdivision (a) or furnishes false information to the state board is subject, in accordance with the requirements of subdivision (c), to civil liability of not more than thirty thousand dollars ($30,000) for each violation of this subdivision. (c) (1) A recipient shall not be liable under subdivision (b) unless the court or the state board, as the case may be, finds any of the following: (A) The alleged violation is knowing, willful, or intentional. (B) The recipient or a recipient’s consultant or contractor or other agent received a material economic benefit from the action that caused the alleged violation. (C) The alleged violation is chronic or that the recipient or a recipient’s consultant or contractor or other agent is a recalcitrant violator, as determined pursuant to subdivision (g) of Section 13399. (d) The Attorney General, upon request of the state board, shall bring an action in superior court to impose the civil liability specified in subdivision (b). (e) The state board may impose the civil liability specified in subdivision (b) administratively under Article 2.5 (commencing with Section 13323) of Chapter 5.

Cal. Water Code - WAT § 13499. Section 13499.

(a) A person who makes a misrepresentation in any submittal to the state board, including, but not limited to, an application, report, certification, record, invoice, form, or other document that is submitted to the state board relating to a financial assistance agreement, is subject to civil liability of not more than five hundred thousand dollars ($500,000) for each violation of this subdivision. (b) The Attorney General, upon request of the state board, shall bring an action in superior court to impose the civil liability specified in subdivision (a). (c) The state board may impose the civil liability administratively under Article 2.5 (commencing with Section 13323) of Chapter 5. (d) The state board shall file a complaint with any applicable licensing board against any person licensed or otherwise regulated by that licensing board who is found to be liable under this section.

Cal. Water Code - WAT § 13499.2. Section 13499.2.

(a) A person who knowingly makes or causes to be made any false statement, material misrepresentation, or false certification in any submittal to the state board relating to an agreement, including, but not limited to, applications, records, reports, certifications, plans, invoices, forms, or other documents that are submitted, filed, or required to be received by the state board for purposes of obtaining or administering a financial assistance agreement, shall, upon conviction, be punished by a criminal fine of not more than ten thousand dollars ($10,000), or by imprisonment in a county jail for not more than one year, or in the state prison for 16 months, two years, or three years, or by both that fine and imprisonment. (b) The Attorney General, or a district attorney, upon request of the state board, may bring an action in superior court to impose the criminal penalty specified in subdivision (a). (c) Nothing in this chapter shall prevent the state board from refusing to enter into an agreement with a recipient if the recipient has been convicted for a fraud crime or found civilly liable for fraud or misrepresentation in a civil or administrative proceeding.

Cal. Water Code - WAT § 13499.4. Section 13499.4.

(a) Except as provided in subdivision (b), remedies under this chapter are in addition to, and do not supersede or limit, any other remedy, civil or criminal, including, but not limited to, the state board’s rights and remedies under an agreement. (b) Civil liability shall not be imposed both administratively and by the superior court for the same violation. (c) In determining the appropriate amount of liability under Section 13497, 13498, or 13499, the court, or the state board, as the case may be, shall take into consideration all relevant circumstances, including, but not limited to, the extent of harm caused by the violation, the nature and persistence of the violation, the length of time over which the violation occurs, and the corrective action, if any, taken by the violator. (d) (1) Unless the state board determines that deposit in another fund would be more effective for providing financial assistance for the same or substantially similar purpose, all moneys collected pursuant to this chapter shall be deposited into the fund from which the financial assistance agreement that is the subject of the action originated. (2) If the moneys deposited pursuant to paragraph (1) are derived from the imposition of penalties and are deposited into a fund that is continuously appropriated, that continuous appropriation shall not apply to the moneys. The moneys shall be separately accounted for and shall be available, upon appropriation by the Legislature, for the purposes for which expenditures from that fund are authorized.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026