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.
Chapter 6.7Cost Recovery, Enforcement, and Administration
Section § 13490
This section ensures that the state board has the power to oversee and enforce rules and conditions required for its financial assistance programs.
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Section § 13491
This section defines key terms used in the chapter. An “Agreement” refers to any financial assistance arrangement, like loans or grants, between the state board and eligible recipients. A “Recipient” is anyone who gets financial help from the state board, which can include individuals, organizations, or their contractors who perform related work.
As used in this chapter, the following terms have the following meanings:
(a)CA Water Code § 13491(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)CA Water Code § 13491(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.
financial assistance agreement state board loans grants installment sale agreements contract financial support eligible recipient recipient contractors consultants state financial aid water financial aid aid agreement types financing contracts
Section § 13492
This section allows the state board to recover any costs associated with enforcing an agreement, which could include taking legal action against those who violate it. If a recipient of financial assistance doesn't use the funds for the agreed purposes, the state board can recover the full amount either through the Attorney General in court or administratively as a civil penalty.
Additionally, if any property was obtained or improved using these funds, the board can place a lien on it, which is a legal claim to satisfy the debt. This lien acts like a judgment lien and remains for 10 years unless it's resolved earlier. Property owners can challenge the lien in court within 45 days, where the board must prove the reasonableness of the costs. The lien can be renewed after 10 years or foreclosed if needed.
(a)CA Water Code § 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)Copy CA Water Code § 13492(b)
(1)Copy CA Water Code § 13492(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)CA Water Code § 13492(b)(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)CA Water Code § 13492(b)(3) The state board may recover costs administratively as civil
liability under Article 2.5 (commencing with Section 13323) of Chapter 5.
(c)CA Water Code § 13492(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.
state board cost recovery financial assistance misuse enforcement agreement criminal civil action administrative recovery superior court action Attorney General involvement property lien real and personal property lien notice service creditor rights foreclosure process lien duration court petition reasonable costs proof
Section § 13493
This law gives the state board the power to permanently exclude individuals or businesses from receiving state financial help if they are convicted of certain violations or found civilly liable. For contractors or consultants involved, recipients are not allowed to submit invoices for any work they've done or supervised. If the violation is willful, benefits economically, or is repeatedly committed, contractors or consultants can be banned from all financial programs. The board also considers the seriousness and history of violations by any party in making these decisions.
(a)Copy CA Water Code § 13493(a)
(1)Copy CA Water Code § 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)CA Water Code § 13493(a)(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)CA Water Code § 13493(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)CA Water Code § 13493(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)CA Water Code § 13493(c)(1) The alleged violation is knowing, willful, or intentional.
(2)CA Water Code § 13493(c)(2) The contractor or consultant
received a material economic benefit from the action that caused the violation.
(3)CA Water Code § 13493(c)(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)CA Water Code § 13493(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.
financial assistance disqualification contractor restrictions consultant ineligibility civil liability consequences Section 13499 violations Section 25299.78 implications economic benefit from violation chronic violations intentional violations financial assistance programs State Board decisions recipient disqualification misrepresentation history economic benefit evaluation work reimbursement denial
Section § 13494
This law states that if any party in a legal action can demonstrate a good reason, the court or board must involve a person in the case who could be responsible for paying specific costs or expenses that can be claimed under this chapter.
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.
motion sufficient showing liability for costs court involvement board involvement joinder of parties recoverable costs expenditures legal action liability financial responsibility legal proceedings party with financial liability litigation costs court order
Section § 13495
This law makes it clear that if someone has to pay costs under this chapter, they are strictly liable. This means they are responsible for those costs regardless of fault or intention.
The standard of liability for any costs recoverable pursuant to this chapter is strict liability.
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Section § 13496
This law clarifies that even if someone has a contract that promises to protect or reimburse them from claims, it doesn’t exempt them from being liable for costs recoverable under this chapter. However, it doesn't prevent anyone from making such agreements.
If a judgment is made against someone, the state board can still pursue other parties that might be responsible for costs related to any financial assistance programs in the future. Lastly, if the state board pays a claim or request for funds, it then gains the recipient's right to seek money back from third parties linked to the financial assistance agreement.
(a)CA Water Code § 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)CA Water Code § 13496(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)CA Water Code § 13496(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.
indemnification hold harmless liability for costs third party recovery financial assistance program judgment entry state board claims subrogation rights third party contracts cost recovery recipient's rights contractual agreements
Section § 13497
This law states that anyone who violates the terms of a financial assistance agreement can be fined up to $1,000 for each day the violation continues, with a maximum penalty of 25% of the agreement's total amount. If needed, the Attorney General can take the case to court to enforce the penalty. Alternatively, the state board has the authority to impose the penalty administratively.
(a)CA Water Code § 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)CA Water Code § 13497(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)CA Water Code § 13497(c) The state board may impose the civil penalty administratively pursuant to
Article 2.5 (commencing with Section 13323) of Chapter 5.
financial assistance agreement civil penalty violation daily fine Attorney General state board superior court administrative penalty Section 13323 Chapter 5 contractor liability consultant violation grantee penalties
Section § 13498
If you're involved in handling funds or claiming reimbursements under a financial agreement with the state board, you need to personally confirm that all information you provide is true and complete. If you fail to provide information or supply false details, you could face a fine of up to $30,000 for each violation.
However, fines are only imposed if it's proven that the violation was done knowingly, with willful intent, or if it resulted in a significant economic gain, or if you repeatedly violate the rules. Legal action to enforce fines can be undertaken by the Attorney General or directly by the state board.
(a)CA Water Code § 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)CA Water Code § 13498(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)Copy CA Water Code § 13498(c)
(1)Copy CA Water Code § 13498(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)CA Water Code § 13498(c)(1)(A) The alleged violation is knowing, willful, or intentional.
(B)CA Water Code § 13498(c)(1)(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)CA Water Code § 13498(c)(1)(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)CA Water Code § 13498(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)CA Water Code § 13498(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.
financial assistance agreement information attestation civil liability false information reimbursement claims violation penalties economic benefit recalcitrant violator Attorney General enforcement state board administrative action
Section § 13499
This law states that if someone lies or provides false information in any document submitted to the state board related to financial assistance, they can face a fine of up to $500,000 per violation.
The Attorney General is responsible for taking legal action in court if the state board requests it. Alternatively, the state board can handle the penalties administratively.
If the violator has a professional license, the state board must report them to their licensing board.
(a)CA Water Code § 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)CA Water Code § 13499(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)CA Water Code § 13499(c) The state board may impose the civil liability administratively
under Article 2.5 (commencing with Section 13323) of Chapter 5.
(d)CA Water Code § 13499(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.
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Section § 13499.2
This law states that if someone knowingly makes a false statement or misrepresentation in documents submitted to the state board related to financial assistance agreements, they can face severe penalties. These penalties include a fine of up to $10,000, imprisonment for up to three years, or both. The Attorney General or a district attorney can take legal action to apply these penalties. Additionally, if someone has been convicted of fraud or misrepresentation, the state board can refuse to enter into any agreements with them.
(a)CA Water Code § 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)CA Water Code § 13499.2(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)CA Water Code § 13499.2(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.
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Section § 13499.4
This law explains that the remedies available under this chapter are additional to any other civil or criminal remedies, meaning they don’t replace or limit existing ones, except civil liability for a violation can't be applied both administratively and through the court for the same offense.
When determining penalties for violations, factors like the harm caused, the nature of the violation, how long it persisted, and any corrective actions are considered.
Money collected as penalties generally should be returned to the fund related to the financial assistance agreement involved in the case, unless a different fund is deemed more suitable. If penalty money goes into a continuously appropriated fund, it must be specially accounted for and can only be used for its designated purpose if the Legislature approves it.
(a)CA Water Code § 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)CA Water Code § 13499.4(b) Civil liability shall not be imposed both administratively and by the superior court for the same violation.
(c)CA Water Code § 13499.4(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)Copy CA Water Code § 13499.4(d)
(1)Copy CA Water Code § 13499.4(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)CA Water Code § 13499.4(d)(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.
additional remedies civil and criminal remedies administrative liability superior court liability determination relevant circumstances harm caused nature of violation corrective actions financial assistance fund penalty deposit legislative appropriation fund accounting continuously appropriated fund state board rights
