(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.

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Terms Used In California Water Code 13496

  • 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. See California Water Code 13491
  • Contract: A legal written agreement that becomes binding when signed.
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Person: includes any city, county, district, the state, and the United States, to the extent authorized by federal law. See California Water Code 13050
  • 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. See California Water Code 13491
  • State: means the State of California, unless applied to the different parts of the United States. See California Water Code 18
  • State board: means the State Water Resources Control Board. See California Water Code 13050

(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.

(Added by Stats. 2021, Ch. 187, Sec. 6. (SB 776) Effective January 1, 2022.)

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