California Code, Health and Safety Code - HSC § 39688

(a) If, at any point during the term of the contract entered into pursuant to Section 39687, an administering agency or the state board finds that a fleet purchaser that received an incentive was in violation of the standards set forth in Article 2 (commencing with Section 39690) during any portion of the term of the contract entered into pursuant to Section 39687, or that the fleet purchaser failed to make correct and accurate disclosures required under Section 39690, the fleet purchaser is in breach of the contract and shall be liable for the repayment of any incentive for which the contract entered into under Section 39687 was still in effect during the time period that the fleet purchaser was out of compliance. The time period shall include the claim period of any judgment issued against the fleet purchaser for an applicable law violation, along with any other period identified by the administering agency or the state board.

(b) The contract remedies specified in this section shall also bind the fleet purchaser's successors or assignees. The state board or the agency administering the incentive program may require that a successor or assignee repay any incentives received by fleet purchasers.