California Code, Water Code - WAT § 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.