Wat. Code, § 1055.5

(a) (1) The board shall adjust on an annual basis, by January 1 of each year beginning in 2026, all civil and administrative liabilities or penalties imposed by the board or in an action brought at the request of the board pursuant to this division, to adjust the maximum amounts specified in this division for inflation, as established by the amount by which the California Consumer Price Index for the month of June of the year prior to the adjustment exceeds the California Consumer Price Index for June of the calendar year in which legislation was last enacted establishing or amending the maximum amount of the liability or penalty.

(2) The amount of any liability or penalty determined pursuant to this subdivision shall be rounded as follows:

(A) To the nearest multiple of ten dollars ($10) in the case of a liability or penalty that is less than or equal to one hundred dollars ($100).

(B) To the nearest multiple of one hundred dollars ($100) in the case of a liability or penalty that is greater than one hundred dollars ($100), but less than or equal to one thousand dollars ($1,000).

(C) To the nearest multiple of one thousand dollars ($1,000) in the case of a liability or penalty that is greater than one thousand dollars ($1,000), but less than or equal to ten thousand dollars ($10,000).

(D) To the nearest multiple of five thousand dollars ($5,000) in the case of a liability or penalty that is greater than ten thousand dollars ($10,000).

(3) Inflation adjustments made pursuant to this subdivision are exempt from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The updated civil and administrative liability or penalties pursuant to the inflation adjustment shall be filed with the Secretary of State and published in the California Code of Regulations.

(b) This section does not apply to any liability imposed under Section 1538.

(c) The board shall report to the Legislature, in accordance with Section 9795 of the Government Code, with regard to the implementation of this section.