999.9
. (a) It shall be unlawful for a person to:
(1) Knowingly and with intent to defraud, fraudulently obtain,
retain, attempt to obtain or retain, or aid another in fraudulently
obtaining or retaining or attempting to obtain or retain,
certification as a disabled veteran business enterprise for the
purpose of this article.
(2) Willfully and knowingly make a false statement with the intent
to defraud, whether by affidavit, report, or other representation,
to a state official or employee for the purpose of influencing the
certification or denial of certification of any entity as a disabled
veteran business enterprise.
(3) Willfully and knowingly obstruct, impede, or attempt to
obstruct or impede, any state official or employee who is
investigating the qualifications of a business entity that has
requested certification as a disabled veteran business enterprise.
(4) Knowingly and with intent to defraud, fraudulently obtain,
attempt to obtain, or aid another person in fraudulently obtaining or
attempting to obtain, public moneys, contracts, or funds expended
under a contract, that are awarded by any state agency, department,
officer, or other state governmental agency, to which the person is
not entitled under this article.
(5) Knowingly and with intent to defraud, fraudulently represent
participation of a disabled veteran business enterprise in order to
obtain or retain a bid preference or a state contract.
(6) Knowingly and with intent to defraud, fraudulently represent
that a commercially useful function is being performed by a disabled
veteran business enterprise in order to obtain or retain a bid
preference or a state contract.
(7) Willfully and knowingly make or subscribe to any statement,
declaration, or other document that is fraudulent or false as to any
material matter, whether or not that falsity or fraud is committed
with the knowledge or consent of the person authorized or required to
present the declaration, statement, or document.
(8) Willfully and knowingly aid or assist in, or procure, counsel,
or advise, the preparation or presentation of a declaration,
statement, or other document that is fraudulent or false as to any
material matter, regardless of whether that falsity or fraud is
committed with the knowledge or consent of the person authorized or
required to present the declaration, statement, or document.
(9) Willfully and knowingly fail to file any declaration or notice
with the awarding agency that is required by Section 999.2.
(10) Establish, or knowingly aid in the establishment of, or
exercise control over, a firm found to have violated any of
paragraphs (1) to (9), inclusive.
(b) Any person who violates any of the provisions of subdivision
(a) shall be guilty of a misdemeanor punishable by imprisonment in
the county jail not exceeding six months or by a fine not exceeding
one thousand dollars ($1,000), or by both. In addition, the person
shall be liable for a civil penalty of not less than ten thousand
dollars ($10,000) nor more than thirty thousand dollars ($30,000) for
the first violation, and a civil penalty of not less than thirty
thousand dollars ($30,000) nor more than fifty thousand dollars
($50,000) for each additional or subsequent violation. A defendant
who violates any of the provisions of subdivision (a) shall pay all
costs and attorney's fees incurred by the plaintiff in a civil action
brought pursuant to this section, including costs incurred by the
awarding department or the Department of General Services.
(c) (1) The Department of General Services shall suspend any
person who violates subdivision (a) from bidding on, or participating
as either a contractor, subcontractor, or supplier in, any state
contract or project for a period of not less than three years and not
more than 10 years, and if certified as a disabled veteran business
enterprise, the department shall revoke the business's certification,
and the small business or microbusiness enterprise certification if
the business has both certifications, for a period of not less than
five years. An additional or subsequent violation shall extend the
periods of suspension and revocation for a period of not less than 10
years. The suspension and revocation of certification shall apply to
the principals of the business and any subsequent business formed or
financed by, or affiliated with, one or more of those principals.
(2) A person that violates any of the provisions of subdivision
(a) shall pay all costs incurred by the awarding department and the
Department of General Services for any investigations that led to the
finding of the violation. Costs incurred shall include, but are not
limited to, costs and attorney's fees paid by the department or the
Department of General Services related to hearings and court
appearances.
(3) The Department of General Services shall prohibit any business
or person who fails to satisfy any of the penalties, costs, and
attorney's fees imposed pursuant to subdivisions (b) and (c) from
further contracting with the state until all of the penalties, costs,
and attorney's fees are satisfied.
(d) In addition to the penalties imposed by this section, if a
contractor is found to be in violation of paragraph (6) of
subdivision (a), any existing contract between that contractor and
any awarding department may be terminated at the discretion of the
awarding department, and, where payment to the contractor is made
directly by the state agency, the agency shall set off penalties and
costs due to the state against any payments due to that contractor.
In the event that the contracting state agency has forwarded the
contract and invoices to the Controller for payment, the state agency
shall reduce the amount due to the contractor as reflected in the
claim schedule submitted to the Controller by the amount of the
penalties and costs due the state. In addition, with regard to any
penalties and costs due to the state that the state agency has not
accounted for by either a set off against payments due to the
contractor or a reduction reflected in the claim schedule submitted
to the Controller, to the extent that the Controller is making
payments to the contractor on behalf of any state agency, the
Controller shall set off penalties and costs due against any invoices
due to the contractor from any other contract awarded to the
contractor.
(e) The awarding department shall report all alleged violations of
this section to the Department of General Services. After any review
and investigation it deems necessary, the Department of General
Services shall subsequently report all allegations which have
sufficient grounds to the Attorney General who shall determine
whether to bring a civil action against any person or firm for a
violation of this section. However, the Department of General
Services may pursue administrative action and administrative
penalties irrespective of whether the Attorney General chooses to
bring a civil action.
(f) The Department of General Services shall monitor the status of
all reported violations and shall maintain and make available to all
state departments a central listing of all firms and persons who
have been determined to have committed violations resulting in
suspension.
(g) No awarding department shall enter into any contract with any
person suspended for violating this section during the period of the
person's suspension. No awarding department shall award a contract to
any contractor utilizing the services of any person as a
subcontractor suspended for violating this section during the period
of the person's suspension.
(h) The awarding department shall check the central listing
provided by the Department of General Services to verify that the
person or contractor to whom the contract is being awarded, or any
person being utilized as a subcontractor or supplier by that person
or contractor, is not under suspension for violating this section.