10115.10
. (a) It shall be unlawful for a person or firm 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, acceptance
or certification as a minority, women, or disabled veteran business
enterprise, for the purposes 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
acceptance or certification or denial of acceptance or certification
of any entity as a minority, women, or 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 which has
requested acceptance or certification as a minority, women, or
disabled veteran business enterprise.
(4) Knowingly and with intent to defraud, fraudulently obtain,
attempt to obtain, or aid another person or firm in fraudulently
obtaining or attempting to obtain, public moneys to which the person
is not entitled under this article.
(5) Establish, or cooperate in the establishment of, or exercise
control over, a firm found to have violated any of paragraphs (1) to
(4), inclusive. Any person or firm who violates this paragraph is
guilty of a misdemeanor and shall be liable for a civil penalty not
to exceed fifty thousand dollars ($50,000) for the first violation,
and a civil penalty not to exceed two hundred thousand dollars
($200,000) for each additional, or subsequent violation.
(6) This section shall not apply to minority and women business
enterprise programs conducted by public utility companies pursuant to
the California Public Utilities Commission's General Order 156.
(b) Any person who violates paragraphs (1) to (4), inclusive, of
subdivision (a) is guilty of a misdemeanor and shall be liable for a
civil penalty not to exceed five thousand dollars ($5,000) for the
first violation, and a civil penalty not to exceed twenty thousand
dollars ($20,000) for each additional or subsequent violation.
(c) Any person or firm that violates subdivision (a) shall, in
addition to the penalties provided for in subdivision (b), be
suspended 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 30 days nor more than one year. However, for
an additional or subsequent violation the period of suspension shall
be extended for a period of up to three years. Any person or firm
that fails to satisfy the penalties imposed pursuant to subdivisions
(b) and (c) shall be prohibited from further contracting with the
state until the penalties are satisfied.
(d) The awarding department shall report all alleged violations of
this section to the Office of Small and Minority Business. The
office shall subsequently report all alleged violations to the
Attorney General who shall determine whether to bring a civil action
against any person or firm for violation of this section.
(e) The office 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.
(f) No awarding department shall enter into any contract with any
person or firm suspended for violating this section during the period
of the person's or firm's suspension. No awarding department shall
award a contract to any contractor utilizing the services of any
person or firm as a subcontractor suspended for violating this
section during the period of the person's or firm's suspension.
(g) The awarding department shall check the central listing
provided by the office to verify that the person, firm, or contractor
to whom the contract is being awarded, or any person or firm being
utilized as a subcontractor by that person, firm, or contractor, is
not under suspension for violating this section.