California Government Code Section 16857

(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 fraudulentlyobtaining or retaining or attempting to obtain or retain, acceptanceor certification as a minority, women, or disabled veteran businessenterprise, for the purposes of this chapter. (2) Willfully and knowingly make a false statement with the intentto defraud, whether by affidavit, report, or other representation,to a state official or employee for the purpose of influencing theacceptance or certification or denial of acceptance or certificationof any entity as a minority, women, or disabled veteran businessenterprise. (3) Willfully and knowingly obstruct, impede, or attempt toobstruct or impede, any state official or employee who isinvestigating the qualifications of a business entity which hasrequested acceptance or certification as a minority, women, ordisabled veteran business enterprise. (4) Knowingly and with intent to defraud, fraudulently obtain,attempt to obtain, or aid another person in fraudulently obtaining orattempting to obtain, public moneys to which the person or firm isnot entitled under this chapter. (5) Establish, or cooperate in the establishment of, or exercisecontrol over, a firm found to have violated any of paragraphs (1) to(4), inclusive. Any person or firm who violates this paragraph isguilty of a misdemeanor and shall be liable for a civil penalty notto 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 businessenterprise programs conducted by public utility companies pursuant tothe California Public Utilities Commission's General Order 156. (b) Any person who violates paragraphs (1) to (4), inclusive, ofsubdivision (a) is guilty of a misdemeanor and shall be liable for acivil penalty not to exceed five thousand dollars ($5,000) for thefirst violation, and a civil penalty not to exceed twenty thousanddollars ($20,000) for each additional or subsequent violation. (c) Any person or firm that violates subdivision (a) shall, inaddition to the penalties provided for in subdivision (b), besuspended from bidding on, or participating as either a contractor orsubcontractor in, any contract awarded by the state for a period ofnot less than 30 days nor more than one year. However, for anadditional or subsequent violation, the period of suspension shall beextended for a period of up to three years. Any person or firm thatfails to satisfy the penalties imposed pursuant to subdivisions (b)and (c) shall be prohibited from further contracting with the stateuntil the penalties are satisfied. (d) The awarding department shall report all alleged violations ofthis section to the Office of Small and Minority Business. Theoffice shall subsequently report all alleged violations to theAttorney General who shall determine whether to bring a civil actionagainst any person or firm for violation of this section. (e) The office shall monitor the status of all reported violationsand shall maintain and make available to all state departments acentral listing of all firms and persons who have been determined tohave committed violations resulting in suspension. (f) No awarding department shall enter into any contract with anyperson or firm suspended for violating this section during the periodof the person's or firm's suspension. No awarding department shallaward a contract to any contractor utilizing the services of anyperson or firm as a subcontractor suspended for violating thissection during the period of the person's or firm's suspension. (g) The awarding department shall check the central listingprovided by the office to verify that the person, firm, or contractorto whom the contract is being awarded, or any person, or firm, beingutilized as a subcontractor by that person, firm, or contractor, isnot under suspension for violating this section.