Government Code section 4535.1

A business that requests and is given the preference provided for in Section 4533, 4533.1, 4534, or 4534.1 by reason of having furnished a false certification, and which by reason of that certification has been awarded a contract to which it would not otherwise have been entitled, shall be subject to all of the following:

(a)

Pay to the state any difference between the contract amount and what the state’s cost would have been if the contract had been properly awarded.

(b)

In addition to the amount specified in subdivision (a), be assessed a penalty in an amount of not more than 10 percent of the amount of the contract involved.

(c)

Be ineligible to directly or indirectly transact any business with the state for a period of not less than six months and not more than 36 months.
Prior to the imposition of any sanction under this chapter, the contractor or vendor shall be entitled to a public hearing and to five days’ notice of the time and place thereof. The notice shall state the reasons for the hearing.

Source: Section 4535.1, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=GOV§ionNum=4535.­1.­ (updated Jan. 1, 2005; accessed Aug. 3, 2026).

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Verified:
Aug. 3, 2026

§ 4535.1's source at ca​.gov