16850. (a) Notwithstanding any other provision of law, each
awarding department shall have annual statewide participation goals
of not less than 15 percent for minority business enterprises and 5
percent for women business enterprises for contracts entered into by
the awarding department during the year for each of the professional
bond services. This section shall not apply if a contract for
professional bond services of an underwriter is to be obtained by
competitive bid. However, each awarding department shall establish
goals for contracts to be obtained by competitive bid for
professional bond services, as defined in Section 16851.
These goals shall apply to the overall dollar amount expended by
the awarding department with respect to the contracts for
professional bond services relating to the issuance of bonds by the
awarding department including amounts spent as underwriter's
discounts.
(b) In attempting to meet the goals set forth in subdivision (a),
the awarding department shall consider establishing cocounsel, joint
venture, and subcontracting relationships including minority business
enterprises and women business enterprises in all contracts for
bonds awarded by the awarding department. However, nothing in this
article shall preclude the awarding department from achieving the
goals set forth in this section without requiring joint ventures,
cocounsel, or subcontracting arrangements.
(c) This section shall not limit the ability of any awarding
department to meet a goal higher than those set forth in subdivision
(a) for participation by minority and women business enterprises in
contracts awarded by the awarding department.
(d) Nothing in this chapter shall be construed to authorize any
awarding department to discriminate in the awarding of any contract
on the basis of race, color, sex, ethnic origin, or ancestry.
16851. As used in this chapter, the following definitions apply:
(a) "Awarding department" means any agency, department,
constitutional officer, governmental entity, or other officer or
entity of the state empowered by law to issue bonds on behalf of the
State of California.
(b) "Bonds" means bonds, notes, warrants, certificates of
participation, and other evidences of indebtedness issued by or on
behalf of the State of California.
(c) "Contract" includes any contract, agreement, or joint
agreement to provide professional bond services to the State of
California or an awarding department.
(d) "Contractor" means any provider of professional bond services
who enters into a contract with an awarding department.
(e) "Foreign corporation," "foreign firm," or "foreign-based
business" means a business entity that is incorporated or has its
principal headquarters located outside the United States.
(f) "Goal" means a numerically expressed objective that awarding
departments and providers of professional bond services are required
to make efforts to achieve.
(g) "Management and control" means effective and demonstrable
management of the business entity.
(h) "Minority" means an ethnic person of color including American
Indians, Asians (including, but not limited to, Chinese, Japanese,
Koreans, Pacific Islanders, Samoans, and Southeast Asians), Blacks,
Filipinos, and Hispanics. A minority must be a citizen of the United
States or a lawfully admitted permanent resident as defined in Title
8 U.S.C. 1101(a)(20).
(i) "Minority business enterprise" means a business concern that
meets all of the following requirements:
(1) A sole proprietorship owned by a minority; a firm or
partnership, at least 51 percent of the voting stock or partnership
interests of which are owned by one or more minorities; a subsidiary
which is wholly owned by a parent corporation but only if at least 51
percent of the voting stock of the parent corporation is owned by
one or more minorities; or a joint venture in which at least 51
percent of the joint venture's management of the joint venture
business and at least 51 percent of the joint venture's earnings are
controlled or retained by the minority participants in the joint
venture.
(2) Management and control of daily business operations by one or
more minorities although not necessarily the same minorities who are
owners of the business.
(3) A sole proprietorship, corporation, joint venture, or
partnership with its home office located in the United States, which
is not a branch or subsidiary of a foreign corporation, foreign firm,
or other foreign-based business.
(j) "Professional bond services" include services as financial
advisers, bond counsel, underwriters in negotiated transactions,
underwriter's counsel, financial printers, feasibility consultants,
and other professional services related to the issuance and sale of
bonds.
(k) A woman owner of a women business enterprise must be a citizen
of the United States or a lawfully admitted permanent resident as
defined in Title 8 U.S.C. 1101(a)(20).
"Women business enterprise" means a business concern that is all
of the following:
(1) A sole proprietorship owned by a woman; a firm or partnership,
at least 51 percent of the voting stock or partnership interests of
which are owned by one or more women; a subsidiary which is wholly
owned by a parent corporation but only if at least 51 percent of the
voting stock of the parent corporation is owned by one or more women;
or a joint venture in which at least 51 percent of the joint venture'
s management of the joint venture business and at least 51 percent of
the joint venture's earnings are controlled or retained by the women
participants in the joint venture.
(2) Management and control of daily business operations by one or
more women although not necessarily the same women who are the owners
of the business.
(3) A sole proprietorship, corporation, joint venture, or
partnership with its home office located in the United States, which
is not a branch or subsidiary of a foreign corporation, foreign firm,
or other foreign-based business.
(l) "Minority business enterprise" and "women business enterprise,"
include an enterprise of which 50 percent is owned and controlled by
one or more minorities and the other 50 percent is owned and
controlled by one or more women, or, in the case of a publicly owned
business, 50 percent of the stock of which is owned and controlled by
one or more minorities and the other 50 percent is owned and
controlled by one or more women. Any business enterprise so defined
may be counted as either a minority business enterprise or a women
business enterprise for purposes of meeting the participation goals,
but no one such business enterprise shall be counted as meeting the
participation goals in both categories.
16852. Notwithstanding Section 16850, if a contract for
professional bond services of an underwriter is to be obtained by
competitive bid, the awarding department shall, at a minimum, take
all of the following actions:
(a) Deliver the notice of sale or other notification of intention
to the issue the bonds to all minority and women business enterprises
that have listed their names with the awarding department for the
purpose of this notice and other qualified minority and women
business enterprises known to the awarding department.
(b) State in all notices of sale and other notifications of
intention to issue bonds that minority and women business enterprises
are encouraged to respond.
(c) Require all submitting bidders to certify their awareness of
the goals of the awarding department in accordance with this chapter.
(d) Nothing in this section shall be construed to authorize any
awarding department to discriminate in the solicitation of bids or in
the awarding of contracts on the basis of race, color, sex, ethnic
origin, or ancestry.
16852.5. (a) Any awarding department taking bids in connection with
the award of any contract shall provide, in the general conditions
under which bids will be received, that any person making a bid or
offer to perform a contract shall, in his or her bid or offer, set
forth the following information:
(1) The name and the location of the place of business of each
subcontractor certified as a minority, women, or disabled veteran
business enterprise who will perform work or labor or render service
to the prime contractor in connection with the performance of the
contract and who will be used by the prime contractor to fulfill
minority, women, and disabled veteran business enterprise
participation goals.
(2) The portion of work that will be done by each subcontractor
under paragraph (1). The prime contractor shall list only one
subcontractor for each portion of work as is defined by the prime
contractor in his or her bid or offer.
(b) The Subletting and Subcontracting Fair Practices Act (Chapter
4 (commencing with Section 4100) of Part 1 of Division 2 of the
Public Contract Code) shall apply to the information required by
subdivision (a) relating to subcontractors certified as minority,
women, and disabled veteran business enterprises.
(c) For purposes of this section, "subcontractor" and "prime
contractor" shall have the same meaning as those terms are defined in
Section 4113 of the Public Contract Code.
16853. (a) The awarding department shall establish a method of
monitoring adherence to the goals specified in Section 16850,
including requiring a followup report from all contractors upon the
completion of any sale of bonds.
(b) The awarding department shall adopt rules and regulations for
the purpose of implementing this section. Emergency regulations
consistent with this section may be adopted.
16854. In implementing this chapter, the awarding department shall
utilize existing resources such as the Office of Small and Minority
Business.
16855. Beginning July 1, 1989, and on January 1, 1990, and on
January 1 of each year thereafter, each awarding department shall
report to the Governor and the Legislature on the level of
participation by minority and women business enterprises in contracts
as identified in this chapter. If the established goals are not met,
the awarding department shall report the reasons for its inability
to achieve the goals and identify steps it shall take in an effort to
achieve the goals.
16856. (a) Notwithstanding anything in this chapter to the
contrary, the validity or enforceability of any bonds to which this
chapter applies shall not be affected in any way by the failure of an
awarding department to meet the goals established under this
chapter.
(b) No action may be maintained to enjoin the issuance of any
bonds to which this chapter applies or the enforcement of any
contract for professional bond services based on an awarding
department's failure to meet the goals set forth in Section 16850.
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 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 chapter.
(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 in fraudulently obtaining or
attempting to obtain, public moneys to which the person or firm is
not entitled under this chapter.
(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 or
subcontractor in, any contract awarded by the state 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.
16850. (a) Notwithstanding any other provision of law, each
awarding department shall have annual statewide participation goals
of not less than 15 percent for minority business enterprises and 5
percent for women business enterprises for contracts entered into by
the awarding department during the year for each of the professional
bond services. This section shall not apply if a contract for
professional bond services of an underwriter is to be obtained by
competitive bid. However, each awarding department shall establish
goals for contracts to be obtained by competitive bid for
professional bond services, as defined in Section 16851.
These goals shall apply to the overall dollar amount expended by
the awarding department with respect to the contracts for
professional bond services relating to the issuance of bonds by the
awarding department including amounts spent as underwriter's
discounts.
(b) In attempting to meet the goals set forth in subdivision (a),
the awarding department shall consider establishing cocounsel, joint
venture, and subcontracting relationships including minority business
enterprises and women business enterprises in all contracts for
bonds awarded by the awarding department. However, nothing in this
article shall preclude the awarding department from achieving the
goals set forth in this section without requiring joint ventures,
cocounsel, or subcontracting arrangements.
(c) This section shall not limit the ability of any awarding
department to meet a goal higher than those set forth in subdivision
(a) for participation by minority and women business enterprises in
contracts awarded by the awarding department.
(d) Nothing in this chapter shall be construed to authorize any
awarding department to discriminate in the awarding of any contract
on the basis of race, color, sex, ethnic origin, or ancestry.
16851. As used in this chapter, the following definitions apply:
(a) "Awarding department" means any agency, department,
constitutional officer, governmental entity, or other officer or
entity of the state empowered by law to issue bonds on behalf of the
State of California.
(b) "Bonds" means bonds, notes, warrants, certificates of
participation, and other evidences of indebtedness issued by or on
behalf of the State of California.
(c) "Contract" includes any contract, agreement, or joint
agreement to provide professional bond services to the State of
California or an awarding department.
(d) "Contractor" means any provider of professional bond services
who enters into a contract with an awarding department.
(e) "Foreign corporation," "foreign firm," or "foreign-based
business" means a business entity that is incorporated or has its
principal headquarters located outside the United States.
(f) "Goal" means a numerically expressed objective that awarding
departments and providers of professional bond services are required
to make efforts to achieve.
(g) "Management and control" means effective and demonstrable
management of the business entity.
(h) "Minority" means an ethnic person of color including American
Indians, Asians (including, but not limited to, Chinese, Japanese,
Koreans, Pacific Islanders, Samoans, and Southeast Asians), Blacks,
Filipinos, and Hispanics. A minority must be a citizen of the United
States or a lawfully admitted permanent resident as defined in Title
8 U.S.C. 1101(a)(20).
(i) "Minority business enterprise" means a business concern that
meets all of the following requirements:
(1) A sole proprietorship owned by a minority; a firm or
partnership, at least 51 percent of the voting stock or partnership
interests of which are owned by one or more minorities; a subsidiary
which is wholly owned by a parent corporation but only if at least 51
percent of the voting stock of the parent corporation is owned by
one or more minorities; or a joint venture in which at least 51
percent of the joint venture's management of the joint venture
business and at least 51 percent of the joint venture's earnings are
controlled or retained by the minority participants in the joint
venture.
(2) Management and control of daily business operations by one or
more minorities although not necessarily the same minorities who are
owners of the business.
(3) A sole proprietorship, corporation, joint venture, or
partnership with its home office located in the United States, which
is not a branch or subsidiary of a foreign corporation, foreign firm,
or other foreign-based business.
(j) "Professional bond services" include services as financial
advisers, bond counsel, underwriters in negotiated transactions,
underwriter's counsel, financial printers, feasibility consultants,
and other professional services related to the issuance and sale of
bonds.
(k) A woman owner of a women business enterprise must be a citizen
of the United States or a lawfully admitted permanent resident as
defined in Title 8 U.S.C. 1101(a)(20).
"Women business enterprise" means a business concern that is all
of the following:
(1) A sole proprietorship owned by a woman; a firm or partnership,
at least 51 percent of the voting stock or partnership interests of
which are owned by one or more women; a subsidiary which is wholly
owned by a parent corporation but only if at least 51 percent of the
voting stock of the parent corporation is owned by one or more women;
or a joint venture in which at least 51 percent of the joint venture'
s management of the joint venture business and at least 51 percent of
the joint venture's earnings are controlled or retained by the women
participants in the joint venture.
(2) Management and control of daily business operations by one or
more women although not necessarily the same women who are the owners
of the business.
(3) A sole proprietorship, corporation, joint venture, or
partnership with its home office located in the United States, which
is not a branch or subsidiary of a foreign corporation, foreign firm,
or other foreign-based business.
(l) "Minority business enterprise" and "women business enterprise,"
include an enterprise of which 50 percent is owned and controlled by
one or more minorities and the other 50 percent is owned and
controlled by one or more women, or, in the case of a publicly owned
business, 50 percent of the stock of which is owned and controlled by
one or more minorities and the other 50 percent is owned and
controlled by one or more women. Any business enterprise so defined
may be counted as either a minority business enterprise or a women
business enterprise for purposes of meeting the participation goals,
but no one such business enterprise shall be counted as meeting the
participation goals in both categories.
16852. Notwithstanding Section 16850, if a contract for
professional bond services of an underwriter is to be obtained by
competitive bid, the awarding department shall, at a minimum, take
all of the following actions:
(a) Deliver the notice of sale or other notification of intention
to the issue the bonds to all minority and women business enterprises
that have listed their names with the awarding department for the
purpose of this notice and other qualified minority and women
business enterprises known to the awarding department.
(b) State in all notices of sale and other notifications of
intention to issue bonds that minority and women business enterprises
are encouraged to respond.
(c) Require all submitting bidders to certify their awareness of
the goals of the awarding department in accordance with this chapter.
(d) Nothing in this section shall be construed to authorize any
awarding department to discriminate in the solicitation of bids or in
the awarding of contracts on the basis of race, color, sex, ethnic
origin, or ancestry.
16852.5. (a) Any awarding department taking bids in connection with
the award of any contract shall provide, in the general conditions
under which bids will be received, that any person making a bid or
offer to perform a contract shall, in his or her bid or offer, set
forth the following information:
(1) The name and the location of the place of business of each
subcontractor certified as a minority, women, or disabled veteran
business enterprise who will perform work or labor or render service
to the prime contractor in connection with the performance of the
contract and who will be used by the prime contractor to fulfill
minority, women, and disabled veteran business enterprise
participation goals.
(2) The portion of work that will be done by each subcontractor
under paragraph (1). The prime contractor shall list only one
subcontractor for each portion of work as is defined by the prime
contractor in his or her bid or offer.
(b) The Subletting and Subcontracting Fair Practices Act (Chapter
4 (commencing with Section 4100) of Part 1 of Division 2 of the
Public Contract Code) shall apply to the information required by
subdivision (a) relating to subcontractors certified as minority,
women, and disabled veteran business enterprises.
(c) For purposes of this section, "subcontractor" and "prime
contractor" shall have the same meaning as those terms are defined in
Section 4113 of the Public Contract Code.
16853. (a) The awarding department shall establish a method of
monitoring adherence to the goals specified in Section 16850,
including requiring a followup report from all contractors upon the
completion of any sale of bonds.
(b) The awarding department shall adopt rules and regulations for
the purpose of implementing this section. Emergency regulations
consistent with this section may be adopted.
16854. In implementing this chapter, the awarding department shall
utilize existing resources such as the Office of Small and Minority
Business.
16855. Beginning July 1, 1989, and on January 1, 1990, and on
January 1 of each year thereafter, each awarding department shall
report to the Governor and the Legislature on the level of
participation by minority and women business enterprises in contracts
as identified in this chapter. If the established goals are not met,
the awarding department shall report the reasons for its inability
to achieve the goals and identify steps it shall take in an effort to
achieve the goals.
16856. (a) Notwithstanding anything in this chapter to the
contrary, the validity or enforceability of any bonds to which this
chapter applies shall not be affected in any way by the failure of an
awarding department to meet the goals established under this
chapter.
(b) No action may be maintained to enjoin the issuance of any
bonds to which this chapter applies or the enforcement of any
contract for professional bond services based on an awarding
department's failure to meet the goals set forth in Section 16850.
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 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 chapter.
(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 in fraudulently obtaining or
attempting to obtain, public moneys to which the person or firm is
not entitled under this chapter.
(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 or
subcontractor in, any contract awarded by the state 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.
16850. (a) Notwithstanding any other provision of law, each
awarding department shall have annual statewide participation goals
of not less than 15 percent for minority business enterprises and 5
percent for women business enterprises for contracts entered into by
the awarding department during the year for each of the professional
bond services. This section shall not apply if a contract for
professional bond services of an underwriter is to be obtained by
competitive bid. However, each awarding department shall establish
goals for contracts to be obtained by competitive bid for
professional bond services, as defined in Section 16851.
These goals shall apply to the overall dollar amount expended by
the awarding department with respect to the contracts for
professional bond services relating to the issuance of bonds by the
awarding department including amounts spent as underwriter's
discounts.
(b) In attempting to meet the goals set forth in subdivision (a),
the awarding department shall consider establishing cocounsel, joint
venture, and subcontracting relationships including minority business
enterprises and women business enterprises in all contracts for
bonds awarded by the awarding department. However, nothing in this
article shall preclude the awarding department from achieving the
goals set forth in this section without requiring joint ventures,
cocounsel, or subcontracting arrangements.
(c) This section shall not limit the ability of any awarding
department to meet a goal higher than those set forth in subdivision
(a) for participation by minority and women business enterprises in
contracts awarded by the awarding department.
(d) Nothing in this chapter shall be construed to authorize any
awarding department to discriminate in the awarding of any contract
on the basis of race, color, sex, ethnic origin, or ancestry.
16851. As used in this chapter, the following definitions apply:
(a) "Awarding department" means any agency, department,
constitutional officer, governmental entity, or other officer or
entity of the state empowered by law to issue bonds on behalf of the
State of California.
(b) "Bonds" means bonds, notes, warrants, certificates of
participation, and other evidences of indebtedness issued by or on
behalf of the State of California.
(c) "Contract" includes any contract, agreement, or joint
agreement to provide professional bond services to the State of
California or an awarding department.
(d) "Contractor" means any provider of professional bond services
who enters into a contract with an awarding department.
(e) "Foreign corporation," "foreign firm," or "foreign-based
business" means a business entity that is incorporated or has its
principal headquarters located outside the United States.
(f) "Goal" means a numerically expressed objective that awarding
departments and providers of professional bond services are required
to make efforts to achieve.
(g) "Management and control" means effective and demonstrable
management of the business entity.
(h) "Minority" means an ethnic person of color including American
Indians, Asians (including, but not limited to, Chinese, Japanese,
Koreans, Pacific Islanders, Samoans, and Southeast Asians), Blacks,
Filipinos, and Hispanics. A minority must be a citizen of the United
States or a lawfully admitted permanent resident as defined in Title
8 U.S.C. 1101(a)(20).
(i) "Minority business enterprise" means a business concern that
meets all of the following requirements:
(1) A sole proprietorship owned by a minority; a firm or
partnership, at least 51 percent of the voting stock or partnership
interests of which are owned by one or more minorities; a subsidiary
which is wholly owned by a parent corporation but only if at least 51
percent of the voting stock of the parent corporation is owned by
one or more minorities; or a joint venture in which at least 51
percent of the joint venture's management of the joint venture
business and at least 51 percent of the joint venture's earnings are
controlled or retained by the minority participants in the joint
venture.
(2) Management and control of daily business operations by one or
more minorities although not necessarily the same minorities who are
owners of the business.
(3) A sole proprietorship, corporation, joint venture, or
partnership with its home office located in the United States, which
is not a branch or subsidiary of a foreign corporation, foreign firm,
or other foreign-based business.
(j) "Professional bond services" include services as financial
advisers, bond counsel, underwriters in negotiated transactions,
underwriter's counsel, financial printers, feasibility consultants,
and other professional services related to the issuance and sale of
bonds.
(k) A woman owner of a women business enterprise must be a citizen
of the United States or a lawfully admitted permanent resident as
defined in Title 8 U.S.C. 1101(a)(20).
"Women business enterprise" means a business concern that is all
of the following:
(1) A sole proprietorship owned by a woman; a firm or partnership,
at least 51 percent of the voting stock or partnership interests of
which are owned by one or more women; a subsidiary which is wholly
owned by a parent corporation but only if at least 51 percent of the
voting stock of the parent corporation is owned by one or more women;
or a joint venture in which at least 51 percent of the joint venture'
s management of the joint venture business and at least 51 percent of
the joint venture's earnings are controlled or retained by the women
participants in the joint venture.
(2) Management and control of daily business operations by one or
more women although not necessarily the same women who are the owners
of the business.
(3) A sole proprietorship, corporation, joint venture, or
partnership with its home office located in the United States, which
is not a branch or subsidiary of a foreign corporation, foreign firm,
or other foreign-based business.
(l) "Minority business enterprise" and "women business enterprise,"
include an enterprise of which 50 percent is owned and controlled by
one or more minorities and the other 50 percent is owned and
controlled by one or more women, or, in the case of a publicly owned
business, 50 percent of the stock of which is owned and controlled by
one or more minorities and the other 50 percent is owned and
controlled by one or more women. Any business enterprise so defined
may be counted as either a minority business enterprise or a women
business enterprise for purposes of meeting the participation goals,
but no one such business enterprise shall be counted as meeting the
participation goals in both categories.
16852. Notwithstanding Section 16850, if a contract for
professional bond services of an underwriter is to be obtained by
competitive bid, the awarding department shall, at a minimum, take
all of the following actions:
(a) Deliver the notice of sale or other notification of intention
to the issue the bonds to all minority and women business enterprises
that have listed their names with the awarding department for the
purpose of this notice and other qualified minority and women
business enterprises known to the awarding department.
(b) State in all notices of sale and other notifications of
intention to issue bonds that minority and women business enterprises
are encouraged to respond.
(c) Require all submitting bidders to certify their awareness of
the goals of the awarding department in accordance with this chapter.
(d) Nothing in this section shall be construed to authorize any
awarding department to discriminate in the solicitation of bids or in
the awarding of contracts on the basis of race, color, sex, ethnic
origin, or ancestry.
16852.5. (a) Any awarding department taking bids in connection with
the award of any contract shall provide, in the general conditions
under which bids will be received, that any person making a bid or
offer to perform a contract shall, in his or her bid or offer, set
forth the following information:
(1) The name and the location of the place of business of each
subcontractor certified as a minority, women, or disabled veteran
business enterprise who will perform work or labor or render service
to the prime contractor in connection with the performance of the
contract and who will be used by the prime contractor to fulfill
minority, women, and disabled veteran business enterprise
participation goals.
(2) The portion of work that will be done by each subcontractor
under paragraph (1). The prime contractor shall list only one
subcontractor for each portion of work as is defined by the prime
contractor in his or her bid or offer.
(b) The Subletting and Subcontracting Fair Practices Act (Chapter
4 (commencing with Section 4100) of Part 1 of Division 2 of the
Public Contract Code) shall apply to the information required by
subdivision (a) relating to subcontractors certified as minority,
women, and disabled veteran business enterprises.
(c) For purposes of this section, "subcontractor" and "prime
contractor" shall have the same meaning as those terms are defined in
Section 4113 of the Public Contract Code.
16853. (a) The awarding department shall establish a method of
monitoring adherence to the goals specified in Section 16850,
including requiring a followup report from all contractors upon the
completion of any sale of bonds.
(b) The awarding department shall adopt rules and regulations for
the purpose of implementing this section. Emergency regulations
consistent with this section may be adopted.
16854. In implementing this chapter, the awarding department shall
utilize existing resources such as the Office of Small and Minority
Business.
16855. Beginning July 1, 1989, and on January 1, 1990, and on
January 1 of each year thereafter, each awarding department shall
report to the Governor and the Legislature on the level of
participation by minority and women business enterprises in contracts
as identified in this chapter. If the established goals are not met,
the awarding department shall report the reasons for its inability
to achieve the goals and identify steps it shall take in an effort to
achieve the goals.
16856. (a) Notwithstanding anything in this chapter to the
contrary, the validity or enforceability of any bonds to which this
chapter applies shall not be affected in any way by the failure of an
awarding department to meet the goals established under this
chapter.
(b) No action may be maintained to enjoin the issuance of any
bonds to which this chapter applies or the enforcement of any
contract for professional bond services based on an awarding
department's failure to meet the goals set forth in Section 16850.
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 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 chapter.
(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 in fraudulently obtaining or
attempting to obtain, public moneys to which the person or firm is
not entitled under this chapter.
(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 or
subcontractor in, any contract awarded by the state 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.
