Identification of small or certified business enterprises in bids or proposals; false statements on certification; penalties

(a)(1) Except as otherwise provided by law, a beneficiary, certified business enterprise, certified joint venture, or an individual may not: (A) Identify a small or certified business enterprise in a bid or proposal unless it: (i) Has obtained authorization from the small or certified business enterprise to identify the small or certified business enterprise in its bid or proposal; (ii) Has notified the small or certified business enterprise before execution of the contract of its inclusion in the bid or proposal; and (iii) Uses the small or certified business enterprise in the performance of the contract; or (B) Pay the small or certified business enterprise solely for the use of its name in the bid or proposal. (2) A violation of any provision of this subsection is a felony and is subject to a fine not to exceed $15,000, imprisonment not to exceed 5 years, or both. (b)(1) A beneficiary, certified business enterprise, certified joint venture, or an individual shall not make false statements about whether a business is certified by the Department as a certified business enterprise or a certified joint venture. (2) A violation of this subsection is a misdemeanor and is subject to a fine not to exceed $5,000, imprisonment not to exceed one year, or both.