DVBE and Small Business Program Violations and Sanctions
California law permits the State to impose various sanctions on contractors, and in some cases, specific individuals (principals in the business), including prohibiting contractors from doing business with the State for specified periods of time under certain circumstances. Sanctions will result particularly in cases where small business (SB) and/or Disabled Veteran Business Enterprise (DVBE) certification was fraudulently obtained and/or misused in a State bid or contracting situation. They can also result from finding that a firm does not perform a "commercially useful function" or "CUF", as defined. SB and DVBE regulations further support the State's legal authority to enforce sanctions.