Prohibition on Tax Delinquents Bidding - 605

Pursuant to the Public Contract Code, Section 10295.4, effective July 1, 2012, persons, or companies identified as the largest tax delinquents by the Franchise Tax Board (FTB) or the California Department of Tax and Fee Administration (CDTFA) are ineligible to enter into any contract with the state for non-IT goods and IT goods or services. Any contract entered into in violation of Section 10295.4 is void and unenforceable.

Prior to executing any state contract or renewal for non-IT goods and IT goods or services, the contracting department must verify that the contractor is not on a prohibited list by checking both the FTB and CDTFA websites. This requirement applies regardless of the procurement approach, method, or solicitation format used, including, but not limited to: Request for Proposals, Invitation for Bids, and non-competitive awards. Departments that elect to develop their own processes or documents to suit their business needs should work with their legal counsel to ensure compliance with code.

There are no exceptions to these prohibitions.