Where the governing body of a county or municipality determines that a business has
been classified as a qualified small business enterprise, qualified veteran business enterprise, qualified minority business enterprise or qualified women's business enterprise on
the basis of false information knowingly supplied by the business and has been awarded
a contract to which it would not otherwise have been entitled under this act, the
governing body shall have the authority to:
a. Assess against the business any difference between the contract and what the governing
body's cost would have been if the contract had not been awarded in accordance with
the provisions of this act;
b. In addition to the amount due under subsection a., assess against the business
a penalty in an amount of not more than 10% of the amount of the contract involved;
c. Order the business ineligible to transact any business with the governing body
or contracting agency of the governing body for a period to be determined by the governing
Prior to any final determination, assessment or order under this section, the governing
body shall afford the business an opportunity for a hearing on the reasons for the
imposition of the penalties set forth in subsection a., b. or c. of this section.
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