# WAC 326-02-040: WAC 326-02-040. Prohibited activities with regard to chapter 39.19 RCW

> Washington · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_040

## Section

- **Citation:** WAC 326-02-040
- **Heading:** WAC 326-02-040. Prohibited activities with regard to chapter 39.19 RCW
- **Jurisdiction:** Washington
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Washington Administrative Code / Title 326 / Chapter 326-02 / Section 326-02-040

## Text

(1) RCW 39.19.080 makes it unlawful for a person, firm, corporation, business, union, or other organization to:
(a) Prevent or interfere with a contractor's or subcontractor's compliance with this chapter, or any rule adopted under this chapter;
(b) Submit false or fraudulent information to the state concerning compliance with this chapter or any such rule;
(c) Fraudulently obtain, retain, attempt to obtain or retain, or aid another in fraudulently obtaining or retaining or attempting to obtain or retain certification as a minority, women, or socially and economically disadvantaged individual's business enterprise for the purpose of this chapter;
(d) Knowingly make a false statement, whether by affidavit, verified statement, report, or other representation, to a state official or employee for the purpose of influencing the certification or denial of certification of any entity as a minority, women, or socially and economically disadvantaged individual's business enterprise;
(e) Knowingly obstruct, impede, or attempt to obstruct or impede any state official or employee who is investigating the qualification of a business entity that has requested certification as a minority, women, or socially and economically disadvantaged individual's business enterprise;
(f) Fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain public moneys to which the person is not entitled under this chapter;
(g) Knowingly make false statements that any entity is or is not certified as a minority, women, or socially and economically disadvantaged individual's business enterprise for purposes of obtaining a contract governed by this chapter;
in, attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain public moneys to which the person is not entitled under this chapter;
(g) Knowingly make false statements that any entity is or is not certified as a minority, women, or socially and economically disadvantaged individual's business enterprise for purposes of obtaining a contract governed by this chapter;
(h) To fail or refuse to comply with any provision of chapter 39.19 RCW or with a contract requirement established under this chapter.
(2) A certified business engages in prohibited activity when it fails to perform a commercially useful function on any public-sector contract or procurement. Failure to perform a commercially useful function occurs when a business:
(a) Functions as a conduit; or
(b) Functions as a pass-through; except brokers and firms operating in industries where such activity is common industry practice, e.g., insurance or real estate.
(3) A business that is deemed to be a switch business is also deemed to have engaged in prohibited activity.

## Nearby sections

- [WAC 326-02-010 WAC 326-02-010. Purpose](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_010.md)
- [WAC 326-02-020 WAC 326-02-020. Applicability](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_020.md)
- [WAC 326-02-030 WAC 326-02-030. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_030.md)
- [WAC 326-02-031 WAC 326-02-031. Office of minority and women's business enterprises account—Created—Purpose](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_031.md)
- [WAC 326-02-033 WAC 326-02-033. State agency and educational institution fees](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_033.md)
- [WAC 326-02-034 WAC 326-02-034. Political subdivision fees](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_034.md)
- [WAC 326-02-040 WAC 326-02-040. Prohibited activities with regard to chapter 39.19 RCW](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_040.md)
- [WAC 326-02-050 WAC 326-02-050. Penalties which may be imposed](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_050.md)
- [WAC 326-02-060 WAC 326-02-060. Factors considered in determining penalties](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_060.md)
- [WAC 326-02-070 WAC 326-02-070. Suspension of contract](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_070.md)
- [WAC 326-02-080 WAC 326-02-080. Suspension of certification](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_080.md)
- [WAC 326-02-090 WAC 326-02-090. Procedures for suspension, hearing provided](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_090.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_326_02_040. Check the current official text before relying on it. Not legal advice.