(a) Practices which might result in unlawful activity, including but not limited to rebates, kickbacks, or other unlawful consideration are strictly prohibited. The Department shall require a contract entered into pursuant to this chapter to include a provision in which the firm represents that the contract was not obtained through rebates, kickbacks, or other unlawful considerations either promised or paid to a DWR employee. In addition to any other applicable legal proscriptions, failure to adhere to the representation may be cause for contract termination and recovery of damages under the rights and remedies due the Department under the default provision of the contract.

(b) A DWR employee shall not participate in the selection process if the employee has a relationship, as specified in Section 87100 of the Government Code, with a firm seeking a contract subject to this chapter.

(c) Nothing in this chapter shall be construed to abridge the obligation of the Department or the firm to comply with all laws regarding political contributions, conflicts of interest, or unlawful activities.