If, after an award, it is determined by the State Contracting Standards Board that a solicitation or award of a contract by a state contracting agency is in violation of law:
(1) If the person awarded the contract did not act in bad faith:(A) The contract may be ratified and affirmed by the state contracting agency, provided it is determined by the board that doing so is in the best interests of the state; or(B) The contract may be terminated and the person awarded the contract shall be compensated for the actual expenses reasonably incurred under the contract, plus a reasonable profit, prior to the termination.(2) If the person awarded the contract acted in bad faith:(A) The contract may be declared null and void; or(B) The contract may be ratified and affirmed if such action is in the best interests of the state, as determined by the State Contracting Standards Board, in writing, without prejudice to the state's right to such damages as may be appropriate.( Sept. Sp. Sess. P.A. 07-1, S. 40.)