California Code, Government Code - GOV § 14843

(a) The department may make all rules and regulations consistent with the law for the purpose of carrying into effect this chapter. Rules and regulations shall be adopted, amended, or repealed in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1.

(b) The department shall consider appropriate remedial actions to be taken in regards to mandatory reporting agencies that failed in three out of five years to meet their small business or disabled veteran business enterprise goals, including, but not limited to, the removal of the department's delegated contract authority or the placement of additional restrictions on contracting activity. The department shall set forth its actions related to this subdivision within the department's consolidated annual report.