California Code, Public Contract Code - PCC § 6984

(a) Beginning 12 months after an entity is awarded a covered public contract, the contractor shall annually submit information that is necessary to demonstrate its compliance with the requirements, as specified in Sections 6983 and 6985, to the relevant public agency.

(b) Before receiving any final payment on a covered public contract, a contractor shall submit a final report to the relevant public agency that demonstrates its compliance with the requirements, as specified in Sections 6983 and 6985, for the duration of the covered public contract.

(c) If a contractor fails to comply with the reporting requirements specified in subdivision (a), for each missed report the relevant public agency shall withhold ten thousand dollars ($10,000) in payment to the contractor, or the full payment to the contractor if the amount due is less than ten thousand dollars ($10,000), until the contractor takes steps to cure the defect, pursuant to subdivision (e).

(d) If a contractor fails to comply with the final reporting requirements specified in subdivision (b), the relevant public agency shall withhold ten thousand dollars ($10,000) from the final payment, or the full final payment, if the amount due is less than ten thousand dollars ($10,000), until the contractor takes steps to cure the defect, pursuant to subdivision (e).

(e) A contractor that fails to comply with the reporting requirements established in subdivision (a) or (b) shall, after notice, be allowed to cure the defect. Notwithstanding any other law, if, after at least 15 calendar days, but not more than 30 calendar days from the date of notice, the contractor refuses to comply with the reporting requirements, the relevant public agency shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if the amount due is less than ten thousand dollars ($10,000).

(f) For covered public contracts awarded pursuant to a master agreement or master contract agreement, the Department of General Services may prescribe additional or alternative mechanisms for enforcing the reporting requirements described in subdivisions (a) and (b).

(g) This section does not limit the availability of standard breach of contract remedies if a contractor fails to comply with the requirements specified in Sections 6983 and 6985, including, but not limited to, termination of the covered contract.