CA SB588

Requires state agencies to withhold $10,000 (or full final payment if less) from contracts entered into on or after January 1, 2021 until prime contractors provide required DVBE certification documentation.

Allows prime contractors 15 to 30 calendar days after notice to cure certification defects; failure to comply results in permanent $10,000 deduction from final payment.

Mandates the Legislative Analyst's Office to submit a comprehensive assessment of the DVBE program to the Legislature by January 1, 2024, including noncompliance reports, program abuse tracking, and payment withholding effectiveness.

Requires awarding departments to track whether DVBE subcontractors were notified of contract awards and whether prime contractors received approval to replace named DVBE subcontractors.

Limits withholding amounts to the specified $10,000 threshold and requires all state entities to assist the Legislative Analyst's Office in completing the program assessment.