What happens to payments withheld due to delinquency under the San Francisco Business and Tax Regulations Code?

Payments withheld due to delinquency under the San Francisco Business and Tax Regulations Code are required to be made upon compliance with the relevant obligations. This means that if a contractor addresses the issues that led to the delinquency—such as rectifying any non-compliance with tax obligations or other contractual requirements—those payments that were previously withheld will then be released.

This approach encourages compliance and accountability among contractors while ensuring that pending payments are not permanently lost but instead tied to fulfilling specific criteria. This mechanism incentivizes contractors to resolve any issues and meet their obligations, thereby reinstating their standing for future payments.

The incorrect options highlight different interpretations of how withheld payments could potentially be handled, but they do not align with the regulatory framework that connects the release of withheld payments directly to compliance with obligations.