A qualifying individual for a California contractor's license who is not an owner of the contracting business must file what type of bond under B&P Code Section 7071.9?
Correct Answer
B) A $12,500 qualifying individual bond
B&P Code Section 7071.9 requires qualifying individuals who are not owners to file a $12,500 qualifying individual bond. This bond ensures the qualifying individual will not abandon their qualifying responsibilities and protects against violations of the licensing law.
Why This Is the Correct Answer
B&P Code Section 7071.9 specifically requires a non-owner qualifying individual to file a $12,500 qualifying individual bond. This bond protects against the qualifying individual abandoning their duties or participating in license law violations, and it is separate from the standard contractor license bond.
Why the Other Options Are Wrong
Option A: A $100,000 performance bond
A $100,000 performance bond is a project-specific surety instrument used to guarantee contract completion — it has no connection to the qualifying individual bond requirement under Section 7071.9.
Option C: A $25,000 contractor license bond
The $25,000 contractor license bond (required under B&P Code Section 7071.6) is a separate requirement that applies to the licensee entity, not the qualifying individual. The qualifying individual bond under Section 7071.9 has a distinct $12,500 amount.
Option D: A $50,000 disciplinary bond
A $50,000 disciplinary bond is required when a license has been revoked or suspended and the contractor seeks reinstatement — it is not the bond type associated with a non-owner qualifying individual filing under Section 7071.9.
Memory Technique
Remember the bond amounts by role: $25,000 for the license (the business entity), $12,500 for the qualifier (the individual) — the individual's bond is half the business bond. Section 7071.9 = the '9' reminds you of the qualifying individual (the 'ninth' piece of the puzzle).
More law-business Questions
Under B&P Code Section 7071.9, a contractor may deposit cash or securities instead of obtaining a surety bond. If a contractor chooses this option, where must the deposit be maintained and what happens to interest earned?
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According to B&P Code 7159.5, service and repair contracts must include specific provisions. Which statement is correct regarding these contracts?
Which of the following activities is exempt from California contractor licensing requirements under Business and Professions Code Section 7048?
Under Cal/OSHA regulations in Title 8 CCR Section 5192, Safety Data Sheets (SDS) for hazardous chemicals used on construction sites must be readily accessible to employees during which hours?
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