A qualifying individual for a California contractor license who is not an owner, partner, or corporate officer must file what type of bond under B&P Code Section 7071.9?
Correct Answer
D) A $12,500 qualifying individual bond
B&P Code Section 7071.9 requires qualifying individuals who are not owners, partners, or corporate officers to file a $12,500 qualifying individual bond. This bond ensures the qualifying individual's responsible supervision and compliance with contractor licensing laws.
Why This Is the Correct Answer
California B&P Code Section 7071.9 specifically requires a qualifying individual (RMO or RME) who is not an owner, partner, or corporate officer to file a $12,500 qualifying individual bond. This bond is separate from the contractor license bond and ensures the qualifying individual takes personal financial responsibility for their role in supervising and managing licensed construction operations. The $12,500 amount is a statutory figure that contractors and qualifying individuals must know precisely.
Why the Other Options Are Wrong
Option A: A $10,000 performance bond
A $10,000 performance bond is not the bond required under B&P Code Section 7071.9. Performance bonds guarantee project completion and are project-specific instruments, not a licensing requirement for qualifying individuals. The $10,000 figure does not match any relevant California licensing bond requirement.
Option B: A $25,000 contractor license bond
The $25,000 contractor license bond applies to the contractor license itself (under B&P Code Section 7071.6), not to the qualifying individual's separate obligation. Confusing these two distinct bond requirements is a common exam mistake. The license bond and the qualifying individual bond are separate filings.
Option C: A $50,000 disciplinary bond
A $50,000 disciplinary bond is required when a license has been disciplined or revoked — it is a penalty-related bond, not a standard qualifying individual requirement. This higher bond amount applies to contractors with prior violations, not to all qualifying individuals who are non-owners.
Memory Technique
Qualifying Individual bond = $12,500. Remember: half of the $25,000 license bond. QI = half. License = full. Disciplinary = double ($50,000).
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