According to B&P Code Section 7071.17, when may the CSLB require a contractor to file a disciplinary bond, and what is the maximum amount that can be required?
Correct Answer
B) After specified violations including abandonment or diversion of funds; maximum $100,000
B&P Code Section 7071.17 allows the CSLB to require a disciplinary bond up to $100,000 when a contractor has committed specific violations such as abandonment of projects, diversion of funds, or other serious violations. This bond provides additional consumer protection beyond the standard license bond.
Why This Is the Correct Answer
B&P Code Section 7071.17 grants the CSLB authority to impose a disciplinary bond specifically after a contractor commits enumerated serious violations — including project abandonment, diversion of construction funds, and other egregious consumer harms. The maximum disciplinary bond amount is $100,000, which is substantially higher than the standard license bond and reflects the elevated consumer-protection purpose. This bond must be maintained for a specified period and provides a dedicated financial remedy for harmed consumers beyond what the standard license bond covers.
Why the Other Options Are Wrong
Option A: After any license violation; maximum $50,000
The statute does not apply after any license violation — it is triggered only by specified serious violations. The $50,000 maximum is also incorrect; the actual statutory maximum is $100,000, double this figure.
Option C: After license suspension or revocation; maximum $75,000
A disciplinary bond under Section 7071.17 is not limited to situations where a license has already been suspended or revoked. It can be imposed as a condition of maintaining or reinstating a license after specified violations. The $75,000 figure is also a fabricated amount not found in the statute.
Option D: After three consumer complaints; maximum $25,000
The statute sets no '3 complaint' threshold — it responds to the nature of the violation, not a complaint count. The $25,000 figure is far below the $100,000 statutory maximum and would represent the standard license bond amount, not a disciplinary bond.
Memory Technique
Think 'Double the Danger, Double the Bond': when a contractor commits SERIOUS violations (abandonment, fund diversion), the CSLB can demand DOUBLE protection — up to $100,000.
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