What is the minimum amount required for a California contractor's license bond under Business and Professions Code Section 7071.6?
Correct Answer
D) $25,000
Business and Professions Code Section 7071.6 requires contractors to maintain a $25,000 contractor's license bond. This bond protects consumers and must be maintained throughout the license period. The bond amount was increased from $15,000 to $25,000 effective January 1, 2019.
Why This Is the Correct Answer
Business and Professions Code Section 7071.6 requires a contractor's license bond of $25,000. This amount was updated effective January 1, 2019 (raised from $15,000). The bond protects consumers from contractor misconduct, fraud, or failure to complete work, and must remain in force throughout the license period.
Why the Other Options Are Wrong
Option A: $15,000
$15,000 was the prior bond amount before the 2019 update. It is a very common wrong answer because many older study materials still reference this figure. As of 2019, $15,000 is no longer the correct minimum.
Option B: $20,000
$20,000 does not correspond to any recognized bond threshold under BPC Section 7071.6. It is a midpoint distractor between $15,000 and $25,000 designed to catch candidates who are guessing.
Option C: $50,000
$50,000 is too high for the standard contractor's license bond. Some specialty bonds (such as the disciplinary bond under Section 7071.17) or public works bonds can be higher, but the base license bond under Section 7071.6 is $25,000.
Memory Technique
Think '$25K = a quarter of $100K.' The contractor's license bond is a quarter — $25,000. Or: '2019 was the year it changed to $25K, and 25 is the number of cents in a quarter — remember the quarter, remember 2019.'
More law-business Questions
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