When a California B-General Building contractor is subject to disciplinary action, the CSLB may require an additional disciplinary bond. What is the maximum amount of this disciplinary bond under B&P Code Section 7071.8?
Correct Answer
A) $100,000
Business and Professions Code Section 7071.8 allows the CSLB to require a disciplinary bond up to $100,000 when a contractor's license is subject to disciplinary action. This bond is in addition to the standard contractor license bond and is based on the severity of violations and potential consumer harm. The amount is determined case-by-case up to the statutory maximum.
Why This Is the Correct Answer
B&P Code Section 7071.8 authorizes the CSLB to require a disciplinary bond of up to $100,000 when a contractor's license is subject to disciplinary proceedings. This bond is separate from and in addition to the standard $25,000 contractor license bond. The amount is set on a case-by-case basis up to the statutory ceiling of $100,000.
Why the Other Options Are Wrong
Option B: $50,000
$50,000 is incorrect. While this is double the standard license bond amount, the disciplinary bond maximum under Section 7071.8 is $100,000 — twice this figure. Confusing the standard bond with the disciplinary bond maximum is a common error.
Option C: $150,000
$150,000 is incorrect. This figure exceeds the statutory maximum. No provision in B&P Code Section 7071.8 sets the ceiling at $150,000. This distractor tests whether candidates know the exact statutory cap.
Option D: $75,000
$75,000 is incorrect. This figure is between the standard bond amount and the actual $100,000 maximum, making it a plausible but wrong distractor. The statute does not use $75,000 as any benchmark.
Memory Technique
Disciplinary bond = $100,000 maximum — think of it as the 'six-figure penalty bond.' When the CSLB is disciplining you, they can demand up to $100K in additional bonding. Standard license bond is $25K; disciplinary bond is four times that at max.
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