When the CSLB orders a disciplinary bond under B&P Code Section 7071.8, what is the maximum amount that may be required?
Correct Answer
C) $100,000
B&P 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 provides additional protection to consumers when dealing with contractors who have violated licensing laws.
Why This Is the Correct Answer
B&P Code Section 7071.8 sets the ceiling for a disciplinary bond at $100,000. This enhanced bond is required in addition to the standard $25,000 license bond when a contractor has been found to have violated licensing laws, providing substantially greater consumer protection during the disciplinary period.
Why the Other Options Are Wrong
Option A: $150,000
$150,000 exceeds the statutory maximum. No provision of Section 7071.8 authorizes a disciplinary bond above $100,000. This distractor tests whether you know the precise cap.
Option B: $50,000
$50,000 is the figure sometimes cited for lesser disciplinary bond scenarios but is not the maximum ceiling established by the statute. The actual maximum of $100,000 is double this figure.
Option D: $75,000
$75,000 is a plausible but fabricated middle-ground figure. The statute does not reference $75,000 for disciplinary bonds at any tier. The two key numbers are the standard bond ($25,000) and the disciplinary bond maximum ($100,000).
Memory Technique
Standard license bond = $25,000. Disciplinary bond maximum = $100,000 = exactly 4× the standard. Think of it as 'four strikes': a contractor in trouble faces four times the normal bond burden.
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