Business & LicensingQuestion 427 of 1632

After a disciplinary order, the Registrar may require a contractor to file a disciplinary bond. Under B&P §7071.8, that bond is:

a.$15,000, the flat figure that applied before January 1, 2023
b.Half the license bond, a flat $12,500 in every case
c.The amount of the unsatisfied judgment that prompted the discipline
d.At least $25,000, with the amount set case by case

Explanation

B&P §7071.8, as amended by SB 607, requires a disciplinary bond of not less than $25,000 and not more than ten times the §7071.6 license bond, so the statute sets a floor the Registrar fills in case by case (d), not one fixed sum. (a) $15,000 is the pre-2023 figure and is the most common stale answer. (b) invents a 'half the license bond' rule that appears nowhere in the section; $12,500 is simply the old bond of qualifying individual amount. (c) describes a different bond entirely: §7071.17 covers an outstanding, unsatisfied final judgment and is written in the amount of that judgment.

Law Reference: Bus. & Prof. Code §7071.8

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