Instead of filing a contractor's license bond, a licensee may deposit cash or equivalent securities with the State Treasurer under Bus. & Prof. Code §7071.12. To replace the $25,000 license bond entirely with cash, the licensee must deposit:
Explanation
B&P §7071.12 lets a licensee deposit cash, a cashier's check or specified securities in the full amount of the bond it replaces, and the deposit goes to the State Treasurer, where it answers claims on the same terms as a surety bond and is distributed pro rata under §7071.11(a) if it is not enough. There is no leverage ratio, so a $5,000 deposit secures nothing. There is no partial substitution either: cash and surety cannot be mixed to reach the figure. And a private bank escrow, however well insured, is not a deposit with the Treasurer.
Law Reference: Bus. & Prof. Code §7071.12; §7071.11(a)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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