Business FinancesQuestion 664 of 1605
Effective January 1, 2023, the California Contractor License Bond was increased to:
a.$25,000 (up from $15,000) under SB 607, with proportional increases to the Bond of Qualifying Individual and the LLC Employee/Worker Bond
b.$50,000 for all general building contractors only
c.$15,000
d.$12,500
Explanation
Under Bus. & Prof. Code §7071.6, as amended by SB 607 (Roth, 2021), the contractor license bond amount increased from $15,000 to $25,000 effective January 1, 2023. The Bond of Qualifying Individual under §7071.9 was correspondingly raised to $25,000, and the LLC Employee/Worker Bond under §7071.6.5 was raised to $100,000. There is no class-specific $50,000 figure. The $12,500 and $15,000 amounts are the pre-2023 levels. The exam tests the CURRENT $25,000 figure, and a contractor cannot maintain active license status without the higher bond on file with CSLB.
Law Reference: Bus. & Prof. Code §7071.6Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)