Business & LicensingQuestion 8 of 1632

The CSLB may issue a Disciplinary Bond in addition to the regular license bond when:

a.A contractor fails to pay a citation fine on time
b.A contractor voluntarily applies for additional consumer protection bonding
c.A contractor hires an RME to qualify its license
d.A formal disciplinary action is taken against the license

Explanation

The disciplinary bond lives in B&P §7071.8, not §7071.17. After a formal disciplinary action against the license, the Registrar may require it as a condition of reissuance, reinstatement or continued licensure (d). Since SB 607 took effect on January 1, 2023 the amount is at least $25,000, capped at ten times the §7071.6 bond, and it sits on top of the standard $25,000 license bond; $15,000 is the pre-2023 figure. (a) is too narrow: an unpaid citation fine is one road to discipline, not the trigger itself. (b) is wrong because the bond is imposed by the Registrar, never applied for voluntarily. (c) confuses this with the §7071.9 bond of qualifying individual, which turns on how much of the entity the RMO or RME owns.

Law Reference: Bus. & Prof. Code §7071.8

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 →

Practice all 1632 questions free — no signup required.

Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →

Related questions on this topic

Last reviewed: · editorial process

PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)
Report