Business & LicensingQuestion 1465 of 1632

Summarizing the bonding scheme: an active licensee must carry the $25,000 license bond, and may additionally need which bonds depending on circumstances?

a.A $100,000 LLC employee bond, required of every active licensee
b.A $25,000 qualifier bond, plus a disciplinary bond after discipline
c.A $12,500 qualifier bond, the figure in use before 2023
d.A $15,000 disciplinary bond that replaces the standard license bond

Explanation

Under B&P Code sections 7071.6, 7071.9 and 7071.8 the baseline is the $25,000 license bond. On top of it, a $25,000 bond of qualifying individual applies when the RMO or RME owns less than 10% of the entity, and a disciplinary bond of at least $25,000 may be imposed after disciplinary action (b). (a) takes a real figure out of scope: the $100,000 bond under section 7071.6.5 is required only of limited liability company licensees, for employee wage and benefit claims. (c) is the pre-2023 qualifier amount, raised to $25,000 by SB 607 on January 1, 2023. (d) carries the pre-2023 disciplinary figure and adds a second error — the disciplinary bond is filed in addition to the license bond, never in place of it.

Law Reference: B&P Code §7071.6

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