A licensed limited liability company must carry financial security beyond the $25,000 contractor's bond. What does the license law require?

Explanation

B&P §7071.6.5 requires an LLC licensee to file a $100,000 surety bond for the benefit of employees damaged by unpaid wages, interest on wages, or fringe benefits — and, where a collective bargaining agreement applies, welfare, pension, and apprentice contributions — in addition to the §7071.6 bond; §7071.19 separately requires at least $1,000,000 of liability insurance. (a) simply doubles the contractor's bond, but the LLC's extra security exists for workers, not for the same beneficiaries. (c) misplaces the depositary: a deposit in lieu of a bond goes to the Registrar under §7071.4 and Code of Civil Procedure §995.710, never to a county. (d) is the §7071.8 disciplinary-bond ceiling, ten times the §7071.6 bond, which reaches only a licensee that has been disciplined.