CSLB Law & Business ExamBusiness Organization and LicensingMedium
A contractor's license was revoked for a serious violation. Two years later, CSLB grants reinstatement subject to probation. In addition to the standard $25,000 contractor's bond, what additional bond is typically required for a reinstated license under disciplinary probation?
- AA $100,000 performance bond
- BA $50,000 blanket bond covering all future violations
- CA $15,000 disciplinary bond
- DNo additional bond is required beyond the standard bond
Show answer & explanationAnswer & explanation
Correct answer: C. A $15,000 disciplinary bond
CSLB commonly requires a $15,000 disciplinary bond, separate from the standard $25,000 contractor's bond, as a condition of probation for a reinstated license following disciplinary action.
Why the other options are wrong
- A. No such $100,000 performance bond exists under CSLB's standard reinstatement conditions.
- B. There is no $50,000 'blanket bond' concept under CSLB regulations.
- D. Reinstated licenses under probation typically do require an additional bond.
Disciplinary Bond
An additional $15,000 bond CSLB may require as a condition of probation for a contractor whose license was reinstated after disciplinary action.
- Separate from the standard $25,000 contractor's bond
- Required as a probation condition, not for all licensees
- Protects consumers during the probationary period
Memory trick: 'Disciplined? Add fifteen' — $15,000 disciplinary bond on top of the standard bond.