A Disciplinary Surety Bond is a license and permit surety bond required of contractors by certain states and municipalities. The bond is required of a contractor who has been disciplined for violating the law by the state or municipality. In order to have their license reinstated, the regulator will often have them provide a disciplinary bond. The bond is typically in addition to the regular license bond required by that entity. Thus it serves as an extra protection for the state and consumers that the contractor will not violate the law or defraud consumers again.