Surety Bond Encyclopedia

Marine Sanitation Device Inspector ($10,000) Bond - Statewide in Alabama

Brief Summary

A marina, boat dealer or marine service shop that wants to inspect marine sanitation devices and sell the annual decal in Alabama does it as a special agent of the Marine Patrol, and the $10,000 indemnity bond is the piece of the agent contract that is easiest to get wrong because so many pages name the wrong agency. The bond is written on the Marine Patrol's own Special Agent Indemnity Bond form, it continues year to year with a continuation certificate, and the premium at this size is small compared with the inspection fees an agent keeps.

Alabama Administrative Code 220-6-.61 lets the Marine Patrol appoint private businesses as special agents to perform the annual marine sanitation device inspections that Code of Alabama 33-6A-6 requires on registered recreational vessels and residence boats with a toilet system on board. To be appointed, the agent must be bonded for a minimum of $10,000 indemnity, hold a federal tax identification number and the required local business licenses, complete the Marine Patrol's MSD training and sign the special agent contract. The bond is written on the Special Agent Indemnity Bond for Marine Sanitation Device Inspector form naming the state's Marine Patrol Division as obligee.

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How to Apply for a Marine Sanitation Device Inspector ($10,000) Bond:

  • Contact the Marine Patrol Division to request the special agent packet and confirm the current obligee name on the Special Agent Indemnity Bond form.
  • Obtain a federal tax identification number and any county or municipal business license your inspection business needs.
  • Complete the Marine Patrol's initial marine sanitation device training. Training is a prerequisite for appointment and does not waive the bond.
  • Complete the surety application with the business name exactly as it will appear on the special agent contract and the owner's name, address and Social Security number for the credit review.
  • Pay the premium and receive the executed $10,000 bond on the Marine Patrol's form with the surety's power of attorney attached.
  • Return the signed special agent contract and the bond to the Marine Patrol, then collect the inspection forms and decals.

Detailed Information About the Alabama Marine Sanitation Device Inspector ($10,000) Bond:

The obligee is the Marine Patrol, not ADEM or Public Health

The marine sanitation device program is a boating law program, not a sewage treatment or health department program. Code of Alabama 33-6A-1 defines the department for this chapter as the Department of Conservation and Natural Resources, and the special agent rule at Administrative Code 220-6-.61 is a Conservation rule. The marine law enforcement function that runs the program has since moved to the Alabama Law Enforcement Agency, and the current special agent contract and bond form posted by ALEA name the State of Alabama, Department of Public Safety, Marine Patrol Division as the payee. Write the bond to the Marine Patrol Division and confirm the exact obligee wording with the Marine Patrol before the bond is executed, since the form on ALEA's site still carries the Department of Public Safety name.

What the inspection program is

Under 33-6A-6 every recreational vessel required to be registered in Alabama, and every residence boat on state waters, that has a marine sanitation device installed must pass an annual inspection and display the inspection decal, on the port side of the hull for a vessel and visible from the water for a residence boat. Portable toilets are not marine sanitation devices under 33-6A-1 and do not trigger the inspection. The statute caps the inspection fee at $50.

Who may become a special agent

Rule 220-6-.61 allows the Marine Patrol to designate special agents to perform the inspections alongside its own personnel. An applicant must have a federal tax identification number, hold any county and municipal business licenses the business needs, be bonded for a minimum of $10,000 indemnity, complete initial training on marine sanitation devices and periodic refresher certification, and sign a contract agreeing to follow Marine Patrol policies. The Marine Patrol furnishes the inspection forms and decals. A special agent has no law enforcement powers.

How the fees work

Under the rule a special agent remits $10 per vessel to the Marine Patrol and may charge a service fee of up to $40, so the most a boat owner pays an agent is $50. Inspections performed by state personnel cost $50. The agent's contract requires collections to be sent in by check or money order, with a $30 service fee for any returned check, and all funds, records, decals and ledgers must be returned immediately when the contract ends.

What the bond guarantees

The Special Agent Indemnity Bond for Marine Sanitation Device Inspector is written for $10,000 and is conditioned on the agent well and truly performing all terms of the special agent contract, including collecting, handling and transferring the state's share of the inspection fees. If the agent fails to remit fees or account for decals, the Marine Patrol recovers against the bond. The surety may cancel on 30 days written notice to the agency, and the bond continues from year to year on a continuation certificate issued at least 30 days before the anniversary date.

Eligibility and Requirements for a Alabama Marine Sanitation Device Inspector ($10,000) Bond:

  • A surety company licensed to do business in Alabama.
  • Bond amount of $10,000, the minimum indemnity set by Administrative Code 220-6-.61.
  • Marine Patrol Division named as obligee on the Special Agent Indemnity Bond for Marine Sanitation Device Inspector form.
  • Bond conditioned on performance of every term of the special agent contract, including remittance of the $10 per vessel state fee.
  • Continuous bond with annual continuation certificates and 30 day surety cancellation notice.
  • Principal name matching the special agent contract exactly.

Alabama Marine Sanitation Device Inspector ($10,000) Bond FAQs:

Is this bond filed with ADEM or the Department of Public Health?

No. The marine sanitation device inspection program is run by the Marine Patrol under Code of Alabama Chapter 33-6A and Administrative Code 220-6-.61. The bond names the Marine Patrol Division as obligee. The posted form still reads Department of Public Safety, Marine Patrol Division, so confirm the wording with the agency before the bond is issued.

Is $10,000 the exact amount or a minimum?

Rule 220-6-.61 says a special agent must be bonded for a minimum of $10,000 indemnity, and the Marine Patrol's bond form is printed for $10,000. The bond on this page is written for that amount.

What can I charge for an inspection?

Under the rule a special agent sends $10 per vessel to the Marine Patrol and may add a service fee of up to $40, for a maximum of $50 per inspection. The statute at 33-6A-6 caps the fee at $50.

Does completing the MSD training waive the bond?

No. Training, a federal tax identification number, local business licenses and the bond are all separate prerequisites listed in 220-6-.61. Every one of them must be in place before the contract is signed.

Can the surety cancel the bond?

Yes, on 30 days written notice to the agency. The bond otherwise continues year to year with a continuation certificate issued at least 30 days before expiration. If the bond lapses, the special agent contract can be terminated immediately.

Which boats need the inspection?

Every recreational vessel required to be registered in Alabama and every residence boat on state waters that has a marine sanitation device installed. Portable toilets do not count as marine sanitation devices under 33-6A-1.

Official and Additional Resources for the Alabama Marine Sanitation Device Inspector ($10,000) Bond:

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