Surety Bond Encyclopedia

Onsite Wastewater Board - Advanced Level ll License ($30,000) Bond - Statewide in Alabama

Brief Summary

The $30,000 bond is the same instrument the Board asks of every advanced level installer, and it is one of the simplest pieces of an Advanced Level II application. You pay an annual premium instead of tying up $30,000, the surety issues the bond on the Board's own form AOWB-003, and the executed form goes in your packet as the evidence of bond the rules call for.

Alabama requires a $30,000 surety bond from every holder of an Advanced Level II Installer's License issued by the Alabama Onsite Wastewater Board. Code of Alabama 34-21A-16 sets $30,000 as the amount for any advanced level license, double the $15,000 that applies to basic installers, pumpers, portable toilet operators and manufacturers. The bond is written on Board form AOWB-003, names the Board as obligee, and must stay current for the license to stay active.

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How to Apply for a Onsite Wastewater Board - Advanced Level ll License ($30,000) Bond:

  • Hold an Advanced Level I Installer's License for at least 24 months and document five engineered system installations before applying for Level II.
  • Complete the bond application in the exact name that will appear on the Board license, individual or business.
  • Provide the owner or principal's name, address and Social Security number for the surety's credit review.
  • Pay the annual premium and receive the executed $30,000 bond on Board form AOWB-003.
  • File the bond with the Board along with the license application, the $100 application fee and the $600 annual license fee.
  • Renew the bond by continuation certificate each year and include evidence of the bond with the renewal application due by December 1.

Detailed Information About the Alabama Onsite Wastewater Board - Advanced Level ll License ($30,000) Bond:

The amount is set by statute, not by the Board's discretion

Code of Alabama 34-21A-16 says every licensee, without exception, must be bonded for work performed under the license, and it fixes the minimums: $15,000 for a basic level license, a pumper license, a portable toilet license or a manufacturer's license, and $30,000 for an advanced level license. Advanced Level II is an advanced level license, so the figure is $30,000. There is no tier inside the Level II class and no exemption for an installer who has held a basic or Level I license for years. Moving up to Level II means moving from the $15,000 bond you posted as a basic installer to the $30,000 bond.

What a Level II license covers

Under Ala. Admin. Code 628-X-3-.01 the Advanced Level II Installer's License permits all Basic and Advanced Level I work plus every onsite wastewater system permitted by the Alabama Department of Public Health, including effluent discharge systems, large flow systems, multiple pump systems with timed dosing, advanced technology systems, cluster systems and community systems operating under Underground Injection Control permits. The Board's eligibility form requires that you first hold an Advanced Level I license for at least 24 months and have installed at least five engineered systems before you can sit for the Level II exam.

The bond form and what it guarantees

The Board publishes the bond as form AOWB-003, titled Alabama Onsite Wastewater Board Bond, with a penal sum of $30,000 and the Board as obligee. The same form is used for Advanced Level I, Advanced Level II, pumper, portable restroom and manufacturer licensees who post at the $30,000 level. The condition is that the principal faithfully observes the laws, rules, regulations, conditions, criteria and orders governing onsite sewage disposal systems in Alabama. The surety may cancel on 45 days written notice to the Board, and the form states that the bond expires automatically if the licensee's employment with the employer named on the bond ends.

Term, renewal and what happens if the bond lapses

A license is good only for the calendar year in which it is issued and expires December 31 unless renewed. Rule 628-X-3-.05 requires the renewal application at least 30 days before expiration, which puts the filing date at December 1, and it must include evidence of the required bond. The bond itself runs year to year by continuation certificate. If the Board does not have a valid bond on file, 34-21A-16 lets the executive director suspend the license until the bond is reactivated or replaced and a reinstatement fee is paid.

Fees that travel with the application

Ala. Admin. Code 628-X-4-.02 sets a $100 application fee for any license, a $400 examination fee for Advanced Level II, and a $600 annual license fee for Level II. The late renewal penalty is $100 per license. These fees are paid to the Board and are separate from the bond premium paid to the surety.

Eligibility and Requirements for a Alabama Onsite Wastewater Board - Advanced Level ll License ($30,000) Bond:

  • Bond amount of exactly $30,000, the statutory figure for any advanced level license under Code of Ala. 34-21A-16.
  • Alabama Onsite Wastewater Board named as obligee on form AOWB-003.
  • A surety authorized to write bonds in Alabama.
  • Principal name on the bond matching the license application exactly.
  • Owner credit review. At this amount credit affects the premium rate more than eligibility.

Alabama Onsite Wastewater Board - Advanced Level ll License ($30,000) Bond FAQs:

I already carry a $15,000 bond from my basic license. Can I keep it when I move to Level II?

No. The $15,000 figure applies to basic installers, pumpers, portable toilet operators and manufacturers. Code of Ala. 34-21A-16 requires $30,000 for any advanced level license, and the Board's $30,000 form AOWB-003 is the one it expects from a Level II installer.

Does the bond amount change based on how many systems I install or the size of my company?

No. The statute fixes a single amount per license class. Every Advanced Level II licensee posts $30,000 regardless of revenue, crew size or the number of permits pulled.

What does the bond actually protect?

The bond guarantees that you will faithfully observe the laws, rules, regulations, conditions, criteria and orders governing onsite sewage disposal systems in Alabama. If you violate them and a loss results, a claim can be made against the bond up to $30,000, and the surety will look to you to repay anything it pays out.

What happens if my bond is cancelled or lapses during the year?

The surety can cancel on 45 days written notice to the Board. Once the Board has no valid bond on file, 34-21A-16 allows the executive director to suspend your license until you reactivate or replace the bond and pay the reinstatement fee. You may request a hearing, which must be held within 10 business days.

How is the premium determined?

The surety sets the premium as a percentage of the $30,000 penal sum based mainly on the owner's personal credit and, for larger operations, business financials. Stronger credit earns the lowest rate. The premium is paid annually for as long as the license is active.

When does the license and bond have to be renewed?

The license is valid only for the calendar year it is issued and expires December 31. Rule 628-X-3-.05 requires the renewal application, with evidence of bond, at least 30 days before expiration, so plan on December 1. Renewing late costs $100 per license, and a license expired more than a year must be reapplied for as new.

Official and Additional Resources for the Alabama Onsite Wastewater Board - Advanced Level ll License ($30,000) Bond:

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