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Expert Surety Bonds Since 2004
Need assistance? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Expert Surety Bonds Since 2004
The $15,000 bond is the statutory figure for a septic tank manufacturer licensed by the Alabama Onsite Wastewater Board, and it is the easiest item in the license packet. The surety writes it on the Board's own form AOWB-002, you pay an annual premium rather than setting aside $15,000, and the executed form satisfies the evidence of bond the Board's rules require at application and at every renewal.
Alabama requires a surety bond from every holder of a Manufacturer's License issued by the Alabama Onsite Wastewater Board. Code of Alabama 34-21A-16 sets $15,000 as the amount for a manufacturer's license, the same figure that applies to basic installers, pumpers and portable toilet operators. The bond is written on Board form AOWB-002, names the Board as obligee, and must stay current for the license to remain active. The Board also publishes a $30,000 form that lists manufacturers, which applies to a manufacturer that also carries an advanced level installer license or is directed by the Board to post the higher amount.
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Code of Alabama 34-21A-16 requires every licensee, without exception, to be bonded for work performed under the license, and it tells the Board to set minimum amounts of not less than $15,000 for a basic level license, a pumper license, a portable toilet license or a manufacturer's license, and not less than $30,000 for an advanced level license. A company that holds only a Manufacturer's License posts $15,000 on Board form AOWB-002. The Board also lists Manufacturer on its $30,000 form AOWB-003, which is the form for advanced level licensees. That higher form is the one to use when the manufacturer also holds or is applying for an Advanced Level I or II installer license, since the single bond then has to meet the $30,000 advanced level figure, or when the Board itself directs a manufacturer to post $30,000. If you are not sure which form the Board expects for your license combination, ask the Board before the bond is issued rather than after.
Ala. Admin. Code 628-X-3-.01 requires anyone advertising, bidding on, or performing the manufacture of onsite wastewater septic tanks or poured in place tanks in Alabama to hold a current license from the Board or to have a licensed employee in responsible charge. The Manufacturer's License covers the manufacture of septic tanks, including tanks poured in place, lids and receptacles. The Board's eligibility form asks for six months of work experience within the last five years and an employer's signature before you can attend initial training and sit for the exam. Experience, training and the exam are prerequisites for the license. None of them replaces the bond.
Form AOWB-002, titled Alabama Onsite Wastewater Board Bond, carries a penal sum of $15,000 with the Board as obligee and serves basic installers, manufacturers, pumpers and portable restroom licensees. 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.
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, with evidence of the required bond, at least 30 days before expiration, so December 1 is the working deadline. The bond continues year to year by continuation certificate. If the Board has no valid bond on file, 34-21A-16 allows the executive director to suspend the license until the bond is reactivated or replaced and a reinstatement fee is paid, with a hearing available within 10 business days on request.
Ala. Admin. Code 628-X-4-.02 sets a $100 application fee for any license, a $200 examination fee for the manufacturer exam, and a $300 annual license fee for a manufacturer. Holding more than one license category costs $150 for each additional category, and the late renewal penalty is $100 per license. These are Board fees and are separate from the bond premium paid to the surety.
Code of Ala. 34-21A-16 sets $15,000 for a manufacturer's license, so a company that holds only the Manufacturer's License posts $15,000 on form AOWB-002. The $30,000 form AOWB-003 is the advanced level form. Use it if you also hold or are applying for an Advanced Level I or II installer license, or if the Board tells you to post the higher amount. When in doubt, ask the Board before the bond is written.
Yes. The statute says all licensees, without exception, must be bonded for work performed under the license, and 628-X-3-.01 requires a license for anyone manufacturing septic tanks or poured in place tanks in Alabama. There is no exemption for manufacturers who do not install.
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 $15,000, and the surety will look to you to repay what it pays out.
The surety can cancel on 45 days written notice to the Board. Once no valid bond is on file, 34-21A-16 lets the executive director suspend your license until the bond is reactivated or replaced and the reinstatement fee is paid. You can request a hearing within 10 business days.
The surety charges a percentage of the $15,000 penal sum based mainly on the owner's personal credit and, for larger companies, business financials. Good credit earns the lowest rate. The premium is paid each year the license stays active.
The license expires December 31 of the year it was issued. Rule 628-X-3-.05 requires the renewal application, with evidence of bond, at least 30 days before expiration, so file by December 1. Late renewal costs $100 per license, and a license expired more than one year must be reapplied for as new.
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