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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
The $30,000 bond covers a septic tank manufacturer that also works at the advanced installer level, or that the Alabama Onsite Wastewater Board has told to bond at the higher figure. One bond on Board form AOWB-003 satisfies the evidence of bond requirement for the whole license combination. You pay an annual premium instead of setting aside $30,000, and the executed form goes in the license packet and in 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 figure for a manufacturer's license and $30,000 for any advanced level license. The Board's $30,000 bond form AOWB-003 lists Manufacturer alongside Advanced Level I and II installers, pumpers and portable restroom licensees, and it is the form for a manufacturer that also holds or is applying for an advanced level installer license, or that the Board has directed to post $30,000. The bond names the Board as obligee and must stay current for the license to remain active.
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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 minimums 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 form AOWB-002. The Board also lists Manufacturer on its $30,000 form AOWB-003, the advanced level form. That is the form for a manufacturer that also holds or is applying for an Advanced Level I or II installer license, since one bond then has to meet the $30,000 figure for the advanced license, and for any manufacturer the Board directs to post $30,000. Tank manufacturers that also install engineered or large flow systems fall in this group. If you are not sure which form the Board expects for your license combination, ask the Board before the bond is written.
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-003, titled Alabama Onsite Wastewater Board Bond, carries a penal sum of $30,000 with the Board as obligee and serves Advanced Level I and II installers, pumpers, portable restroom licensees and manufacturers 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.
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. An advanced installer license held alongside it carries its own exam fee, $300 for Level I or $400 for Level II, and each additional license category costs $150. The late renewal penalty is $100 per license. These are Board fees and are separate from the bond premium paid to the surety.
The $15,000 figure in Code of Ala. 34-21A-16 is for a manufacturer's license held on its own. The statute sets $30,000 for any advanced level license, and the Board's $30,000 form AOWB-003 lists Manufacturer so that a manufacturer who also holds an Advanced Level I or II installer license, or who the Board has directed to bond at the higher amount, can satisfy the requirement with one bond. If you only manufacture tanks and hold no advanced license, the $15,000 form is the normal one.
Form AOWB-003 lists Advanced Level I, Advanced Level II, pumper, portable restroom and manufacturer on a single form with a single $30,000 penal sum. Confirm with the Board how it wants the license categories marked on the form for your combination before the surety executes it.
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 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 $30,000 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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