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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
If your portable restroom license sits alongside an Advanced Level I or II installer license, the board wants one bond at the higher $30,000 figure, and it wants it on the board's own $30,000 form before any license issues. Buying the right amount once beats having a $15,000 bond bounced back by the board and the license suspended while you replace it.
The Alabama Onsite Wastewater Board's $30,000 bond form covers a Portable Restroom License held together with an Advanced Level I or II installer license. Code of Ala. 34-21A-16 sets $30,000 as the minimum bond for an advanced level license and $15,000 for a stand alone portable toilet license. The bond runs to the board as obligee, must be on file before the license issues, and must stay current every calendar year.
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Code of Ala. 34-21A-16 requires every board licensee, without exception, to be bonded for any work performed under the license. The statute sets two floors. A basic level installer license, a pumper license, a portable toilet license or a manufacturer license carries a minimum bond of $15,000. An advanced level installer license carries a minimum of $30,000. The board publishes a form for each amount, and the $30,000 form lists the Advanced Level I license, the Advanced Level II license, the Pumpers License, the Portable Restroom License and the Manufacturer license on its face. That is the form for a licensee whose portable restroom work is combined with advanced installer licensing, so the single higher bond covers the whole license set. If you hold a Portable Restroom License and nothing at the advanced level, the board's $15,000 form is the one you need instead. When your license mix is anything other than those two cases, confirm the form with the board before the surety issues it.
Ala. Admin. Code 628-X-3-.01 defines the portable toilet license as installing, transporting, pumping, servicing and maintaining portable toilets and related temporary facilities. The advanced level installer licenses add mound systems, pump systems, large flow and clustered systems and advanced technology systems. Section 34-21A-16 requires each active licensee to maintain a current bond for each license held, and evidence of bond must reach the board before any license is issued. The exemptions in 34-21A-10 are narrow: a property owner doing the work alone at a one or two family primary residence, septic tank distributors, owners of multiple systems where one is designed for 15,000 gallons per day or more, and state licensed general contractors with municipal and utility endorsements. A commercial portable restroom and installation business does not fit any of them.
The board's form is a compliance bond naming the Alabama Onsite Wastewater Board as obligee. The principal promises to faithfully observe the laws, rules, regulations, conditions, criteria and orders governing onsite sewage disposal systems. A valid claim is paid by the surety up to $30,000 and then recovered from the licensee. The surety can cancel on forty five days written notice to the board, and the bond ends automatically if the licensee leaves the employer named on the form.
A license is valid only for the calendar year shown on it and expires December 31 unless renewed. Section 34-21A-18 requires the renewal application at least 30 days before expiration, with evidence of adequate bond and the continuing education the board requires. Under Ala. Admin. Code 628-X-4-.02 the application processing fee is $100. The annual license fee is $300 for a portable toilet license, $400 for Advanced Level I and $600 for Advanced Level II, with an extra $150 for each additional category held. The portable restroom exam is $200, the Advanced Level I exam $300 and the Advanced Level II exam $400. Late renewal adds $100 per license. If the executive director suspends a license for a missing bond, reinstatement costs $125 once the bond is replaced or reactivated.
Code of Ala. 34-21A-16 sets the minimum at $15,000 for a portable toilet license and $30,000 for an advanced level installer license. The $30,000 form is for a portable restroom licensee who also holds an Advanced Level I or II license. If you hold the portable restroom license alone, the board's $15,000 form is the one to file. Ask the board if your license mix is unusual.
The board's $30,000 form lists the Advanced Level I and II, Pumpers, Portable Restroom and Manufacturer classes on one form, which is how the board handles a combined license set at the higher amount. Section 34-21A-16 still says each licensee maintains a current bond for each license held, so confirm with the board whether it wants the single form marked for all classes or separate bonds before the surety issues it.
The executive director must immediately suspend any active license without a current bond on file. You get it back by paying the $125 bond suspension reinstatement fee under Ala. Admin. Code 628-X-4-.02 and reactivating or replacing the bond. Working while suspended exposes you to the penalties in 34-21A-25.
It protects the board and the public. If you violate the onsite sewage laws or rules and a claim is paid, the surety recovers the amount from you. The premium is the price of not depositing $30,000 with the state.
The premium is a small annual percentage of the $30,000 amount set by the surety after a credit review. Stronger credit earns a lower rate. The quote is shown before you buy.
Code of Ala. 34-21A-10 exempts a property owner installing, cleaning or servicing an onsite sewage system at a one or two family primary residence they own, doing the work themselves without help. The board also may not regulate septic tank distributors, owners of multiple systems where one is designed for 15,000 gallons per day or more, or state licensed general contractors with municipal and utility endorsements. Nothing else is exempt.
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