Report on the Alabama Onsite Wastewater Board Montgomery, Alabama Department of Examiners of Public Accounts 401 Adams Avenue, Suite 280 P.O. Box 302251 Montgomery, Alabama 36130-2251 Website: www.examiners.alabama.gov Rachel Laurie Riddle, Chief Examiner 21S-25 State of Alabama Department of Examiners of Public Accounts P.O. Box 302251, Montgomery, AL 36130-2251 401 Adams Avenue, Suite 280 Montgomery, Alabama 36104-4325 Rachel Laurie Riddle Telephone (334) 242-9200 Chief Examiner FAX (334) 242-1775 October 21, 2020 Representative Howard Sanderford Chairman, Sunset Committee Alabama State House Montgomery, AL 36130 Dear Representative Sanderford, This report was prepared to provide information for use by the Sunset Committee in conducting its review and evaluation of the operations of the Alabama Onsite Wastewater Board in accordance with the Code of Alabama 1975, Section 41-20-9. The report contains unaudited information obtained from the management, staff, and records of the Alabama Onsite Wastewater Board, in addition to information obtained from other sources. Please contact me if you have any questions concerning this report. Sincerely, Rachel Laurie Riddle Chief Examiner Examiner Daniel Dupree CONTENTS PROFILE ........................................................................................................................................1 Purpose/Authority .........................................................................................................................1 Characteristics ..............................................................................................................................1 Operations .....................................................................................................................................3 Financial .......................................................................................................................................3 Licensee Information ....................................................................................................................4 SIGNIFICANT ISSUES ................................................................................................................6 STATUS OF PRIOR FINDINGS / SIGNIFICANT ISSUES ....................................................6 ORGANIZATION .........................................................................................................................7 PERSONNEL .................................................................................................................................7 REGULATION IN CONJUNCTION WITH OTHER ENTITES ............................................7 FINANCIAL INFORMATION ....................................................................................................8 Schedule of Fees ...........................................................................................................................8 Schedule of Receipts, Disbursements and Balances ....................................................................9 Operating Receipts vs. Operating Disbursements ......................................................................10 APPENDICES ..............................................................................................................................12 Applicable Statutes .....................................................................................................................12 Summary of Recent Legislative Activity ...................................................................................25 Professional Services by Vendor ................................................................................................26 Board Members ..........................................................................................................................27 Board’s Response to Significant Issues ......................................................................................29 PROFILE Purpose/Authority The Alabama Onsite Wastewater Board was created by Act No. 571, Acts of Alabama, 1999. The Board was created to examine, license, and regulate persons engaged in the manufacture, installation, or servicing of onsite sewage systems in Alabama. The Board operates under the authority of the Code of Alabama 1975, Section 34-21A-1 through 34-21A-26. Characteristics Members and Nine members appointed as follows: Selection • Three appointed by the Governor • Three appointed by the Lieutenant Governor • Three appointed by the Speaker of the House Industry appointees are selected from a list of three recommendations submitted by the governing board of the Alabama Onsite Wastewater Association. The Engineer appointee is selected from a list of three recommendations provided by the Alabama Board of Licensure for Professional Engineers and Land Surveyors. Code of Alabama 1975, Section 34-21A-3 Term Members serve four-year terms or until their successors are appointed. Members may not serve more than two consecutive terms. Code of Alabama 1975, Section 34-21A-3(e) Qualifications Governor appointments: • One actively engaged in the business of installing onsite sewage systems • One actively engaged in the business of manufacturing septic tanks • One actively engaged in the business of pumping, servicing, or maintaining onsite sewage equipment • Must be licensees of the board or have ownership in a business employing a designated licensee in a position of responsible charge Lieutenant Governor appointments: • One actively engaged in the business of installing onsite sewage systems; must be a licensee of the board or have ownership in a business employing a designated licensee in a position of responsible charge 1 • One licensed by the board, or a person having ownership of a business employing a licensed person who: is in a position of responsible charge, provides or rents onsite toilet systems or portable toilet systems, has been involved in the business for five consecutive years • One actively engaged in the development of a training or educational program or instruction in environmental protection; with a minimum of six years’ experience in the stated area of expertise Speaker of the House appointments: • One environmental engineer with training in the onsite sewage industry • One actively involved for a minimum of three years in the onsite sewage inspection process and the regulation of onsite sewage systems, and is employed by a local county health department or the Alabama Department of Public Health • One consumer who has an interest in the onsite sewage industry; may not be engaged in or otherwise connected with any person or business dealing with the onsite sewage industry Code of Alabama 1975, Section 34-21A-3 Consumer One consumer member required. Representation One consumer member serving. Code of Alabama 1975, Section 34-21A-3 Racial Representation No specific statutory requirement. No racial minority members currently serving. Geographical No statutory requirement. Representation Other Representation The membership of the board shall be inclusive, and the appointing authorities shall consider the racial, gender, geographic, urban/rural, and economic diversity of the state in making their appointments Code of Alabama 1975, Section 34-21A-3(e) Compensation Board members receive $100.00 per day for board meetings and are reimbursed for travel expenses in the same manner as state employees. Code of Alabama 1975, Section 34-21A-4(f) 2 Attended Board Seven current board members Member Training Two former board members Executive director Three staff members Operations Administrator Melissa Hines, Executive Director Annual Salary $69,014.40 Appointed by the Board Code of Alabama 1975, Section 34-21A-5 Location 60 Commerce Street, Suite 1050 Montgomery, AL 36104 Office Hours: Monday - Friday 8:00 to 4:30 Employees Four employees Legal Counsel Paul Roy Cooper, a private attorney, provides legal counsel to the board. Subpoena Power None, except as provided by the Alabama Administrative Procedure Act, Code of Alabama 1975, Section 41-22-12 for hearings and contested cases. Internet Presence http://aowb.alabama.gov Information available includes: • Law and rules • Contact information • License roster search • Licensing forms / License renewal • Consumer complaint form Financial Source of Funds Licensing fees and penalties State Treasury Yes. Special Revenue Fund 1013. Code of Alabama 1975, Section 34-21A-6 3 Required Distributions Any funds unspent and unencumbered at the end of each fiscal year that exceed 25 percent of the board's budget for the previous fiscal year shall be transferred to the State General Fund. Code of Alabama 1975, Section 34-21A-6(b) Unused Funds Unused funds are retained at fiscal year-end, subject to the transfer requirement noted above. Licensee Information Licensees Licenses as of May 18, 2020 Basic Installer 372 Advanced Installer I 275 Advanced Installer II 87 Pumper 353 Portable Restroom 13 Manufacturers 48 Total 1,148 Licensees may hold multiple licenses Source: Executive Director Qualifications License requirements: • A basic level installer license must be obtained before qualifying for an advanced level installer license • Complete required examination • Evidence of bond • Proof of citizenship or legal presence • Complete application and pay fee • Advanced installers must meet experience requirements set by the Board • Manufacturers must pass an inspection of the manufacturing plant Code of Alabama 1975, Section 34-21A-12 through 34-21A-16 Examinations