Follow-up review. Regulation of on-site sewage management systems, Department of Human Resources

FOLLOW-UP REVIEW

Regulation of On-Site Sewage Management Systems
Department of Human Resources

March 2004
Russell W. Hinton, State Auditor Performance Audit Operations Division Department of Audits

254 Washington St., SW Atlanta, GA 30334

This is a Follow-Up Review of the Performance Audit of the Regulation of On-Site Sewage Management Systems released by the Department of Audits in January 2001. This Review was conducted to determine the extent to which the Department of Human Resources has addressed the recommendations presented in that report. A copy of the original report can be obtained through the contact information on the back of this Review.
Background Information
Since 1997, the Department of Human Resources (DHR) has been statutorily responsible for protecting the public health by adopting statewide regulations governing on-site sewage management systems (septic tanks). In 1998, DHR adopted regulations requiring that people who perform services related to site approval, design, location, installation, inspection, and maintenance of on-site sewage management programs be certified. Legislation enacted in 2000 enabled registered (licensed) engineers and geologists to qualify as soil classifiers, responsible for determining the suitability of a site for an on-site sewage management system. The Environmental Health Section of DHR's Division of Public Health administers the certification process.

The 2001 Performance Audit focused on DHR's statutory authority to regulate soil classifiers and septic tank personnel and on the extent to which DHR's regulatory activities were addressed in its Rules. The Audit also included recommendations for streamlining the certification process, improving test procedures, and ensuring that the fees charged were justified and equitable.
Status of Recommendations
Recommendation No. 1 (as reported in 2001): The Department of Human Resources should take steps to formalize its regulatory authority over soil classifiers and septic tank personnel. The requirement that soil classifiers and septic tank personnel be certified by DHR as a condition of working in the state was not specifically authorized by state law. The certification requirement was established by DHR based on its general statutory authority to adopt statewide regulations for onsite sewage management systems, including but not limited to experimental and alternative systems. Because the certification requirement was not established by legislation, it was not subject to the provisions of the Georgia Occupational Regulation Review Law. This legislation was enacted in 1986 to ensure that no programs of licensure and certification shall hereafter be imposed upon any profession or business unless required for the safety and well-being of the citizens of the state. In addition, the Certification Review Board and the Soil Classifiers' Certification Board that were created to certify these personnel were not covered by state law. The Boards' composition, duties, and

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responsibilities and the certification requirements that applicants were required to meet were only addressed in DHR's Manual for On-Site Sewage Management Systems, a technical reference manual. Although the Manual was adopted as part of DHR's rules, there was no assurance that these provisions were subject to public review and comment as required by the Administrative Procedure Act.
Current Status
It is the Department's position that no further action is necessary to establish its regulatory authority over soil classifiers and septic tank personnel since it has the statutory authority to adopt statewide regulations for on-site sewage management systems. Department personnel have indicated, however, that steps will be taken to make the certification requirements part of DHR's formal regulations and ensure that any changes in the certification requirements are made in accordance with the Administrative Procedure Act. Action has also been taken to change the Certification Review Board and the Soil Classifiers' Certification Board from boards to committees and to have the committees adopt bylaws that address their composition, duties, and responsibilities.
It should be noted that subsequent to the 2001 Audit, the Department revised the Manual to require registered (licensed) geologists and engineers to have at least six quarter hours of college level courses (or eight hours of continuing education) related specifically to soil classification and site suitability as a condition of being certified to conduct soil investigations for on-site sewage management systems. State law, however, specifies that registered geologists and engineers are qualified to conduct such investigations if they are practicing within their area of competency; the law does not require them to meet any other requirements. The Department has indicated that these additional requirements were added to ensure that these persons were, in fact, operating within their area of competency.
The Department also requires geologists and engineers who are certified as soil classifiers to have errors and omissions insurance even though this requirement is not in its Manual or state law. Department personnel have indicated that this requirement will be included in future versions of the Manual.
Recommendation No. 2 (as reported in 2001): DHR has agreed to streamline the certification/recertification process and eliminate those requirements that may be unnecessary or burdensome for applicants to meet. At the time of the 2001 Audit, DHR was: regulating individual septic tank contractors and pumpers instead of septic tank companies; regulating septic tank maintenance contractors even though this type of certification would
only be required of persons who maintain specific types of products or systems not included in the scope of their certification as a contractor or pumper; requiring septic tank pumpers to obtain six hours of continuing education every two years; requiring certification of septic tank inspection personnel; and, requiring septic tank inspectors to submit copies of their performance appraisals.
Current Status
In response to the Audit, the certification requirement has been revised to include septic tank companies, provided they employ at least one certified individual. Septic tank maintenance contractors are no longer required to be certified and county septic tank inspection personnel are no

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longer required to submit copies of their performance appraisals as a condition of being recertified (although they may be denied recertification for failure to perform their job duties in a satisfactory manner). Septic tank inspection personnel who work for county health departments are still required to be certified; septic tank pumpers are still required to obtain six hours of continuing education every two years. The Department indicated that no change was made to the continuing education requirement in response to industry recommendations.
Recommendation No. 3 (as reported in 2001): DHR has agreed with the need to improve its applicant testing procedures. At the time of the Audit, the certification examinations had not been validated and complete information for verifying examination scores was not included in the applicants' files. The Department was administering separate examinations for residential and commercial contractors even though the Manual made no distinction between these two types of contractors.
Current Status
Department personnel indicated that the examination has not been professionally validated due to concerns regarding the cost. Steps have been taken, however, to ensure that the certification files include all of the required information, including applicants' examination scores. Department personnel have also indicated that the Manual will be revised to specify that persons who wish to install commercial systems will be required to pass an additional examination.
Recommendation No. 4 (as reported in 2001): DHR is in agreement with the need to comply with the certification requirements specified in its Manual for On-Site Sewage Management Systems or revise the Manual to reflect its actual practice. At the time of the Audit, DHR was not requiring applicants for certification as a septic tank pumper to submit copies of their contracts with a certified waste disposal facility (as required by the Manual) and was not requiring applicants for certification as a septic tank inspector to submit proof that their field proficiency had been evaluated (as required by the Manual).
Current Status
The Manual has been revised to delete the requirement that applicants for certification as a septic tank pumper submit copies of their contracts with a waste disposal facility. Although the Manual still specifies that applicants for certification as a septic tank inspector must have their proficiency evaluated, it has been revised to indicate that this will be determined by satisfactorily inspecting 50 on-site sewage management systems or having three months' work experience in on-site sewage management.
Recommendation No. 5 (as reported in 2001): DHR is in agreement with the need to formally justify the dollar amounts of the examination and certification fees it charges soil classifiers and septic tank contractors and pumpers. At the time of the 2001 Audit, DHR did not have formal documentation to justify the fee amounts and did not maintain sufficient records to separately identify the cost of regulating septic tank personnel and the cost of regulating soil classifiers. Similarly, the Department had not developed a biennial budget covering the two-year certification period.
Current Status
The Department has developed a biennial budget that covers the two-year period July 1, 2002 through June 30, 2004. The budget, however, does not detail the actual cost of regulating septic

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tank personnel and soil classifiers. As a result, there is no assurance that the fees collected from one group (for example, septic tank personnel) are not being used to defray part of the cost of regulating another group (such as soil classifiers). The Manual specifies that the fees shall be used in part to defray each Committee's operational expenses. It should be noted that the certification fee for septic tank contractors was reduced from $300 to $200 in fiscal year 2003.
Recommendation No. 6 (as reported in 2001): DHR agreed with the need to ensure that examination and certification fees are collected in a fair and equitable manner from septic tank contractors, pumpers, and inspection personnel. At the time of the 2001 Audit, DHR was: allowing septic tank firms to pay only one certification fee regardless of the number of em-
ployees who applied for certification; charging a $50 examination fee for septic tank pumpers even though the Manual did not pro-
vide for such a fee; and, not requiring septic tank inspectors (who work for DHR or county health departments) to pay
any type of examination fee or certification fee.
Current Status
The Department has revised the Manual to allow septic tank companies to pay only one certification and examination fee for all of its employees and to specify that septic tank pumpers must pay a $50 examination fee. Department personnel disagree with the need to require inspection personnel to pay a certification or examination fee. They believe that the cost of the examination should be borne by DHR because it considers the cost of the certification process an operational cost since the duties the inspectors perform are part of their jobs.
Legislative Matters
Recommendation No. 1 (as reported in 2001): Consideration should be given to providing more specific statutory direction regarding the certification of soil classifiers and septic tank personnel. At the time of the 2001 Audit, the guidelines developed by DHR and included in its Manual did not address many of the issues commonly found in the statutes and rules of state regulatory boards, such as: procedures for selecting Board members, their terms of office, and selection of a chairperson; the authority of the Boards or DHR to suspend or otherwise discipline a certified individual; procedures for certifying persons who hold a valid certification from another state; and, restrictions or requirements regarding companies' advertising practices.
Current Status Bylaws have been adopted by the Certification Review Committee and the Soil Classifiers' Certification Advisory Committee addressing their composition, duties, and responsibilities. Legislation has not been enacted to address the other issues raised in the 2001 Audit, such as the authority of DHR to suspend or otherwise discipline a certified individual or company.

For additional information, please contact Paul E. Bernard, Director, Performance Audit Operations Division, at 404.657.5220.
Copies of this Follow-Up Review and the original Performance Audit of the Regulation of On-Site Sewage Management Systems can be obtained by calling the number above or on our website: http://www.audits.state.ga.us/internet/pao/rpt_main.html

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