BILL NUMBER: AB 2699 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Gonzalez
(Coauthor: Assembly Member Weber)
FEBRUARY 19, 2016
An act to add Chapter 2.4 (commencing with Section 18892) to
Division 8 of the Business and Professions Code, relating to
business.
LEGISLATIVE COUNSEL'S DIGEST
AB 2699, as introduced, Gonzalez. Department of Consumer Affairs:
solar companies: solar energy systems.
Existing law provides for the licensure and regulation of various
professions and vocations by boards within the Department of Consumer
Affairs. Existing law, the Contractors' State License Law, provides
for the licensure and regulation of contractors by the Contractors'
State License Board. Existing law requires licensed contractors to be
classified and authorizes them to be classified as, among other
things, a solar contractor. Under existing law, a solar contractor
installs, modifies, maintains, and repairs thermal and photovoltaic
solar energy systems. Existing law prohibits a solar contractor from
performing building or construction trades, crafts, or skills, except
when required to install a thermal or photovoltaic solar energy
system.
This bill would, among other things, require a solar company
selling, financing, or leasing a solar energy system, as defined, to
provide each customer with a specified "solar energy system
disclosure document." The bill would also require the Department of
Consumer Affairs to adopt a regulation that includes a specified
"Department of Consumer Affairs solar energy system disclosure
document" informing customers of the risks and rewards of solar
energy system ownership and warranty issues, and protecting those
customers from unscrupulous or unfair business practices. The bill
would require these disclosures to be provided by the solar company
to the customer prior to the sale, finance, or lease of a solar
energy system. The bill would make a violation of these provisions by
a solar company punishable by an unspecified fine. The bill would
also authorize a customer damaged by a willful violation of these
provisions to bring a civil cause of action against a solar company
for specified damages.
This bill would also declare the intent of the Legislature to
enact legislation that would require the Department of Consumer
Affairs to certify a solar company and establish an insurance pool
for customers to access in order to obtain compensation for solar
energy system claims, as provided.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares that the
Governor set a goal of one million solar rooftop systems installed by
2018. As of November 2015, this state leads the nation in the
installation of residential and business distributed solar projects
with approximately 438,250 solar projects.
(b) It is the intent of the Legislature to enact this act to
ensure that prospective solar customers are provided accurate, clear,
and concise information to make an informed decision about solar
energy system installation, and to ensure that new solar energy
systems continue to reliably provide clean power to millions of
Californians for many years.
SEC. 2. Chapter 2.4 (commencing with Section 18892) is added to
Division 8 of the Business and Professions Code, to read:
CHAPTER 2.4. SOLAR COMPANIES
18892. (a) As used in this section, the following terms have the
following meanings:
(1) "Customer" shall include any person, firm, corporation, or
other entity that is solicited by, inquires about, or seeks the
services of a solar company for the purchase, financing, or lease of
a solar energy system.
(2) "Department" means the Department of Consumer Affairs.
(3) "Solar company" means any company and its broker, brokers, or
agents that sell, finance, or lease solar energy systems.
(4) "Solar energy system" has the same meaning as set forth in
paragraphs (1) and (2) of subdivision (a) of Section 801.5 of the
Civil Code.
(b) (1) Prior to completion of a sale, financing, or lease of a
solar energy system to a customer, a solar company shall provide each
customer with a "solar energy system disclosure document," which
shall include all of the following information:
(A) A list of current residential or business electric rates by
kilowatthour, as established by the applicable Public Utilities
Commission tariff or other regulatory rate document.
(B) If a payback calculation for the solar energy system is
provided, the calculation must be based on the customer's current
electric rate, which shall be disclosed to the customer.
(C) A notification that electric rates are subject to change in
the future and that estimates of savings are based on today's
electric rates. If a payback calculation is included, the
notification shall be located immediately next to the payback
calculation.
(D) A link to a page on the customer's electricity provider's
Internet Web site that provides information about the electrical
provider's filings regarding future rates.
(E) A description of the solar company's contractor's license
issued pursuant to Chapter 9 (commencing with Section 7000) of
Division 3, license number, and name of the license qualifier for
each of the solar company's licenses for solar system installation.
(F) Valid, current certificates of insurance for the solar company'
s commercial general liability and workers' compensation insurance
policies.
(G) A description of the average level of electricity per month
that would be produced by the solar panels planned for installation
given the actual physical limitations and conditions specific to the
customer.
(H) A notification that, when renewable energy attributes are
retained by the solar company, the customer is not buying solar
power, nor buying renewable energy.
(I) A notification that the balance of any financing or lease
arrangement is payable to the solar company in the event of the death
of the customer during the term of the agreement.
(J) An estimate of the cost of removing and reinstalling solar
panels in the event that the roof material beneath solar panels is
replaced.
(K) An explanation of the potential change in electricity
production of a solar energy system if the panels become dirty or
covered with debris, and instructions on how to maintain the solar
energy system.
(L) An explanation that if a solar system installation is financed
by a loan that requires a superpriority lien on the homeowner's
mortgage, the homeowner may be unable to refinance his or her
mortgage because of this financing.
(M) A notification that customer bill credits are compensated by
other customers of the electricity provider.
(2) A solar company that sells, finances, or leases a solar energy
system to a customer primarily in Spanish, Chinese, Tagalog,
Vietnamese, or Korean, whether orally or in writing, shall be
required to provide the disclosure document in paragraph (1) in that
same language.
(c) Subject to the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code), the department shall adopt a regulation that
includes a "Department of Consumer Affairs solar energy system
disclosure document" informing customers of the risks and rewards of
solar energy system ownership and warranty issues, and protecting
those customers from unscrupulous or unfair business practices. The
solar company shall provide this disclosure document developed by the
department at the same time that the disclosure document in
subdivision (b) is provided to the customer. The disclosure document
developed by the department shall include, but shall not be limited
to, information about all of the following:
(1) Solar energy system malfunctions.
(2) Installations not performed to code.
(3) Roof intrusions and related structural concerns.
(4) Bankruptcy, insolvency, default, takeover, or closure of a
solar company with existing customers, especially with respect to
solar companies who lease systems.
(5) Loss of warranty on solar energy systems caused by bankruptcy,
insolvency, default, takeover, or closure of a solar company or a
solar manufacturer.
(d) It is the intent of the Legislature to enact legislation that
would (1) require the department to certify a solar company and (2)
establish an insurance pool for customers to access in order to
obtain compensation for solar energy system claims, the funds for
which shall be raised yearly from all solar companies actively doing
business in this state at the time of assessment.
(e) When marketing its services to customers, solar companies
shall not use the trade dress of other energy providers such that it
creates a likelihood of confusion that an affiliation or connection
exists between a solar company and the electrical corporation, unless
the solar company has express authorization from the electrical
corporation to do so.
(f) A violation of this section by a solar company is punishable
by a fine of not less than ___ ($___) and not more than ___ ($___),
which shall be in addition to any other punishment imposed for a
violation of this section. All fines collected by the department
pursuant to this subdivision shall be deposited in the Professions
and Vocations Fund described in Section 205, and these fines shall be
subject to appropriation by the Legislature.
(g) (1) In addition to the authority granted to the department in
subdivision (f), a customer damaged by a willful violation of the
provisions of this chapter may bring a civil cause of action against
a solar company for damages, including, but not limited to, general
damages, special damages, and punitive damages.
(2) The court in an action pursuant to this section may award
equitable relief, including, but not limited to, an injunction,
costs, and any other relief the court deems proper.
(3) The rights and remedies provided in this chapter are in
addition to any other rights and remedies provided by law.