BILL ANALYSIS Ó
AB 2699
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Date of Hearing: May 18, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2699 (Gonzalez) - As Amended April 13, 2016
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|Policy |Business and Professions |Vote:|15 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill strengthens protections and disclosures for consumers
with respect to purchase and installation of solar panels.
Specifically, this bill:
1)Requires the Contractor's State Licensing Board (Board) to
develop a disclosure form related to solar panel purchase,
including information about financing, terms, rebates, risks,
fees, where to file complaints, and related information.
Specifies a solar energy systems company must provide the form
to a consumer prior to completion of a sale, financing, or
lease of a solar energy system.
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2)Requires the Board to establish through regulation
requirements for a contractor to maintain a blanket
performance and payment bond for the purpose of solar energy
systems installation.
3)Requires a contractor installing a solar energy system to be
subject to disclosures in existing law related to
downpayments.
FISCAL EFFECT:
The Board anticipates a cost of $285,000 in the first year of
implementation and $260,000 ongoing for licensing and
enforcement staff (Contractors License Fund).
COMMENTS:
1)Purpose. This bill intends to update disclosure laws and
consumer protection in order to keep pace with a growing
industry. The author indicates while the growth in
residential solar is important to meet renewable energy goals,
consumers have sometimes been surprised by the long-term
financial impacts of these systems, and have complained about
a lack of clarity and information related to effects on their
ability to stay in or sell their home, and about the risks and
benefits of the systems.
2)Solar Panels. The popularity of rooftop solar panels has
grown rapidly, as has third-party ownership of residential
systems, which allows individuals to lease the systems at a
lower or no up-front cost. Systems must be installed by
AB 2699
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licensed contractors and a solar salesperson also must
register as a home improvement salesperson with the Board.
Criticism has been levied about deceptive marketing practices
that over-promise savings and under-inform about risk.
Hundreds of complaints about solar marketing and installation
have been received by the Board since 2010.
3)Support and Opposition. The California Municipal Utilities
Association and the California Environmental Justice Alliance
support this bill, noting the benefit of improved disclosure
for consumers. The Silicon Valley Leadership Forum opposes
unless amended, seeking amendments to narrow the bill to
residential solar, require the disclosure to be provided by
the contractor before installation, and require a 10-year
warranty.
Analysis Prepared by:Lisa Murawski / APPR. / (916)
319-2081