BILL NUMBER: AB 2699INTRODUCED 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.