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SENATE BILL 233
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Antonio Maestas
AN ACT
RELATING TO CONSUMER PROTECTION; MAKING FAILURE TO PROVIDE THE
WRITTEN STATEMENT REQUIRED BY THE DISTRIBUTED GENERATION
DISCLOSURE ACT AN UNFAIR OR DECEPTIVE TRADE PRACTICE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 57-31-3 NMSA 1978 (being Laws 2017,
Chapter 102, Section 3) is amended to read:
"57-31-3. DISTRIBUTED ENERGY GENERATION SYSTEM
DISCLOSURES--EXCEPTION.--
A. Beginning thirty days after publication in the
New Mexico register of the form disclosure statements issued by
the attorney general pursuant to Section [5 of the Distributed
Generation Disclosure Act ] 57-31-5 NMSA 1978, any agreement
governing the financing, sale or lease of a distributed energy
generation system, or the sale of power to a power purchaser,
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shall include a written statement with font no smaller than ten
points and no more than four pages, unless a font larger than
ten points is used, separate from the agreement and separately
signed by the buyer or lessee, that includes the following
provisions:
(1) the name, address, telephone number and
email address of the buyer or lessee;
(2) the name, address, telephone number, email
address and valid state contractor license number of the person
responsible for installing the distributed energy generation
system;
(3) the name, address, telephone number, email
address and a valid state contractor license number of the
distributed energy generation system maintenance provider, if
different from the person responsible for installing the
system;
(4) a provision notifying the buyer or lessee
of the right to rescind the agreement for a period ending not
less than three business days after the agreement is signed;
(5) a description of the distributed energy
generation system design assumptions, including system size,
estimated first-year production and estimated annual system
production decreases, including the overall percentage
degradation over the life of the distributed energy generation
system;
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(6) a description of any performance
guarantees that a seller or marketer may include in an
agreement;
(7) the purchase price of the distributed
energy generation system, total projected lease or power
purchase payments;
(8) a description of any one-time or recurring
fees, including the circumstances triggering any late fees,
estimated system removal fees, maintenance fees, Uniform
Commercial Code notice removal and refiling fees, internet
connection fees and automated [clearing house ] clearing-house
fees;
(9) if the seller is financing or leasing the
distributed energy generation system, the total amount
financed, the total number of payments, the payment frequency,
the amount of the payment expressed in dollars, the payment due
dates and the applicable annual percentage rate; except that in
the case of financing arrangements subject to state or federal
lending disclosure requirements, disclosure of the annual
percentage rate shall be made in accordance with the applicable
state or federal lending disclosure requirements;
(10) if a seller or marketer uses a tax
incentive or rebate in determining the price, a provision
identifying each state and federal tax incentive or rebate
used;
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(11) a description of the ownership and
transferability of any tax credits, rebates, incentives or
renewable energy certificates in connection with the
distributed energy generation system;
(12) a list of the following tax obligations
that the buyer may be required to pay or incur as a result of
the contract's provisions, including:
(a) the cost of any business personal
property taxes assessed on the distributed energy generation
system in the event of a power purchase agreement or lease;
(b) gross receipts taxes for any
equipment purchased and services rendered;
(c) obligations of the power purchaser
or lessee to transfer tax credits or tax incentives of the
distributed energy generation system to any other person; and
(d) in the case of a commercial
installation, a change in assessed property taxes in the event
of a purchase of a distributed energy generation system;
(13) a disclosure regarding whether the
warranty or maintenance obligations related to the distributed
energy generation system may be sold or transferred to a third
party;
(14) a disclosure regarding any restrictions
pursuant to the agreement on the buyer's or lessee's ability to
modify or transfer ownership of the distributed energy
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generation system, including whether any modification or
transfer is subject to review or approval by a third party and
the name, mailing address and telephone number of the entity
responsible for approving the modification or transfer, if
known to the seller or marketer at the time the agreement is
made;
(15) a description of all options available to
the buyer or lessee in connection with the continuation,
termination or transfer of the agreement between the buyer or
lessee and the seller or marketer in the event of the transfer
of the real property to which the distributed energy generation
system is affixed;
(16) a description of the assumptions used for
any savings estimates that were provided to the buyer or
lessee;
(17) a disclosure that states: "Actual
utility rates may go up or down and actual savings may vary.
For further information regarding rates, you may contact your
local utility or the public regulation commission. Tax and
other state and federal incentives are subject to change.";
(18) a disclosure notifying the buyer or the
lessee of transferability of any warranty obligations to
subsequent buyers or lessees; and
(19) a disclosure notifying the buyer or
lessee that interconnection requirements, including time lines,
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are established by rules of the public regulation commission
and may be obtained from either the public regulation
commission or the local utility.
B. The seller or marketer shall provide the buyer
or lessee with proof that, within thirty days of completion of
installation or modification:
(1) all permits required for the installation
or any modification of the distributed energy generation system
were obtained prior to installation; and
(2) installation or any modification of the
distributed energy generation system received the approval of
an inspector authorized by the governmental authority having
jurisdiction over the permitting and enforcement authority.
C. In the event that a seller or marketer causes a
financing statement to be filed pursuant to the Uniform
Commercial Code - Secured Transactions, the seller or marketer,
or any successor in interest to the seller or marketer, shall
provide to the buyer or lessee a copy of the filed financing
statement within thirty calendar days of the filing.
D. If a promotional document or sales presentation
related to a distributed energy generation system states that
the system will result in certain financial savings for the
buyer or lessee, the document or sales presentation shall
provide the assumptions and calculations used to derive those
savings.
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E. If a promotional document or sales presentation
related to a distributed energy generation system states that
the system will result in certain energy savings in terms of
production, the document or sales presentation shall provide
the assumptions and calculations used to derive those energy
savings and any comparative estimates. If historical
information is used, it shall be accompanied by the following
statement: "Historical data are not necessarily representative
of future results.".
F. A failure to provide the written statement
required by this section constitutes an unfair or deceptive
trade practice pursuant to the Unfair Practices Act. "
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