Texas 2025 - 89th Regular

Texas Senate Bill SB1036 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Zaffirini, et al. S.B. No. 1036
2		-
3		-
	2	+	(In the Senate - Filed January 31, 2025; February 24, 2025,
	3	+	read first time and referred to Committee on Business & Commerce;
	4	+	March 31, 2025, reported adversely, with favorable Committee
	5	+	Substitute by the following vote: Yeas 10, Nays 0; March 31, 2025,
	6	+	sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 1036 By: Schwertner
4	9
5	10
6	11		A BILL TO BE ENTITLED
7	12		AN ACT
8	13		relating to the regulation of residential solar retail
9	14		transactions; requiring an occupational registration; authorizing
10	15		fees; providing civil and administrative penalties.
11	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	17		SECTION 1. Title 11, Occupations Code, is amended by adding
13	18		Chapter 1806 to read as follows:
14	19		CHAPTER 1806. RESIDENTIAL SOLAR RETAILERS
15	20		SUBCHAPTER A. GENERAL PROVISIONS
16	21		Sec. 1806.001. SHORT TITLE. This chapter may be cited as
17	22		the Residential Solar Retailer Regulatory Act.
18	23		Sec. 1806.002. GENERAL DEFINITIONS. In this chapter:
19	24		(1) "Commission" means the Texas Commission of
20	25		Licensing and Regulation.
21	26		(2) "Department" means the Texas Department of
22	27		Licensing and Regulation.
23	28		(3) "Electric cooperative" has the meaning assigned by
24	29		Section 11.003, Utilities Code.
25	30		(4) "Electrical contractor" means a person licensed as
26	31		an electrical contractor under Chapter 1305.
27	32		(5) "Executive director" means the executive director
28	33		of the department.
29	34		(6) "Municipally owned utility" has the meaning
30	35		assigned by Section 11.003, Utilities Code.
31	36		(7) "Residential solar energy system" means a solar
32	37		energy system intended or designed primarily for family, personal,
33	38		or household use.
34	39		(8) "Residential solar retail" means:
35	40		(A) the sale or lease of, or an offer to sell or
36	41		lease, a residential solar energy system; or
37	42		(B) a transaction involving any combination of
38	43		the acts described by Paragraph (A).
39	44		(9) "Solar energy system" means a system or
40	45		configuration of solar energy devices that collects and uses solar
41	46		energy to generate electricity.
42	47		(10) "Solar retailer" means a person who is registered
43	48		under this chapter as a solar retailer.
44	49		(11) "Solar salesperson" means an individual who is
45	50		registered under this chapter as a solar salesperson.
46	51		Sec. 1806.003. DEFINITION OF CONTROLLING PERSON. (a) In
47	52		this section, "business entity" means a corporation, business
48	53		trust, estate, trust, partnership, including a limited
49	54		partnership, association, or any other legal entity, regardless of
50	55		whether the entity is incorporated in this state.
51	56		(b) In this chapter, "controlling person" means an
52	57		individual who:
53	58		(1) has direct or indirect control of at least 25
54	59		percent of the voting securities of a business entity;
55	60		(2) has the authority to set policy and direct the
56	61		management of a business entity;
57	62		(3) is the president, the secretary, or a director of a
58	63		business entity; or
59	64		(4) is a general partner of a partnership, including a
60	65		limited partnership.
61	66		Sec. 1806.004. LIMITED APPLICABILITY TO ELECTRICAL
62	67		CONTRACTORS. (a) If an electrical contractor employs an individual
63	68		to engage in residential solar retail on behalf of the electrical
64	69		contractor, the electrical contractor is exempt from the
65	70		registration and insurance requirements of this chapter applicable
66	71		to a solar retailer, except that an agreement in which the
67	72		electrical contractor is the seller or lessor is subject to
68	73		Sections 1806.155 and 1806.156.
69	74		(b) If an individual is employed by an electrical contractor
70	75		to engage in residential solar retail on behalf of the electrical
71	76		contractor, the individual is exempt from the registration
72	77		requirements of this chapter.
73	78		Sec. 1806.005. APPLICABILITY. (a) This chapter does not
74	79		apply to:
75	80		(1) except as provided by Subsection (b), a written
76	81		agreement:
77	82		(A) entered into in this state for the sale or
78	83		lease of a residential solar energy system; and
79	84		(B) pertaining to a residential property located
80	85		outside this state; or
81	86		(2) a solar energy system:
82	87		(A) intended:
83	88		(i) for temporary or emergency use; or
84	89		(ii) to provide power to a single
85	90		appliance;
86	91		(B) that:
87	92		(i) if combined with other systems that
88	93		produce electricity, produces in combination with the other systems
89	94		a total peak output power of less than one kilowatt; or
90	95		(ii) if not combined with other systems
91	96		that produce electricity, is designed to produce a peak output
92	97		power of less than one kilowatt; or
93	98		(C) sold or leased:
94	99		(i) for commercial purposes, including a
95	100		solar energy system installed on the premises of a nonresidential
96	101		property;
97	102		(ii) to provide power to a multifamily
98	103		dwelling that exceeds four dwelling units or stories;
99	104		(iii) before September 1, 2025; or
100	105		(iv) in connection with new residential
101	106		construction.
102	107		(b) This chapter applies to any residential solar retail
103	108		occurring in this state in connection with an agreement described
104	109		by Subsection (a)(1).
105	110		Sec. 1806.006. PREEMPTION. To the extent of any conflict
106	111		between this chapter and any of the following laws, this chapter
107	112		prevails over:
108	113		(1) a municipal ordinance regulating the same conduct
109	114		as this chapter; or
110	115		(2) Chapter 115 or 601, Business & Commerce Code.
111	116		SUBCHAPTER B. POWERS AND DUTIES
112	117		Sec. 1806.051. GENERAL POWERS AND DUTIES. (a) The
113	118		department shall administer and enforce this chapter.
114	119		(b) The commission shall adopt rules necessary to
115	120		administer and enforce this chapter, including:
116	121		(1) in addition to any practice prohibited or
117	122		restricted by this chapter, prohibiting or restricting any specific
118	123		unfair, deceptive, or misleading practices related to residential
119	124		solar retail and specifying those practices;
120	125		(2) requiring a solar retailer or solar salesperson to
121	126		provide disclosures or educational materials when selling or
122	127		leasing, or offering to sell or lease, a residential solar energy
123	128		system and specifying the form and format of those disclosures;
124	129		(3) regulating the form and format of an agreement for
125	130		the sale or lease of a residential solar energy system;
126	131		(4) establishing insurance requirements for solar
127	132		retailers; and
128	133		(5) establishing continuing education requirements as
129	134		a prerequisite to renew a solar salesperson registration under this
130	135		chapter.
131	136		(c) The commission shall consult the Office of Consumer
132	137		Credit Commissioner in adopting rules described by Subsections
133	138		(b)(2) and (3) to ensure compliance with federal and state law
134	139		governing financial transactions, including the Truth in Lending
135	140		Act (15 U.S.C. Section 1601 et seq.).
136	141		Sec. 1806.052. FEES. The commission shall establish and
137	142		collect reasonable and necessary fees in amounts sufficient to
138	143		cover the costs of:
139	144		(1) administering this chapter; and
140	145		(2) any other activity or function necessary for
141	146		effective regulation under this chapter.
142	147		Sec. 1806.053. EDUCATIONAL MATERIALS. (a) The Public
143	148		Utility Commission of Texas shall develop, in consultation with the
144	149		department and the office of the attorney general, educational
145	150		materials that inform consumers of the consumers' rights and
146	151		remedies related to the purchase or lease of residential solar
147	152		energy systems under this chapter and other applicable laws.
148	153		(b) The commission by rule may require solar retailers and
149	154		solar salespersons when engaging in residential solar retail to
150	155		provide solicited persons with the educational materials developed
151	156		under this section.
152	157		SUBCHAPTER C. REGISTRATION
153	158		Sec. 1806.101. REGISTRATION REQUIRED: SOLAR SALESPERSON. A
154	159		person may not engage in residential solar retail for compensation
155	160		unless the person:
156	161		(1) engages in residential solar retail on behalf of a
157	162		solar retailer; and
158	163		(2) is registered as a solar salesperson under this
159	164		chapter.
160	165		Sec. 1806.102. REGISTRATION REQUIRED: SOLAR RETAILER. A
161	166		person may not employ or otherwise contract for the services of an
162	167		individual to engage in residential solar retail on behalf of the
163	168		person unless the person is registered as a solar retailer.
164	169		Sec. 1806.103. ELIGIBILITY FOR REGISTRATION. (a) To be
165	170		eligible for a registration under this chapter, a person must:
166	171		(1) submit an application to the department;
167	172		(2) pay any required fees; and
168	173		(3) meet the eligibility requirements of this chapter
169	174		and of rules adopted under this chapter.
170	175		(b) To be eligible to register as a solar salesperson, the
171	176		applicant must be an individual.
172	177		Sec. 1806.104. SOLAR RETAILER APPLICATION. An application
173	178		to register as a solar retailer must include:
174	179		(1) if the solar retailer is an entity, a list of each
175	180		controlling person of the solar retailer;
176	181		(2) the name and registration number of each solar
177	182		salesperson who engages in residential solar retail on behalf of
178	183		the solar retailer; and
179	184		(3) evidence satisfactory to the department that the
180	185		applicant has insurance meeting the requirements established by
181	186		commission rule.
182	187		Sec. 1806.105. CRIMINAL HISTORY RECORD INFORMATION CHECK.
183	188		The department may conduct a criminal history record information
184	189		check of each applicant or, if applicable, any controlling person
185	190		of an applicant for a registration under this chapter using
186	191		information:
187	192		(1) provided by the applicant; and
188	193		(2) made available to the department by the Department
189	194		of Public Safety and any other criminal justice agency under
190	195		Chapter 411, Government Code.
191	196		Sec. 1806.106. EXEMPTION FROM CONTINUING EDUCATION.
192	197		Notwithstanding Section 51.405 or any other provision of this
193	198		chapter, a solar retailer may not be required to complete
194	199		continuing education to renew the solar retailer's registration
195	200		under this chapter.
196	201		SUBCHAPTER D. PRACTICE BY REGISTRANTS
197	202		Sec. 1806.151. NOTICE TO DEPARTMENT OF SOLAR SALESPERSONS
198	203		AUTHORIZED TO ENGAGE IN RESIDENTIAL SOLAR RETAIL. A solar retailer
199	204		shall promptly notify the department in a manner prescribed by the
200	205		department of:
201	206		(1) each solar salesperson authorized to engage in
202	207		residential solar retail on behalf of the solar retailer; and
203	208		(2) any change in an authorization described by
204	209		Subdivision (1).
205	210		Sec. 1806.152. SUPERVISION REQUIRED. (a) A solar retailer
206	211		shall provide reasonable supervision to each solar salesperson
207	212		authorized to engage in residential solar retail on behalf of the
208	213		solar retailer, including making reasonable efforts to correct any
209	214		violation of this chapter or a rule adopted under this chapter that
210	215		the solar retailer is aware of or of which a reasonable person under
211	216		the same circumstances would be aware.
212	217		(b) A solar retailer is responsible for any violation
213	218		described by Subsection (a) committed by a solar salesperson
214	219		authorized to engage in residential solar retail on behalf of the
215	220		solar retailer.
216	221		Sec. 1806.153. CODE OF CONDUCT; COMPLIANCE WITH OTHER LAW.
217	222		A solar retailer and a solar salesperson shall comply with:
218	223		(1) any code of conduct adopted by commission rule
219	224		governing solar retailers or solar salespersons, as applicable;
220	225		(2) Subchapter E, Chapter 17, Business & Commerce
221	226		Code;
222	227		(3) Chapter 115, Business & Commerce Code, as if the
223	228		solar retailer or solar salesperson, as applicable, were a seller
224	229		or lessor under that chapter; and
225	230		(4) the Truth in Lending Act (15 U.S.C. Section 1601 et
226	231		seq.) and applicable state laws governing financial transactions by
227	232		providing any disclosure required by those laws.
228	233		Sec. 1806.154. REGISTRATION INFORMATION. (a) On request by
229	234		the department or a person to whom a solar retailer or solar
230	235		salesperson has offered to sell or lease, or has sold or leased, a
231	236		residential solar energy system, the solar retailer or solar
232	237		salesperson, as applicable, shall provide the department or person
233	238		with the retailer's or salesperson's name and registration number.
234	239		(b) A solar retailer shall ensure that each agreement for
235	240		the sale or lease of a residential solar energy system by the
236	241		retailer includes the name and registration number of the retailer
237	242		and the solar salesperson involved in the transaction.
238	243		(c) An electrical contractor or individual acting on behalf
239	244		of an electrical contractor shall provide the electrical
240	245		contractor's name and license number under the same circumstances
241	246		as a solar retailer or solar salesperson is required to provide the
242	247		retailer's or salesperson's name and number under this section.
243	248		Sec. 1806.155. REQUIRED CONTRACT PROVISIONS. (a) If the
244	249		sale or lease of a residential solar energy system involves the
245	250		installation of the system at a person's residence, the sale or
246	251		lease agreement must:
247	252		(1) provide that the installation of the residential
248	253		solar energy system will be performed by an electrical contractor;
249	254		(2) conspicuously state the name and license number of
250	255		the electrical contractor who will perform the installation
251	256		described by Subdivision (1); and
252	257		(3) provide that the solar retailer or electrical
253	258		contractor, as applicable, will obtain:
254	259		(A) any permit required by a government entity
255	260		for the installation described by Subdivision (1);
256	261		(B) if Section 39.554 or 39.916, Utilities Code,
257	262		applies, the approval by the electric utility serving the person's
258	263		residence of the interconnection of the residential solar energy
259	264		system; and
260	265		(C) if the person is a customer of an electric
261	266		cooperative or a municipally owned utility, the cooperative's or
262	267		utility's approval of the interconnection of the residential solar
263	268		energy system.
264	269		(b) The requirement under Subsection (a)(2) may be
265	270		satisfied by providing a list of electrical contractors in the
266	271		agreement from which one must be selected to perform the
267	272		installation described by Subsection (a)(1).
268	273		(c) If the sale or lease of a residential solar energy
269	274		system involves a third-party lender that is affiliated with or
270	275		referred by the solar retailer, the sale or lease agreement must
271	276		include a provision requiring the third-party lender to cancel any
272	277		accompanying loan made by the third-party lender to the buyer or
273	278		lessee on the buyer's or lessee's cancellation of the agreement
274	279		under Section 1806.156.
275	280		Sec. 1806.156. RIGHT TO CANCEL AGREEMENT. (a) In this
276	281		section, "business day" means a calendar day excluding Saturday,
277	282		Sunday, or any legal holiday, as that term is defined by Section
278	283		662.021, Government Code.
279	284		(b) Notwithstanding any other law, a solar retailer shall
280	285		allow a buyer or lessee who enters into an agreement to purchase or
281	286		lease a residential solar energy system to cancel the agreement
282	287		without penalty or further obligation by providing written notice
283	288		of the cancellation on or before the fifth business day after the
284	289		date on which the agreement was executed by the buyer or lessee.
285	290		(c) A solar retailer shall include in an agreement for the
286	291		sale or lease of a residential solar energy system the last calendar
287	292		date of the cancellation period prescribed by Subsection (b) and
288	293		the mailing address or e-mail address for providing the notice of
289	294		cancellation.
290	295		(d) If the agreement does not contain the address for
291	296		cancellation required by Subsection (c), the buyer or lessee may
292	297		cancel the agreement during the period described by Subsection (b)
293	298		by providing written notice of cancellation to the solar retailer
294	299		by any reasonable method.
295	300		SUBCHAPTER E. ENFORCEMENT
296	301		Sec. 1806.201. PROHIBITED ACTS. A person may not:
297	302		(1) intentionally, knowingly, or recklessly make a
298	303		false, misleading, or deceptive oral or written statement to
299	304		another person when engaging in residential solar retail;
300	305		(2) falsely state or imply an affiliation with a
301	306		public utility or government agency when engaging in residential
302	307		solar retail;
303	308		(3) fail to provide the disclosure statements or any
304	309		educational materials as required by this chapter, by Chapter 115,
305	310		Business & Commerce Code, or by commission rule when engaging in
306	311		residential solar retail;
307	312		(4) engage in residential solar retail at a residence
308	313		in violation of posted signage indicating that soliciting is
309	314		prohibited, unless otherwise directed by an occupant of the
310	315		residence;
311	316		(5) allow the installation of a residential solar
312	317		energy system to be performed by a person who is not an electrical
313	318		contractor;
314	319		(6) make a material misrepresentation in an
315	320		application submitted to the department under this chapter or in
316	321		any other document submitted to the department under this chapter;
317	322		or
318	323		(7) violate, attempt to violate, or conspire to
319	324		violate this chapter or a rule adopted under this chapter.
320	325		Sec. 1806.202. DENIAL OR REFUSAL TO RENEW. The executive
321	326		director may deny an application to register or refuse to renew a
322	327		registration under this chapter if the applicant or, if applicable,
323	328		a controlling person of the applicant has:
324	329		(1) violated this chapter or a rule or order of the
325	330		commission or executive director; or
326	331		(2) had suspended or revoked, or has been otherwise
327	332		formally disciplined in connection with, any authorization to
328	333		practice an occupation or engage in a business that was issued by a
329	334		licensing authority in this state or another state.
330	335		Sec. 1806.203. ADMINISTRATIVE PENALTY. In imposing an
331	336		administrative penalty under Subchapter F, Chapter 51, for a
332	337		violation of Section 1806.201, the commission in determining the
333	338		appropriate amount of the penalty may consider whether any
334	339		individual over the age of 65 at the time of the prohibited conduct
335	340		was harmed by the conduct.
336	341		Sec. 1806.204. WARNING LETTER. (a) Before imposing an
337	342		administrative penalty or sanction against a person under Chapter
338	343		51, the executive director may issue a warning letter directing a
339	344		person to take corrective action regarding the violation that is
340	345		the basis of the penalty or sanction.
341	346		(b) In determining whether to issue a warning letter under
342	347		Subsection (a), the executive director may consider any history of
343	348		violations by the person, including whether the person complied
344	349		with previous warning letters, and the person's efforts to correct
345	350		the violation and prevent future violations.
346	351		(c) A determination to issue a warning letter under this
347	352		section is not a contested case under Chapter 2001, Government
348	353		Code.
349	354		Sec. 1806.205. CEASE AND DESIST ORDER. The executive
350	355		director may issue a cease and desist order under Section 51.3513 to
351	356		protect public health and safety.
352	357		Sec. 1806.206. AMOUNT OF CIVIL PENALTY. (a)
353	358		Notwithstanding Section 51.352 and except as provided by Subsection
354	359		(b), the amount of a civil penalty imposed under Chapter 51 for a
355	360		violation of this chapter or a rule adopted under this chapter may
356	361		not exceed:
357	362		(1) $2,500 for each violation; or
358	363		(2) $50,000 in the aggregate for all violations of a
359	364		similar nature.
360	365		(b) In a proceeding imposing a civil penalty under Section
361	366		51.352 for a violation of this chapter or a rule adopted under this
362	367		chapter, if the court finds that an individual over the age of 65 at
363	368		the time of the violation was harmed by the violation, the amount of
364	369		the civil penalty may not exceed:
365	370		(1) $10,000 for each violation; or
366	371		(2) $100,000 in the aggregate for all violations of a
367	372		similar nature.
368	373		Sec. 1806.207. AGREEMENT CANCELLATION AND REFUND. (a)
369	374		Subject to Subsection (b), the commission or executive director
370	375		may, after notice and a hearing and after finding that a violation
371	376		of this chapter or a rule adopted under this chapter has occurred,
372	377		order the cancellation of an agreement for the sale or lease of a
373	378		residential solar energy system and the refund of any amount paid
374	379		under the agreement.
375	380		(b) The amount of a refund ordered under this section may
376	381		not exceed the amounts paid under the agreement.
377	382		(c) This section does not authorize the executive director
378	383		or commission to impose or collect penalties, fines, or other
379	384		damages, except that a proceeding under this section may be
380	385		combined with a proceeding to impose an administrative penalty or
381	386		sanction by the department.
382	387		(d) A proceeding under this section is a contested case
383	388		under Chapter 2001, Government Code.
384	389		(e) This section does not prohibit an injured party who was
385	390		refunded money under this section from bringing an action in a court
386	391		with jurisdiction to collect damages, other than the refunded
387	392		money, or obtain equitable relief under other applicable law.
388	393		Sec. 1806.208. VIOLATION BY ELECTRICAL CONTRACTOR. An
389	394		electrical contractor who violates this chapter or a rule adopted
390	395		under this chapter is subject to an administrative penalty or
391	396		sanction or any other enforcement provision under Chapter 1305,
392	397		Chapter 51, and this chapter.
393	398		SECTION 2. Chapter 1806, Occupations Code, as added by this
394	399		Act, applies only to a contract entered into on or after the
395	400		effective date of this Act. A contract entered into before the
396	401		effective date of this Act is governed by the law in effect on the
397	402		date the contract was entered into, and that law is continued in
398	403		effect for that purpose.
399	404		SECTION 3. Not later than June 1, 2026, the Texas Commission
400	405		of Licensing and Regulation shall adopt rules necessary to
401	406		implement Chapter 1806, Occupations Code, as added by this Act.
402	407		SECTION 4. As soon as practicable after the effective date
403	408		of this Act, the Texas Department of Licensing and Regulation shall
404	409		establish and lead a stakeholder work group to provide advice and
405	410		recommendations to the department on regulating activities
406	411		governed by Chapter 1806, Occupations Code, as added by this Act.
407	412		The department shall establish the size, composition, and scope of
408	413		the stakeholder work group.
409	414		SECTION 5. (a) Except as otherwise provided by this Act,
410	415		this Act takes effect September 1, 2025.
411	416		(b) Sections 1806.101 and 1806.102 and Subchapter E,
412	417		Chapter 1806, Occupations Code, as added by this Act, take effect
413	418		September 1, 2026.
	419	+	* * * * *