SB1036 - Relating to the regulation of residential solar retail transactions; requiring an occupational registration; authorizing fees; providing civil and administrative penalties.

      S.B. No. 1036         AN ACT   relating to the regulation of residential solar retail   transactions; requiring an occupational registration; authorizing   fees; providing civil and administrative penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 11, Occupations Code, is amended by adding   Chapter 1806 to read as follows:   CHAPTER 1806.   RESIDENTIAL SOLAR RETAILERS   SUBCHAPTER A.   GENERAL PROVISIONS           Sec.   1806.001.     SHORT TITLE. This chapter may be cited as   the Residential Solar Retailer Regulatory Act.           Sec. 1806.002.  GENERAL DEFINITIONS. In this chapter:                 (1)     "Commission" means the Texas Commission of   Licensing and Regulation.                 (2)     "Department" means the Texas Department of   Licensing and Regulation.                 (3)     "Electric cooperative" has the meaning assigned by   Section 11.003, Utilities Code.                 (4)     "Electrical contractor" means a person licensed as   an electrical contractor under Chapter 1305.                 (5)     "Executive director" means the executive director   of the department.                 (6)     "Municipally owned utility"   has the meaning   assigned by Section 11.003, Utilities Code.                 (7)     "Residential solar energy system" means a solar   energy system intended or designed primarily for family, personal,   or household use.                 (8)  "Residential solar retail" means:                       (A)     the sale or lease of, or an offer to sell or   lease, a residential solar energy system; or                       (B)     a transaction involving any combination of   the acts described by Paragraph (A).                 (9)     "Solar energy system" means a system or   configuration of solar energy devices that collects and uses solar   energy to generate electricity.                 (10)     "Solar retailer" means a person who is registered   under this chapter as a solar retailer.                 (11)     "Solar salesperson" means an individual who is   registered under this chapter as a solar salesperson.           Sec.   1806.003.     DEFINITION OF CONTROLLING PERSON. (a) In   this section, "business entity" means a corporation, business   trust, estate, trust, partnership, including a limited   partnership, association, or any other legal entity, regardless of   whether the entity is incorporated in this state.           (b)     In this chapter, "controlling person" means an   individual who:                 (1)     has direct or indirect control of at least 25   percent of the voting securities of a business entity;                 (2)     has the authority to set policy and direct the   management of a business entity;                 (3)     is the president, the secretary, or a director of a   business entity; or                 (4)     is a general partner of a partnership, including a   limited partnership.           Sec.   1806.004.     LIMITED APPLICABILITY TO ELECTRICAL   CONTRACTORS. (a) If an electrical contractor employs an individual   to engage in residential solar retail on behalf of the electrical   contractor, the electrical contractor is exempt from the   registration and insurance requirements of this chapter applicable   to a solar retailer, except that an agreement in which the   electrical contractor is the seller or lessor is subject to   Sections 1806.155 and 1806.156.           (b)     If an individual is employed by an electrical contractor   to engage in residential solar retail on behalf of the electrical   contractor, the individual is exempt from the registration   requirements of this chapter.           Sec.   1806.005.     APPLICABILITY. (a) This chapter does not   apply to:                 (1)     except as provided by Subsection (b), a written   agreement:                       (A)     entered into in this state for the sale or   lease of a residential solar energy system; and                       (B)     pertaining to a residential property located   outside this state; or                 (2)  a solar energy system:                       (A)  intended:                             (i)  for temporary or emergency use; or                             (ii)     to provide power to a single   appliance;                       (B)  that:                             (i)     if combined with other systems that   produce electricity, produces in combination with the other systems   a total peak output power of less than one kilowatt; or                             (ii)     if not combined with other systems   that produce electricity, is designed to produce a peak output   power of less than one kilowatt; or                       (C)  sold or leased:                             (i)     for commercial purposes, including a   solar energy system installed on the premises of a nonresidential   property;                             (ii)     to provide power to a multifamily   dwelling that exceeds four dwelling units or stories;                             (iii)  before September 1, 2025; or                             (iv)     in connection with new residential   construction.           (b)     This chapter applies to any residential solar retail   occurring in this state in connection with an agreement described   by Subsection (a)(1).           Sec.   1806.006.     PREEMPTION. To the extent of any conflict   between this chapter and any of the following laws, this chapter   prevails over:                 (1)     a municipal ordinance regulating the same conduct   as this chapter; or                 (2)  Chapter 115 or 601, Business & Commerce Code.   SUBCHAPTER B.   POWERS AND DUTIES           Sec.   1806.051.     GENERAL POWERS AND DUTIES. (a) The   department shall administer and enforce this chapter.           (b)     The commission shall adopt rules necessary to   administer and enforce this chapter, including:                 (1)     in addition to any practice prohibited or   restricted by this chapter, prohibiting or restricting any specific   unfair, deceptive, or misleading practices related to residential   solar retail and specifying those practices;                 (2)     requiring a solar retailer or solar salesperson to   provide disclosures or educational materials when selling or   leasing, or offering to sell or lease, a residential solar energy   system and specifying the form and format of those disclosures;                 (3)     regulating the form and format of an agreement for   the sale or lease of a residential solar energy system;                 (4)     establishing insurance requirements for solar   retailers; and                 (5)     establishing continuing education requirements as   a prerequisite to renew a solar salesperson registration under this   chapter.           (c)     The commission shall consult the Office of Consumer   Credit Commissioner in adopting rules described by Subsections   (b)(2) and (3) to ensure compliance with federal and state law   governing financial transactions, including the Truth in Lending   Act (15 U.S.C. Section 1601 et seq.).           Sec.   1806.052.     FEES. The commission shall establish and   collect reasonable and necessary fees in amounts sufficient to   cover the costs of:                 (1)  administering this chapter; and                 (2)     any other activity or function necessary for   effective regulation under this chapter.           Sec.   1806.053.     EDUCATIONAL MATERIALS. (a) The Public   Utility Commission of Texas shall develop, in consultation with the   department and the office of the attorney general, educational   materials that inform consumers of the consumers' rights and   remedies related to the purchase or lease of residential solar   energy systems under this chapter and other applicable laws.           (b)     The commission by rule may require solar retailers and   solar salespersons when engaging in residential solar retail to   provide solicited persons with the educational materials developed   under this section.   SUBCHAPTER C.   REGISTRATION           Sec.   1806.101.     REGISTRATION REQUIRED: SOLAR SALESPERSON.   A   person may not engage in residential solar retail for compensation   unless the person:                 (1)     engages in residential solar retail on behalf of a   solar retailer; and                 (2)     is registered as a solar salesperson under this   chapter.           Sec.   1806.102.     REGISTRATION REQUIRED: SOLAR RETAILER.   A   person may not employ or otherwise contract for the services of an   individual to engage in residential solar retail on behalf of the   person unless the person is registered as a solar retailer.           Sec.   1806.103.     ELIGIBILITY FOR REGISTRATION. (a) To be   eligible for a registration under this chapter, a person must:                 (1)  submit an application to the department;                 (2)  pay any required fees; and                 (3) &#x [Text truncated for display. Full text available on LegiScan.]