Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 157 First Substitute (2018GS)

Sponsor

Sen. Fillmore, L.

Final action

Governor Signed 3/19/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• requires a solar retailer to provide a written disclosure statement to a potential customer and specifies the timing and content of the disclosure statement; and
• provides for the enforcement of the disclosure requirements.

Every vote on this bill

Bill text

RESIDENTIAL SOLAR ENERGY AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: 
Mike Winder
LONG TITLE
General Description:
This bill enacts provisions relating to residential solar energy systems.
Highlighted Provisions:
This bill:
▸ requires a solar retailer to provide a written disclosure statement to a potential
customer and specifies the timing and content of the disclosure statement; and
▸ provides for the enforcement of the disclosure requirements.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
13-2-1
, as last amended by Laws of Utah 2017, Chapter 98
ENACTS:
13-52-101
, Utah Code Annotated 1953
13-52-102
, Utah Code Annotated 1953
13-52-103
, Utah Code Annotated 1953
13-52-201
, Utah Code Annotated 1953
13-52-202
, Utah Code Annotated 1953
13-52-203
, Utah Code Annotated 1953
13-52-204
, Utah Code Annotated 1953
13-52-205
, Utah Code Annotated 1953
13-52-206
, Utah Code Annotated 1953
13-52-301
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
13-2-1
 is amended to read:
13-2-1.
Consumer protection division established -- Functions.
(1) There is established within the Department of Commerce the Division of Consumer
Protection.
(2) The division shall administer and enforce the following:
(a) Chapter 5, Unfair Practices Act;
(b) Chapter 10a, Music Licensing Practices Act;
(c) Chapter 11, Utah Consumer Sales Practices Act;
(d) Chapter 15, Business Opportunity Disclosure Act;
(e) Chapter 20, New Motor Vehicle Warranties Act;
(f) Chapter 21, Credit Services Organizations Act;
(g) Chapter 22, Charitable Solicitations Act;
(h) Chapter 23, Health Spa Services Protection Act;
(i) Chapter 25a, Telephone and Facsimile Solicitation Act;
(j) Chapter 26, Telephone Fraud Prevention Act;
(k) Chapter 28, Prize Notices Regulation Act;
(l) Chapter 32a, Pawnshop and Secondhand Merchandise Transaction Information Act;
(m) Chapter 34, Utah Postsecondary Proprietary School Act;
(n) Chapter 34a, Utah Postsecondary School State Authorization Act;
(o) Chapter 39, Child Protection Registry;
(p) Chapter 41, Price Controls During Emergencies Act;
(q) Chapter 42, Uniform Debt-Management Services Act;
(r) Chapter 49, Immigration Consultants Registration Act; [
and
]
(s) Chapter 51, Transportation Network Company Registration Act[
.
]
; and
(t) Chapter 52, Residential Solar Energy Disclosure Act.
Section 2. Section 
13-52-101
 is enacted to read:
CHAPTER 52. RESIDENTIAL SOLAR ENERGY DISCLOSURE ACT
Part 1. General Provisions
 13-52-101.
Title.
This chapter is known as the "Residential Solar Energy Disclosure Act."
Section 3. Section 
13-52-102
 is enacted to read:
 13-52-102.
Definitions.
As used in this chapter:
(1) "Customer" means a person who, for primarily personal, family, or household
purposes:
(a) purchases a residential solar energy system under a system purchase agreement;
(b) leases a residential solar energy system under a system lease agreement; or
(c) purchases electricity under a power purchase agreement.
(2) "Division" means the Division of Consumer Protection, established in Section
13-2-1
.
(3) "Power purchase agreement" means an agreement:
(a) between a customer and a solar retailer;
(b) for the customer's purchase of electricity generated by a residential solar energy
system owned by the solar retailer; and
(c) that provides for the customer to make payments over a term of at least five years.
(4) "Residential solar energy system":
(a) means a solar energy system that:
(i) is installed in the state;
(ii) generates electricity primarily for on-site consumption for personal, family, or
household purposes;
(iii) is situated on no more than four units of residential real property; and
(iv) has an electricity delivery capacity that exceeds one kilowatt; and
(b) does not include a generator that:
(i) produces electricity; and
(ii) is intended for occasional use.
(5) "Solar agreement" means a system purchase agreement, a system lease agreement,
or a power purchase agreement.
(6) "Solar energy system" means a system or configuration of solar energy devices that
collects and uses solar energy to generate electricity.
(7) "Solar retailer" means a person who:
(a) sells or proposes to sell a residential solar energy system to a customer under a
system purchase agreement;
(b) owns the residential solar energy system that is the subject of a system lease
agreement or proposed system lease agreement; or
(c) sells or proposes to sell electricity to a customer under a power purchase agreement.
(8) "System lease agreement" means an agreement:
(a) under which a customer leases a residential solar energy system from a solar
retailer; and
(b) that provides for the customer to make payments over a term of at least five years
for the lease of the residential solar energy system.
(9) "System purchase agreement" means an agreement under which a customer
purchases a residential solar energy system from a solar retailer.
Section 4. Section 
13-52-103
 is enacted to read:
 13-52-103.
Applicability of chapter.
This chapter:
(1) applies to each solar agreement entered into on or after September 3, 2018,
including a solar agreement that accompanies the transfer of ownership or lease of real
property; and
(2) does not apply to:
(a) the transfer of title or rental of real property on which a residential solar energy
system is or is expected to be located, if the presence of the residential solar energy system is
incidental to the transfer of title or rental;
(b) a lender, governmental entity, or other third party that enters into an agreement with
a customer to finance a residential solar energy system but is not a party to a system purchase
agreement, power purchase agreement, or lease agreement;
(c) a sale or lease of, or the purchase of electricity from, a solar energy system that is
not a residential solar energy system; or
(d) the lease of a residential solar energy system or the purchase of power from a
residential solar energy system under an agreement providing for payments over a term of less
than five years.
Section 5. Section 
13-52-201
 is enacted to read:
Part 2. Disclosure Statement
 13-52-201.
Disclosure statement required.
(1) (a) Before entering a solar agreement, a solar retailer shall provide to a potential
customer a separate, written disclosure statement as provided in this section and, as applicable,
Sections 
13-52-202
, 
13-52-203
, 
13-52-204
, and 
13-52-205
.
(b) (i) The requirement under Subsection (1)(a) may be satisfied by the electronic
delivery of a disclosure statement to the potential customer.
(ii) An electronic document under Subsection (1)(a) satisfies the font-size standard
under Subsection (2)(a) if the required disclosures are displayed in a clear and conspicuous
manner.
(2) A disclosure statement under Subsection (1) shall:
(a) be in at least 12-point font;
(b) contain:
(i) the name, address, telephone number, and any email address of the potential
customer;
(ii) the name, address, telephone number, and email address of the solar retailer; and
(iii) (A) the name, address, telephone number, email address, and state contractor
license number of the person who is expected to install the system that is the subject of the
solar agreement; and
(B) if the solar retailer selected the person who is expected to provide operations or
maintenance support to the potential customer or introduced that person to the potential
customer, the name, address, telephone number, email address, and state contractor license of
the operations or maintenance support person; and
(c) include applicable information and disclosures as provided in Sections 
13-52-202
,
13-52-203
, 
13-52-204
, and 
13-52-205
.
Section 6. Section 
13-52-202
 is enacted to read:
 13-52-202.
Contents of disclosure statement for any solar agreement.
If a solar retailer is proposing to enter any solar agreement with a potential customer,
the disclosure statement required in Subsection 
13-52-201
(1) shall include:
(1) a statement indicating that operations or maintenance services are not included as
part of the solar agreement, if those services are not included as part of the solar agreement;
(2) if the solar retailer provides any written estimate of the savings the potential
customer is projected to realize from the system:
(a) (i) the estimated projected savings over the life of the solar agreement; and
(ii) at the discretion of the solar retailer, the estimated projected savings over any
longer period not to exceed the anticipated useful life of the system;
(b) any material assumptions used to calculate estimated projected savings and the
source of those assumptions, including:
(i) if an annual electricity rate increase is assumed, the rate of the increase and the solar
retailer's basis for the assumption of the rate increase;
(ii) the potential customer's eligibility for or receipt of tax credits or other
governmental or utility incentives;
(iii) system production data, including production degradation;
(iv) the system's eligibility for interconnection under any net metering or similar
program;
(v) electrical usage and the system's designed offset of the electrical usage;
(vi) historical utility costs paid by the potential customer;
(vii) any rate escalation affecting a payment between the potential customer and the
solar retailer; and
(viii) the costs associated with replacing equipment making up part of the system or, if
those costs are not assumed, a statement indicating that those costs are not assumed; and
(c) two separate statements in capital letters in close proximity to any written estimate
of projected savings, with substantially the following form and content:
(i) "THIS IS AN ESTIMATE. UTILITY RATES MAY GO UP OR DOWN AND
ACTUAL SAVINGS, IF ANY, MAY VARY. HISTORICAL DATA ARE NOT
NECESSARILY REPRESENTATIVE OF FUTURE RESULTS. FOR FURTHER
INFORMATION REGARDING RATES, CONTACT YOUR LOCAL UTILITY OR THE
STATE PUBLIC SERVICE COMMISSION."; and
(ii) "TAX AND OTHER FEDERAL, STATE, AND LOCAL INCENTIVES VARY
AS TO REFUNDABILITY AND ARE SUBJECT TO CHANGE OR TERMINATION BY
LEGISLATIVE OR REGULATORY ACTION, WHICH MAY IMPACT SAVINGS
ESTIMATES. CONSULT A TAX PROFESSIONAL FOR MORE INFORMATION.";
(3) a notice with substantially the following form and content: "Legislative or
regulatory action may affect or eliminate your ability to sell or get credit for any excess power
generated by the system, and may affect the price or value of that power.";
(4) a notice describing any right a customer has under applicable law to cancel or
rescind a solar agreement;
(5) a statement describing the system and indicating the system design assumptions,
including the make and model of the solar panels and inverters, system size, positioning of the
panels on the customer's property, estimated first-year energy production, and estimated annual
energy production degradation, including the overall percentage degradation over the term of
the solar agreement or, at the solar retailer's option, over the estimated useful life of the system;
(6) a description of any warranty, representation, or guarantee of energy production of
the system;
(7) the approximate start and completion dates for the installation of the system;
(8) a statement indicating whether any warranty or maintenance obligations related to
the system may be transferred by the solar retailer to a third party and, if so, a statement with
substantially the following form and content: "The maintenance and repair obligations under
your contract may be assigned or transferred without your consent to a third party who will be
bound to all the terms of the contract. If a transfer occurs, you will be notified of any change to
the address, email address, or phone number to use for questions or payments or to request
system maintenance or repair.";
(9) if the solar retailer will not obtain customer approval to connect the system to the
customer's utility, a statement to that effect and a description of what the customer must do to
interconnect the system to the utility;
(10) a description of any roof penetration warranty or other warranty that the solar
retailer provides the customer or a statement, in bold capital letters, that the solar retailer does
not provide any warranty;
(11) a statement indicating whether the solar retailer will make a fixture filing or other
notice in the county real property records covering the system, including a Notice of
Independently Owned Solar Energy System, and any fees or other costs associated with the
filing that may be charged to the customer;
(12) a statement in capital letters with substantially the following form and content:
"NO EMPLOYEE OR REPRESENTATIVE OF [name of solar retailer] IS AUTHORIZED TO
MAKE ANY PROMISE TO YOU THAT IS NOT CONTAINED IN THIS DISCLOSURE
STATEMENT CONCERNING COST SAVINGS, TAX BENEFITS, OR GOVERNMENT
OR UTILITY INCENTIVES. YOU SHOULD NOT RELY UPON ANY PROMISE OR
ESTIMATE THAT IS NOT INCLUDED IN THIS DISCLOSURE STATEMENT.";
(13) a statement in capital letters with substantially the following form and content:
"[name of solar retailer] IS NOT AFFILIATED WITH ANY UTILITY COMPANY OR
GOVERNMENT AGENCY. NO EMPLOYEE OR REPRESENTATIVE OF [name of solar
retailer] IS AUTHORIZED TO CLAIM AFFILIATION WITH A UTILITY COMPANY OR
GOVERNMENT AGENCY."; and
(14) any additional information, statement, or disclosure the solar retailer considers
appropriate, as long as the additional information, statement, or disclosure does not have the
purpose or effect of obscuring the disclosures required under this part.
Section 7. Section 
13-52-203
 is enacted to read:
 13-52-203.
Contents of disclosure statement for system purchase agreement.
If a solar retailer is proposing to enter a system purchase agreement with a potential
customer, the disclosure statement required in Subsection 
13-52-201
(1) shall include:
(1) a statement with substantially the following form and content: "You are entering an
agreement to purchase an energy generation system. You will own the system installed on your
property. You may be entitled to federal tax credits because of the purchase. You should
consult your tax advisor.";
(2) the price quoted to the potential customer for a cash purchase of the system;
(3) (a) the schedule of required and anticipated payments from the customer to the
solar retailer and third parties over the term of the system purchase agreement, including
application fees, up-front charges, down payment, scheduled payments under the system
purchase agreement, payments at the end of the term of the system purchase agreement,
payments for any operations or maintenance contract offered by or through the solar retailer in
connection with the system purchase agreement, and payments for replacement of system
components likely to require replacement before the end of the useful life of the system as a
whole; and
(b) the total of all payments referred to in Subsection (3)(a);
(4) a statement indicating that the cost of insuring the system is not included within the
schedule of payments under Subsection (3);
(5) a statement, if applicable, with substantially the following form and content: "You
are responsible for obtaining insurance coverage for any loss or damage to the system. You
should consult an insurance professional to understand how to protect against the risk of loss or
damage to the system. You should also consult your home insurer about the potential impact of
installing a system."; and
(6) information about whether the system may be transferred to a purchaser of the
home or real property where the system is located and any conditions for a transfer.
Section 8. Section 
13-52-204
 is enacted to read:
 13-52-204.
Contents of disclosure statement for system lease agreement.
If a solar retailer is proposing to enter a system lease agreement with a potential
customer, the disclosure statement required in Subsection 
13-52-201
(1) shall include:
(1) a statement with substantially the following form and content: "You are entering an
agreement to lease an energy generation system. You will lease (not own) the system installed
on your property. You will not be entitled to any federal tax credit associated with the lease.";
(2) information about whether the system lease agreement may be transferred to a
purchaser of the home or real property where the system is located and, if so, any conditions for
a transfer;
(3) if the solar retailer will not obtain insurance against damage or loss to the system, a
statement to that effect and a description of the consequences to the customer if there is
damage or loss to the system; and
(4) information about what will happen to the system at the end of the term of the
system lease agreement.
Section 9. Section 
13-52-205
 is enacted to read:
 13-52-205.
Contents of disclosure statement for power purchase agreement.
If a solar retailer is proposing to enter a power purchase agreement with a potential
customer, the disclosure statement required in Subsection 
13-52-201
(1) shall include:
(1) a statement with substantially the following form and content: "You are entering an
agreement to purchase power from an energy generation system. You will not own the system
installed on your property. You will not be entitled to any federal tax credit associated with the
purchase.";
(2) information about whether the power purchase agreement may be transferred to a
purchaser of the home or real property where the system is located and, if so, any conditions for
a transfer;
(3) if the solar retailer will not obtain insurance against damage or loss to the system, a
statement to that effect and a description of the consequences to the customer if there is
damage or loss to the system; and
(4) information about what will happen to the system at the end of the term of the
power purchase agreement.
Section 10. Section 
13-52-206
 is enacted to read:
 13-52-206.
Good faith estimate allowed.
A solar retailer that does not, at the time of providing a disclosure statement required in
Subsection 
13-52-201
(1), have information required under Section 
13-52-202
, 
13-52-203
,
13-52-204
, or 
13-52-205
 to be included in the disclosure statement may make a good faith
estimate of that information, if the solar retailer clearly indicates that the information is an
estimate and provides the basis for the estimate.
Section 11. Section 
13-52-301
 is enacted to read:
Part 3. Enforcement
 13-52-301.
Division enforcement authority -- Administrative fine.
(1) Subject to Subsection (2), the division may enforce the provisions of this chapter
by:
(a) conducting an investigation into an alleged violation of this chapter;
(b) issuing a cease and desist order against a further violation of this chapter; and
(c) imposing an administrative fine of no more than $2,500 per solar agreement on a
solar retailer that:
(i) materially fails to comply with the disclosure requirements of this chapter; or
(ii) violates any other provision of this chapter, if the division finds that the violation is
a willful or intentional attempt to mislead or deceive a customer.
(2) The division may not commence any enforcement action under this section more
than four years after the date of execution of the solar agreement with respect to which a
violation is alleged to have occurred.
(3) The division shall, in its discretion:
(a) deposit an administrative fine collected under Subsection (1)(c) in the Consumer
Protection Education and Training Fund created in Section 
13-2-8
; or
(b) distribute an administrative fine collected under Subsection (1)(c) to a customer
adversely affected by the solar retailer's failure or violation resulting in a fine under Subsection
(1)(c), if the division has conducted an administrative proceeding resulting in a determination
of the appropriateness and amount of any distribution to a customer.
(4) Nothing in this chapter may be construed to affect:
(a) a remedy a customer has independent of this chapter; or
(b) the division's ability or authority to enforce any other law or regulation.