Bill Text: CA SB757 | 2021-2022 | Regular Session | Amended
Bill Title: Solar energy system improvements: consumer protection.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2021-09-23 - Chaptered by Secretary of State. Chapter 249, Statutes of 2021. [SB757 Detail]
Download: California-2021-SB757-Amended.html
Amended
IN
Senate
April 12, 2021 |
Amended
IN
Senate
March 10, 2021 |
Introduced by Senator Limón |
February 19, 2021 |
LEGISLATIVE COUNSEL'S DIGEST
This bill would authorize a decision
made in a complaint to include an order from the registrar, as provided, that the board shall not renew or reinstate the license of a respondent who has failed to reimburse any recovery or restitution fund established for net energy metering solar consumers under the rulemaking authority of the Public Utilities Commission.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. Except as specified, electrical cooperatives are subject to the regulatory authority of the commission pursuant to the Public Utilities Act. Existing law requires every electric utility, defined to include electrical corporations, local publicly owned electric utilities, and electrical cooperatives, to develop a standard contract or tariff for net energy metering, as defined, for generation by a renewable electrical generation facility and to make this contract or tariff available to eligible customer-generators upon request on a first-come-first-served basis until the time that the total rated generating capacity used by eligible customer-generators
exceeds 5% of the electric utility’s aggregate customer peak demand. For a large electrical corporation with more than 100,000 service connections in California, existing law requires the commission to develop a new standard contract or tariff to provide net energy metering to additional eligible customer-generators in its service territory without limitation on the number of new eligible customer-generators.
This bill would require the commission, in consultation with the board and the Department of Financial Protection and Innovation, to establish a solar energy system surcharge on customers initiating net energy metering pursuant to a contract or tariff beginning February 1, 2022, to provide funding to remedy described harms to consumers caused by poor or fraudulent solar installations for which no other administrative remedy is available. The bill would require that moneys collected through the surcharge be deposited into the Solar Energy System Consumer
Protection Fund, which the bill would create. The bill would require the commission, in consultation with the board and the department, to develop and implement a program by January 21, 2022, to provide funding to remedy the described harms to consumers.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the bill’s requirements would be enforced by the commission and a violation of an order, decision, rule, direction, demand, or requirement of the commission would be a crime, this bill would impose a state-mandated local program by creating new crimes.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of
Digest Key
Vote:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 7151 of the Business and Professions Code is amended to read:7151.
(a) “Home improvement” means the repairing, remodeling, altering, converting, or modernizing of, or adding to, residential property, as well as the reconstruction, restoration, or rebuilding of a residential property that is damaged or destroyed by a natural disaster for which a state of emergency is proclaimed by the Governor pursuant to Section 8625 of the Government Code, or for which an emergency or major disaster is declared by the President of the United States, and shall include, but not be limited to, the construction, erection, installation, replacement, or improvement of driveways, swimming pools, including spas and hot tubs, terraces, patios, awnings, storm windows, solar energy systems, landscaping, fences, porches, garages, fallout shelters, basements, and other improvements of the structures or land which is adjacent to a dwelling house. “Home improvement” shall also mean the installation of home improvement goods or the furnishing of home improvement services.SEC. 2.
Section 7152 of the Business and Professions Code is amended to read:7152.
(a) “Home improvement salesperson” is a person who is registered under this chapter and engaged in the business of soliciting, selling, negotiating, or executing contracts for home improvements, for the sale, installation or furnishing of home improvement goods or services, or of swimming pools, spas, or hot tubs on behalf of a home improvement contractor licensed under this chapter.SEC. 3.
Section 7156 of the Business and Professions Code is amended to read:7156.
It shall be a misdemeanor and a cause for disciplinary action to commit any of the following acts:SEC. 4.
Section 7159.5 of the Business and Professions Code, as added by Section 6 of Chapter 92 of the Statutes of 2020, is amended to read:7159.5.
This section applies to all home improvement contracts, as defined in Section 7151.2, between an owner or tenant and a contractor, whether a general contractor or a specialty contractor, that is licensed or subject to be licensed pursuant to this chapter with regard to the transaction.SEC. 5.
Section 7170 of the Business and Professions Code is amended to read:7170.
(a) The Contractors State License Board shall receive and review complaints and consumer questions regarding solar energy systems companies and solar contractors. The board shall also receive complaints received from state agencies regarding solar energy systems companies and solar contractors.(c)In addition to the authority conferred in Section 7095, a decision made in a complaint identified in subdivision (a) may include an order from the registrar that the board shall not renew or reinstate the license of a respondent who has failed to reimburse any recovery or restitution fund established for net energy metering solar consumers under the rulemaking authority of the Public Utilities Commission. Any such order of the registrar shall be limited to the repayment of a specified amount previously made by the fund to a consumer identified in a complaint against the respondent filed with the board pursuant to Section 7090.
(a)The Legislature finds and declares all of the following:
(1)The commission regulates electrical corporations and is charged with ensuring that consumers have safe, reliable electrical service at just and reasonable rates and are protected against fraud, and with promoting the health of California’s economy.
(2)Distributed generation from eligible renewable energy resources, including solar energy system generation, provides ratepayer benefits, supports the state’s clean energy and climate change goals, and contributes to economic growth.
(3)Existing law requires the commission to ensure that distributed
generation from eligible renewable energy resources continues to grow sustainably, particularly in disadvantaged communities.
(4)Instances of fraud, misrepresentation, poor workmanship, and other harmful and illegal business practices in the distributed solar energy industry have been increasing in recent years and have been particularly pervasive in low-income, moderate-income, and disadvantaged communities and communities of color.
(5)In many instances of consumer fraud, vulnerable consumers suffer substantial financial harm and are left with inadequate solar energy systems that do not provide benefits to participants or the environment, contravening the purpose of the state’s net energy metering program.
(6)The Contractors State License Board is charged with regulating licensed contractors, and has existing
processes to adjudicate claims that contractors have violated the law, but in many cases cannot ensure that a defrauded consumer receives financial recompense.
(7)The Department of Financial Protection and Innovation provides protection to consumers and services to businesses engaged in financial transactions, and regulates a variety of financial services, products, and professionals, including Property Assessed Clean Energy Programs administrators and solicitors.
(8)Vulnerable consumers whose complaints have been investigated by the Contractors State License Board and resulted in legal action against the contractor, are often left with an outstanding unpaid order to correct and lack any administrative recourse.
(9)The commission regulates all requirements regarding eligibility for the net energy metering programs
offered by electrical corporations and any eventual successor tariff.
(10)The commission regulates all aspects of interconnection with the electrical grids maintained by the electrical corporations, including those interconnection applications submitted by solar energy system contractors for residential participants in the net energy metering programs of electrical corporations.
(11)To ensure equitable and sustainable distributed generation from solar energy systems, it is the intent of the Legislature to require the commission to establish a solar consumer protection surcharge, to be applied at the time of interconnection of a solar energy system to the electrical grid of an electrical corporation in order to establish a fund to provide assistance to solar energy system consumers who have been victims of fraud.
(b)The commission, in consultation with the Contractors State License Board and the Department of Financial Protection and Innovation, shall establish a solar energy system interconnection surcharge on customers initiating net energy metering pursuant to a contract or tariff beginning February 1, 2022, to provide funding to remedy consumer harm, as described in subdivision (a), for which no other administrative remedy is available. Moneys collected through the surcharge shall be deposited into the Solar Energy System Consumer Protection Fund.
(c)The Solar Energy System Consumer Protection Fund is hereby created in the General Fund. By January 21, 2022, the commission, in consultation with the Contractors State License Board and the Department of Financial Protection and Innovation, shall develop and implement a program, utilizing moneys appropriated from the fund, to provide funding to remedy consumer harm, as described in
subdivision (a), for which no other administrative remedy is available.