Bill Text: FL S0090 | 2017 | Regular Session | Engrossed
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Bill Title: Renewable Energy Source Devices
Spectrum: Bipartisan Bill
Status: (Passed) 2017-06-19 - Chapter No. 2017-118 [S0090 Detail]
Download: Florida-2017-S0090-Engrossed.html
Bill Title: Renewable Energy Source Devices
Spectrum: Bipartisan Bill
Status: (Passed) 2017-06-19 - Chapter No. 2017-118 [S0090 Detail]
Download: Florida-2017-S0090-Engrossed.html
CS for SB 90 Second Engrossed 201790e2 1 A bill to be entitled 2 An act relating to renewable energy source devices; 3 amending s. 24.118, F.S.; correcting a cross 4 reference; amending s. 193.624, F.S.; revising and 5 defining terms related to renewable energy source 6 devices; prohibiting consideration of the just value 7 of property attributable to a renewable energy source 8 device in determining the assessed value of 9 residential real property; prohibiting the 10 consideration of a specified percentage of the just 11 value of property attributable to a renewable energy 12 source device in determining the assessed value of 13 nonresidential real property; revising applicability; 14 creating s. 196.182, F.S.; exempting a specified 15 percentage of the assessed value of certain renewable 16 energy source devices from ad valorem taxation; 17 exempting a specified percentage of the assessed value 18 of renewable energy source devices affixed to property 19 owned or leased by the United States Department of 20 Defense for the military from ad valorem taxation; 21 providing for the future expiration of specified 22 statutory text; amending s. 501.604, F.S.; correcting 23 cross-references; creating part II of chapter 520, 24 F.S., entitled “Distributed Energy Generation System 25 Sales”; providing definitions; providing applicability 26 relating to, and specifying the disclosures required 27 of, certain agreements to sell or lease distributed 28 energy generation systems; requiring sellers that 29 install such systems to comply with specified safety 30 standards; requiring the Department of Business and 31 Professional Regulation to adopt rules and publish 32 standard disclosure forms; providing penalties; 33 providing exemptions; amending s. 671.304, F.S.; 34 correcting cross-references; providing for the future 35 expiration and reversion of specified statutory text; 36 providing an effective date. 37 38 Be It Enacted by the Legislature of the State of Florida: 39 40 Section 1. Subsection (1) of section 24.118, Florida 41 Statutes, is amended to read: 42 24.118 Other prohibited acts; penalties.— 43 (1) UNLAWFUL EXTENSIONS OF CREDIT.—Any retailer who extends 44 credit or lends money to a person for the purchase of a lottery 45 ticket is guilty of a misdemeanor of the second degree, 46 punishable as provided in s. 775.082 or s. 775.083. This 47 subsection shall not be construed to prohibit the purchase of a 48 lottery ticket through the use of a credit or charge card or 49 other instrument issued by a bank, savings association, credit 50 union, or charge card company or by a retailer pursuant to part 51 IIIpart IIof chapter 520, provided that any such purchase from 52 a retailer shall be in addition to the purchase of goods and 53 services other than lottery tickets having a cost of no less 54 than $20. 55 Section 2. Section 193.624, Florida Statutes, is amended to 56 read: 57 193.624 Assessment of renewable energy source devices 58residential property.— 59 (1) As used in this section, the term “renewable energy 60 source device” means any of the following equipment that 61 collects, transmits, stores, or uses solar energy, wind energy, 62 or energy derived from geothermal deposits: 63 (a) Solar energy collectors, photovoltaic modules, and 64 inverters. 65 (b) Storage tanks and other storage systems, excluding 66 swimming pools used as storage tanks. 67 (c) Rockbeds. 68 (d) Thermostats and other control devices. 69 (e) Heat exchange devices. 70 (f) Pumps and fans. 71 (g) Roof ponds. 72 (h) Freestanding thermal containers. 73 (i) Pipes, ducts, wiring, structural supports, refrigerant 74 handling systems, and other componentsequipmentused as 75 integral parts ofto interconnectsuch systems; however, such 76 equipment does not include conventional backup systems of any 77 type or any equipment or structure that would be required in the 78 absence of the renewable energy source device. 79 (j) Windmills and wind turbines. 80 (k) Wind-driven generators. 81 (l) Power conditioning and storage devices that store or 82 use solar energy, wind energy, or energy derived from geothermal 83 deposits to generate electricity or mechanical forms of energy. 84 (m) Pipes and other equipment used to transmit hot 85 geothermal water to a dwelling or structure from a geothermal 86 deposit. 87 88 The term does not include equipment that is on the distribution 89 or transmission side of the point at which a renewable energy 90 source device is interconnected to an electric utility’s 91 distribution grid or transmission lines. 92 (2) In determining the assessed value of real property 93 used: 94 (a) For residential purposes,an increase inthe just value 95 of the property attributable tothe installation ofa renewable 96 energy source device may not be considered. 97 (b) For nonresidential purposes, 80 percent of the just 98 value of the property attributable to a renewable energy source 99 device may not be considered. 100 (3) This section applies to the installation of a renewable 101 energy source device installed on or after January 1, 2013, to 102 new and existing residential real property. This section applies 103 to a renewable energy source device installed on or after 104 January 1, 2018, to all other real property, except when 105 installed as part of a project planned for a location in a 106 fiscally constrained county, as defined in s. 218.67(1), and for 107 which an application for a comprehensive plan amendment or 108 planned unit development zoning has been filed with the county 109 on or before December 31, 2017. 110 Section 3. Section 196.182, Florida Statutes, is created to 111 read: 112 196.182 Exemption of renewable energy source devices.— 113 (1) Eighty percent of the assessed value of a renewable 114 energy source device, as defined in s. 193.624, that is 115 considered tangible personal property is exempt from ad valorem 116 taxation if the renewable energy source device: 117 (a) Is installed on real property on or after January 1, 118 2018; 119 (b) Was installed before January 1, 2018, to supply a 120 municipal electric utility located within a consolidated 121 government; or 122 (c) Was installed after August 30, 2016, on municipal land 123 as part of a project incorporating other renewable energy source 124 devices under common ownership on municipal land for the sole 125 purpose of supplying a municipal electric utility with at least 126 2 megawatts and no more than 5 megawatts of alternating current 127 power when the renewable energy source devices in the project 128 are used together. 129 (2) The exemption provided in this section does not apply 130 to a renewable energy source device that is installed as part of 131 a project planned for a location in a fiscally constrained 132 county, as defined in s. 218.67(1), and for which an application 133 for a comprehensive plan amendment or planned unit development 134 zoning has been filed with the county on or before December 31, 135 2017. 136 (3) Notwithstanding this section, 80 percent of the 137 assessed value of a renewable energy source device, as defined 138 in s. 193.624, that is affixed to property owned or leased by 139 the United States Department of Defense for the military is 140 exempt from ad valorem taxation, including, but not limited to, 141 the tangible personal property tax. 142 (4) This section expires December 31, 2037. 143 Section 4. Subsection (13) of section 501.604, Florida 144 Statutes, is amended to read: 145 501.604 Exemptions.—The provisions of this part, except ss. 146 501.608 and 501.616(6) and (7), do not apply to: 147 (13) A commercial telephone seller licensed pursuant to 148 chapter 516 or part IIIpart IIof chapter 520. For purposes of 149 this exemption, the seller must solicit to sell a consumer good 150 or service within the scope of his or her license and the 151 completed transaction must be subject to the provisions of 152 chapter 516 or part IIIpart IIof chapter 520. 153 Section 5. Parts II, III, IV, and V of chapter 520, Florida 154 Statutes, are renumbered as Parts III, IV, V, and VI, 155 respectively, and a new Part II, consisting of sections 520.20, 156 520.21, 520.22, 520.23, 520.24, 520.25, and 520.26, is created 157 to read: 158 PART II 159 DISTRIBUTED ENERGY GENERATION SYSTEM SALES 160 520.20 Definitions.— As used in this part, the term: 161 (1) “Agreement” means a contract executed between a buyer 162 or lessee and a seller that leases or sells a distributed energy 163 generation system. For purposes of this part, the term includes 164 retail installment contracts. 165 (2) “Buyer” means a person that enters into an agreement to 166 buy a distributed energy generation system from a seller. 167 (3) “Distributed energy generation system” means a device 168 or system that is used to generate or store electricity; that 169 has an electric delivery capacity, individually or in connection 170 with other similar devices or systems, of greater than one 171 kilowatt or one kilowatt-hour; and that is used primarily for 172 on-site consumption. The term does not include an electric 173 generator intended for occasional use. 174 (4) “Lessee” means a person that enters into an agreement 175 to lease or rent a distributed energy generation system. 176 (5) “Retail installment contract” means an agreement 177 executed in this state between a buyer and a seller in which the 178 title to, or a lien upon, a distributed energy generation system 179 is retained or taken by the seller from the buyer as security, 180 in whole or in part, for the buyer’s obligations to make 181 specified payments over time. 182 (6) “Seller” means a person regularly engaged in, and whose 183 business substantially consists of, selling or leasing goods, 184 including distributed energy generation systems, to buyers or 185 lessees. A seller that is also an installer must be licensed 186 under chapter 489. 187 520.21 Applicability.—This part applies to agreements to 188 sell or lease a distributed energy generation system and is 189 supplemental to other provisions contained in part III related 190 to retail installment contracts. If any provision related to 191 retail installment contract requirements for a distributed 192 energy generation system under this part conflicts with any 193 other provision related to retail installment contracts, this 194 part controls. 195 520.22 Safety compliance.—A seller who installs a 196 distributed energy generation system must comply with applicable 197 safety standards established by the Department of Business and 198 Professional Regulation pursuant to chapter 489 and part IV of 199 chapter 553. 200 520.23 Disclosures required.—Each agreement governing the 201 sale or lease of a distributed energy generation system shall, 202 at a minimum, include a written statement printed in at least 203 12-point type that is separate from the agreement, is separately 204 acknowledged by the buyer or lessee, and includes the following 205 information and disclosures, if applicable: 206 (1) The name, address, telephone number, and e-mail address 207 of the buyer or lessee. 208 (2) The name, address, telephone number, e-mail address, 209 and valid state contractor license number of the person 210 responsible for installing the distributed energy generation 211 system. 212 (3) The name, address, telephone number, e-mail address, 213 and valid state contractor license number of the distributed 214 energy generation system maintenance provider, if different from 215 the person responsible for installing the distributed energy 216 generation system. 217 (4) A written statement indicating whether the distributed 218 energy generation system is being purchased or leased. 219 (a) If the distributed energy generation system will be 220 leased, the written statement must include a disclosure in 221 substantially the following form: “You are entering into an 222 agreement to lease a distributed energy generation system. You 223 will lease (not own) the system installed on your property.” 224 (b) If the distributed energy generation system will be 225 purchased, the written statement must include a disclosure in 226 substantially the following form: “You are entering into an 227 agreement to purchase a distributed energy generation system. 228 You will own (not lease) the system installed on your property.” 229 (5) The total cost to be paid by the buyer or lessee, 230 including any interest, installation fees, document preparation 231 fees, service fees, or other fees. 232 (6) A payment schedule, including any amounts owed at 233 contract signing, at the commencement of installation, at the 234 completion of installation, and any final payments. If the 235 distributed energy generation system is being leased, the 236 written statement must include the frequency and amount of each 237 payment due under the lease and the total estimated lease 238 payments over the term of the lease. 239 (7) Each state or federal tax incentive or rebate, if any, 240 relied upon by the seller in determining the price of the 241 distributed energy generation system. 242 (8) A description of the assumptions used to calculate any 243 savings estimates provided to the buyer or lessee, and if such 244 estimates are provided, a statement in substantially the 245 following form: “It is important to understand that future 246 electric utility rates are estimates only. Your future electric 247 utility rates may vary.” 248 (9) A description of any one-time or recurring fees, 249 including, but not limited to, estimated system removal fees, 250 maintenance fees, Internet connection fees, and automated 251 clearinghouse fees. If late fees may apply, the description must 252 describe the circumstances triggering such late fees. 253 (10) A statement notifying the buyer whether the 254 distributed energy generation system is being financed and, if 255 so, a statement in substantially the following form: “If your 256 system is financed, carefully read any agreements and/or 257 disclosure forms provided by your lender. This statement does 258 not contain the terms of your financing agreement. If you have 259 any questions about your financing agreement, contact your 260 finance provider before signing a contract.” 261 (11) A statement notifying the buyer whether the seller is 262 assisting in arranging financing of the distributed energy 263 generation system and, if so, a statement in substantially the 264 following form: “If your system is financed, carefully read any 265 agreements and/or disclosure forms provided by your lender. This 266 statement does not contain the terms of your financing 267 agreement. If you have any questions about your financing 268 agreement, contact your finance provider before signing a 269 contract.” 270 (12) A provision notifying the buyer or lessee of the right 271 to rescind the agreement for a period of at least 3 business 272 days after the agreement is signed. This subsection does not 273 apply to a contract to sell or lease a distributed energy 274 generation system in a solar community in which the entire 275 community has been marketed as a solar community and all of the 276 homes in the community are intended to have a distributed energy 277 generation system, or a solar community in which the developer 278 has incorporated solar technology for purposes of meeting the 279 Florida Building Code in s. 553.73. 280 (13) A description of the distributed energy generation 281 system design assumptions, including the make and model of the 282 major components, system size, estimated first-year energy 283 production, and estimated annual energy production decreases, 284 including the overall percentage degradation over the estimated 285 life of the distributed energy generation system, and the status 286 of utility compensation for excess energy generated by the 287 system at the time of contract signing. A seller who provides a 288 warranty or guarantee of the energy production output of the 289 distributed energy generation system may provide a description 290 of such warranty or guarantee in lieu of a description of the 291 system design and components. 292 (14) A description of any performance or production 293 guarantees. 294 (15) A description of the ownership and transferability of 295 any tax credits, rebates, incentives, or renewable energy 296 certificates associated with the distributed energy generation 297 system, including a disclosure as to whether the seller will 298 assign or sell any associated renewable energy certificates to a 299 third party. 300 (16) A statement in substantially the following form: “You 301 are responsible for property taxes on property you own. Consult 302 a tax professional to understand any tax liability or 303 eligibility for any tax credits that may result from the 304 purchase of your distributed energy generation system.” 305 (17) The approximate start and completion dates for the 306 installation of the distributed energy generation system. 307 (18) A disclosure as to whether maintenance and repairs of 308 the distributed energy generation system are included in the 309 purchase price. 310 (19) A disclosure as to whether any warranty or maintenance 311 obligations related to the distributed energy generation system 312 may be sold or transferred by the seller to a third party and, 313 if so, a statement in substantially the following form: “Your 314 contract may be assigned, sold, or transferred without your 315 consent to a third party who will be bound to all the terms of 316 the contract. If a transfer occurs, you will be notified if this 317 will change the address or phone number to use for system 318 maintenance or repair requests.” 319 (20) If the distributed energy generation system will be 320 purchased, a disclosure notifying the buyer of the requirements 321 for interconnecting the system to the utility system. 322 (21) A disclosure notifying the buyer or lessee of the 323 party responsible for obtaining interconnection approval. 324 (22) A description of any roof warranties. 325 (23) A disclosure notifying the lessee whether the seller 326 will insure a leased distributed energy generation system 327 against damage or loss and, if applicable, the circumstances 328 under which the seller will not insure the system against damage 329 or loss. 330 (24) A statement, if applicable, in substantially the 331 following form: “You are responsible for obtaining insurance 332 policies or coverage for any loss of or damage to the system. 333 Consult an insurance professional to understand how to protect 334 against the risk of loss or damage to the system.” 335 (25) A disclosure notifying the buyer or lessee whether the 336 seller or lessor will place a lien on the buyer’s or lessee’s 337 home or other property as a result of entering into a purchase 338 or lease agreement for the distributed energy generation system. 339 (26) A disclosure notifying the buyer or lessee whether the 340 seller or lessor will file a fixture filing or a State of 341 Florida Uniform Commercial Code Financing Statement Form (UCC-1) 342 on the distributed energy generation system. 343 (27) A disclosure identifying whether the agreement 344 contains any restrictions on the buyer’s or lessee’s ability to 345 modify or transfer ownership of a distributed energy generation 346 system, including whether any modification or transfer is 347 subject to review or approval by a third party. 348 (28) A disclosure as to whether the lease agreement may be 349 transferred to a purchaser upon sale of the home or real 350 property to which the system is affixed, and any conditions for 351 such transfer. 352 (29) A blank section that allows the seller to provide 353 additional relevant disclosures or explain disclosures made 354 elsewhere in the disclosure form. 355 356 The requirement to provide a written statement under this 357 section may be satisfied by the electronic delivery of a 358 document containing the required statement if the intended 359 recipient of the electronic document affirmatively acknowledges 360 its receipt. An electronic document satisfies the font and other 361 formatting standards required for the written statement if the 362 format and the relative size of characters of the electronic 363 document are reasonably similar to those required in the written 364 document or if the information is otherwise displayed in a 365 reasonably conspicuous manner. 366 520.24 Rulemaking authority; standard disclosure form.- 367 (1) The Department of Business and Professional Regulation 368 shall adopt rules to implement and enforce the provisions of 369 this part. 370 (2) The Department of Business and Professional Regulation 371 shall, by January 1, 2018, publish standard disclosure forms 372 that may be used to comply with the disclosure requirements of 373 this part. Disclosures provided in substantially the form 374 published by the department shall be regarded as complying with 375 the disclosure requirements of this part. 376 520.25 Penalties.— 377 (1) Any seller who willfully and intentionally violates any 378 provision of this part commits a noncriminal violation, as 379 defined in s. 775.08(3), punishable by a fine not to exceed the 380 cost of the distributed energy generation system. 381 (2) In the case of a willful and intentional violation of 382 this part, the owner may recover from the person committing such 383 violation, or may set off or counterclaim in any action against 384 the owner by such person, an amount equal to any finance charges 385 and fees charged to the owner under the agreement, plus attorney 386 fees and costs incurred by the owner to assert his or her rights 387 under this part. 388 520.26 Exemptions.—The provisions of this part do not apply 389 to the following: 390 (1) A person or company, acting through its officers, 391 employees, brokers, or agents, that markets, sells, solicits, 392 negotiates, or enters into an agreement for the sale or 393 financing of a distributed energy generation system as part of a 394 transaction involving the sale or transfer of the real property 395 on which the system is or will be affixed. 396 (2) A transaction involving the sale or transfer of the 397 real property on which a distributed energy generation system is 398 located. 399 (3) A third party, including a local government, that 400 enters into an agreement for the financing of a distributed 401 energy generation system. 402 (4) The sale or lease of a distributed energy generation 403 system that will be installed on nonresidential real property. 404 (5) The sale of a distributed energy generation system 405 pursuant to an agreement that requires full payment of the 406 system from the buyer to the seller no later than the date the 407 system is installed by the seller or is delivered from the 408 seller to the buyer or a third party for installation. 409 (6) A person, other than the seller or lessor, who installs 410 a distributed energy generation system on residential property. 411 Section 6. Paragraph (d) of subsection (2) of section 412 671.304, Florida Statutes, is amended to read: 413 671.304 Laws not repealed; precedence where code provisions 414 in conflict with other laws; certain statutory remedies 415 retained.— 416 (2) The following laws and parts of laws are specifically 417 not repealed and shall take precedence over any provisions of 418 this code which may be inconsistent or in conflict therewith: 419 (d) Chapter 520—Retail installment sales (Part I, Motor 420 Vehicle Sales Finance Act; Part IIIPart II, Retail Installment 421 Sales Act; Part IVPart III, Installment Sales Finance Act). 422 Section 7. The amendments made by this act to s. 193.624(2) 423 and (3), Florida Statutes, expire on December 31, 2037, and the 424 text of those subsections shall revert to that in existence on 425 December 31, 2017, except that any amendments to such text 426 enacted other than by this act shall be preserved and continue 427 to operate to the extent that such amendments are not dependent 428 upon the portions of the text which expire pursuant to this 429 section. 430 Section 8. This act shall take effect July 1, 2017.