Texas SB 1036: Relating to the regulation of residential solar retail transactions; requiring an occupational registration; authorizing fees; providing civil and administrative penalties.

Summary

This bill creates a new regulatory framework requiring companies that sell or lease residential solar energy systems in Texas to register with the state and comply with specific consumer protection rules. It affects solar retailers and salespersons who must obtain occupational registration, maintain insurance, provide required disclosures to consumers, and allow buyers a five-business-day cancellation period, while also establishing penalties for deceptive practices and violations of these requirements.

Bill Text

S.B.ANo.A1036
AN ACT
relatingtotheregulationofresidentialsolarretail
transactions;requiringan occupationalregistration;authorizing
fees;providingciviland administrativepenalties.
BE IT ENACTEDBY THE LEGISLATUREOF THE STATEOF TEXAS:
SECTION
A1.AATitle11, OccupationsCode,is amendedby adding
Chapter1806to readas follows:
CHAPTER1806.RESIDENTIALSOLARRETAILERS
SUBCHAPTERA. GENERALPROVISIONS
Sec.
A1806.001.AASHORTTITLE.Thischaptermaybe citedas
the ResidentialSolarRetailerRegulatoryAct.
Sec.
A1806.002.AAGENERALDEFINITIONS.In thischapter:
(1)
AA"Commission"meanstheTexasCommissionof
Licensingand Regulation.
(2)
AA"Department"meanstheTexasDepartmentof
Licensingand Regulation.
(3)
AA"Electriccooperative"has the meaningassignedby
Section11.003,UtilitiesCode.
(4)
AA"Electricalcontractor"meansa personlicensedas
an electricalcontractorunderChapter1305.
(5)
AA"Executivedirector"meansthe executivedirector
of the department.
(6)
AA"Municipallyownedutility"hasthemeaning
assignedby Section11.003,UtilitiesCode.
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(7)AA"Residentialsolarenergysystem"meansa solar
energysystemintendedor designedprimarilyfor family,personal,
or householduse.
(8)
AA"Residentialsolarretail"means:
(A)
AAthe saleor leaseof, or an offerto sellor
lease,a residentialsolarenergysystem;or
(B)
AAa transactioninvolvinganycombinationof
the actsdescribedby Paragraph(A).
(9)
AA"Solarenergysystem"meansa   systemor
configurationof solarenergydevicesthatcollectsand usessolar
energyto generateelectricity.
(10)
AA"Solarretailer"meansa personwho is registered
underthischapteras a solarretailer.
(11)
AA"Solarsalesperson"meansan individualwhois
registeredunderthischapteras a solarsalesperson.
Sec.
A1806.003.AADEFINITIONOF CONTROLLINGPERSON.(a)In
thissection,"businessentity"meansa corporation,business
trust,estate,trust,partnership,includinga   limited
partnership,association,or any otherlegalentity,regardlessof
whetherthe entityis incorporatedin thisstate.
(b)
AAInthischapter,"controllingperson"meansan
individualwho:
(1)
AAhasdirector indirectcontrolof at least25
percentof the votingsecuritiesof a businessentity;
(2)
AAhastheauthorityto setpolicyanddirectthe
managementof a businessentity;
(3)
AAis the president,the secretary,or a directorof a
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businessentity;or
(4)
AAis a generalpartnerof a partnership,includinga
limitedpartnership.
Sec.
A1806.004.AALIMITEDAPPLICABILITYTOELECTRICAL
CONTRACTORS.(a) If an electricalcontractoremploysan individual
to engagein residentialsolarretailon behalfof the electrical
contractor,theelectricalcontractorisexemptfromthe
registrationand insurancerequirementsof thischapterapplicable
to  a  solarretailer,exceptthatan  agreementin  whichthe
electricalcontractoris  theselleror  lessoris  subjectto
Sections1806.155and 1806.156.
(b)
AAIf an individualis employedby an electricalcontractor
to engagein residentialsolarretailon behalfof the electrical
contractor,theindividualis  exemptfromtheregistration
requirementsof thischapter.
Sec.
A1806.005.AAAPPLICABILITY.(a)Thischapterdoesnot
applyto:
(1)
AAexceptas providedby Subsection(b),a written
agreement:
(A)
AAenteredintoin thisstateforthesaleor
leaseof a residentialsolarenergysystem;and
(B)
AApertainingto a residentialpropertylocated
outsidethisstate;or
(2)
AAa solarenergysystem:
(A)
AAintended:
(i)
AAfor temporaryor emergencyuse;or
(ii)
AAtoprovidepowertoa   single
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appliance;
(B)
AAthat:
(i)
AAif  combinedwithothersystemsthat
produceelectricity,producesin combinationwiththe othersystems
a totalpeakoutputpowerof lessthanone kilowatt;or
(ii)
AAif  notcombinedwithothersystems
thatproduceelectricity,is designedto producea peakoutput
powerof lessthanone kilowatt;or
(C)
AAsoldor leased:
(i)
AAforcommercialpurposes,includinga
solarenergysysteminstalledon the premisesof a nonresidential
property;
(ii)
AAto  providepowerto  a  multifamily
dwellingthatexceedsfourdwellingunitsor stories;
(iii)
AAbeforeSeptember1, 2025;or
(iv)
AAin  connectionwithnewresidential
construction.
(b)
AAThischapterappliesto anyresidentialsolarretail
occurringin thisstatein connectionwithan agreementdescribed
by Subsection(a)(1).
Sec.
A1806.006.AAPREEMPTION.To theextentof anyconflict
betweenthischapterandanyof thefollowinglaws,thischapter
prevailsover:
(1)
AAa municipalordinanceregulatingthe sameconduct
as thischapter;or
(2)
AAChapter115 or 601,Business& CommerceCode.
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SUBCHAPTERB. POWERSAND DUTIES
Sec.
A1806.051.AAGENERALPOWERSANDDUTIES.(a)The
departmentshalladministerand enforcethischapter.
(b)
AAThecommissionshalladoptrulesnecessaryto
administerand enforcethischapter,including:
(1)
AAinadditiontoanypracticeprohibitedor
restrictedby thischapter,prohibitingor restrictingany specific
unfair,deceptive,or misleadi