Bill HF4880, SF5053

1.1          A bill for an act
1.2          relating to consumer protection; establishing consumer protections for the sale of
1.3          solar energy systems; requiring registration; requiring reports;proposing coding
1.4          for new law as Minnesota Statutes, chapter 81B.
1.5          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6          Section 1. [81B.01] SHORT TITLE.
1.7          This chapter may be cited as the "Solar Energy Systems Consumer Protection Act."

1.8          Sec. 2. [81B.02] SCOPE.
1.9          (a) This chapter applies to an agreement entered into on or after ..... This chapter does
1.10       not apply to the transfer of title or rental of real property where a solar energy system is
1.11       installed or expected to be installed.
1.12       (b) A solar energy system installed as a feature on a newly constructed residence is  only
1.13       subject to section 81B.06, subdivision 1.
1.14       (c) If an energy storage system is operated without being interconnected to a solar energy
1.15       system or is interconnected to a solar energy system that was operating before the energy
1.16       storage system was interconnected, this chapter applies only to the energy storage system.

1.17       Sec. 3. [81B.03] DEFINITIONS.
1.18                       Subdivision 1.Application. For purposes of this chapter, the following terms have the
1.19       meanings given.
2.1                          Subd. 2.Agreement. "Agreement" means a contract between a solar energy company
2.2          and a consumer to:
2.3          (1) purchase or lease a solar energy system; or
2.4          (2) purchase solar energy under a power purchase agreement.
2.5                          Subd. 3.Commissioner. "Commissioner" means the commissioner of commerce.
2.6                          Subd. 4.Consumer. "Consumer" has the meaning given in section 325M.11, paragraph
2.7          (g).
2.8                          Subd. 5.Energy storage system. "Energy storage system" means a device that:
2.9          (1) stores electricity to be used at a later time;
2.10       (2) uses energy generated by a solar energy system or the electric grid to recharge;
2.11       (3) is located at a consumer's residence and connected to a consumer's solar energy
2.12       system on the consumer's side of the electric meter; and
2.13       (4) provides stored electricity primarily to offset a consumer's consumption of electricity
2.14       from the electric grid.
2.15                       Subd. 6.Fixture filing. "Fixture filing" means a Uniform Commercial Code filing,
2.16       recorded at the office at which the mortgage for a consumer's residence is filed, that
2.17       establishes (1) a solar energy system is considered part of the consumer's real property, and
2.18       (2) a lender has priority over other creditors if the consumer defaults on the loan, sells the
2.19       residence where the solar energy system is installed, or declares bankruptcy.
2.20                       Subd. 7.Lease. "Lease" has the meaning given to "consumer lease" under Code of
2.21       Federal Regulations, title 12, section 1013.2, paragraph (e).
2.22                       Subd. 8.Lender. "Lender" means a person or entity that makes a loan for a solar energy
2.23       system.
2.24                       Subd. 9.License. "License" means:
2.25       (1) a residential building contractor license, as defined in section 326B.802, subdivision
2.26       11; or
2.27       (2) a residential remodeler license, as defined in section 326B.802, subdivision 12.
2.28                       Subd. 10.Loan. "Loan" means credit that is (1) offered or extended to a consumer in
2.29       order to acquire a solar energy system, and (2) subject to the requirements of Code of Federal
2.30       Regulations, title 16, section 433.
3.1                          Subd. 11.Person. "Person" means a natural person, corporation, company, partnership,
3.2          joint venture, or business entity.
3.3                          Subd. 12.Power purchase agreement. "Power purchase agreement" means a contract
3.4          under which a solar energy company (1) arranges for the design, permitting, financing, and
3.5          installation of a solar energy system at a consumer's residence, and (2) sells the power
3.6          generated to the consumer.
3.7                          Subd. 13.Registration. "Registration" means registration of a solar energy company
3.8          or solar energy salesperson with the commissioner under section 81B.05.
3.9                          Subd. 14.Solar energy company or company. (a) "Solar energy company" or
3.10       "company" means a person who engages in one or more of the following activities with
3.11       respect to a solar energy system:
3.12       (1) offering or entering into a contract with a consumer to provide for a power purchase
3.13       agreement, lease, or purchase;
3.14       (2) installation;
3.15       (3) project development, construction, or management; or
3.16       (4) providing operation and maintenance services.
3.17       (b) Solar energy company does not include:
3.18       (1) a natural person who self-installs a solar energy system on residential property owned
3.19       by the natural person; or
3.20       (2) a third-party owner of a solar energy system or a lender for the purchase who does
3.21       not sell or install solar energy systems.
3.22                       Subd. 15.Solar energy company fee. "Solar energy company fee" means the amount
3.23       paid or incurred by a solar energy salesperson or solar energy company to a lender for
3.24       providing credit to a consumer. Solar energy company fee does not include an amount paid
3.25       or incurred by a consumer to obtain financing, including a time-price differential or other
3.26       finance charge, as defined under United States Code, title 15, section 1605.
3.27                       Subd. 16.Solar energy salesperson or salesperson. "Solar energy salesperson" or
3.28       "salesperson" means a person who is an employee or independent contractor of a solar
3.29       energy company and who solicits, sells, negotiates, procures, or executes agreements for
3.30       solar energy systems.
3.31                       Subd. 17.Solar energy system. "Solar energy system" has the meaning given in section
3.32       216C.06, subdivision 17, and, if applicable, includes an on-site energy storage system
4.1          interconnected with the solar energy system. A solar energy system must be installed at a
4.2          natural person's residence.
4.3                          Subd. 18.Solicit. "Solicit" means to contact a consumer to sell, lease, or install a solar
4.4          energy system.

4.5          Sec. 4. [81B.04] REGISTRATION REQUIRED; SOLAR ENERGY COMPANIES
4.6          AND SALESPERSONS.
4.7                          Subdivision 1.Registration required. A person is prohibited from engaging in the
4.8          activities of a solar energy company or salesperson without first registering with the
4.9          commissioner under this chapter.
4.10                       Subd. 2.Application and renewal. When determining whether to issue or renew a
4.11       registration, the commissioner must consider the application and renewal forms. As
4.12       applicable, the application and renewal forms must include:
4.13       (1) the solar energy company's name, assumed names, doing business as names, including
4.14       caller identification names, and business addresses; the name of each solar energy company
4.15       owner and officer; and the name and primary work location of each solar energy salesperson;
4.16       (2) if a solar energy company is doing business under a name other than the solar energy
4.17       company's legal name, documentation that the assumed name has been properly filed with
4.18       the secretary of state or appropriate government office;
4.19       (3) the solar energy company's primary telephone number, email address, and website
4.20       address used or intended to be used by the solar energy company and the company's solar
4.21       energy salespersons to buy, sell, solicit, market, or deliver solar energy systems, energy
4.22       storage systems, or a power purchase agreement;
4.23       (4) for the solar energy company and each solar energy company owner, officer, and
4.24       salesperson, a disclosure of all criminal convictions by a court, including military courts,
4.25       within the last ten years, except convictions for juvenile offenses and convictions relating
4.26       to misdemeanor traffic citations and misdemeanor convictions involving driving under the
4.27       influence, driving while intoxicated, driving without a license, reckless driving, or driving
4.28       with a suspended or revoked license;
4.29       (5) a disclosure of civil judgments in favor of a government entity, and government
4.30       entity orders entered, filed, or issued, against the solar energy company, the company's
4.31       officers and owners, or the company's solar energy salespersons within the last ten years
4.32       for violation of consumer protection or unfair trade practice laws;
5.1          (6) a disclosure of a settlement or other agreement with a government entity within the
5.2          last ten years resolving concerns that the solar energy company, the company's officers and
5.3          owners, or the company's solar energy salespersons violated consumer protection or unfair
5.4          trade practice laws;
5.5          (7) a disclosure of any instance in which the solar energy company, the company's
5.6          officers and owners, or the company's solar energy salespersons were at any time permanently
5.7          or temporarily prohibited by a court of competent jurisdiction or ordered to cease and desist
5.8          as the result of a government agency action from engaging in the actions of a solar energy
5.9          company or salesperson;
5.10       (8) evidence of each salesperson's registration with Recheck, or an equivalent public
5.11       registry  identified by the commissioner; and
5.12       (9) copies of all advertising materials, marketing materials, agreements, and forms.
5.13                       Subd. 3.Notice of change in registration information. A registered solar energy
5.14       company must provide the commissioner written notice of a change in the solar energy
5.15       company's name; assumed names; doing business as names; business addresses, including
5.16       all business addresses at which the company or the company's solar energy salespersons
5.17       conduct business; owners; email addresses; website domain names; or primary telephone
5.18       number used by the company or the company's solar energy salespersons no later than 30
5.19       days after the date the change occurs.
5.20                       Subd. 4.Records. A solar energy company must retain records of (1) all salespersons
5.21       the company employs or contracts with, (2) all sales proposals provided to a consumer, (3)
5.22       executed disclosures, and (4) stipulations upon which the terms of an agreement executed
5.23       under section 81B.06 are based. Records under this subdivision must be retained for a period
5.24       of not less than six years.
5.25                       Subd. 5.Registration fee. (a) The fee for a registration under this chapter is:
5.26       (1) $....... for solar energy salespersons; and
5.27       (2) $....... for solar energy companies.
5.28       (b) The commissioner may adjust the registration fee on an annual basis as needed based
5.29       on the cost to process registrations.

6.1          Sec. 5. [81B.05] REGISTRATION DENIAL, NONRENEWAL, REVOCATION,
6.2          AND SUSPENSION.
6.3                          Subdivision 1.Authority. The commissioner may by order suspend, revoke, or refuse
6.4          to issue or renew a solar energy company salesperson registration for:
6.5          (1) providing incorrect, false, misleading, or incomplete information to the commissioner
6.6          or refusing to allow a reasonable inspection of (i) information and documents in the
6.7          possession of the solar energy company, the company's salesperson, or a third party, or (ii)
6.8          the company's, the company's salesperson's, or the third party's premises;
6.9          (2) obtaining or attempting to obtain a registration through misrepresentation or fraud;
6.10       (3) failing to meet any of the requirements of section 81B.06;
6.11       (4) making misrepresentations regarding government programs, utility relationships, or
6.12       regulatory requirements;
6.13       (5) engaging in high-pressure sales tactics or preventing consumers from consulting
6.14       with advisors; or
6.15       (6) violating this chapter or section 45.027, 325F.67, 325F.69, or 325F.694.
6.16                       Subd. 2.Solar energy company responsibility for actions of salespersons. The
6.17       commissioner may take action against a solar energy company for a violation of this chapter
6.18       by the company's salespersons acting on behalf of or at the direction of the company. The
6.19       commissioner may also take action against the salesperson.

6.20       Sec. 6. [81B.06] SOLAR ENERGY SYSTEMS CONSUMER PROTECTIONS.
6.21                       Subdivision 1.Disclosure form; content; amendment. (a) The commissioner must
6.22       develop a written disclosure form that a solar energy company must provide to a consumer
6.23       before an agreement is signed. The disclosure form must be in at least ten-point font and
6.24       must contain, at a minimum:
6.25       (1) the name of the consumer;
6.26       (2) the name of the solar energy salesperson;
6.27       (3) the name, street address, telephone number, email address, and license or registration
6.28       number of the solar energy company that is party to the agreement;
6.29       (4) the name, street address, telephone number, email address, and license or registration
6.30       number of the company installing the solar energy system at a consumer's residence, if
6.31       different from the solar energy company;
7.1          (5) a description of the project, including: (i) the capacity of the solar energy system in
7.2          kilowatts-DC and, if applicable, the capacity of the energy storage system in kilowatt-hours;
7.3          (ii) the brand and type of solar module, inverter, and monitoring device installed; and (iii)
7.4          a statement that the solar energy system does not provide backup power without being
7.5          interconnected with an energy storage system or other specified equipment that the consumer
7.6          may decide to deploy;
7.7          (6) a solar energy system's technical specifications, including but not limited to:
7.8          (i) estimates of the first year's production, corrected for estimated production losses
7.9          resulting from shade, snow, and soiling; and
7.10       (ii) the annual rate of decline in the amount of electricity generated by the solar energy
7.11       system as a result of system degradation;
7.12       (7) a statement that the consumer continues to receive an electric utility bill and that the
7.13       solar energy company or lender does not control the consumer's electricity rates;
7.14       (8) the estimated price of the solar energy system;
7.15       (9) an advisement suggesting that homeowners consult the homeowner's current mortgage
7.16       loan servicer, originating lender, and insurance company regarding any potential impacts
7.17       of installing a solar energy system;
7.18       (10) any performance or production guarantees or warranties made by the manufacturer
7.19       or installer of the solar energy system and the transferability of the guarantees or warranties;
7.20       (11) information regarding how to file a complaint with the agency responsible for
7.21       regulating the agreement, including:
7.22       (i) the name and contact information of the regulating agency;
7.23       (ii) a brief description of the agency's role in regulating solar energy system transactions;
7.24       (iii) a link to the agency's website or telephone number for filing complaints or requesting
7.25       assistance;
7.26       (iv) information regarding how a consumer's personal data contained in an agreement
7.27       is collected, used, stored, and shared; and
7.28       (v) information regarding a consumer's rights under sections 325M.10 to 325M.21 to
7.29       understand and control the use of the consumer's personal data, including the ability to:
7.30       (A) access data collected about the consumer;
7.31       (B) request data corrections or deletions;
8.1          (C) opt out of data sharing or targeted advertising; and
8.2          (D) file a complaint with the appropriate agency if the consumer believes the consumer's
8.3          rights have been violated;
8.4          (12) a description of requirements that must be met before an installed solar energy
8.5          system is activated;
8.6          (13) a description of equipment a consumer may deploy in order to provide backup
8.7          power to a solar energy system;
8.8          (14) assumptions and methodologies used to estimate postinstallation electric bill savings
8.9          provided to the purchaser, including at a minimum estimated utility rates, rate increases,
8.10       solar energy system production over time, and the rate of utility compensation for excess
8.11       energy generated by the system at the time the agreement becomes effective;
8.12       (15) financial incentives from the utility, state, and federal government the consumer is
8.13       eligible for and that have been incorporated into calculations of the total cost of the solar
8.14       energy system made by the solar energy salesperson or solar energy company, including
8.15       tax credits, and necessary steps a consumer must take in order to receive the incentives;
8.16       (16) a disclaimer stating that the solar energy company and solar energy salesperson are
8.17       not tax advisors and are not qualified to give tax advice;
8.18       (17) the following statement: "THE SOLAR ENERGY SYSTEM DOES NOT PROVIDE
8.19       ANY ELECTRICITY TO THE CUSTOMER DURING A POWER OUTAGE, and
8.20       automatically disconnects from the utility grid in order to protect utility repair personnel
8.21       from the risk of electric shock from electricity that could otherwise flow into the utility
8.22       distribution system."; and
8.23       (18) the following statement: "A consumer may, subject to section 325G.08, withdraw
8.24       from the proposed sale without penalty."
8.25       (b) A solar energy company or the installer of a solar energy system, immediately after
8.26       determining that a material change in equipment, pricing, financing, production estimates,
8.27       project timetables, or any other significant aspect of the proposed sale or operation of a
8.28       solar energy system has occurred after the disclosure form has been provided to a consumer,
8.29       must communicate the change to the consumer in writing and must provide the consumer
8.30       an amended disclosure form incorporating the change.
8.31                       Subd. 2.Solar energy system purchase agreement; content. An agreement must be
8.32       in at least ten-point font and must contain, at a minimum:
9.1          (1) the information required in subdivision 1, clauses (1) to (8) and (10);
9.2          (2) the estimated date of completion of design and engineering of the solar energy system,
9.3          and statements in close proximity that read:
9.4          (i) "The solar energy company must complete all work necessary to meet the timelines
9.5          required by the Minnesota Distributed Energy Resource Interconnection Process."; and
9.6          (ii) "After receiving notice of all required permitting, interconnection, and other required
9.7          approvals for installation of the solar energy system, the solar energy company must give
9.8          the consumer written notice of the estimated installation start and completion dates.";
9.9          (3) an explanation of warranties and guarantees with respect to equipment or performance,
9.10       including the transferability of the obligations;
9.11       (4) the total purchase price for the solar energy system, including all fees;
9.12       (5) if applicable, the payment schedule for the solar energy system;
9.13       (6) a description of the responsibilities of each party to maintain and repair the solar
9.14       energy system;
9.15       (7) a disclosure of each party's responsibility to file the interconnection application with
9.16       the consumer's utility and obtain necessary permits;
9.17       (8) if applicable, a description of a security interest filed against the solar energy system,
9.18       including Uniform Commercial Code filings under chapter 336; and
9.19       (9) the documents that a seller for a home solicitation sale under section 325G.08 must
9.20       provide to a consumer regarding a consumer's right to cancel the agreement within three
9.21       business days after entering the agreement.
9.22                       Subd. 3.Solar energy system lease agreement; content. In addition to the content
9.23       required under subdivision 4, an agreement to lease a solar energy system must include, at
9.24       a minimum:
9.25       (1) the total number and amount of payments required under the lease;
9.26       (2) the payment schedule for the leased system, including the number, amount, and due
9.27       dates or periods of payments;
9.28       (3) the interest rate of the loan;
9.29       (4) a statement regarding the right of a consumer to purchase the solar energy system
9.30       during or at the termination of the lease, including how the purchase price is calculated;
10.1       (5) a description of options available to the lender to transfer the lease to a third party
10.2       and the conditions under which a transfer may be made;
10.3       (6) disclosure of fees received by the lender from the solar energy company; and
10.4       (7) disclosure of a fixed filing or other security interest a lender intends to file with
10.5       respect to the solar energy system.
10.6                       Subd. 4.Solar energy system power purchase agreement; content of consumer
10.7       agreement. In addition to the content required under subdivision 3, a consumer's agreement
10.8       with respect to a solar energy system power purchase agreement must include, at a minimum:
10.9       (1) the length of the power purchase agreement and the total number, amounts, and due
10.10     dates of required payments;
10.11     (2) the monthly payment amounts during the first year of the power purchase agreement;
10.12     (3) the rate of payment increases and the date of the first increase, if applicable;
10.13     (4) the trigger event, amount, and timing of any onetime or recurring fees, including but
10.14     not limited to system removal fees, Uniform Commercial Code notice removal and refiling
10.15     fees, Internet connection fees, and automated clearinghouse fees;
10.16     (5) the manner in which a consumer receives invoices;
10.17     (6) a statement regarding the right of a consumer to purchase the solar energy system
10.18     during or at the termination of the power purchase agreement, including how the purchase
10.19     price is calculated;
10.20     (7) notice to a consumer that the owner of the system is filing a fixture filing on the solar
10.21     energy system; and
10.22     (8) information regarding the transferability of the power purchase agreement if a
10.23     consumer sells the residence where the solar energy system is installed.
10.24                     Subd. 5.Other provisions. (a) A consumer is not required to make a payment on a loan
10.25     or under a power purchase agreement before the consumer's utility has given the consumer
10.26     permission to operate the solar energy system.
10.27     (b) A lender must withhold at least ten percent of the total amount owed to a solar energy
10.28     company until the consumer's utility provides the consumer permission to operate the solar
10.29     energy system.
10.30     (c) The sale of a solar energy system under this chapter is subject to section 325G.08
10.31     governing home solicitation sales. A solar energy company and a consumer have all the
11.1       corresponding rights and responsibilities under section 325G.08 regarding a consumer's
11.2       right to cancel an agreement without penalty.
11.3       (d) Subject to paragraph (b), a consumer has the right to cancel a sale subject to this
11.4       chapter at any time without penalty.
11.5       (e) The solar energy company must ensure that a durable sticker or plaque containing
11.6       the current contact information for all warranty and service work is permanently affixed in
11.7       a conspicuous location adjacent to the main electrical service panel or the primary disconnect
11.8       switch of the solar energy system.
11.9       (f) The provisions in this section must be included in the disclosure form and an
11.10     agreement subject to this section.
11.11                     Subd. 6.Agreement review meeting. (a) An agreement review meeting must be held
11.12     between the consumer and the solar energy company or the company's designee at least ...
11.13     days before an agreement is signed. During the meeting, the solar energy company or the
11.14     solar energy company's designee must disclose the terms of the final agreement to the
11.15     consumer, answer the consumer's questions, and obtain the consumer's affirmative
11.16     acknowledgment and understanding of the agreement's terms.
11.17     (b) Notwithstanding any other law, both audio and video of the agreement review meeting
11.18     must be recorded by the solar energy company or the company's designee, and must be
11.19     made available to the consumer upon request. The solar energy company must maintain a
11.20     copy of the recording for at least two years after the date the agreement review meeting
11.21     occurs.
11.22     (c) The agreement review meeting must be conducted in the same language used in the
11.23     disclosure form.
11.24                     Subd. 7.Enforcement. (a) The commissioner must enforce this chapter.
11.25     (b) A solar energy company that contracts with a solar energy salesperson that violates
11.26     this chapter is subject to the remedies under section 8.31 as if the solar energy company
11.27     had committed the violation. This paragraph does not reduce or eliminate the liability of a
11.28     solar energy salesperson who violates this section.