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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of residential solar retail |
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transactions; requiring an occupational registration; authorizing |
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fees; providing civil and administrative penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 11, Occupations Code, is amended by adding |
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Chapter 1806 to read as follows: |
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CHAPTER 1806. RESIDENTIAL SOLAR RETAILERS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 1806.001. SHORT TITLE. This chapter may be cited as |
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the Residential Solar Retailer Regulatory Act. |
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Sec. 1806.002. GENERAL DEFINITIONS. In this chapter: |
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(1) "Commission" means the Texas Commission of |
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Licensing and Regulation. |
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(2) "Department" means the Texas Department of |
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Licensing and Regulation. |
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(3) "Electrical contractor" means a person licensed as |
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an electrical contractor under Chapter 1305. |
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(4) "Executive director" means the executive director |
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of the department. |
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(5) "Residential solar energy system" means a solar |
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energy system intended or designed primarily for family, personal, |
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or household use. |
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(6) "Residential solar retail" means: |
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(A) the sale or lease of, or an offer to sell or |
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lease, a residential solar energy system; or |
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(B) a transaction involving any combination of |
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the acts described by Paragraph (A). |
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(7) "Solar energy system" means a system or |
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configuration of solar energy devices that collects and uses solar |
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energy to generate electricity. |
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(8) "Solar retailer" means a person who is registered |
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under this chapter as a solar retailer. |
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(9) "Solar salesperson" means a individual who is |
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registered under this chapter as a solar salesperson. |
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Sec. 1806.003. DEFINITION OF CONTROLLING PERSON. (a) In |
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this section, "business entity" means a corporation, business |
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trust, estate, trust, partnership, including a limited |
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partnership, association, or any other legal entity, regardless of |
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whether the entity is incorporated in this state. |
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(b) In this chapter, "controlling person" means an |
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individual who: |
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(1) has direct or indirect control of at least 25 |
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percent of the voting securities of a business entity; |
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(2) has the authority to set policy and direct the |
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management of a business entity; |
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(3) is the president, the secretary, or a director of a |
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business entity; or |
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(4) is a general partner of a partnership, including a |
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limited partnership. |
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Sec. 1806.004. LIMITED APPLICABILITY TO ELECTRICAL |
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CONTRACTORS. (a) If an electrical contractor employs or otherwise |
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contracts for an individual to engage in residential solar retail |
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on behalf of the electrical contractor, the electrical contractor |
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is exempt from the registration and insurance requirements of this |
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chapter applicable to a solar retailer, except that: |
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(1) the electrical contractor is considered a solar |
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retailer for purposes of Sections 1806.152, 1806.153, and 1806.154; |
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and |
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(2) an agreement in which the electrical contractor is |
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the seller or lessor is subject to Sections 1806.155 and 1806.156. |
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(b) If an individual is employed or otherwise contracted by |
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an electrical contractor to engage in residential solar retail on |
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behalf of the electrical contractor, the individual is exempt from |
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the registration requirements of this chapter, except that the |
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individual is considered a solar salesperson for purposes of |
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Sections 1806.152, 1806.153, and 1806.154. |
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Sec. 1806.005. APPLICABILITY. (a) This chapter does not |
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apply to: |
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(1) except as provided by Subsection (b), a written |
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agreement: |
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(A) entered into in this state for the sale or |
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lease of a residential solar energy system; and |
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(B) pertaining to a residential property located |
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outside this state; |
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(2) a solar energy system: |
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(A) intended: |
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(i) for temporary or emergency use; or |
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(ii) to provide power to a single |
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appliance; |
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(B) that: |
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(i) if combined with other systems that |
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produce electricity, produces in combination with the other systems |
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a total peak output power of less than one kilowatt; or |
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(ii) if not combined with other systems |
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that produce electricity, is designed to produce a peak output |
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power of less than one kilowatt; or |
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(C) sold or leased: |
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(i) for commercial purposes, including a |
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solar energy system installed on the premises of a nonresidential |
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property; or |
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(ii) to provide power to a multifamily |
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dwelling that exceeds four dwelling units or stories; or |
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(3) a power purchase agreement under which a person |
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purchases power generated by a solar energy system that is: |
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(A) located on property the person owns; and |
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(B) not owned or leased by the person. |
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(b) This chapter applies to any residential solar retail |
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occurring in this state in connection with an agreement described |
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by Subsection (a)(1). |
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Sec. 1806.006. PREEMPTION. To the extent of any conflict |
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between this chapter and any of the following laws, this chapter |
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prevails over: |
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(1) a municipal ordinance regulating the same conduct |
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as this chapter; or |
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(2) Chapter 115 or 601, Business & Commerce Code. |
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SUBCHAPTER B. POWERS AND DUTIES |
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Sec. 1806.051. GENERAL POWERS AND DUTIES. (a) The |
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department shall administer and enforce this chapter. |
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(b) The commission shall adopt rules necessary to |
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administer and enforce this chapter, including: |
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(1) in addition to any practice prohibited or |
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restricted by this chapter, prohibiting or restricting any specific |
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unfair, deceptive, or misleading practices related to residential |
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solar retail and specifying those practices; |
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(2) requiring a solar retailer or solar salesperson to |
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provide disclosures or educational materials when selling or |
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leasing, or offering to sell or lease, a residential solar energy |
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system and specifying the form and format of those disclosures; |
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(3) regulating the form and format of an agreement for |
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the sale or lease of a residential solar energy system; |
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(4) establishing insurance requirements for solar |
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retailers; and |
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(5) establishing continuing education requirements as |
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a prerequisite to renew a solar salesperson registration under this |
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chapter. |
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Sec. 1806.052. FEES. The commission shall establish and |
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collect reasonable and necessary fees in amounts sufficient to |
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cover the costs of: |
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(1) administering this chapter; and |
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(2) any other activity or function necessary for |
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effective regulation under this chapter. |
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Sec. 1806.053. EDUCATIONAL MATERIALS. (a) The Public |
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Utility Commission shall develop, in consultation with the |
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department and the office of the attorney general, educational |
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materials that inform consumers of the consumers' rights and |
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remedies related to the purchase or lease of residential solar |
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energy systems under this chapter and other applicable laws. |
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(b) The commission by rule may require solar retailers and |
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solar salespersons when engaging in residential solar retail to |
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provide solicited persons with the education materials developed |
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under this section. |
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SUBCHAPTER C. REGISTRATION |
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Sec. 1806.101. REGISTRATION REQUIRED: SOLAR SALESPERSON. A |
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person may not engage in residential solar retail for compensation |
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unless the person: |
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(1) engages in residential solar retail on behalf of a |
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solar retailer; and |
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(2) is registered as a solar salesperson under this |
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chapter. |
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Sec. 1806.102. REGISTRATION REQUIRED: SOLAR RETAILER. A |
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person may not employ or otherwise contract for the services of an |
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individual to engage in residential solar retail on behalf of the |
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person unless the person is registered as a solar retailer. |
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Sec. 1806.103. ELIGIBILITY FOR REGISTRATION. (a) To be |
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eligible for a registration under this chapter, a person must: |
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(1) submit an application to the department; |
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(2) pay any required fees; and |
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(3) meet the eligibility requirements of this chapter |
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and of rules adopted under this chapter. |
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(b) To be eligible to register as a solar salesperson, the |
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applicant must be an individual. |
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Sec. 1806.104. SOLAR RETAILER APPLICATION. An application |
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to register as a solar retailer must include: |
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(1) if the solar retailer is an entity, a list of each |
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controlling person of the solar retailer; |
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(2) the name and registration number of each solar |
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salesperson who engages in residential solar retail on behalf of |
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the solar retailer; and |
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(3) evidence satisfactory to the department that the |
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applicant has insurance meeting the requirements established by |
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commission rule. |
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Sec. 1806.105. CRIMINAL HISTORY RECORD INFORMATION CHECK. |
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The department may conduct a criminal history record information |
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check of each applicant or, if applicable, any controlling person |
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of an applicant for a registration under this chapter using |
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information: |
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(1) provided by the applicant; and |
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(2) made available to the department by the Department |
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of Public Safety and any other criminal justice agency under |
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Chapter 411, Government Code. |
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Sec. 1806.106. EXEMPTION FROM CONTINUING EDUCATION. |
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Notwithstanding Section 51.405 or any other provision of this |
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chapter, a solar retailer may not be required to complete |
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continuing education to renew the solar retailer's registration |
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under this chapter. |
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SUBCHAPTER D. PRACTICE BY REGISTRANTS |
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Sec. 1806.151. NOTICE TO DEPARTMENT OF SOLAR SALESPERSONS |
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AUTHORIZED TO ENGAGE IN RESIDENTIAL SOLAR RETAIL. A solar retailer |
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shall promptly notify the department in a manner prescribed by the |
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department of: |
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(1) each solar salesperson authorized to engage in |
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residential solar retail on behalf of the solar retailer; and |
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(2) any change in an authorization described by |
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Subdivision (1). |
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Sec. 1806.152. SUPERVISION REQUIRED. (a) A solar retailer |
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shall provide reasonable supervision to each solar salesperson |
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authorized to engage in residential solar retail on behalf of the |
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solar retailer, including making reasonable efforts to correct any |
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violation of this chapter or a rule adopted under this chapter that |
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the solar retailer is aware of or of which a reasonable person under |
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the same circumstances would be aware. |
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(b) A solar retailer is responsible for any violation |
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described by Subsection (a) committed by a solar salesperson |
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authorized to engage in residential solar retail on behalf of the |
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solar retailer. |
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Sec. 1806.153. CODE OF CONDUCT; COMPLIANCE WITH OTHER LAW. |
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A solar retailer and a solar salesperson shall comply with: |
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(1) any code of conduct adopted by commission rule |
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governing solar retailers or solar salespersons, as applicable; |
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(2) Subchapter E, Chapter 17, Business & Commerce |
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Code; and |
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(3) Chapter 115, Business & Commerce Code, as if the |
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solar retailer or solar salesperson, as applicable, were a seller |
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or lessor under that chapter. |
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Sec. 1806.154. REGISTRATION INFORMATION. (a) On request |
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by the department or a person to whom a solar retailer or solar |
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salesperson has offered to sell or lease, or has sold or leased, a |
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residential solar energy system, the solar retailer or solar |
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salesperson, as applicable, shall provide the department or person |
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with the retailer's or salesperson's name and registration number. |
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(b) A solar retailer shall ensure that each agreement for |
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the sale or lease of a residential solar energy system by the |
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retailer includes the name and registration number of the retailer |
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and the solar salesperson involved in the transaction. |
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(c) An electrical contractor or individual acting on behalf |
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of an electrical contractor shall provide the electrical |
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contractor's name and license number under the same circumstances |
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as a solar retailer or solar salesperson is required to provide the |
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retailer's or salesperson's name and number under this section. |
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Sec. 1806.155. REQUIRED CONTRACT PROVISIONS. (a) If the |
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sale or lease of a residential solar energy system involves the |
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installation of the system at a person's residence, the sale or |
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lease agreement must: |
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(1) provide that the installation of the residential |
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solar energy system will be performed by an electrical contractor; |
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(2) conspicuously state the name and license number of |
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the electrical contractor who will perform the installation |
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described by Subdivision (1); and |
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(3) provide that the solar retailer or electrical |
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contractor, as applicable, will obtain: |
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(A) any permit required by a government entity |
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for the installation described by Subdivision (1); and |
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(B) if Section 39.554 or 39.916, Utilities Code, |
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applies, the approval by the electric utility serving the person's |
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residence of the interconnection of the residential solar energy |
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system. |
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(b) The requirement under Subsection (a)(2) may be |
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satisfied by providing a list of electrical contractors in the |
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agreement from which one must be selected to perform the |
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installation described by Subsection (a)(1). |
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Sec. 1806.156. RIGHT TO CANCEL AGREEMENT. (a) In this |
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section, "business day" means a calendar day excluding Saturday, |
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Sunday, or any legal holiday, as that term is defined by Section |
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662.021, Government Code. |
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(b) Notwithstanding any other law, a solar retailer shall |
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allow a buyer or lessee who enters into an agreement to purchase or |
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lease a residential solar energy system to cancel the agreement |
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without penalty or further obligation by providing written notice |
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of the cancellation on or before the fifth business day after the |
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date on which the agreement was executed by the buyer or lessee. |
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(c) A solar retailer shall include in an agreement for the |
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sale or lease of a residential solar energy system the last calendar |
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date of the cancellation period prescribed by Subsection (b) and |
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the mailing address or e-mail address for providing the notice of |
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cancellation. |
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(d) If the agreement does not contain the address for |
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cancellation required by Subsection (c), the buyer or lessee may |
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cancel the agreement during the period described by Subsection (b) |
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by providing written notice of cancellation to the solar retailer |
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by any reasonable method. |
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SUBCHAPTER E. ENFORCEMENT |
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Sec. 1806.201. PROHIBITED ACTS. A person may not: |
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(1) intentionally, knowingly, or recklessly make a |
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false, misleading, or deceptive oral or written statement to |
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another person when engaging in residential solar retail; |
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(2) falsely state or imply an affiliation with a |
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public utility or government agency when engaging in residential |
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solar retail; |
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(3) fail to provide the disclosure statements or any |
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educational materials as required by this chapter, by Chapter 115, |
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Business & Commerce Code, or by commission rule, when engaging in |
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residential solar retail; |
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(4) engage in residential solar retail at a residence |
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in violation of posted signage indicating that soliciting is |
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prohibited, unless otherwise directed by an occupant of the |
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residence; |
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(5) allow the installation of a residential solar |
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energy system to be performed by a person who is not an electrical |
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contractor; |
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(6) make a material misrepresentation in an |
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application submitted to the department under this chapter or in |
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any other document submitted to the department under this chapter; |
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or |
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(7) violate, attempt to violate, or conspire to |
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violate this chapter or a rule adopted under this chapter. |
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Sec. 1806.202. DENIAL OR REFUSAL TO RENEW. The executive |
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director may deny an application to register or refuse to renew a |
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registration under this chapter if the applicant, or if applicable, |
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a controlling person of the applicant has: |
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(1) violated this chapter or a rule or order of the |
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commission or executive director; or |
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(2) had suspended or revoked, or has been otherwise |
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formally disciplined in connection with, any authorization to |
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practice an occupation or engage in a business that was issued by a |
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licensing authority in this state or another state. |
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Sec. 1806.203. ADMINISTRATIVE PENALTY. In imposing an |
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administrative penalty under Subchapter F, Chapter 51, for a |
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violation of Section 1806.201, the commission in determining the |
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appropriate amount of the penalty may consider whether any |
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individual over the age of 65 at the time of the prohibited conduct |
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was harmed by the conduct. |
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Sec. 1806.204. WARNING LETTER. (a) Before imposing an |
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administrative penalty or sanction against a person under Chapter |
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51, the executive director may issue a warning letter directing a |
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person to take corrective action regarding the violation that is |
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the basis of the penalty or sanction. |
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(b) In determining whether to issue a warning letter under |
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Subsection (a), the executive director may consider any history of |
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violations by the person, including whether the person complied |
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with previous warning letters, and the person's efforts to correct |
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the violation and prevent future violations. |
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(c) A determination to issue a warning letter under this |
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section is not a contested case under Chapter 2001, Government |
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Code. |
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Sec. 1806.205. CEASE AND DESIST ORDER. The executive |
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director may issue a cease and desist order under Section 51.3513 to |
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protect public health and safety. |
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Sec. 1806.206. AMOUNT OF CIVIL PENALTY. (a) |
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Notwithstanding Section 51.352 and except as provided by Subsection |
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(b), the amount of a civil penalty imposed under Chapter 51 for a |
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violation of this chapter or a rule adopted under this chapter may |
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not exceed: |
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(1) $2,500 for each violation; or |
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(2) $50,000 in the aggregate for all violations of a |
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similar nature. |
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(b) In a proceeding imposing a civil penalty under Section |
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51.352 for a violation of this chapter or a rule adopted under this |
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chapter, if the court finds that an individual over the age of 55 at |
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the time of the violation was harmed by the violation, the amount of |
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the civil penalty may not exceed: |
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(1) $10,000 for each violation; or |
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(2) $100,000 in the aggregate for all violations of a |
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similar nature. |
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Sec. 1806.207. AGREEMENT CANCELLATION AND REFUND. (a) |
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Subject to Subsection (b), the commission or executive director |
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may, after notice and a hearing and after finding that a violation |
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of this chapter or a rule adopted under this chapter has occurred, |
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order the cancellation of an agreement for the sale or lease of a |
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residential solar energy system and the refund of any amount paid |
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under the agreement. |
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(b) The amount of a refund ordered under this section may |
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not exceed the amounts paid under the agreement. |
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(c) This section does not authorize the executive director |
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or commission to impose or collect penalties, fines, or other |
|
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damages, except that a proceeding under this section may be |
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combined with a proceeding to impose an administrative penalty or |
|
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sanction by the department. |
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(d) A proceeding under this section is a contested case |
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under Chapter 2001, Government Code. |
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(e) This section does not prohibit an injured party who was |
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refunded money under this section from bringing an action in a court |
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with jurisdiction to collect damages, other than the refunded |
|
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money, or obtain equitable relief under other applicable law. |
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Sec. 1806.208. VIOLATION BY ELECTRICAL CONTRACTOR. An |
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electrical contractor who violates this chapter or a rule adopted |
|
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under this chapter is subject to an administrative penalty or |
|
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sanction or any other enforcement provision under Chapter 1305, |
|
|
Chapter 51, and this chapter. |
|
|
SECTION 2. Chapter 1806, Occupations Code, as added by this |
|
|
Act, applies only to a contract entered into on or after the |
|
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effective date of this Act. A contract entered into before the |
|
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effective date of this Act is governed by the law in effect on the |
|
|
date the contract was entered into, and that law is continued in |
|
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effect for that purpose. |
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|
SECTION 3. Not later than June 1, 2026, the Texas Commission |
|
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of Licensing and Regulation shall adopt rules necessary to |
|
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implement Chapter 1806, Occupations Code, as added by this Act. |
|
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SECTION 4. As soon as practicable after the effective date |
|
|
of this Act, the Texas Department of Licensing and Regulation shall |
|
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establish and lead a stakeholder work group to provide advice and |
|
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recommendations to the department on regulating activities |
|
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governed by Chapter 1806, Occupations Code, as added by this Act. |
|
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The department shall establish the size, composition, and scope of |
|
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the stakeholder work group. |
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SECTION 5. (a) Except as otherwise provided by this Act, |
|
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this Act takes effect September 1, 2025. |
|
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(b) Sections 1806.101 and 1806.102 and Subchapter E, |
|
|
Chapter 1806, Occupations Code, as added by this Act, take effect |
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September 1, 2026. |