Added by Stats. 2017, Ch. 484, Sec. 1. (SB 242) Effective January 1, 2018.
The provisions of this article shall apply exclusively to residential real property with four or fewer units.
Chapter 29.1 - Clean Energy Assessment Contracts
California Streets and Highways Code — §§ 5900-5954
Sections (12)
Added by Stats. 2017, Ch. 484, Sec. 1. (SB 242) Effective January 1, 2018.
The provisions of this chapter shall not apply to any public agency that does not use a program administrator to administer a PACE program.
Added by Stats. 2017, Ch. 484, Sec. 1. (SB 242) Effective January 1, 2018.
A program administrator may not waive or defer the first payment on an assessment contract. A property owner’s first assessment payment shall be due no later than the fiscal year following the fiscal year in which the installation of the efficiency improvement is completed.
Added by Stats. 2017, Ch. 484, Sec. 1. (SB 242) Effective January 1, 2018.
A program administrator shall not permit contractors or other third parties to advertise the availability of assessment contracts that are administered by the program administrator, or to solicit property owners on behalf of the program administrator, unless both of the following requirements are met:
(a)The contractor or third party maintains in good standing an appropriate license from the Contractors’ State Licensing Board, as well as any other permits, licenses, or registrations required for engaging
in its business in the jurisdiction where it operates, and maintains the required bond and insurance coverage pursuant thereto.
(b)The program administrator obtains the contractor’s or third party’s written agreement that the contractor or third party will act in accordance with applicable advertising and marketing laws and regulations, and all other applicable laws.
Added by Stats. 2017, Ch. 484, Sec. 1. (SB 242) Effective January 1, 2018.
(a)A program administrator shall not provide any direct or indirect cash payment or other thing of material value to a contractor or third party in excess of the actual price charged by that contractor or third party to the property owner for the sale and installation of one or more
efficiency improvements financed by an assessment
contract.
(b)A program administrator shall not reimburse a contractor or third party for expenses for advertising and marketing campaigns and
collateral. A program administrator may reimburse a contractor’s bona fide and reasonable training expenses related to PACE financing, provided that:
(1)The training expenses are actually incurred by the contractor.
(2)The reimbursement does not exceed one hundred dollars ($100) per each salesperson or agent of the contractor who participated in the training.
(3)The reimbursement is paid directly to the contractor, and is not paid to its salespersons or agents.
(c)A program
administrator shall not provide any direct cash payment or other thing of value to a property owner explicitly conditioned upon that property owner entering into an assessment contract. Notwithstanding the above, programs or promotions that offer reduced fees or interest rates to property owners are neither a direct cash payment or “other thing of value,” provided that the reduced fee or interest rate is reflected in the assessment contract and in no circumstance provided to the property owner as cash consideration.
Added by Stats. 2017, Ch. 484, Sec. 1. (SB 242) Effective January 1, 2018.
A program administrator, contractor, or a third party shall not make any representation as to the tax deductibility of an assessment contract unless that representation is consistent with representations, statements, or opinions of the Internal Revenue Service or applicable state tax agency with regard to the tax treatment of PACE assessments.
Added by Stats. 2017, Ch. 484, Sec. 1. (SB 242) Effective January 1, 2018.
A program administrator shall not provide to a contractor or third party engaged in soliciting assessment contracts on its behalf any information that discloses the amount of funds for which a property owner is eligible under a PACE assessment or the amount of equity in a property.
Added by Stats. 2017, Ch. 484, Sec. 1. (SB 242) Effective January 1, 2018.
A contractor shall not provide a different price for a project financed by a PACE assessment than the contractor would provide if paid in cash by the property owner.
Amended by Stats. 2018, Ch. 798, Sec. 15. (SB 1087) Effective January 1, 2019.
(a)It shall be unlawful to commence work under a home improvement contract, or deliver any property or perform any services other than obtaining building permits or other similar services preliminary to the commencement of work, and the home improvement contract shall be unenforceable, if both of the following occur:
(1)The property owner entered into the home improvement contract based on the reasonable belief that the work would be covered by the PACE program.
(2)The property owner applies for, accepts, and cancels the PACE financing within the right to cancel period set forth in subdivision (b) of Section 5898.16 or applies for but is not approved for PACE financing in the amount requested by the
property owner.
(b)If work has commenced in violation of subdivision (a), then:
(1)The contractor is entitled to no compensation for that work.
(2)The contractor shall restore the property to its original condition at no cost to the property owner.
(3)The contractor shall immediately and without condition return all money, property, and other consideration given by the property owner. If the property owner gave any property as consideration and the contractor does not or cannot return it for whatever reason, the contractor shall immediately return the fair market value of the property or its value as designated in the contract, whichever is greater.
(c)(1) If the
contractor has delivered any property to the property owner pursuant to a contract that is unenforceable under subdivision (a), the property owner shall make the property available to the contractor for return within 90 days of execution of the contract provided that:
(A) The provisions of subdivision (b) have been met.
(B) The property can be practically returned to the contractor and removed, at the contractor’s expense, without leaving any damage to the property owner’s property.
(2)Failure of the contractor to comply with this subdivision shall allow the property owner to retain without obligation in law or equity any property provided pursuant to the unenforceable contract.
(d)The property owner may waive the requirements in subdivision (a) if
all the following are met:
(1)The contract is executed in connection with the making of emergency or immediately necessary repairs to protect persons or real or personal property.
(2)The property owner initiated the contract for the emergency repair or immediately necessary repair.
(3)The property owner provides a separate statement that is handwritten in ink by a property owner and dated and signed by each property owner, describing the situation that requires immediate remedy, and expressly acknowledges that the contractor has informed them of his or her right to cancel and that he or she waive the right to cancel the sale.
(e)If the property owner waives his or her right to cancel on the home improvement contract to allow the home improvement
contractor to proceed with installation, and then cancels his or her PACE financing or is not approved for PACE financing in the amount requested by the property owner, it shall not invalidate the home improvement contract.
(f)This section does not authorize the commencement of work under a home improvement contract if the commencement of work is prohibited by Sections 22684, 22686, or 22687 of the Financial Code.