Existing law provides for the licensure and regulation of installment lenders by the Commissioner of Financial Institutions. (Chapter 675 of NRS) Section 1 of this bill prohibits an installment lender from engaging in any deceptive trade practice. Existing law imposes certain requirements on solar installation companies that sell and install distributed generation systems in this State. Existing law prescribes certain contractual requirements for an agreement for the purchase or lease of a distributed generation system and a power purchase agreement. (NRS 598.9801-598.9822) Sections 23.1-23.3 of this bill impose various requirements on distributed generation system financiers and contractual requirements for an agreement for the provision of a distributed generation system loan, an agreement for the lease of a distributed generation system and a power purchase agreement. Section 23.11 defines “distributed generation system financier” to mean, in general, a person who provides a distributed generation system loan, leases a distributed generation system or enters into a contract for a power purchase agreement. Section 23.12 defines “distributed generation system loan” to mean a loan made for the express purpose of financing the purchase of a distributed generation system or any part thereof. Section 23.13 prohibits a distributed generation system financier from charging a borrower, lessee, host customer or prospective borrower, lessee or host customer certain fees that are attributable to a fee imposed on the financier by a third party in an amount that exceeds the actual amount of the fee charged to the financier by the third party. Section 23.14 sets forth certain requirements for the contents of an agreement for the provision of a distributed generation system loan. Section 23.16 requires a distributed generation system financier to provide to a borrower, lessee or host customer a copy of an agreement for the provision of the distributed generation system loan, an agreement for the lease of a distributed generation system or a power purchase agreement immediately after it is signed by the borrower, lessee or host customer. Section 23.17 sets forth certain requirements for a distributed generation system financier with respect to a distributed generation system that will be installed on the roof of a manufactured home. Section 23.18 requires a distributed generation system financier to ensure that any solar installation company that will install a distributed generation system that is leased by the financier or for which a power purchase agreement or agreement for the provision of a distributed generation system loan has been executed by the financier holds the proper contractor's license and is acting within the monetary limit of that license. If a distributed generation system financier fails to do so, the loan agreement, lease agreement or power purchase agreement is voidable by the borrower, lessee or host customer for a certain period. Additionally, section 23.18 prohibits a distributed generation system financier from providing any money pursuant to a loan agreement, lease agreement or power purchase agreement to a solar installation company that does not have the proper contractor's license or who is acting outside the monetary limit of such a license. Section 23.21 additionally prohibits such a financier from making certain payments to a solar installation company before the distributed generation system has received permission from the appropriate public utility to connect to the power grid or, if the system will not be connected to the power grid, has passed a final inspection and become operational. Section 23.19 requires a distributed generation system financier to make and retain certain recordings with a borrower or lessee. Section 31 of this bill: (1) removes the duty of a solar installation company to make certain recordings concerning a lessee which is imposed in section 23.19 on a distributed generation system financier; and (2) increases, from 4 years to 5 years, the amount of time a solar installation company is required to maintain certain recordings. Section 23.22 prohibits a distributed generation system financier from causing a distributed generation system to be disconnected or otherwise unusable for the failure of a borrower, lessee or host customer to make any payment required under an agreement for the provision of a distributed generation system loan, an agreement for the lease of a distributed generation system or a power purchase agreement unless the borrower, lessee or host customer, as applicable, has failed to make three consecutive monthly payments required under the agreement. Section 23.3 requires a distributed generation system financier to comply with all applicable federal laws and regulations. Section 23.23 provides that the assignee of an agreement for the provision of a distributed generation system loan, an agreement for the lease of a distributed generation system or a power purchase agreement is subject to all claims and defenses of the borrower, lessee or host customer against the distributed generation system financier who provided the loan or entered into the lease or power purchase agreement. Under section 23.23, the liability of the assignee is limited to the amount owed to the assignee at the time the claim or defense is asserted against assignee. Section 23.24 prohibits a distributed generation system financier from advertising any false, misleading or deceptive statement with regard to any rate that may be charged by a public utility for electricity. Under existing law, a lessee or purchaser of a distributed generation system or a host customer has the right to rescind the lease or purchase agreement 3 business days after the agreement is signed. (NRS 598.98216) Sections 23.14, 23.15, 26-30 and 32 of this bill provide a borrower, lessee, purchaser or host customer the right to rescind an agreement for the provision of a distributed generation system loan, a lease or purchase agreement or a power purchase agreement: (1) 3 business days after signing, if the person is less than 60 years of age; and (2) 10 business days after signing, if the person is 60 years of age or older. Sections 23.15, 23.2, 26-30 and 32 of this bill also provide a borrower, lessee, purchaser or host customer the right to rescind such an agreement if the results of a required on-site physical survey of the premises conducted after the execution of the agreement would require the alteration of the terms of the agreement to increase the price of the distributed generation system or, with certain exceptions, change the type of equipment used for the distributed generation system. Section 23.4 of this bill imposes certain requirements and restrictions upon a person who generates leads or referrals to perform work concerning a distributed generation system. Section 23.6 of this bill prohibits a solar installation company from accepting any payment as an initial down payment or deposit to be paid for the installation of a distributed generation system that exceeds a certain amount. Section 23.8 of this bill prohibits a solar installation company, a person who generates leads or referrals to perform work concerning a distributed generation system or a distributed generation system financier from engaging in certain conduct, including, without limitation, certain specified deceptive or fraudulent conduct in connection with the lease or purchase of a distributed generation system or the contracting for a power purchase agreement. Section 24 of this bill makes a conforming change so that the definitions applicable to the provisions of existing law governing distributed generation systems apply to sections 23.1-23.8. Section 33 of this bill provides that a violation of sections 23.1-23.8 constitutes a deceptive trade practice and consumer fraud. Sections 23.6, 27, 29 and 30 also provide that a borrower, lessee, purchaser or host customer is not required to pay any money to a distributed generation system financier or solar installation company, except for an initial deposit or down payment that does not exceed a certain amount, before the distributed generation system has received permission from the appropriate public utility to connect to the power grid or, if the system will not be connected to the power grid, has passed a final inspection and become operational. Sections 27 and 29 additionally impose certain duties on a solar installation company if a distributed generation system fails to meet the estimated amount of production in the first year of operation of the system. Sections 23.14, 29 and 30 of this bill require an agreement for the provision of a distributed generation system loan, an agreement for the lease of a distributed generation system or a power purchase agreement to contain information concerning whether a borrower, lessee or host customer may transfer the agreement in the event of a sale of the property to which the distributed generation system is affixed and the process to complete a payoff of any amount owed under the agreement. Sections 27, 29 and 30 additionally require certain other provisions and disclosures to be included in an agreement for the purchase or lease of a distributed generation system and a power purchase agreement. Existing law excludes from the definition of “solar installation company” a person who generates leads or referrals to perform work concerning a distributed generation system, if the person's activities are limited to certain specified activities. (NRS 598.9808) Section 25 of this bill requires such a person to collect only the name, contact information and information concerning the power bill of a prospective purchaser or lessee. Section 25 additionally prohibits such a person from engaging in advertising through any media other than print media. Section 23.7 of this bill authorizes the State Contractors' Board to adopt regulations that require any employee of a solar installation company to submit to a background check and which set forth requirements for such background checks. Sections 23.14, 26 and 29.5 of this bill require an agreement for the provision of a distributed generation system loan and the cover page for an agreement for the lease of a distributed generation system or power purchase agreement to prominently display at the top of the agreement or cover page the length of the term of the agreement and a description of the consequences if the borrower, lessee or host customer dies during the term of the agreement. Sections 26, 28 and 29.5 of this bill require the cover page of an agreement for the lease or purchase of a distributed generation system or a power purchase agreement to contain certain information relating to the amount paid by the company for certain leads and referrals and certain notice relating to the terms of the agreement. Sections 26, 28 and 29.5 also require such a cover page to contain a statement providing certain information concerning financial covenants and restrictions that may affect the future sale or transferability of the property of the purchaser, lessee or host customer.

Statutes affected:
As Introduced: 675.020, 675.040, 675.060, 675.280, 97.125, 598.9801, 598.9808, 598.9809, 598.9811, 598.9813, 598.9814, 598.9817, 598.98213, 598.98216, 598.9822
Reprint 1: 675.020, 675.060, 675.280, 97.125, 598.9801, 598.9808, 598.9809, 598.9811, 598.9813, 598.9814, 598.9816, 598.9817, 598.98213, 598.98216, 598.9822
Reprint 2: 598.9801, 598.9808, 598.9809, 598.9811, 598.9813, 598.9814, 598.9816, 598.9817, 598.98213, 598.98216, 598.9822
As Enrolled: 598.9801, 598.9808, 598.9809, 598.9811, 598.9813, 598.9814, 598.9816, 598.9817, 598.98213, 598.98216, 598.9822
BDR: 675.020, 675.040, 675.060, 675.280, 97.125, 598.9801, 598.9808, 598.9809, 598.9811, 598.9813, 598.9814, 598.9817, 598.98213, 598.98216, 598.9822