Existing law provides for the licensure and regulation of installment lenders by the Commissioner of Financial Institutions. (Chapter 675 of NRS) With certain exceptions, existing law prohibits a person from engaging in the business of lending without being licensed by the Commissioner as an installment lender. (NRS 675.060) Section 20 of this bill additionally prohibits a person from engaging in the business of a distributed generation system financier, a manufactured home financier or a covered lessor without being licensed by the Commissioner as an installment lender. Section 18 of this bill defines: (1) “distributed generation system financier,” in general, to mean a person who provides a loan to finance the purchase of a distributed generation system, which section 18 designates as a “distributed generation system loan,” or leases a distributed generation system; (2) “manufactured home financier” to mean, in general, a person who provides a loan to finance the purchase of or leases a manufactured home that is not permanently attached to land; and (3) “covered lessor” to mean a person who leases personal property to another person pursuant to a lease agreement with an option to purchase. Existing law exempts from the provisions of existing law governing installment lenders persons doing business as a pawnbroker, insurance company, bank or certain other financial institutions. (NRS 675.040) Section 19 of this bill removes that exception if such a person is operating as a distributed generation system financier, manufactured housing financier or covered lessor. 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 2-17 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 or lease for a distributed generation system. Section 6 prohibits a distributed generation system financier from charging a borrower, lessee or prospective borrower or lessee 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 7 sets forth certain requirements for the contents of an agreement for the provision of a distributed generation system loan. Section 10 requires a distributed generation system financier to provide to a borrower or lessee a copy of an agreement for the provision of the distributed generation system loan or lease of a distributed generation system immediately after it is signed by the borrower or lessee. Section 11 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 12 requires a distributed generation system financier to ensure that any solar installation company that will install a distributed generation system that is leased by or for which a distributed generation system loan has been issued 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 or lease agreement is voidable by the borrower or lessee for a certain period. Additionally, section 12 provides that a distributed generation system financier commits a deceptive trade practice if the financier pays any money pursuant to a loan or lease 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 14 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 received a final inspection. Section 13 requires a distributed generation system financier to make and retain certain recordings with a borrower or lessee. Section 31 of this bill increases, from 4 years to 5 years, the amount of time a solar installation company is required to maintain certain recordings. Section 15 prohibits a distributed generation system financier from causing a distributed generation system to be disconnected or otherwise unusable for failure of a borrower to make any payment required under an agreement for the provision of a distributed generation system loan. Section 17 requires a distributed generation system financier to comply with all applicable federal laws and regulations. Section 16 provides that the assignee of an agreement for the provision of a distributed generation system loan or an agreement for the lease of a distributed generation system is subject to all claims and defenses of the borrower or lessee against the distributed generation system financier who provided the loan or entered into the lease. Under section 16, 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 21 of this bill revises provisions of existing law prohibiting a licensed installment lender from advertising certain false, misleading or deceptive statements or representations to specify that the prohibition also applies to applicable leases and specifically includes such statements made by a distributed generation system financier with regard to any rate that may be charged by a public utility for electricity. (NRS 675.280) Section 22 of this bill revises provisions of existing law relating to retail installment sales so that such provisions continue to apply to distributed generation system financiers, manufactured home financiers and covered lessors who engage in certain activities. (NRS 97.125) Under existing law, a lessee or purchaser of a distributed generation system has the right to rescind the lease or purchase agreement 3 business days after the agreement is signed. (NRS 598.98216) Sections 7, 9, 26-29 and 32 of this bill provide a borrower, lessee or purchaser the right to rescind an agreement for the provision of a distributed generation system loan or a lease or purchase agreement: (1) three business days after signing, if the person is under 60 years of age; and (2) ten business days after signing, if the person is 60 years of age or older. Sections 8, 9, 23 and 32 of this bill also provide a borrower, lessee or purchaser the right to rescind such an agreement if the results of a required physical survey of the premises would require the alteration of any of the terms of the 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 section 23. Section 33 of this bill provides that a violation of section 23 constitutes a deceptive trade practice and consumer fraud. Sections 7, 27 and 29 also provide that a borrower, lessee or purchaser is not required to pay any money to a distributed generation system financier or 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 received a final inspection. 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 7, 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 provisions allowing a borrower, lessee or host customer to transfer the agreement in the event of a sale of the property to which the distributed generation system is affixed. 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. Sections 7 and 26 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 to prominently display at the top of the agreement or cover page the length of the term of the loan or lease and a description of the consequences if the borrower or lessee dies during the term of the loan or lease.

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
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