S.B. No. 1036 introduces the Residential Solar Retailer Regulatory Act, which establishes a regulatory framework for residential solar retail transactions in Texas. The bill requires individuals and entities involved in residential solar retail to register as either solar retailers or solar salespersons with the Texas Department of Licensing and Regulation. It defines key terms such as "residential solar energy system" and "solar retailer," and outlines the roles of the Texas Commission of Licensing and Regulation and the Department in enforcing these regulations. The legislation also includes provisions for fees to cover administrative costs and civil penalties for violations, while providing exemptions for electrical contractors and their employees from certain registration and insurance requirements.

The bill mandates compliance with various legal requirements, including the Truth in Lending Act, and requires solar retailers to provide registration information upon request. It specifies that sales or lease agreements for residential solar energy systems must include essential details, such as the names and registration numbers of the parties involved, and outlines necessary contract provisions, including installation by licensed electrical contractors and cancellation rights for buyers. Additionally, the bill prohibits deceptive practices in residential solar retail and allows for administrative penalties for violations. The Texas Commission of Licensing and Regulation is tasked with adopting necessary rules by June 1, 2026, and a stakeholder work group will be established to assist in implementing these regulations. The act is set to take effect on September 1, 2025, with certain provisions becoming effective a year later.

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