HB 828

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1AN ACT relating to consumer protection.
2 Be it enacted by the General Assembly of the Commonwealth of Kentucky:
3SECTION 1. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO
4 READ AS FOLLOWS:
5 (1)     As used in Sections 1 and 2 of this Act:
6(a)     "Beneficiary" means any one (1) of the following who is solicited by or
7signs a contract with a solar energy salesperson or a solar energy contractor
8for a residential or commercial solar energy system:
91.      An owner or leaseholder of residential or commercial property; or
102.      An owner or lessee of a solar energy system;
11(b)     "Dealer fee" means an amount paid by a solar energy contractor or solar
12energy salesperson to a lender in order to offer a beneficiary credit to
13finance the purchase and installation of a solar energy system;
14(c)     "Electric utility" means:
151.      A municipal electric utility established under KRS Chapter 96; or
162.      An electric utility subject to KRS Chapter 278;
17(d)     "Major system components" means any inverters, module-level power
18electronics, solar panels, racking systems, or battery energy storage
19equipment included in the solar energy installation;
20(e)     "Solar array" means a mechanically and electrically integrated grouping of
21modules with support structures, including any attached system components
22such as inverters or direct current-to-direct current converters and attached
23associated wiring;
24(f)     "Solar energy contractor" means a person that:
251.      Designs, installs, repairs, replaces, or maintains solar energy systems;
26and
272.      Is licensed as an electrical contractor under KRS Chapter 227A;
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1(g)     "Solar energy installation contract" means an agreement between a solar
2energy contractor or solar energy salesperson and a beneficiary that
3includes, in part, an agreement to install a residential or commercial solar
4energy system for a total cost including labor and materials in excess of one
5thousand dollars ($1,000);
6(h)     "Solar energy salesperson" means a person who solicits, negotiates, or
7otherwise endeavors to procure a solar energy installation contract with a
8beneficiary to install, repair, or replace residential or commercial solar
9energy systems on behalf of a solar energy contractor or any other person;
10(i)     "Solar energy system" is any purchased, leased, or otherwise financed
11system comprised of components, circuits, solar energy equipment, and
12other equipment that in combination convert solar energy into electrical
13energy; and
14(j)     "Solicit" means to make contact with a beneficiary for the purpose of
15selling or installing residential or commercial solar energy systems
16including but not limited to contact through any of the following methods:
171.       Door-to-door contact;
182.      Telephone contact or text messages;
193.      Flyers left at a residence or commercial property;
204.      Internet or social media advertisements; or
215.      Other promotional advertisements that offer gifts, cash, or services if
22the beneficiary contacts the solar energy contractor or solar energy
23salesperson.
24 (2)     (a)     A person shall not advertise, offer to do work, submit a bid, engage in,
25conduct, or carry on the business of designing, installing, repairing,
26replacing, or maintaining residential or commercial solar energy systems
27for a total cost including labor and materials in excess of one thousand
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1dollars ($1,000) unless he or she is licensed as an electrical contractor
2under KRS Chapter 227A.
3(b)     Any solar energy installation contract executed between a beneficiary and
4an unlicensed person shall be void and unenforceable.
5 (3)     A solar energy installation contract shall:
6(a)     Be made in writing using the same language and terms as were principally
7used in any sales presentations made to a beneficiary including any
8material contract terms from print or digital marketing material given to the
9beneficiary;
10(b)     Be given to the beneficiary at the time the beneficiary signs the contract;
11and
12(c)     Contain the following:
131.      An itemized list of work to be performed including any known or
14anticipated electrical system upgrades or utility equipment upgrades
15that are necessary for installation;
162.      Any loan financing, leasing, or purchase agreement that is
17incorporated directly into the contract, included as a separate
18attachment or component of the contract, and conforming to all
19federal and state consumer credit protection statutes, regulations, and
20disclosure requirements, including terms and conditions, rents,
21amount financed, finance charge, interest rates, total of payments,
22annual percentage rate, the amortization schedule, late fees and
23penalties, prepayment penalties, and information describing how the
24loan financing is secured;
253.      Disclosure of the exact amount paid, if any, by a solar energy
26contractor or solar energy salesperson to any lender, lessor, or third-
27party financing company in the form of a dealer fee, commission, or
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1other similar inducement to obtain financing, regardless of whether
2financing is incorporated within the contract or in conjunction with a
3third-party lender;
44.      The total dollar amount of the contract;
55.      The cost per watt calculated as the total contract amount, including
6labor and materials, for installing the solar energy system divided by
7the total direct current nameplate rating of the solar energy system;
86.      A detailed payment schedule based on project completion milestones
9that explains when payments are due, the beneficiary's right to cancel
10the contract, and the cancellation fees due at each milestone in the
11payment schedule;
127.      The model and brand name of major system components to be
13installed, and, in the case of a change in any major system
14components throughout the duration of the contract, documentation
15of those changes and the efficiency and warranty period of the new
16major system components, and the agreement in writing by the
17beneficiary to those changes;
188.      The manufacturer's warranty period for each major system
19component of the solar energy system;
209.      The solar energy system's first year annual production projections in
21kilowatt hours, which:
22a.      Shall be based on site-specific considerations of each solar
23array, including location of the installation, orientation and
24angle of the panels, and on-site shading factors;
25b.      Shall not exceed optimal inverter performance identified by the
26manufacturer of the inverter equipment identified in the
27contract; and
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1c.      Shall be developed using nationally recognized, industry
2standard tools and methodologies;
310.     A provision detailing that if there is a change to the solar array that
4reduces solar array production, the change order shall be submitted to
5the beneficiary, and the beneficiary shall have a period of up to two
6(2) weeks to cancel the contract;
711.     The name, business address, email address, and phone number of the
8primary solar energy salesperson, if different from the solar energy
9contractor;
1012.     The name, business address, email address and license number of the
11solar energy contractor;
1213.     A statement identifying whether all of the work will be performed by
13employees of the solar energy contractor and, in the case of any part
14of the work being subject to subcontracting by or assignment from the
15solar energy contractor to another person, the circumstances by which
16the subcontracting or assignment will occur and a disclosure of how
17the solar energy contractor will monitor and ensure that the work is
18completed in a safe, timely, and professional manner;
1914.     A notice of the beneficiary's right to cancel, which shall be initialed by
20the beneficiary acknowledging that he or she has read and understood
21the following applicable notice, in twelve (12) point font or larger and
22including the following terms:
23a.      For a residential property, a right to cancel notice that is
24consistent with requirements of KRS 367.430;
25b.      For a commercial property, a rescission rights notice that reads
26as follows: "IF THIS AGREEMENT WAS SOLICITED TO
27YOUR COMMERCIAL PROPERTY AND YOU DO NOT
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1WANT THE GOODS OR SERVICES, YOU MAY CANCEL
2THIS AGREEMENT BY MAILING A NOTICE TO THE
3SELLER. THE NOTICE MUST SAY THAT YOU DO NOT
4WANT THE GOODS OR SERVICES AND MUST BE MAILED
5BEFORE MIDNIGHT OF THE THIRD BUSINESS DAY
6AFTER YOU SIGN THIS AGREEMENT. THE NOTICE
7MUST BE MAILED TO:
8..................................................
9.................................................."
1015.     A statement of warranty that the solar energy contractor shall:
11a.      Install the solar energy system in compliance with:
12i.       The manufacturer instructions;
13ii.      The national electric code as enforced in the local
14jurisdiction;
15iii.     Local building codes; and
16iv.      The applicable utility's interconnection standards; and
17b.      Correct or remedy any lack of compliance in the installation of
18the system for at least one (1) year;
1916.     A statement fully and accurately describing the ability or inability of
20the solar energy system to produce power during a grid outage,
21including all applicable utility restrictions and conditions;
2217.     A statement authorizing the solar energy contractor to interact as
23necessary with the beneficiary's electric utility on the beneficiary's
24behalf to provide any required information to and obtain any
25necessary approvals from the electric utility prior to, during, and
26following construction and initial operation of the solar energy
27system; and
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118.     A statement fully and accurately describing the solar energy
2contractor's affiliation or lack of affiliation with the beneficiary's
3electric utility.
4 (4)     (a)     If a beneficiary finances the purchase of the solar energy system with a
5financed sales contract or leases the solar energy system, the financed sales
6contract or lease shall state the beneficiary's:
71.      Prior year mean electric bill;
82.      Estimated monthly electric bill after the solar energy system begins
9operation;
103.      Monthly finance costs or rent after the solar energy system begins
11operation; and
124.      Total monthly bill for electricity and finance costs or for electricity
13and rent after the solar energy system begins operation.
14(b)     The statement required in this subsection shall be initialed by the
15beneficiary acknowledging that he or she has read and understood the
16statement.
17 (5)     If a beneficiary exercises any of the rescission rights as described in subsection
18(3)(c) of this section, the solar energy contractor shall not enforce the terms of
19the contract against the beneficiary, including any claims for labor or materials,
20and shall terminate any security interest and release any statutory lien created
21under the transaction within twenty (20) days of receiving written rescission of
22the contract from the beneficiary. If a beneficiary exercises the rescission rights
23via email or a certified letter postmarked within the three (3) day window to the
24contacts listed in the solar energy installation contract, even if the solar energy
25contractor or solar energy salesperson has not responded, the solar energy
26contractor is prohibited from enforcing the terms of the contract and shall not
27charge any cancellation fees.
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1 (6)     The solar energy contractor or beneficiary shall ensure that all required review
2and approvals, as dictated by the appropriate net metering or qualifying facility
3application process, are obtained from the beneficiary's electric utility prior to
4energizing the solar energy system.
5 (7)     A beneficiary is under no obligation to begin monthly payments on a financed
6solar energy system until the beneficiary’s system has been granted permission to
7operate by the applicable local or state inspection authority.
8 (8)     If the scope of work in the solar energy installation contract includes roofing
9work, the solar energy contractor shall provide the beneficiary separate invoices
10for the roofing work, and the solar energy installation contract shall separately
11itemize and identify the cost of any roofing tear-off and replacement.
12 (9)     A person that purchases or is otherwise assigned a solar energy installation
13contract is subject to all claims and defenses with respect to the contract that the
14beneficiary could assert against the solar energy contractor. A person, firm,
15partnership, corporation, or other entity which sells or otherwise assigns a solar
16energy installation contract shall include a prominent notice of the potential
17liability under this section.
18 (10) A person shall not solicit using any statement or representation with regard to the
19costs, financing, terms, or conditions of purchase or installation of residential or
20commercial solar energy systems that is deceptive.
21 (11) A solar energy contractor or solar energy salesperson who fails to substantially
22comply with the requirements of this chapter is liable to the beneficiary for any
23actual damages sustained by the beneficiary as a result of the failure. This
24section does not limit any other cause of action or remedy available under KRS
25Chapter 367.
26SECTION 2. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO
27 READ AS FOLLOWS:
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1 (1)     Any person may maintain an action to enjoin the continuing of any act in
2violation of Section 1 of this Act, and if injured may also maintain an action for
3the recovery of damages.
4 (2)     If the court finds based on evidence presented by the plaintiff that the defendant
5is violating or has violated Section 1 of this Act, the court shall enjoin the
6defendant from continuing the violations.
7 (3)     Actual economic damages shall not be required to be alleged or proved by the
8plaintiff in order for the court to enjoin violations.
9 (4)     In addition to injunctive relief and any other relief the plaintiff may be entitled to
10under this section:
11(a)     The plaintiff shall be entitled to recover from the defendant two (2) times
12the amount of any actual economic damages sustained; and
13(b)     The court may award the plaintiff reasonable attorney's fees and costs.
14 (5)     In addition to the remedies provided under this section, all remedies, powers, and
15duties provided to the Attorney General under KRS 367.110 to 367.300, and the
16penalties provided in KRS 367.990, any other applicable remedies, powers, and
17duties provided under applicable law shall apply with equal force and effect to
18any act declared unlawful in Section 1 of this Act.
19 (6)     The Attorney General may recover a civil penalty of five thousand dollars
20($5,000) per violation against any person who violates Section 1 of this Act.
21 (7)     An electric utility shall not be held liable for any violation of Section 1 of this Act
22unless it is acting in the capacity of a solar energy contractor or solar energy
23salesperson.
24 (8)     This section shall not prohibit the Attorney General or any other person from
25pursuing the recovery of damages, penalties, restitution, disgorgement, or
26injunctive relief afforded elsewhere under the law.
27Section 3. KRS 227.480 is amended to read as follows:
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1 (1)     (a)     A city, county, urban-county government, charter county, or consolidated
2local government or the state shall, according to the Uniform State Building
3Code as it pertains to the plan review and inspection responsibilities of local
4governments or the state, require any person to obtain a permit before
5commencing construction, alteration, or repairs of any electrical system.
6(b)     The city, county, urban-county government, charter county, or consolidated
7local government or the state shall require all inspections that are deemed
8necessary by the department for the safety of life and property. The
9department shall promulgate administrative regulations to describe the
10circumstances where inspections are required.
11 (2)     A city, county, urban-county government, charter county, or consolidated local
12government or the state shall not issue a permit unless the applicant submits proof
13of being licensed as an electrical contractor under KRS Chapter 227A or of acting
14on behalf of a licensed electrical contractor. However, the provisions of this
15subsection shall not apply to:
16(a)     A homeowner or farmer who does construction, alteration, or repairs of any
17electrical system on his or her own premises or any other person exempt from
18licensing under KRS 227A.030 or 227A.150;
19(b)     Electrical work performed by the Commonwealth of Kentucky, a city, county,
20urban-county government, charter county, or consolidated local government,
21or any subdivision thereof;
22(c)     A company with a recently deceased licensed electrical contractor, which
23shall be granted an interim period of up to one hundred eighty (180)
24continuous calendar days by the city, county, urban-county government,
25charter county, consolidated local government, or state to allow the company
26to utilize the license of the deceased electrical contractor if:
271.      The company effectuates and documents all necessary bonding and
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1insurance policies required by KRS Chapter 227A; and
22.      Ensures that the bonding and insurance policies remain in effect for the
3entirety of the interim period of time extended; or
4(d)     A disaster response business as defined in KRS 141.010.
5 (3)     A city, county, urban-county government, charter county, or consolidated local
6government shall appoint and may fix the compensation of city, county, urban-
7county government, charter county, or consolidated local government electrical
8inspectors, and may by ordinance fix reasonable fees and establish other
9requirements for the conduct of electrical inspections within its boundaries. All
10electrical inspectors shall be certified under KRS 227.489.
11 (4)     Reasonable standards for the construction, alteration, and repair of any electrical
12system shall be those adopted in the Uniform State Building Code, as promulgated
13by the department, and shall have as a minimum standard the requirements of the
14National Electrical Code, which may include Kentucky amendments. These
15standards shall be used by the electrical inspector in making his or her inspections.
16 (5)     Local standards and fees for inspection of any solar energy system, as defined in
17Section 1 of this Act, shall be applied in a nondiscriminatory manner consistent
18with the treatment of comparable facilities.
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