Relating to the regulation of residential solar retail transactions; requiring an occupational registration; authorizing fees; providing civil and administrative penalties.

Contracts

You must redraft three specific agreement types immediately:

• 1. Consumer Sales/Lease Agreements: Must now include a 5-business-day right to cancel (exceeding the federal 3-day standard), the Solar Retailer’s registration number (once issued), and the name/license number of the Electrical Contractor.
• 2. Third-Party Financing: Agreements with lenders must be updated to ensure that if a solar contract is cancelled under this Act, the associated loan is automatically voided.
• 3. Sales Force Agreements: Update independent contractor agreements to include indemnity clauses for violations of Chapter 1806, as the statute holds the Retailer liable for salesperson misconduct.

Hiring/Training

• Roster Management: You are required to maintain a real-time list of all authorized salespersons. You must notify TDLR "promptly" of any new hires or terminations.
• Supervision: The law mandates "reasonable supervision." You must implement and document a compliance training program regarding the new "Code of Conduct."
• Background Checks: Prepare for background checks on all "Controlling Persons" (executives, partners, >25% owners) as part of the application process.

Reporting & Record-Keeping

• Pre-Sale Disclosures: You must provide PUC-developed educational materials to homeowners *prior* to execution of any contract.
• Cancellation Logs: Implement a tracking system for the 5-day cancellation window to prove compliance during audits.
• Proof of Insurance: You will be required to submit proof of insurance (General Liability and potentially E&O) with your application.

Fees & Costs

• Registration Fees: New fees for both the Retailer entity and individual Salespersons will be set by the Commission.
• Civil Penalties: Budget for increased risk exposure. Penalties are up to $2,500 per violation, escalating to $10,000 per violation if the consumer is 65 or older.
• Refund Risk: The "Nuclear Penalty" allows TDLR to order a full refund and contract cancellation, regardless of system installation status.