Solar energy system improvements: consumer protection.

Existing law, the Contractors State License Law, establishes the Contractors State License Board within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensing and regulation of contractors. Existing law requires the board to receive and review complaints and consumer questions regarding solar energy systems companies and solar contractors and to receive complaints received from state agencies regarding those systems and contractors. Existing law defines the term "home improvement" to include the construction, erection, installation, replacement, or improvement of driveways, swimming pools, including spas and hot tubs, terraces, patios, awnings, storm windows, solar energy systems, landscaping, fences, porches, garages, fallout shelters, basements, and other improvements of the structures or land which is adjacent to a dwelling house. This bill would include solar energy systems, as defined, as an example of types of home improvements in, and would add the installation of those improvements to, that definition. Existing law defines a "home improvement salesperson" as a person who engaged in the business of specified activities related to home improvement, and requires such person to be registered with the board. This bill would authorize a home improvement salesperson to be employed by one or more home improvement contractors and would require a home improvement salesperson, prior to engaging in any activity described as a specified home improvement, to identify to the owner or tenant the business name and license number of the contractor they are representing. The bill would provide that failure to do so is a cause of disciplinary action, as provided. Existing law makes certain actions by home improvement salespersons, including failure to account for or to remit to the employing contractor any payment received in connection with any home improvement transaction, or any other transaction involving a work of improvement, a misdemeanor. This bill would additionally make a misdemeanor an action by a home improvement salesperson to assist, recommend, select, or otherwise guide an owner or tenant in the selection of a contractor for the performance or sale of home improvement goods or services if notification of the salesperson's employment by the home improvement contractor, as specified, has not been received by the board. Existing law requires a representation made by any person licensed under the Contractors State License Law with respect to a trademark or brand name, quality, or size of any goods or materials in reference to certain items and systems, including, but not limited to, bathroom fixtures and paints, to be set forth in writing in the contract or specifications and include a description of the goods or materials, including any brand name, model number, or similar designation. Existing law provides that the failure to install the specific goods or materials as represented constitutes a cause for disciplinary action. This bill would require those licensed persons to also meet the above-described requirements for representations made in reference to a solar energy system. Existing law requires contractors to comply with specified provisions for home improvement contracts, including that except for a downpayment, the contractor is prohibited from requesting or accepting payment that exceeds the value of the work performed or material delivered. Existing law provides that failure to comply with this provision is cause for discipline and is a misdemeanor. This bill would clarify that this prohibition extends to advance payment in whole or in part from any lender or financier for the performance or sale of home improvement goods or services. This bill would make conforming changes. By creating a new crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.