HB 57: Residential Solar Panel Consumer Protection Amendments - Utah

Substitute #3 → Enrolled · 6 edits · Mar 25, 2025

MODERATE

The bill was finalized with minor text corrections to section headers and a slight adjustment to a legal citation. The core policy provisions regarding solar consumer protection, registration, and financial obligations remain unchanged from the previous version.

Scope change

No change in the scope or applicability of the bill.

TECHNICAL

Corrected a formatting error in the long title where section numbers were merged into a single line.

Fixed a typo in Section 13-52-202 where a number was duplicated in the list of required disclosure statements.

Corrected a broken sentence structure in Section 13-52-206 regarding the timing of disclosure statement requirements.

Fixed a grammatical error in Section 13-52-302 by removing an extra comma in a legal citation.

Moved a sentence in Section 13-52-501 from the end of the section to a new subsection (d) for better organization.

Updated the bill's effective date from February 27, 2025, to March 7, 2025.

Introduced → Substitute #1 · 7 edits

MODERATE

The bill was amended to add a Senate sponsor, update effective dates for registration requirements, and introduce new financial payment caps for customers. It also refined the definition of 'employee' to explicitly exclude independent contractors and added specific disclosure requirements regarding system maintenance and transferability.

Scope change

The scope of applicability for the registration and security requirements was narrowed by adding a sales volume threshold (less than 500,000 kilowatt-hours annually) to determine bond amounts, and the effective date for these registration rules was delayed from May 2026 to July 2026.

TIMELINE

The effective date for the solar retailer registration and security requirements was delayed from May 6, 2026, to July 1, 2026, to allow more time for businesses to prepare.

REQUIREMENT

New financial caps were added to customer obligations, limiting upfront design costs to the greater of $1,500 or 3% of the agreement, equipment procurement to 25%, and installation to 25%, with the remaining balance due only after the system is activated.

The disclosure statement requirements were expanded to include a conspicuous list of finance fees and a notice stating that the retailer cannot sell the contract to another company without the customer's express approval.

New disclosure language was added requiring the statement to include the name and contact information of the person who will perform the installation.

DEFINITION

The definition of 'employee' was clarified to explicitly state that it does not include independent contractors whose work performance is not subject to direction or supervision.

ENFORCEMENT

The criteria for determining bond amounts were modified to include a sales volume threshold (less than 500,000 kilowatt-hours annually) as a factor in calculating the required security deposit.

SCOPE

A Senate sponsor, Scott D. Sandall, was added to the bill's sponsorship list.

Substitute #2 → Substitute #3 · 6 edits

MODERATE

This bill version adds a new registration and security requirement for solar retailers in Utah, changes the bill's effective date to May 7, 2025, and adds a new section (13-52-401) that was not present in the previous version. The core consumer protections regarding disclosure, energy production estimates, and financial obligations remain substantially the same, but the new registration requirements create a formal licensing system with background checks and financial bonds for solar companies.

Scope change

The bill now explicitly requires solar retailers to register with the Division of Consumer Protection, post a performance bond, and undergo criminal background checks for participants, with exemptions for publicly traded corporations. This adds a regulatory layer to the existing consumer protection framework.

REQUIREMENT

New registration and security requirements added in Section 13-52-302 requiring solar retailers to register annually with the Division of Consumer Protection, designate an in-state agent for service of process, and post a performance bond ranging from $100,000 to $300,000 based on company size and violation history.

Criminal background checks required for solar retailer participants (employees, officers, directors, etc.) with fingerprints and consent submitted to the Bureau of Criminal Identification, though publicly traded SEC-registered corporations are exempt.

TIMELINE

The bill's effective date was changed from May 7, 2025 to May 7, 2025 (no change in this version), but registration deadlines were added: January 1, 2026 for new registrants and July 1, 2026 for existing operators.

TECHNICAL

A new section 13-52-401 was added to the Utah Code Annotated 1953 list, though the actual text of this section does not appear in the provided diff content.

Minor formatting and numbering changes in the definitions section and disclosure requirements, including reorganization of subsection numbers and some text cleanup.

ENFORCEMENT

The Division of Consumer Protection gains authority to deny, suspend, or revoke solar retailer registration if violations occur, bonds are claimed, or if 10+ consumer complaints are received about energy production estimates.

Substitute #1 → Substitute #2 · 1 edit

MINOR

This bill update adds a new exemption for publicly traded corporations registered with the Securities and Exchange Commission from the background check requirement, while maintaining all other consumer protection provisions for residential solar energy systems.

Scope change

The bill's scope remains the same regarding consumer protections, but the eligibility criteria for solar retailers were modified to exclude publicly traded corporations from certain background check requirements.

ELIGIBILITY

Added an exception to the background check requirement for solar retailers that are publicly traded corporations registered with the Securities and Exchange Commission.

Residential Solar Panel Consumer Protection Amendments

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