CS for SB 90                                    Second Engrossed
       
       
       
       
       
       
       
       
       201790e2
       
    1                        A bill to be entitled                      
    2         An act relating to renewable energy source devices;
    3         amending s. 24.118, F.S.; correcting a cross
    4         reference; amending s. 193.624, F.S.; revising and
    5         defining terms related to renewable energy source
    6         devices; prohibiting consideration of the just value
    7         of property attributable to a renewable energy source
    8         device in determining the assessed value of
    9         residential real property; prohibiting the
   10         consideration of a specified percentage of the just
   11         value of property attributable to a renewable energy
   12         source device in determining the assessed value of
   13         nonresidential real property; revising applicability;
   14         creating s. 196.182, F.S.; exempting a specified
   15         percentage of the assessed value of certain renewable
   16         energy source devices from ad valorem taxation;
   17         exempting a specified percentage of the assessed value
   18         of renewable energy source devices affixed to property
   19         owned or leased by the United States Department of
   20         Defense for the military from ad valorem taxation;
   21         providing for the future expiration of specified
   22         statutory text; amending s. 501.604, F.S.; correcting
   23         cross-references; creating part II of chapter 520,
   24         F.S., entitled “Distributed Energy Generation System
   25         Sales”; providing definitions; providing applicability
   26         relating to, and specifying the disclosures required
   27         of, certain agreements to sell or lease distributed
   28         energy generation systems; requiring sellers that
   29         install such systems to comply with specified safety
   30         standards; requiring the Department of Business and
   31         Professional Regulation to adopt rules and publish
   32         standard disclosure forms; providing penalties;
   33         providing exemptions; amending s. 671.304, F.S.;
   34         correcting cross-references; providing for the future
   35         expiration and reversion of specified statutory text;
   36         providing an effective date.
   37          
   38  Be It Enacted by the Legislature of the State of Florida:
   39  
   40         Section 1. Subsection (1) of section 24.118, Florida
   41  Statutes, is amended to read:
   42         24.118 Other prohibited acts; penalties.—
   43         (1) UNLAWFUL EXTENSIONS OF CREDIT.—Any retailer who extends
   44  credit or lends money to a person for the purchase of a lottery
   45  ticket is guilty of a misdemeanor of the second degree,
   46  punishable as provided in s. 775.082 or s. 775.083. This
   47  subsection shall not be construed to prohibit the purchase of a
   48  lottery ticket through the use of a credit or charge card or
   49  other instrument issued by a bank, savings association, credit
   50  union, or charge card company or by a retailer pursuant to part
   51  III part II of chapter 520, provided that any such purchase from
   52  a retailer shall be in addition to the purchase of goods and
   53  services other than lottery tickets having a cost of no less
   54  than $20.
   55         Section 2. Section 193.624, Florida Statutes, is amended to
   56  read:
   57         193.624 Assessment of renewable energy source devices
   58  residential property.—
   59         (1) As used in this section, the term “renewable energy
   60  source device” means any of the following equipment that
   61  collects, transmits, stores, or uses solar energy, wind energy,
   62  or energy derived from geothermal deposits:
   63         (a) Solar energy collectors, photovoltaic modules, and
   64  inverters.
   65         (b) Storage tanks and other storage systems, excluding
   66  swimming pools used as storage tanks.
   67         (c) Rockbeds.
   68         (d) Thermostats and other control devices.
   69         (e) Heat exchange devices.
   70         (f) Pumps and fans.
   71         (g) Roof ponds.
   72         (h) Freestanding thermal containers.
   73         (i) Pipes, ducts, wiring, structural supports, refrigerant
   74  handling systems, and other components equipment used as
   75  integral parts of to interconnect such systems; however, such
   76  equipment does not include conventional backup systems of any
   77  type or any equipment or structure that would be required in the
   78  absence of the renewable energy source device.
   79         (j) Windmills and wind turbines.
   80         (k) Wind-driven generators.
   81         (l) Power conditioning and storage devices that store or
   82  use solar energy, wind energy, or energy derived from geothermal
   83  deposits to generate electricity or mechanical forms of energy.
   84         (m) Pipes and other equipment used to transmit hot
   85  geothermal water to a dwelling or structure from a geothermal
   86  deposit.
   87  
   88  The term does not include equipment that is on the distribution
   89  or transmission side of the point at which a renewable energy
   90  source device is interconnected to an electric utility’s
   91  distribution grid or transmission lines.
   92         (2) In determining the assessed value of real property
   93  used:
   94         (a) For residential purposes, an increase in the just value
   95  of the property attributable to the installation of a renewable
   96  energy source device may not be considered.
   97         (b) For nonresidential purposes, 80 percent of the just
   98  value of the property attributable to a renewable energy source
   99  device may not be considered.
  100         (3) This section applies to the installation of a renewable
  101  energy source device installed on or after January 1, 2013, to
  102  new and existing residential real property. This section applies
  103  to a renewable energy source device installed on or after
  104  January 1, 2018, to all other real property, except when
  105  installed as part of a project planned for a location in a
  106  fiscally constrained county, as defined in s. 218.67(1), and for
  107  which an application for a comprehensive plan amendment or
  108  planned unit development zoning has been filed with the county
  109  on or before December 31, 2017.
  110         Section 3. Section 196.182, Florida Statutes, is created to
  111  read:
  112         196.182 Exemption of renewable energy source devices.—
  113         (1) Eighty percent of the assessed value of a renewable
  114  energy source device, as defined in s. 193.624, that is
  115  considered tangible personal property is exempt from ad valorem
  116  taxation if the renewable energy source device:
  117         (a) Is installed on real property on or after January 1,
  118  2018;
  119         (b) Was installed before January 1, 2018, to supply a
  120  municipal electric utility located within a consolidated
  121  government; or
  122         (c) Was installed after August 30, 2016, on municipal land
  123  as part of a project incorporating other renewable energy source
  124  devices under common ownership on municipal land for the sole
  125  purpose of supplying a municipal electric utility with at least
  126  2 megawatts and no more than 5 megawatts of alternating current
  127  power when the renewable energy source devices in the project
  128  are used together.
  129         (2) The exemption provided in this section does not apply
  130  to a renewable energy source device that is installed as part of
  131  a project planned for a location in a fiscally constrained
  132  county, as defined in s. 218.67(1), and for which an application
  133  for a comprehensive plan amendment or planned unit development
  134  zoning has been filed with the county on or before December 31,
  135  2017.
  136         (3) Notwithstanding this section, 80 percent of the
  137  assessed value of a renewable energy source device, as defined
  138  in s. 193.624, that is affixed to property owned or leased by
  139  the United States Department of Defense for the military is
  140  exempt from ad valorem taxation, including, but not limited to,
  141  the tangible personal property tax.
  142         (4) This section expires December 31, 2037.
  143         Section 4. Subsection (13) of section 501.604, Florida
  144  Statutes, is amended to read:
  145         501.604 Exemptions.—The provisions of this part, except ss.
  146  501.608 and 501.616(6) and (7), do not apply to:
  147         (13) A commercial telephone seller licensed pursuant to
  148  chapter 516 or part III part II of chapter 520. For purposes of
  149  this exemption, the seller must solicit to sell a consumer good
  150  or service within the scope of his or her license and the
  151  completed transaction must be subject to the provisions of
  152  chapter 516 or part III part II of chapter 520.
  153         Section 5. Parts II, III, IV, and V of chapter 520, Florida
  154  Statutes, are renumbered as Parts III, IV, V, and VI,
  155  respectively, and a new Part II, consisting of sections 520.20,
  156  520.21, 520.22, 520.23, 520.24, 520.25, and 520.26, is created
  157  to read:
  158                               PART II                             
  159             DISTRIBUTED ENERGY GENERATION SYSTEM SALES            
  160         520.20 Definitions.— As used in this part, the term:
  161         (1) “Agreement” means a contract executed between a buyer
  162  or lessee and a seller that leases or sells a distributed energy
  163  generation system. For purposes of this part, the term includes
  164  retail installment contracts.
  165         (2) “Buyer” means a person that enters into an agreement to
  166  buy a distributed energy generation system from a seller.
  167         (3) “Distributed energy generation system” means a device
  168  or system that is used to generate or store electricity; that
  169  has an electric delivery capacity, individually or in connection
  170  with other similar devices or systems, of greater than one
  171  kilowatt or one kilowatt-hour; and that is used primarily for
  172  on-site consumption. The term does not include an electric
  173  generator intended for occasional use.
  174         (4) “Lessee” means a person that enters into an agreement
  175  to lease or rent a distributed energy generation system.
  176         (5) “Retail installment contract” means an agreement
  177  executed in this state between a buyer and a seller in which the
  178  title to, or a lien upon, a distributed energy generation system
  179  is retained or taken by the seller from the buyer as security,
  180  in whole or in part, for the buyer’s obligations to make
  181  specified payments over time.
  182         (6) “Seller” means a person regularly engaged in, and whose
  183  business substantially consists of, selling or leasing goods,
  184  including distributed energy generation systems, to buyers or
  185  lessees. A seller that is also an installer must be licensed
  186  under chapter 489.
  187         520.21 Applicability.—This part applies to agreements to
  188  sell or lease a distributed energy generation system and is
  189  supplemental to other provisions contained in part III related
  190  to retail installment contracts. If any provision related to
  191  retail installment contract requirements for a distributed
  192  energy generation system under this part conflicts with any
  193  other provision related to retail installment contracts, this
  194  part controls.
  195         520.22 Safety compliance.—A seller who installs a
  196  distributed energy generation system must comply with applicable
  197  safety standards established by the Department of Business and
  198  Professional Regulation pursuant to chapter 489 and part IV of
  199  chapter 553.
  200         520.23 Disclosures required.—Each agreement governing the
  201  sale or lease of a distributed energy generation system shall,
  202  at a minimum, include a written statement printed in at least
  203  12-point type that is separate from the agreement, is separately
  204  acknowledged by the buyer or lessee, and includes the following
  205  information and disclosures, if applicable:
  206         (1) The name, address, telephone number, and e-mail address
  207  of the buyer or lessee.
  208         (2) The name, address, telephone number, e-mail address,
  209  and valid state contractor license number of the person
  210  responsible for installing the distributed energy generation
  211  system.
  212         (3) The name, address, telephone number, e-mail address,
  213  and valid state contractor license number of the distributed
  214  energy generation system maintenance provider, if different from
  215  the person responsible for installing the distributed energy
  216  generation system.
  217         (4) A written statement indicating whether the distributed
  218  energy generation system is being purchased or leased.
  219         (a) If the distributed energy generation system will be
  220  leased, the written statement must include a disclosure in
  221  substantially the following form: “You are entering into an
  222  agreement to lease a distributed energy generation system. You
  223  will lease (not own) the system installed on your property.”
  224         (b) If the distributed energy generation system will be
  225  purchased, the written statement must include a disclosure in
  226  substantially the following form: “You are entering into an
  227  agreement to purchase a distributed energy generation system.
  228  You will own (not lease) the system installed on your property.”
  229         (5) The total cost to be paid by the buyer or lessee,
  230  including any interest, installation fees, document preparation
  231  fees, service fees, or other fees.
  232         (6) A payment schedule, including any amounts owed at
  233  contract signing, at the commencement of installation, at the
  234  completion of installation, and any final payments. If the
  235  distributed energy generation system is being leased, the
  236  written statement must include the frequency and amount of each
  237  payment due under the lease and the total estimated lease
  238  payments over the term of the lease.
  239         (7) Each state or federal tax incentive or rebate, if any,
  240  relied upon by the seller in determining the price of the
  241  distributed energy generation system.
  242         (8) A description of the assumptions used to calculate any
  243  savings estimates provided to the buyer or lessee, and if such
  244  estimates are provided, a statement in substantially the
  245  following form: “It is important to understand that future
  246  electric utility rates are estimates only. Your future electric
  247  utility rates may vary.”
  248         (9) A description of any one-time or recurring fees,
  249  including, but not limited to, estimated system removal fees,
  250  maintenance fees, Internet connection fees, and automated
  251  clearinghouse fees. If late fees may apply, the description must
  252  describe the circumstances triggering such late fees.
  253         (10) A statement notifying the buyer whether the
  254  distributed energy generation system is being financed and, if
  255  so, a statement in substantially the following form: “If your
  256  system is financed, carefully read any agreements and/or
  257  disclosure forms provided by your lender. This statement does
  258  not contain the terms of your financing agreement. If you have
  259  any questions about your financing agreement, contact your
  260  finance provider before signing a contract.”
  261         (11) A statement notifying the buyer whether the seller is
  262  assisting in arranging financing of the distributed energy
  263  generation system and, if so, a statement in substantially the
  264  following form: “If your system is financed, carefully read any
  265  agreements and/or disclosure forms provided by your lender. This
  266  statement does not contain the terms of your financing
  267  agreement. If you have any questions about your financing
  268  agreement, contact your finance provider before signing a
  269  contract.”
  270         (12) A provision notifying the buyer or lessee of the right
  271  to rescind the agreement for a period of at least 3 business
  272  days after the agreement is signed. This subsection does not
  273  apply to a contract to sell or lease a distributed energy
  274  generation system in a solar community in which the entire
  275  community has been marketed as a solar community and all of the
  276  homes in the community are intended to have a distributed energy
  277  generation system, or a solar community in which the developer
  278  has incorporated solar technology for purposes of meeting the
  279  Florida Building Code in s. 553.73.
  280         (13) A description of the distributed energy generation
  281  system design assumptions, including the make and model of the
  282  major components, system size, estimated first-year energy
  283  production, and estimated annual energy production decreases,
  284  including the overall percentage degradation over the estimated
  285  life of the distributed energy generation system, and the status
  286  of utility compensation for excess energy generated by the
  287  system at the time of contract signing. A seller who provides a
  288  warranty or guarantee of the energy production output of the
  289  distributed energy generation system may provide a description
  290  of such warranty or guarantee in lieu of a description of the
  291  system design and components.
  292         (14) A description of any performance or production
  293  guarantees.
  294         (15) A description of the ownership and transferability of
  295  any tax credits, rebates, incentives, or renewable energy
  296  certificates associated with the distributed energy generation
  297  system, including a disclosure as to whether the seller will
  298  assign or sell any associated renewable energy certificates to a
  299  third party.
  300         (16) A statement in substantially the following form: “You
  301  are responsible for property taxes on property you own. Consult
  302  a tax professional to understand any tax liability or
  303  eligibility for any tax credits that may result from the
  304  purchase of your distributed energy generation system.”
  305         (17) The approximate start and completion dates for the
  306  installation of the distributed energy generation system.
  307         (18) A disclosure as to whether maintenance and repairs of
  308  the distributed energy generation system are included in the
  309  purchase price.
  310         (19) A disclosure as to whether any warranty or maintenance
  311  obligations related to the distributed energy generation system
  312  may be sold or transferred by the seller to a third party and,
  313  if so, a statement in substantially the following form: “Your
  314  contract may be assigned, sold, or transferred without your
  315  consent to a third party who will be bound to all the terms of
  316  the contract. If a transfer occurs, you will be notified if this
  317  will change the address or phone number to use for system
  318  maintenance or repair requests.”
  319         (20) If the distributed energy generation system will be
  320  purchased, a disclosure notifying the buyer of the requirements
  321  for interconnecting the system to the utility system.
  322         (21) A disclosure notifying the buyer or lessee of the
  323  party responsible for obtaining interconnection approval.
  324         (22) A description of any roof warranties.
  325         (23) A disclosure notifying the lessee whether the seller
  326  will insure a leased distributed energy generation system
  327  against damage or loss and, if applicable, the circumstances
  328  under which the seller will not insure the system against damage
  329  or loss.
  330         (24) A statement, if applicable, in substantially the
  331  following form: “You are responsible for obtaining insurance
  332  policies or coverage for any loss of or damage to the system.
  333  Consult an insurance professional to understand how to protect
  334  against the risk of loss or damage to the system.”
  335         (25) A disclosure notifying the buyer or lessee whether the
  336  seller or lessor will place a lien on the buyer’s or lessee’s
  337  home or other property as a result of entering into a purchase
  338  or lease agreement for the distributed energy generation system.
  339         (26) A disclosure notifying the buyer or lessee whether the
  340  seller or lessor will file a fixture filing or a State of
  341  Florida Uniform Commercial Code Financing Statement Form (UCC-1)
  342  on the distributed energy generation system.
  343         (27) A disclosure identifying whether the agreement
  344  contains any restrictions on the buyer’s or lessee’s ability to
  345  modify or transfer ownership of a distributed energy generation
  346  system, including whether any modification or transfer is
  347  subject to review or approval by a third party.
  348         (28) A disclosure as to whether the lease agreement may be
  349  transferred to a purchaser upon sale of the home or real
  350  property to which the system is affixed, and any conditions for
  351  such transfer.
  352         (29) A blank section that allows the seller to provide
  353  additional relevant disclosures or explain disclosures made
  354  elsewhere in the disclosure form.
  355  
  356  The requirement to provide a written statement under this
  357  section may be satisfied by the electronic delivery of a
  358  document containing the required statement if the intended
  359  recipient of the electronic document affirmatively acknowledges
  360  its receipt. An electronic document satisfies the font and other
  361  formatting standards required for the written statement if the
  362  format and the relative size of characters of the electronic
  363  document are reasonably similar to those required in the written
  364  document or if the information is otherwise displayed in a
  365  reasonably conspicuous manner.
  366         520.24 Rulemaking authority; standard disclosure form.-
  367         (1) The Department of Business and Professional Regulation
  368  shall adopt rules to implement and enforce the provisions of
  369  this part.
  370         (2) The Department of Business and Professional Regulation
  371  shall, by January 1, 2018, publish standard disclosure forms
  372  that may be used to comply with the disclosure requirements of
  373  this part. Disclosures provided in substantially the form
  374  published by the department shall be regarded as complying with
  375  the disclosure requirements of this part.
  376         520.25 Penalties.—
  377         (1) Any seller who willfully and intentionally violates any
  378  provision of this part commits a noncriminal violation, as
  379  defined in s. 775.08(3), punishable by a fine not to exceed the
  380  cost of the distributed energy generation system.
  381         (2) In the case of a willful and intentional violation of
  382  this part, the owner may recover from the person committing such
  383  violation, or may set off or counterclaim in any action against
  384  the owner by such person, an amount equal to any finance charges
  385  and fees charged to the owner under the agreement, plus attorney
  386  fees and costs incurred by the owner to assert his or her rights
  387  under this part.
  388         520.26 Exemptions.—The provisions of this part do not apply
  389  to the following:
  390         (1) A person or company, acting through its officers,
  391  employees, brokers, or agents, that markets, sells, solicits,
  392  negotiates, or enters into an agreement for the sale or
  393  financing of a distributed energy generation system as part of a
  394  transaction involving the sale or transfer of the real property
  395  on which the system is or will be affixed.
  396         (2) A transaction involving the sale or transfer of the
  397  real property on which a distributed energy generation system is
  398  located.
  399         (3) A third party, including a local government, that
  400  enters into an agreement for the financing of a distributed
  401  energy generation system.
  402         (4) The sale or lease of a distributed energy generation
  403  system that will be installed on nonresidential real property.
  404         (5) The sale of a distributed energy generation system
  405  pursuant to an agreement that requires full payment of the
  406  system from the buyer to the seller no later than the date the
  407  system is installed by the seller or is delivered from the
  408  seller to the buyer or a third party for installation.
  409         (6) A person, other than the seller or lessor, who installs
  410  a distributed energy generation system on residential property.
  411         Section 6. Paragraph (d) of subsection (2) of section
  412  671.304, Florida Statutes, is amended to read:
  413         671.304 Laws not repealed; precedence where code provisions
  414  in conflict with other laws; certain statutory remedies
  415  retained.—
  416         (2) The following laws and parts of laws are specifically
  417  not repealed and shall take precedence over any provisions of
  418  this code which may be inconsistent or in conflict therewith:
  419         (d) Chapter 520—Retail installment sales (Part I, Motor
  420  Vehicle Sales Finance Act; Part III Part II, Retail Installment
  421  Sales Act; Part IV Part III, Installment Sales Finance Act).
  422         Section 7. The amendments made by this act to s. 193.624(2)
  423  and (3), Florida Statutes, expire on December 31, 2037, and the
  424  text of those subsections shall revert to that in existence on
  425  December 31, 2017, except that any amendments to such text
  426  enacted other than by this act shall be preserved and continue
  427  to operate to the extent that such amendments are not dependent
  428  upon the portions of the text which expire pursuant to this
  429  section.
  430         Section 8. This act shall take effect July 1, 2017.