Cal. Code Regs. Tit. 10, § 1620.10 - Dishonest Dealings and Misleading Statements
(a) The following constitute dishonest dealings by a program administrator under Financial Code section 22161. This list is not exhaustive of all activities that constitute dishonest dealings by a program administrator.
(1) Disclosing to a PACE solicitor or PACE solicitor agent the amount of PACE financing available to a property owner.
(2) Paying a PACE solicitor for work that is financed through an assessment contract that a program administrator knows or should have known is unperformed. For purposes of this paragraph, a determination of whether work is performed shall be consistent with Business and Professions Code section 7159.5, paragraph (a)(5).
(3) Making the final payment on an assessment contract to a PACE solicitor when the program administrator knows or should have known that a product financed through an assessment contract is uninstalled.
(A) For purposes of this paragraph, a warranty shall not constitute an uninstalled product.
(B) For purposes of this paragraph, contract terms and services including, but not limited to, a warranty, operations, maintenance, repairs, and customer service shall not constitute an uninstalled product.
(4) Paying a PACE solicitor for a product that is materially higher in price from the product the PACE solicitor installs on the property, where the program administrator knows or should have known that the product installed costs materially less than the product financed through the assessment contract.
(b) The following constitute dishonest dealings and a program administrator shall create and enforce policies and procedures to prohibit a PACE solicitor and a PACE solicitor agent from doing any of the following:
(1) Misrepresenting the manner that a PACE obligation may be repaid.
(2) Representing to a property owner that the PACE program is a free, no cost, subsidized, or government program, unless the program has those characteristics.
(3) Representing to a property owner that the PACE program is available to the property owner based on the property owner's age, race, ethnicity, or income status, unless the program has that criteria.
(4) Representing to a property owner that the property owner is eligible for PACE financing through the program administrator prior to the program administrator making that determination.
(5) Representing to a property owner that a home improvement meets an energy or water efficiency standard unless the improvement meets such standard, such as the home improvement being Energy Star rated or included within title 20 or title 24 of the California Energy Commission's rules.
(6) Representing to a property owner that a PACE assessment will result in a tax credit or tax benefit unless the representation is consistent with written representations, statements, or opinions of the Internal Revenue Service or applicable state tax agency about the tax treatment of a PACE assessment.
(7) Failing to complete the scope of work under a home improvement contract that is financed by the assessment contract.
(8) Representing to a property owner that a home improvement that is not an efficiency improvement may be financed through a PACE assessment, or otherwise provided to a property owner for free or at a nominal cost, because the property owner enters into an assessment contract.
(9) Misrepresenting to a property owner whether the property owner will be obligated to pay for the efficiency improvements financed through the assessment contract.
(10) Stating to the property owner that the assessment contract will transfer to the buyer upon the sale of the property, unless the property owner is also informed at the same time that often lenders will require the remaining balance under the assessment contract to be paid before financing or refinancing a property.
(11) Representing that an efficiency improvement will result in an increase in a property's market value, unless evidence supports the representation and the representation is otherwise lawful.
(12) Misleading the property owner about the overall cost of the assessments.
(13) Retaliating against a property owner for canceling the assessment contract during the three-day or five-day right to cancel period.
(14) Including home improvements not eligible for PACE financing in an assessment contract.
(15) Facilitating a property owner entering into multiple assessment contracts on the same property for the same efficiency improvement. This paragraph does not prevent a PACE solicitor or PACE solicitor agent from assisting a property owner with obtaining financing offers from more than one program administrator, provided that the property owner only enters into one assessment contract to finance each efficiency improvement and the program administrator does not provide the PACE solicitor or PACE solicitor agent information on the amount of financing for which the property owner is approved. This paragraph does not prevent a PACE solicitor or PACE solicitor agent from assisting a property owner entering into an assessment contract through more than one program administrator on the same property for different efficiency improvements.
(1) Nothing in this rule is intended to limit, impede, or interfere with the Contractors State License Board's jurisdiction over representations made in the solicitation of home improvement contract, including representations regarding a tax or utility credit or rebate for an efficiency improvement.
(2) Nothing in this section authorizes any representation that is restricted or prohibited under any law.
Note: Authority cited: Section 22150, Financial Code. Reference: Section 7159.5, Business and Professions Code; Section 22161, Financial Code; and Section 5925, Streets and Highways Code.
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