Cal. Code Regs. Tit. 10, § 1620.15 - Periodic Review Standards

(a) The procedures for the periodic review of the solicitation activities of a PACE solicitor required by paragraph (f)(3) of Financial Code section 22680 shall be in writing and shall be designed by a program administrator to measure a PACE solicitor's compliance with the standards for solicitation activities.

(b) The periodic review procedures shall include the following:

(1) A review of a sampling of advertising related to PACE conducted by the PACE solicitor to ensure representations regarding the PACE program administered by the program administrator are not false or misleading.

(2) An analysis of the controls maintained by the PACE solicitor to ensure a PACE solicitor agent complies with the law that governs soliciting a property owner to enter into an assessment contract, including such controls as written procedures, supervision, reporting, and resolution of complaints. The analysis may be tailored based on the size of the PACE solicitor and the volume of PACE business conducted by the PACE solicitor. The program administrator shall use the information on the controls maintained by the PACE solicitor in determining the level of monitoring required under paragraph (f)(1) of Financial Code section 22680 and section 1620.14 of these rules.

(3) An analysis of a sampling of responses to the open-ended questions during the oral confirmation of key terms telephone call conducted with property owners solicited by the PACE solicitor or its agents, for patterns suggesting potential misrepresentations or omissions.

(4) An analysis of complaints made against the PACE solicitor regarding the solicitation activities of the PACE solicitor, and the resolution of the complaints.

(c) In conducting a periodic review of the solicitation activities of the PACE solicitor, the program administrator shall review a random sampling of assessment contracts to evaluate whether the PACE solicitor is in compliance with the requirements for solicitation activities, and may include contacting property owners to review the relevant items in this subdivision.

(1) The review shall include an analysis of whether the PACE solicitor is only using PACE financing for authorized efficiency improvements.

(2) The review shall confirm that the home improvement contract with the property owner covers the same work for which the program administrator paid the PACE solicitor, for work that was financed through the assessment contract.

(3) The review shall confirm that efficiency improvements installed are those represented to the program administrator.

(4) The review shall evaluate whether the efficiency improvements financed through the assessment contract were completed as represented, including:

(A) Whether all outstanding permits obtained final approval by a building inspector, if necessary and a part of the home improvement contract financed through the assessment contract.

(B) If solar interconnection was included as part of the scope of work in the home improvement contract financed through the assessment contract, whether solar improvements were interconnected to an electricity provider.

(d) For any sampling of data in the periodic review, the program administrator shall sample an amount of data sufficient to identify whether the PACE solicitor is complying with its agreement with the program administrator and the law, and may rely on algorithms, consumer complaints, PACE volume, compliance monitoring during the assessment contract approval process, and other relevant data identified by the program administrator to develop the sampling size.

(e)

(1) A program administrator shall document that the periodic review was completed and identify the findings made during the periodic review of the solicitation activities of the PACE solicitor. If a program administrator uses a method other than sampling as authorized in subdivision (d), the documentation shall include a description of the processes used to review the PACE solicitor's solicitation activities for compliance with the items in subdivisions (b) and (c) of this section.

(2) The program administrator shall retain the documentation of the periodic review, the findings, alternative review procedures, and any subsequent actions in its books and records in accordance with section 1620.07 of these rules.

(3) The program administrator shall take any other corrective action warranted by the findings from the periodic review, including but not limited to educating PACE solicitors about areas of noncompliance, remedying consumer harm, and disenrolling PACE solicitors.

(A) The periodic review and any corrective action shall be designed to promote compliance through collaboration with PACE solicitors and PACE solicitor agents.

(B) If the periodic review identifies that a PACE solicitor or PACE solicitor agent fails to maintain the minimum qualifications under Financial Code section 22680 and section 1620.13 of these rules, the process shall include the cancellation of enrollment under section 1620.16 of these rules.

(f)

(1) A program administrator shall conduct a periodic review of the solicitation activities of a PACE solicitor at least once every two years.

(2) Program administrators who enroll the same PACE solicitors may collaborate on conducting coordinated joint periodic reviews.

Notes

Cal. Code Regs. Tit. 10, § 1620.15

Note: Authority cited: Section 22150, Financial Code. Reference: Section 22680, Financial Code; and Sections 5898.16, 5926 and 5940, Streets and Highways Code.

1. New section filed 8-5-2021; operative 10-1-2021 (Register 2021, No. 32). Transmission deadline specified in Government Code section 11346.4(b) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20. Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20.