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Home My WebLink AboutEmail from Peggy Moak - False advertisements claiming Butte County launches no nost solar program Menchaca, Clarissa From: Moak, Peggy Sent: Thursday,April 12, 2018 12:02 PM To: Connelly, Bill; Lambert, Steve;Wahl, Larry; Kirk, Maureen;Teeter, Doug Cc: Menchaca, Clarissa; Hatcher, Casey;Wilson,Joanne;Jessee, Meegan; McCracken, Shari; Peterson, Susan Subject: Action News Now Interview - Facebook PACE Ads are Misleading - False Advertising Attachments: CSCDA-PACE Contractor Report.docx; Butte PACE LTE.docx Good morning, all: Just wanted to make you aware that ads have been circulating on Facebook for some time that are claiming"Butte County Launches No-Cost Solar Program" or"Free Solar" Program, advising people to take advantage of this government funded program before it goes away or is filled up. My Association, CACTTC(California Association of County Treasurers and Tax Collectors) has crafted an Op Ed that should be running in the Chico ER(attached)and, coincidentally, I was contacted by Action News Now(Channel 12/24) for an interview on the PACE ads in the Facebook news feeds. The interview too place just a bit ago, and not sure when it will air. Here is one sample of an ad: California lrnfie S lar ProgramJ1 Like e e if you're a homeowner living in Butte County, and youir last electric Ul was 100 or more, you're going to want to read this! Butte County has recently approved a no-cost solar program for ail home ,eneirs. I know it wounds tea good to be true.,.... See More .0 z Go Solar aid Say Goodbye to Expen.sive ElectricBills! Dick here to learn how to save 5 0% or more on Baur next ele tris NI by switding.... Learn More Below is the website: ��%/�/��/j�i��%J/�,,.ni oil/ �:. , '. /i /�✓11' `,Iq .. Ilil l 11 ,u+ I'r� Review Our Top, Solzir 3 Solar r ograrris Free mg Ok :� i�f �r°rli�� i "f 2 I have been working on this issue for some time with the Department of Business Oversight, CSCDA and CACTTC to find a way to curb these advertising tactics. it has been seemingly impossible to track down the lead generation company, so CSCDA's Board recently made the decision to amend the PACE Administrator contracts to: Prohibit PACE administrators frorn approving a property owner application that identifies a contractor who is working with a lead generator distributing materials that represent a city or county. This will require the PACE Administrators to update their "Qualified Contractor"' list to exclude contractors who are working with a lead generator distributing misleading information. The prohibition would require an amendment to the PACE Administration agreements between CSCDA and each PACE Administrator. For any PACE administrator that refuses to enter into such an amendment, CSCDA could exercise its right to terminate the PACE administrator agreement. For any PACE administrator that enters into such an amendment but fails to comply with the requirement, CSCDA could exercise its right to terminate the PACE administrator agreement. Feel free to contact me if you have any questions about these ad campaigns, or about the legislative efforts to enhance consumer protection. Best regards, PeVW Maak Butte, County Treasurer-Tax Collector Treasurer-Tax Collector's Departmen 25 County Center Drive, Suite 125, 0roviHe, CA 95965 ATTENTION: THIS IS A NEW PHONE NUMBER. PLEASE UPDATE YO�UR RECORDS T: 566.552.37671 F: 530.5387648 Twitter I Facebook I YouTuble a Pinterest 3 C,SCDA Z Agenda Item No. 6 Agenda Report DATE: April 5,2018 TO: CSCDA COMMISSIONERS FROM: Cathy Bando, Executive Director PURPOSE: Update and consideration of action related to, lead generation activities associated with PACE contractors SUMMARY AND RECOMMENDATION: Per the attached report the Commission authorized staffto work with General Counsel to identify possible rernedies related to issues related to lead generation activities associated with PACE contractors. After consulting with General Counsel the Executive Director recommends the following actions to be taken: Prohibit PACE administrators from approving a property owner application that identifies a contractor who is working with a lead generator distributing materials that represent a city or county. This will require the PACE Administrators to update their "Qualified Contractor" list to exclude contractors who are working with a lead generator distributing misleading information. The prohibition would require an amendment to the PACE Administration agreements between CSCDA and each PACE Administrator. For any PACE administrator that refuses to enter into such an amendment, CSCDA could exercise its right to terminate the PACE administrator agreement. For any PACE administrator that enters into such an amendment but fails to comply with the requirement, CSCDA Could exercise its, right to terminate the PACE administrator- agreement. dministratoragreement. Any changes to the PACE administrator agreement will be brought back to the Commission for review and approval. CSCDA L"ECIPMUC AIJ-11W)ROY Agenda Item No. 8 Agenda Report DATE: March 15, 2018 TO: CSCDA COMMISSIONERS FROM: Cathy Bando, Executive Director PURPOSE: Update and consideration of action related to lead generation activities associated with PACE contractors. BACKGROUND AND SUMMARY: CSCDA staff has received complaints from cities that are pail of CSCDA's Open PACE program where lead generation postcards have been received by residential property owners. The postcards are misleading in a number of ways: (1) the language in the postcard indicates that the city is a "sponsor" of PACE; (2) the website link incorporates the name of the city to make it appear that the postcard is associated with the city; (3) some of the postcards state the program is using "government authorized funds". A sample of a lead generation postcard is provided in Attachment A. The affected cities include Albany, San Jose, El Cerrito, Hercules, and Pleasanton, to name a few. The postcards are not corning from and are not generated by CSCDA Open PACE Administrators. They are coming from lead generation companies hired by contractors who use PACE as a financing too]. Some cities have complained directly to the lead generation firm, but the firm has been unapologetic and continues to utilize the postcard marketing campaign, Renew Financial, administrator of the Californial'irst program, has sent a cease and desist letter to the lead generation company and the postcards have continued to be sent. The affected cities are very frustrated. CSCDA staff has been working with the affected cities together with Open PACE Administrators to identify contractors who are using the lead generation company. Executive Director Recommendation: The Executive Director recommends that the Commission authorize staff to work with CSCDA General COLHISCI to identify possible rernedies which may include: 1. Require that Open PACE Administrators terminate contractors who are engaged with the lead generation company. 2. Not execute assessment contracts generated by contractors engaged with the lead generation company. 3. Development of a list of possible legal remedies that could be used by the affected cities. ATTACHMENT A .......... ., PAID r", : r �� l �, ,, p, r /rp G�// ij fey ;�i✓//,i,/ilio, ;,, ....._�/,��/:. dl„),�Ytl N'„II�,G.t,,,.�u�"�w. Brett 'to know Whit Upgrades our home is e/li ilille for.” Nash wiwsite and enter tut liti l � F fry l "bons l ,, ' a ; I � its, jilk '; `3 �''' /; i ll a 0i"01A have ' v rog , t , e, Voll con >use the funds '101"' HVAC R1p1tg, r/i Windows l f � / �1 �l F r� /�r� � ✓1 y �i1h.� ��b tl 'pny''Mrl �/p,�r✓a b'iry „ h� �p try✓ "✓ ^i� a iy y�,Mm r ✓ ��i� T"FIATION V ! l �� ',,, �,' % ✓/��lP ! lir , Newly released Government pilsbrei tmvgU �✓✓ i ; a � y�l, J�� dilows You to upgrade; your home!" oot ed r4m,"rod 111 / l trvenimr;nt authorized fnan *�"„ r�r /fir ✓/� ��iji � �/��/�I�� '��. rrr�_ � riiii„�,i %I ✓arm.,, - /ei , r/ 9� To: David Little, Editor, Chico Enterprise Record Date: April 9, 2018 RE: Letter to the Editor (WC 249) PACE Regulations Can't Come Soon Enough California's programs to make energy upgrades accessible to residents are an important tool in accomplishing the state's energy goals. The PACE program is one way homeowners can finance energy saving upgrades. While many companies that sell and install PACE financed upgrades are reputable, some take advantage of consumers' lack of knowledge about how they must pay for these upgrades. In Butte County residents have been targeted with Facebook ads falsely claiming "Butte County Launches a 201:8 No Cost Solar Program." This is blatantly untrue. Consumers are often unaware that while a PACE contractor may advertise "no cost" or "free" energy upgrades, the agreement involves establishing a first priority lien on the consumer's property, which is repaid through assessments on the owner's property tax bill. Since non-payment of the PACE assessment also means non-payment of property taxes, their home is at risk. These deceptive practices prompted the California Association of County Treasurers and Tax Collectors (CACTTC) to call for state policy that would have the PACE industry operate under more transparent regulations like other financing-dependent industries. These would include standard educational materials, a clear complaint process, training programs and review of PACE contractors and solicitors, standard loan application, and determination of borrowers' ability to repay. CACTTC wholly supports the intended benefits of the PACE program and the contractors who are providing energy saving upgrades with integrity and purpose. A new era of regulation will better serve consumers, and preserve the intent of the PACE program, and can't come soon enough. Peggy Moak, Butte County Treasurer—Tax Collector Sandie Arnott, President, California Association of County Treasurers and Tax Collectors