Section 1620.05 - Advertising Standards(a) A program administrator shall not advertise PACE financing in a manner that is untrue, deceptive, or likely to mislead a property owner. A program administrator shall condition remaining enrolled as a PACE solicitor or PACE solicitor agent on a PACE solicitor or PACE solicitor agent refraining from advertising a PACE program, directly or indirectly, in a manner that is untrue, deceptive, or likely to mislead a property owner. The following is a non-exclusive list of actions that constitute advertising of a PACE program in a manner that is untrue, deceptive, or likely to mislead a property owner: (1) Suggesting that the full assessment payment may be tax deductible as a state or local real estate tax, unless the statement is consistent with representations, statements, or opinions of the Internal Revenue Service or applicable state tax agency with regard to the tax treatment of PACE assessments or otherwise true.(2) Representing that the program is a free, subsidized, or government program, unless the program in fact has these characteristics.(3) Representing that the program is a government program that provides a subsidy or benefit to property owners because of the property owner's limited resources or income, unless the PACE program includes a benefit or subsidy that is available to a property owner because of the property owner's limited resources and income.(4) Representing that the property owner will not be obligated to pay the assessment obligations, unless the property owner will not be contractually obligated to pay the assessment obligations.(5) Suggesting an efficiency improvement will pay for the PACE assessment, unless the representation is supported by evidence, including being consistent with the Public Utilities Commission's inputs and assumptions for calculating electric utility bill savings under Public Utilities Code section 2854.6.(6) Advertising PACE financing through a method that violates the Federal Trade Commission's Telemarketing Sales Rule (16 C.F.R. §§ 310.1-310.9).(7) Representing that the advertisement of PACE financing is from a government entity unless the advertising is in fact from a government entity or the representation is authorized by a government entity.(8) Advertising that the program has an ending date, is available for a limited time, or is available to a limited number of property owners, unless the program has these characteristics.(9) Engaging in blind advertising for a PACE program by failing to identify the program administrator or the PACE solicitor responsible for the advertisement.(10) Making any written or oral communication in advertising that includes an untrue statement of a material fact about a PACE program, or omitting to state a material fact necessary to make the statements made about a PACE program, in the light of the circumstances under which the statements were made, not misleading.(b) Every written advertisement by a program administrator shall disclose that the program administrator is not a government agency. The written advertisement shall disclose that the installation or construction of property improvements financed with a PACE assessment is provided through a home improvement contractor or other third-party provider, and not by the program administrator or a government entity.(c) A program administrator may not advertise, on its website or otherwise, businesses or individuals approved by the program administrator to solicit property owners for PACE financing, unless the business or individual is enrolled by the program administrator as a PACE solicitor or PACE solicitor agent or not required to be enrolled.(d) A program administrator shall include a reference to the Department of Financial Protection and Innovation and its license number in its written advertising.(e) A written advertisement on an electronic advertising platform that is limited to 300 or fewer characters need not comply with subdivisions (b) or (d) of this section, as long as an electronic advertisement contains a link, and the linked location contains the information required by these subdivisions.(f)(1) A program administrator may not evade the prohibition in subdivision (a) by obtaining leads from a third party who the program administrator knows solicits property owners for participation in a PACE program through untrue, deceptive, or misleading advertising set forth in subdivision (a).(2) A program administrator shall not enroll or continue the enrollment of a PACE solicitor who the program administrator knows obtains leads from a third party that solicits property owners for participation in a PACE program through untrue, deceptive, or misleading advertising as set forth in subdivision (a).(3) A program administrator shall not arrange an assessment contract with a property owner if the program administrator knows that the property owner was solicited by a third party that solicits property owners for participation in a PACE program through untrue, deceptive, or misleading advertising set forth in subdivision (a), unless before the start of the home improvement and before entering into an assessment contract, the program administrator does all of the following. (A) Notifies the property owner of the untrue, deceptive, or misleading representation by the third party.(B) After correcting the misinformation, obtains and documents the affirmative response that the property owner seeks to proceed with the transaction.Cal. Code Regs. Tit. 10, § 1620.05
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. Note: Authority cited: Section 22150, Financial Code. Reference: Sections 22161, 22162, 22163, 22164, 22165 and 22166, Financial 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.