ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	House: NREW DP 7-5-0-0

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HB 2128: rulemaking; exemption; limitation; corporation commission

Sponsor: Representative Griffin, LD 14

House Engrossed

Overview

Revises the Corporation Commission's (Commission) exemption from submitting proposed rules to the Governor's Regulatory Review Council (GRRC) for approval and requires the Commission to make all proposed rules publicly available. 

History

The Commission regulates public service corporations (PSCs) and facilitates the incorporation of businesses and organizations, securities regulation and railroad and pipeline safety. As established in the Constitution of Arizona, the Commission has two sets of authorities:

· Plenary authority to set rules, regulations and orders governing PSC rates, charges and classifications; and

· Permissive authority to regulate PSCs to protect the health, safety, comfort and convenience of customers, employees and the public (Article XV, § 3, Constitution of Arizona).

GRRC is responsible for reviewing an agency’s proposed rule to ensure its necessity and to avoid duplication and adverse impact on the public (A.R.S. § 41-1052). As part of the rulemaking process, most agencies are required to submit proposed rules for review to GRRC for approval before the final rules can be sent to the Secretary of State for posting. The Commission is exempt from GRRC review but is required to adopt a substantially similar rule review procedure and must have all non-ratemaking rules reviewed by the Attorney General (A.R.S. §§ 41-1044 and 41-1057). Additionally, the Commission is still subject to the other requirements established in the Administrative Procedures Act for adopting rules, including public notice for opening a docket and publishing a notice of proposed rulemaking (A.R.S. § 41-1001 et seq.)

Provisions

1. Clarifies that the Commission's rules are exempt from GRRC review when it is exclusively exercising its plenary ratemaking authority.  (Sec. 1)

2. Directs the Commission to make proposed rule review procedures available to the public prior to initiating any rulemaking process. (Sec. 1)

3. Makes technical changes. (Sec. 1)

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7.                   HB 2128

8. Initials PAB/JH     Page 0 House Engrossed

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