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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
employment; prohibitions; corporation commission
Purpose
Prohibits a public service corporation or public power entity that is regulated by the Arizona Corporation Commission (ACC) from employing or entering into an independent contractor agreement with an individual who served as a commissioner in the preceding two years.
Background
The Arizona
Constitution establishes the ACC to regulate public service corporations,
facilitate the incorporation or organization of companies under Arizona law,
oversee railroad and pipeline safety, and regulate the sale of securities. The
ACC consists of five members elected at the general election and who serve for
four-year terms. The Arizona Constitution authorizes the Legislature to
prescribe commissioner qualifications by law and allows the Legislature to
enlarge the powers and extend the duties of the ACC and prescribe rules and
regulations to govern proceedings instituted by and before it. The ACC may
supervise and regulate every public service corporation in Arizona. In
supervising and regulating public service corporations, the ACC may adopt rules
that: 1) protect the public against deceptive, unfair and abusive business
practices;
2) provide that account information and related propriety information are
confidential unless specifically waived by the customer in writing; and 3)
ensure that public service corporations that employ the services of a
contractor for interior household energy service comply with all municipal
permit and inspection standards and applicable life safety codes (Ariz. Const. art. 15;
A.R.S.
§ 40-202).
A person who is employed or holds an official relation to a corporation or person that is regulated by the ACC or a person owning stocks or bonds of a corporation regulated by the ACC may not be elected, appointed to or hold the office as a commissioner of the ACC. If a commissioner of the ACC becomes the owner of such stocks or bonds or becomes pecuniarily interested in a corporation regulated by the ACC involuntarily, the commissioner, must within a reasonable time, divest from such stocks, bonds or interest. A commissioner that fails to divest as provided by statute must vacate the office (A.R.S. § 40-101).
The Joint Legislative Budget Committee fiscal note estimates that H.B. 2518 would have no fiscal impact on the state General Fund (JLBC fiscal note).
Provisions
1. Prohibits a public service corporation or public power entity that is regulated by the ACC from employing or entering into an independent contractor agreement with an individual who served as a commissioner in the preceding two years.
2. Becomes effective on the general effective date.
House Action
GOV 2/20/25 DPA 4-0-3-0
3rd Read 3/13/25 21-35-4
3rd Read* 3/20/25 51-2-7
*on reconsideration
Prepared by Senate Research
March 24, 2025
AN/DL/slp