House Engrossed

 

corporation commission actions; investigation

 

 

 

 

State of Arizona

House of Representatives

Fifty-fifth Legislature

First Regular Session

2021

 

 

 

HOUSE BILL 2737

 

 

 

AN ACT

 

Amending Title 41, chapter 1, article 5, Arizona Revised Statutes, by adding section 41-194.02; relating to the attorney general.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 41, chapter 1, article 5, Arizona Revised Statutes, is amended by adding section 41-194.02, to read:

START_STATUTE41-194.02. Violations of law by the corporation commission; attorney general investigation; report; action; budget withholding; applicability

A. At the request of one or more members of the legislature, the attorney general shall investigate any decision, order or rule adopted or amended by the corporation commission that the member alleges VIOLATES STATE LAW OR is beyond the corporation commission's constitutional authority, IF REQUESTED NOt LATER THAN sixty DAYS AFTER THE CORPORATION COMMISSION'S DECISION, ORDER OR RULE IS ADOPTED OR AMENDED.  THIS SECTION does NOT APPLY TO LAWS ENACTED before the 2021 LEGISLATIVE SESSION.

B. The attorney general shall make a written report of findings and conclusions as a result of the investigation within thirty days after receipt of the request and shall provide a copy of the report to the governor, the president of the senate, the speaker of the house of representatives, the member or members of the legislature making the original request and the secretary of state.

C. If the attorney general concludes that the corporation commission:

1. IS VIOLATING STATE LAw OR does not have the constitutional authority to adopt or amend the decision, order or rule under investigation, the attorney general shall provide notice to the corporation commission, by certified mail, of the violation and shall indicate that the corporation commission has thirty days to resolve the corporation commission's action. If the attorney general determines that the corporation commission has failed to resolve the violation within thirty days OR has FAILED TO BEGIN REsOLVING THE VIOLATION IN GOOD FAITH WITH A PUBLISHED TIMELINE FOR COMPLETION, the attorney general shall file a special action in the supreme court to resolve the issue, and the supreme court shall give the action priority. IF THE SUPREME COURT DETERMINES THAT THE CORPORATION COMMISSION IS VIOLATING STATE LAW OR DID NOT HAVE THE CONSTITUTIONAL AUTHORITY TO ADOPT OR AMEND THE DECISION, ORDER OR RULE, THE ATTORNEY GENERAL SHALL:

(a) INFORM THE GENERAL ACCOUNTING OFFICE OF THE DEPARTMENT OF ADMINISTRATION, WHICH SHALL WITHHOLD TEN PERCENT OF THE CORPORATION COMMISSION'S OPERATING LUMP SUM BUDGET FOR THE CURRENT FISCAL YEAR EQUALLY OVER THE NEXT FOUR CONSECUTIVE QUARTERLY BUDGET ALLOCATIONS, OR UNTIL THE VIOLATION HAS BEEN RESOLVED. THE QUARTERLY BUDGET ALLOCATIONS MAY BE IN DIFFERENT FISCAL YEARS, IF NECESSARY. IF APPLICABLE, THIS WITHHOLDING SHALL REPEAT EACH FISCAL YEAR UNTIL THE VIOLATION HAS BEEN RESOLVED.

(b) CONTINUE TO MONITOR THE RESPONSE OF THE CORPORATION COMMISSION, AND WHEN THE CORPORATION COMMISSION HAS RESOLVED ITS ACTION, THE ATTORNEY GENERAL SHALL NOTIFY THE GOVERNOR, THE PRESIDENT OF THE SENATE, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE MEMBERS OF THE LEGISLATURE MAKING THE ORIGINAL REQUEST THAT THE VIOLATION HAS BEEN RESOLVED. 

2. May have VIOLATED STATE LAW OR MAY NOT HAVE the constitutional authority to adopt or amend the decision, order or rule under investigation, the attorney general shall file a special action in the supreme court to resolve the issue, and the supreme court shall give the action PRIORITY.  IF THE SUPREME COURT DETERMINES THAT THE CORPORATION COMMISSION DID VIOLATE STATE LAW OR DID NOT HAVE THE CONSTITUTIONAL AUTHORITY TO ADOPT OR AMEND THE DECISION, ORDER OR RULE, THE COURT SHALL MAKE THE APPROPRIATE ORDER AND SHALL IMPLEMENT THE WITHHOLDING DESCRIBED IN SUBSECTION C, PARAGRAPH 1, SUBDIVISION (a) OF THIS SECTION WITH ANY MODIFICATIONS THE COURT DEEMS NECESSARY.

3. HAS not VIOLATED STATE LAW OR the constitutional authority to adopt the decision, order or rule under investigation, the attorney general shall take no further action.

D. THE CORPORATION COMMISSION MAY REQUEST ITS OWN DETERMINATION FROM THE ATTORNEY GENERAL AT ANY TIME TO DETERMINE WHETHER ITS PROPOSED DECISION, ORDER OR RULE VIOLATES STATE LAW OR THE CONSTITUTION OF ARIZONA. IF SUCH A DETERMINATION IS OBTAINED BY THE CORPORATION COMMISSION, RELATING TO A SPECIFIC DECISION, ORDER OR RULE ADOPTED OR AMENDED IN ITS OFFICIAL CAPACITY, IN GOOD FAITH RELIANCE ON SUCH DETERMINATION, IT SHALL EXEMPT THE CORPORATION COMMISSION FROM ANY WITHHOLDING DESCRIBED IN SUBSECTION C, PARAGRAPH 1, SUBDIVISION (a) OF THIS SECTION. SUCH DETERMINATIONS SHALL BE MADE AVAILABLE TO THE PUBLIC.

E. This section does not apply to:

1. any order or decision setting rates for public service corporations.

2. Any decision, order or rule adopted or amended pursuant to title 40, chapter 2, article 5 0r 6.2.

3. Rules adopted regarding the interconnection of distributed generation facilities. END_STATUTE