Arizona Corporation Commission Adopts Ethics Code After 'Dark Days'
State regulatory agencies should keep their focus on ethics, state commissioners said after the Arizona Corporation Commission -- an agency with a troubled history on ethics (see 1712010034) -- voted 5-0 Tuesday to adopt an ethics code. The ACC adopted several amendments, including a campaign contributions proposal that doesn't require recusals as competing proposals floated by other commissioners did (see 1803130048 and 1803080054). The contributions language was “a step in the right direction,” but requiring recusal would be better, said Craig Holman, Public Citizen government affairs lobbyist.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
“Ethics is always an important issue for renewed and ongoing consideration,” said NARUC Telecom Committee Chairman Paul Kjellander, an Idaho public utilities commissioner. Montana Public Service Commissioner Travis Kavulla, formerly NARUC president, emailed: “Having in place rules governing conduct at a utility commission, and making sure that the people subject to the rules are aware of their particulars, is necessary hygiene for good regulation.” NARUC published an ethics code for state commissioners in 1977.
ACC Chairman Tom Forese applauded the new code at the commission's webcast meeting. “It has been difficult, but the commission has gone through some very dark days and I think that this process was absolutely necessary. Is it perfect? No. Is it a living document? Yes.” Commissioner and Ethics Committee Chairman Boyd Dunn said Arizona’s code will be the most comprehensive among all state utility regulators and can be amended as needed. Arizona is one of 11 states where public utility commissioners are elected; they are appointed in the other 39, according to Ballotpedia.
Members voted 5-0 to adopt Dunn’s amendment on campaign contributions after voting 3-2 against two alternate proposals by Commissioner Bob Burns and another by Commissioner Justin Olson. Burns and Olson were the two yes votes on the alternative amendments. Burns and Olson would have required recusal in certain circumstances, whereas Dunn's wording requires only declaration of campaign contributions that might affect decisions, with recusal at the commissioner’s discretion and “subject to the doctrine of necessity.” On his colleagues’ proposals, Dunn said he's concerned it might be tough for commissioners to refund independent expenditures that indirectly benefit them. Requiring recusal in that circumstance could allow parties to choose which commissioners rule on their cases, he said. Amendments are in docket AU-00000E-17-0079.
“Disclosure of contributions received from interested parties will help avoid favoritism,” emailed Public Citizen’s Holman. “While disclosure is useful, it is not a panacea to the problem" of wealthy special interests "trying to buy influence through campaign financing.” Special interests may try to buy influence through independent expenditures, he said. “The best solution to avoid potential favoritism is either to ban campaign contributions from those with business pending before the commission or, alternatively, mandate recusal by the official on any actions affecting special interests who helped finance the official’s campaign.”
The ACC accepted other amendments including Dunn’s proposal to block revolving doors and Burns proposals to make the agency’s chief counsel its ethics officer, and to add "malicious, unscrupulous, unethical, or intimidating” intent to a list of unacceptable reasons for hiring, failing to hire, firing, promoting or demoting employees. The agency decided to divert a proposal by Commissioner Andy Tobin about speeding action on recommended orders to a different docket on process. Commissioners said they will work more and vote later on a Tobin amendment to require attorney registrations.
“It’s always good to have a defined code of ethics in any situation,” said National Regulatory Research Institute Telecommunications Principal Sherry Lichtenberg.