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SB1384 - 572R - I Ver
REFERENCE TITLE:
utilities; contributions;
nonrecoverable expenses; lobbying
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SB 1384
Introduced by
Senator
Sundareshan
AN
ACT
amending section 16-916, Arizona
Revised Statutes; amending title 40, chapter 2, article 7, Arizona Revised
Statutes, by adding section 40-363; amending title 41, chapter 7, article
8.1, Arizona Revised Statutes, by adding section 41-1232.09; relating to
utilities spending.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 16-916, Arizona Revised Statutes,
is amended to read:
START_STATUTE
16-916.
Corporation, limited liability company and labor organization
contributions; separate segregated fund; limits; requirements
A. A corporation, limited liability company or labor
organization shall not make contributions to a candidate committee.
B. A corporation, limited liability company or labor
organization may make unlimited contributions to persons other than candidate
committees.
C. A corporation, limited liability company or labor
organization may sponsor a separate segregated fund. Employees,
members, executives, stockholders and retirees and their families of a
corporation, limited liability company or labor organization and any subsidiary
or affiliate of a corporation, limited liability company or labor organization
may make contributions to the separate segregated fund, subject to the
following:
1. The separate segregated fund must register as a
political action committee.
2. The sponsor or its affiliate may pay the
administrative, personnel and fund-raising expenses of its separate
segregated fund, which shall not be deemed contributions to the fund.
3. The sponsor or its separate segregated fund may
solicit contributions from the sponsor's, sponsor's affiliates' or sponsor's
subsidiaries' employees, members, executives, stockholders and retirees and
their families. The following additional restrictions apply:
(a) With respect to an insurer, an insurer or its
separate segregated fund may also solicit contributions from an insurance
producer's employees, members, executives, stockholders and retirees and their
families.
(b) With respect to a trade association or
membership organization, the association or organization may solicit
contributions from its members' employees, executives, stockholders,
subsidiaries and retirees and their families.
4. A sponsor or its affiliate or a trade association
or membership organization may facilitate the making of contributions to its
separate segregated fund by establishing a payroll deduction system or other
similar payment transfer method.
5. A sponsor, trade association, membership
organization or separate segregated fund may rely on the federal election
commission's written guidance interpreting 52 United States Code section
30118(b) and rules adopted under that section when interpreting this
subsection, if otherwise consistent with this article and articles 1, 1.1, 1.3,
1.4, 1.5, 1.6 and 1.7 of this chapter.
D. A public service corporation that
is regulated by the corporation commission or a public power entity as defined
in section 30-901, including an agricultural improvement district FORMED
under title 48, chapter 17 and a power district formed under title 48, chapter
11, may not make contributions to:
1. Any political action committee
that makes expenditures, including a committee that makes independent
expenditures, for or against any candidate.
2. A corporation that is registered
under section 501(
c
)(3) or 501(
c
)(4)
of the internal revenue code and that makes expenditures to influence the
outcome of an election of one or more candidates for the corporation
commission.
END_STATUTE
Sec. 2. Title 40, chapter 2, article 7, Arizona
Revised Statutes, is amended by adding section 40-363, to read:
START_STATUTE
40-363.
Nonrecoverable expenditures
A public service corporation that is regulated
by the corporation commission, the public service corporation's parent company
and any subsidiary of the public service corporation or a public power entity
as defined in section 30-901, including an agricultural improvement
district FORMED under title 48, chapter 17 and a power district formed under
title 48, chapter 11, may not spend ratepayer monies on any of the following:
1. Membership, dues, sponsorships or
contributions to any entity that is exempt from taxation under section 501 of
the internal revenue code, including businesses or trade associations.
2. Charitable giving, including
contributions to an organization that is exempt from taxation under section
501(
c
)(3) or 501(
c
)(4) of the
internal revenue code, and any expenses related to charitable giving.
3. Advertising.
4. Any compensation for any employee,
if any portion of that compensation supports political influence activities or
advertising.
5. Litigation regarding existing or
proposed federal, state or local regulations, legislation or ordinances.
6. Any costs, including marketing,
administration, customer service or other costs for products or services that
are not regulated by the commission.
7. Penalties or fines,
including tax penalties or fines, that are issued against the public service
corporation.
8. Travel, lodging, gifts,
entertainment and food and beverage expenses for the public service
corporation's board of directors and officers or the board of directors and
officers of an affiliate.
9. Any owned, leased or chartered
aircraft for the board of directors and officers or the board of directors and
officers of an affiliate.
10. Investor relations.
11. Annual compensation that exceeds
the governor's current annual compensation for any individual, including
employees of the public service corporation, members of the board of directors
and officers or the board of directors and officers of an affiliate.
12. Any direct or indirect cost that
is associated with its attendance in, participation in, preparation for or
appeal of any contested proceeding that is conducted before the commission,
including attorney fees, fees for expert witnesses or consultants, the portion
of employee salaries associated with that attendance, participation or
preparation for or appeal of a contested proceeding and any other related costs
identified by the commission.
END_STATUTE
Sec. 3. Title 41, chapter 7, article 8.1,
Arizona Revised Statutes, is amended by adding section 41-1232.09, to read:
START_STATUTE
41-1232.09.
Lobbying prohibited; public service corporation; public power
entity; report
A. A public service corporation that
is regulated by the corporation commission, the public service corporation's
parent company and any subsidiary of the public service corporation may not
spend ratepayer monies to lobby the legislature.
B. A public power entity as defined
in section 30-901, including an agricultural improvement district FORMED
under title 48, chapter 17 and a power district formed under title 48, chapter
11, may not spend ratepayer monies to lobby the legislature.
C. A person prescribed by subsection
A or B of this section shall file reports pursuant to section 41-1232.02
or 41-1232.03 that include a description of the source of any monies used
to lobby the legislature.
END_STATUTE