Rule 1.1

Commissioners shall discharge their duties in full compliance with applicable laws concerning ethical conduct.

[1] A full text copy, or link to a full text copy, of the sources cited herein may be found in the attached “ Code of Ethics Appendix.”

Source: 1992 Ariz. Sess. Laws, ch. 134 § 1; NARUC Code of Ethics, Canon I; Ariz. Code of Judicial Conduct, Canon I, Rule 1.1

Rule 1.2

The Commission shall have a Code of Conduct which is attached, as Attachment A, and incorporated into this Code of Ethics.

Rule 2.1

The official duties of Commissioners take precedence over all other activities.

Source: NARUC Code of Ethics, Canon III; Ariz. Code of Judicial Conduct, Canon II, Rule 2.1

Rule 2.2

Commissioners should be faithful to and constantly strive to improve their competence in regulatory principles.

Source: NARUC Code of Ethics, Canon III; Ariz. Code of Judicial Conduct, Canon II, Rule 2.5

Rule 2.3

Commissioners should maintain order and decorum with each other and in the meetings and proceedings before them. Commissioners should be patient, dignified, and courteous to litigants, witnesses, lawyers, and others with whom the Commission deals in an official capacity, including fellow Commissioners, and should require similar conduct of their fellow Commissioners, lawyers, staff, and others subject to the Commissioners’ direction and control. Commissioners should afford to every person who is legally interested in a proceeding, or his or her lawyer, the full right to be heard according to law.

Source: NARUC Code of Ethics, Canon III; Ariz. Code of Judicial Conduct, Canon II, Rule 2.8

Rule 2.4

Commissioners should not perform an act in a private capacity that may be construed as an official act.

Source: A.A.C. R2-5A-501

Rule 2.5

Commissioners shall not with corrupt, malicious, unscrupulous, unethical, or intimidating intent use their political influence or position to cause the firing, promotion, or demotion of any Commission employee or the hiring or failure to hire any applicant for employment with the Commission.

Source: A.R.S. §§ 1-215, 13-1202, 41-753; Black’s Law Dictionary (10th ed. 2014)

Comment: The following definitions shall apply: Corrupt means a wrongful design to acquire or cause some pecuniary or other advantage to the person guilty of the act, or to some other person. Malicious means a wish to vex, annoy, or injure another person, or an intent to do a wrongful act. Unscrupulous means behaving in a way that is dishonest or unfair in order to gain advantage. Unethical means lacking moral norms or standards of professional conduct. Intimidating means using words or conduct to threaten (1) physical injury to another person, or (2) serious damage to the property of another person, or (3) serious public inconvenience.

Rule 3.1

The Commission is committed to maintaining human dignity and protecting its employees and fellow Commissioners from harassment, whether it is of a sexual nature or based on race, color, national origin, religion, age, disability, genetic information, gender, pregnancy, military or veteran status, political affiliation or any other status protected by law. Commissioners are prohibited from engaging in harassment in any form, whether verbal, physical or visual.

Source: 42 U.S.C. § 2000e, et seq.; 29 U.S.C. § 621, et seq.; 42 U.S.C. § 12101, et seq.; Ariz. Code of Judicial Conduct, Canon II, Rule 2.3

Rule 3.2

To preserve the order, decorum, and dignity of the Commission, the office of Commissioner, and the Commission’s public meetings and proceedings, all Commission discussions, questions, and comments made during public meetings and proceedings shall reflect an objective and impersonal interchange between everyone involved, including Commissioners, Commission employees, litigants, witness, stakeholders, members of the public, and all others with whom the Commission deals in an official capacity.  No Commissioner, Commission employee, litigant, witness, stakeholder or member of the public shall during any public meeting or proceeding before the Commission use any hateful, vicious, offensive, or personal speech or language that is intended to attack, offend, harass, impugn, arraign, charge, indict, misrepresent, or insult another Commissioner, Commission employee, litigant, witness, stakeholder, member of the public, or other person or entity with whom the Commission deals in an official capacity. No Commissioner during any public meeting or proceeding before the Commission shall, directly or indirectly, by any form of words, impute or insinuate to another Commissioner any conduct, characteristic, condition, or motive unworthy or unbecoming of a Commissioner or incompatible with the proper exercise of the Commission’s lawful office, including with respect to any question, comment, proposal, or vote made or offered by another Commissioner. No Commissioner shall interrupt another Commissioner in discussions, questions, or comments without the Commissioner’s consent, and to obtain such consent, the Commissioner shall first address the Chairman.

Rule 4.1

Commissioners or their relatives who have a substantial interest in any contract, sale, purchase, or service to the Commission shall disclose that interest in the public records of the Commission, and shall refrain from voting on or participating in matters in such contract, sale, or purchase. Commissioners shall also disclose any substantial interests in any decision of the Commission and shall refrain from participating in any manner in such decisions.

Source: A.R.S. § 38-501, et seq.

Comment: A Commissioner should disqualify himself or herself in a proceeding where that Commissioner determines that he or she cannot be impartial, such as when the Commissioner has a personal or political bias or prejudice concerning a party or another Commissioner. Commissioners should also not allow family, social, political, employment, or other relationships, including with fellow Commissioners, to influence their official conduct or judgment. A substantial interest exists if all of the following are present: (i) the decision could affect, either positively or negatively, an interest of the Commissioner or his/her relative; (ii) the interest is pecuniary or proprietary, such as a financial interest ownership interest, future employment interest, or political interest; and (iii) the interest is not “remote” as defined by A.R.S. § 38-502(10).

Rule. 4.2

Commissioners shall not be employed by, hold an official relation to, or own stocks or bonds in, a corporation that : (i) is regulated by the Commission; (ii) regularly appears before the Commission or is represented by a lobbyist registered with the Commission pursuant to Rule 5.2 that regularly appears before the Commission on the corporation’s behalf; or (iii) has more than a de minimis interest in the outcome of a Commission decision, such as, for a contested matter, a party to the contested matter while the contested matter is pending, or for a generic docket or rulemaking proceeding, a corporation or corporation represented by a lobbyist registered with the Commission pursuant to Rule 5.2 whose interests could be affected by the docket or proceeding and whose intent is to influence any decision, legislation, policy or rulemaking that could result from the generic docket or rulemaking proceeding while the generic docket or rulemaking proceeding is open or pending. In the event an immediate family member (mother, father, sister, brother, spouse, child, and members of household) is found to violate this Rule, it may require disclosure.

Source: A.R.S. § 40-101; NARUC Code of Ethics, Canon II

Comment: It is permissible for a Commissioner to be indirectly invested in the stock of a regulated entity or entity that regularly appears before the Commission or has more than a de minimis  interest in the outcome of a Commission decision,  provided such investment is through entities not regulated by the Commission. For example, it is permissible for a Commissioner to be invested in a brokerage account that permits the broker to invest the client’s funds in various entities.

Rule. 4.3

Commissioners shall not receive, or agree to receive, compensation other than as provided by law, for any service rendered or to be rendered by the Commissioner, related to matters pending before the Commission.

Source: A.R.S. § 38-505

Comment: Commissioners shall not solicit or accept meals or other things of value from a public service corporation regulated by the Commission or a party to a Commission proceeding or person or entity in a generic docket or rulemaking proceeding that is registered as a lobbyist pursuant to Rule 5.2 or represented by a lobbyist that is registered at the Commission under Rule 5.2. A narrow exception to this rule is permitted for meals or other things of value that are provided to all attendees as part of a larger educational event that a Commissioner attends in his or her official capacity e.g. the National Association of Regulatory Utility Commissioners (NARUC) conferences.

Rule 4.4

Commissioners shall not use their official position to secure any valuable thing or valuable benefit, including the promise or possibility of future political support, future employment opportunities, or other future personal gain that would not ordinarily be provided to the Commissioner in the performance of the Commissioner’s official duties, if the thing or benefit is of such a character as to manifest a substantial and improper influence on the Commissioner.

Source: A.R.S. § 38-504

Comment: Commissioners should self-regulate their outside activities to minimize the risk of conflict. But, the receipt of a benefit by a Commissioner does not, standing alone, establish a substantial and improper influence. For example, a Commissioner’s attendance and participation in trade industry events related to matters within the Commission’s jurisdiction often serve the public interest.

It is appropriate for Commissioners to attend luncheon meetings, dinner meetings, or industry-related gatherings and conferences sponsored by industrial, technical, and professional associations, when attendance and participation serves the public interest and involves a discussion of matters of mutual interest to the Commission and in furtherance of the Commissioner’s duties. Likewise, it is appropriate for Commissioners to accept travel-related reimbursement for events related to Commission business when (i) attending educational or informational settings; (ii) attending events or meetings in which the Commissioner is scheduled to meaningfully participate; or (iii) the events relate to the Commissioner’s official duties. No benefit or travel-related expense may be accepted if it is offered in exchange for official action.

Rule 4.5

A Commissioner shall not represent another person or entity before the Commission for a period of one year following the date the Commissioner’s tenure as a member of the Commission ends. A sitting Commissioner shall not meet with any former Commissioner who is employed by, retained by, or contracted by a public service corporation to discuss issues pending before the Commission for a period of one year after the former Commissioner leaves office.

Source: A.R.S. § 38-504

Rule 6.1

Commissioners receiving campaign contributions shall conduct all necessary due diligence to properly and accurately document those contributions, to fully comply with campaign finance reporting laws.

Source: A.R.S. §§ 16-926; 18-444; 38-541; 38-543–38-545; Citizens United v. Federal Election Commission, 558 U.S. 310 (2010)

Comment: Commissioners who are running for re-election should remain actively involved in financially managing their own campaigns so that contributions can be properly recorded. Commissioners shall make these disclosures available to the public on the Commission website. To avoid any appearance of impropriety or conflict of interest in the Commissioner’s official conduct, Commissioners should be particularly mindful of any campaign contributions received from regulated entities, or campaign contributions received from individuals or entities affiliated with regulated entities.

Commissioners are not expected to know or disclose the funding source of any independent expenditures, unless these funding sources are confirmed by the donors; however, Commissioners must continue to disclose any and all campaign contributions as required by Arizona law. Commissioners should educate themselves on the financial disclosure handbook and be familiar with the law, including any amendments or changes to the law regarding disclosure.

Rule 6.2 (A)

A Commissioner shall not accept contributions from any regulated public service corporation nor from a person or entity in a generic docket or rulemaking proceeding that is registered as a lobbyist pursuant to Rule 5.2 or represented by a lobbyist that is registered with the Commission pursuant to Rule 5.2. A Commissioner shall not accept contributions from an intervenor to a pending case that is set before the Commission. Except for a Citizens Clean Elections Act candidate, in the event that a Commissioner unknowingly receives such a campaign contribution, the Commissioner shall refund the contribution. Except for a Citizens Clean Elections Act candidate, if the contribution is not or cannot be returned, the Commissioner shall recuse him or herself from participating or voting on any matter involving the public service corporation or party.

In the event that a Commissioner was or is a Citizens Clean Elections Act candidate and unknowingly received a prohibited contribution and cannot return the contribution, the Commissioner shall not be required to recuse him or herself.  In such event, if the prohibited contribution becomes known prior to voting on a matter before the Commission, the Commissioner shall instead declare the contribution which benefited the Commissioner. The declaration shall be made in writing as soon as possible after the Commissioner knows that the public service corporation or party will be on an Open Meeting agenda, but no less than two business days before a vote on the matter. The declaration shall identify the donor, state the dollar amount of the contribution and whom it benefited. The declaration shall state whether the contribution was returned to the donor. The declaration shall also contain the following language:

“Any party to this matter who believes that I should recuse myself may file the reasons for recusal in this docket. I may or may not recuse myself from this matter.”

The same declaration shall also be made orally by the Commissioner immediately following the Commission Chair announcing the matter for discussion at the Open Meeting. Any party to the case shall be given opportunity to state, at the Open Meeting, why the Commissioner should not be voting on the matter.

Source: A.R.S. § 16-905, A.R.S. §16-913, A.A.C. 14-3-103.

Comment: For the purposes of this Rule, a “contribution” means any money, advance, deposit or other thing of value that is made to a Commissioner’s candidate committee or any Qualifying Contribution or Early Contribution made to a Citizens Clean Elections Act candidate for the purpose of influencing an election but does not include contributions that have been returned to the donor. This provision does not apply to contributions transferred from a prior candidate committee under A.R.S. § 16-913. When the public service corporation or party is an entity, the prohibition extends to the entity, owner, officer, director, employee, or any political action committee registered by the entity. The contributor’s status is set at the time of making a contribution. This provision applies to all contributions received: (a) within eighteen months of a Commissioner’s election/appointment to the Commission or (b) while the Commissioner is in office. The doctrine of necessity will apply if the Commission would fail to establish a quorum on account of this provision.

Rule 6.2 (B)

Prior to voting on a matter before the Commission, or at the beginning of an Open Meeting wherein votes will be taken on a matter, a Commissioner, regardless of whether the Commissioner is a candidate for nomination, election or retention to the Commission, shall declare any known campaign contributions or contributions of any kind which indirectly benefit that Commissioner (e.g. independent expenditure), or directly or indirectly benefit that Commissioner’s immediate family (mother, father, sister, brother, spouse, children, and members of household), and/or that Commissioner’s personal or business interest/cause e.g., (i) charity, nonprofit or social welfare organization the Commissioner publicly supports, is employed by, or serves in an official capacity for; (ii) corporation, business, client, or employer the Commissioner owns, has a pecuniary interest in, represents or is employed by; (iii) candidate for nomination, election, or retention to the Commission the Commissioner publicly supports or has endorsed; or (iv) candidate committee or political action committee in which the Commissioner is named as chairperson or treasurer on the committee’s statement or organization, etc., where the contribution is from:

1. A business entity, that is a party in the matter (or a related entity) before the Commission or, if the matter is a generic docket or rulemaking proceeding, is represented by a lobbyist registered with the Commission pursuant to Rule 5.2 that has communicated regarding the docket or proceeding, where the owners, and/or officers, and/or employees who are in executive positions, have indirectly (e.g., through independent expenditure, or other third-party independent expenditure, etc.) contributed, in aggregate, one thousand dollars ($1,000) or more.
2. An individual that is a party in the matter before the Commission or, if the matter is a generic docket or rulemaking proceeding, is registered as a lobbyist with the Commission pursuant to Rule 5.2 and has communicated regarding the matter, where the individual and/or members of that individual’s immediate family have contributed indirectly (e.g., through independent expenditure, or other third-party independent expenditure), in aggregate, one hundred dollars ($100) or more.

The declaration shall be made in writing as soon as possible after the Commissioner knows that a matter that meets the above criteria (if a charity or social interest/cause, the name of that charity or social interest/cause need not be revealed); however, if a candidate committee or political interest/cause, the name of the candidate committee or political interest/cause must be disclosed) will be on an Open Meeting agenda, but no less than two business days before a vote on the matter.  The declaration shall identify the donor, state the dollar amount of the contribution and whom it benefited.  The declaration shall state whether or not the contribution was returned to the donor.  The declaration shall also contain the following language:

“Any party to this who believes that I should recuse myself may file the reasons for recusal in this docket.  I may or may not recuse myself from this matter.”

The same declaration shall also be made orally by the Commissioner immediately following the Commission Chairman announcing the matter for discussion at the Open Meeting or, at the Chairman’s discretion, at the beginning of the Open Meeting upon the Chairman’s instruction. If the Chairman allows declarations to be made at the beginning of an Open Meeting, a Commissioner who must make a declaration pursuant to the Rule need only make one declaration per all relevant matters to which the declaration pertains.  Any party to the case shall be given the opportunity to state, at the Open Meeting, why the Commissioner should not be voting on the matter.

The contributions contemplated above shall include all contributions received:

1. Within eighteen (18) months of a Commissioner’s election/appointment to the Commission, even if the contribution is returned to the donor.
2. While a Commissioner is in office, even if the contribution is returned to the donor.

Source: A.R.S. §§ 16-901, 16-905, 16-911, 16-913, 16-916, 16-918, 16-922, 16-926; A.A.C. R14-3-103; Ariz. Code of Judicial Conduct, Canon IV; Citizens United v. Federal Election Commission, 558 U.S. 310 (2010)

Rule 7.1

Meetings involving a quorum of Commissioners, where legal action is discussed, deliberated, proposed, or taken, shall be conducted in public and in accordance with Arizona Open Meeting Law. The Arizona Open Meeting Law requires public notice of meetings, prohibits certain discussions between public officers outside of those meetings, and limits discussion at public meetings regarding official action to items related to the agenda.

Source: A.R.S. § 38-431, et seq.

Comment: Calls to the public are governed by different rules and allow the public to address the Commission on any topics of concern within the Commission’s jurisdiction, even if the topic is not specifically on the agenda. During open calls to the public, a Commissioner may not dialogue with the presenter if the topic is not on the agenda, however, the Commissioner may (i) respond to criticism; (ii) ask staff to review an item; or (iii) ask that an item be placed on a future agenda. In addition, a Commissioner who proposes that the Commission have the opportunity to consider an off-agenda subject at a future public meeting, without more, does not violate the Arizona Open Meeting Law because it does not propose legal action.

Rule 7.2

The Commission shall designate from among existing employees a Public Records Officer. The Public Records Officer shall be responsible for complying with public records requests as required by Arizona law.

Source: A.R.S. §§ 39-121–39-161

Comment: Electronic messages sent or received by government-issued electronic devices that have a substantial nexus to Commission activities are public records and subject to public inspection. Commissioners likewise have a duty to reasonably account for official activity, even when that activity is conducted on private devices or through private e-mail accounts. Commissioners cannot use private devices and accounts for the purpose of concealing official conduct.

To ensure transparency and promote accountability to the public, Commissioners shall make their official calendars available to the public on the Commission website on at least a quarterly basis. Commissioners shall, at a minimum, disclose in accordance with the following schedule: Q1 (January, February, and March) will be available on the Commission website beginning May 1; Q2 (April, May, and June) will be available on the Commission website beginning August 1; Q3 (July, August, and September) will be available on the Commission website beginning November 1; and, Q4 (October, November, and December) will be available on the Commission website beginning February 1.

Rule 7.3

Ex parte rules prohibit communications to or from a Commissioner, not on the public record, concerning the substantive merits of a contested proceeding. The ex parte rules commence when a matter is set for a public hearing and terminate once an application for rehearing has been denied. Commissioners shall not initiate or knowingly participate in ex parte communications with any public service corporations and their lobbyists, or any party to a pending case. Any violation of this rule requires immediate recusal and participation from the matter by the Commissioner(s) that violated this rule.

Source: A.A.C. R14-3-113

Comment: The ex parte rule similarly applies to communications to or from agents of the Commissioner involved in the decision-making process, such as the Commissioner’s policy advisors and interns. The ex parte rule does not prohibit discussions about procedural matters or comments from the public. For example, Commissioners can communicate or inquire about scheduling issues, docket filing issues, or other case administration issues, without violating the ex parte rule.

Rule 8.1

The Commission’s Ethics Officer shall be the Commission’s Chief Counsel (Director of the Commission’s Legal Division). If the Commission determines (by a majority vote) or the Chief Counsel determines that the Chief Counsel is unable to perform the duties of Ethics Officer on a particular matter, the Commission’s Assistant Chief Counsel shall be the Commission’s Ethics Officer for that matter. The Ethics Officer shall provide an annual training to Commissioners to ensure familiarity with the Commission’s Code of Ethics, applicable Arizona laws related to the conduct of public officials, public record laws, and open meeting laws. The Ethics Officer shall likewise be available to provide advice to the Commissioners on ethics issues as needed.

Comment: Any complaint alleging a violation of any provision of these rules should be submitted in writing and under oath to the Ethics Officer, who shall report such complaint to the Commissioners and the Executive Director. Commissioners are likewise expected to disclose any job-related illegal or unethical behavior on the part of any individual, including the Commissioner him/herself. If a complaint alleging a violation of any provision of Rule 5.4, or any other job-related illegal or unethical behavior, is submitted in writing and under oath to the Ethics Officer, then the Commissioner, against whom the violation is alleged, shall submit in writing and under oath to the Ethics Officer, a statement affirming that no employment or independent contractor relationship under Rule 5.4 constitutes a job-related illegal or unethical behavior, and the Ethics Officer shall report such statement to the Commissioners and the Executive Director.

Rule 9.1

The Attorney General shall bring an action against any Commissioner who usurps, intrudes into or unlawfully holds or exercises that Commissioner’s public office, when the Attorney General has reason to believe that that the Commissioner’s public office is being usurped, intruded into or unlawfully held or exercised.

The Attorney General may also empanel a state grand jury to investigate and return indictments for knowing or corrupt misconduct involving Commissioners. Commissioners may be impeached for high crimes, misdemeanors or malfeasance in office, and/or recalled by the voters. Commissioners are also subject to the federal and state criminal laws.

Source: Ariz. Const. Art. VIII; A.R.S. §§ 12-2041 et seq.; 38-311–38-312; 38-441 et seq.;

21-422(B)(1)

Comment: Violations of Arizona law by any Commissioner should be referred for review to the Attorney General or the county attorney for the county where the events allegedly took place.

Rule 10.1

With the exception of Section V, Rule 5.2, this Code of Ethics shall take effect immediately upon approval of the Commission and shall be re-adopted at the swearing in of each new Commissioner. Section V, Rule 5.2 shall take effect ninety (90) days from the effective date of this Code of Ethics to allow parties time to register with the Commission. The Commissioners shall review this Code of Ethics periodically to determine if any amendment is required.