Arizona Constitution Article 15 - THE CORPORATION COMMISSION
Arizona Constitution – Article 15: The Corporation Commission
🔷 Overview:
Article 15 of the Arizona Constitution establishes the Arizona Corporation Commission (ACC) — a unique and powerful body compared to similar agencies in other states. It functions like a combination of a public utilities commission, a business regulator, and a quasi-judicial body.
🔑 Key Sections and Functions:
Section 1: Commission Established
Establishes the Corporation Commission as a constitutional body.
It consists of three members (amended to five in later changes), elected by the people.
Members serve staggered terms and must be Arizona residents.
Section 2: Powers and Duties
The Commission has full power to:
Prescribe rules and regulations for public service corporations (like utility companies),
Investigate and enforce compliance,
Set rates and charges for utilities,
Require reports and inspect records.
Section 3: Rate Regulation
The ACC has the exclusive authority to regulate rates and charges of public service corporations.
Section 4: Incorporation
All corporations (except municipal and religious ones) must file with the Commission.
Section 5: Filing Requirements
Corporations must file charters, amendments, and annual reports with the Commission.
Section 6: Foreign Corporations
Foreign (out-of-state) corporations must register and comply with ACC rules to do business in Arizona.
Section 10: Regulation of Railroads and Transmission Lines
The Commission oversees the location and operation of railroads, pipelines, and other infrastructure affecting public access and safety.
Section 13: Powers Not to Be Reduced
The Legislature cannot diminish the powers of the Commission. It is constitutionally independent.
🏛️ Unique Feature:
Arizona is one of the only states where a corporation commission is created by the constitution and where commissioners are elected directly by voters, not appointed by the governor or legislature.
🔍 Real-World Roles of the ACC:
Sets electricity and water rates for public utilities.
Oversees securities regulation (some overlap with federal SEC).
Registers corporations, LLCs, and partnerships.
Monitors pipeline safety and railroad crossings.
Handles consumer complaints against utilities.
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