Arizona SB 1508: water; desalination action plan

Bill Text

SB1508 - 572R - I Ver 

 REFERENCE TITLE: utilities; annual disclosure requirements; commission

 State of Arizona

 Senate

 Fifty-seventh Legislature

 Second Regular Session

 2026

 SB 1508

 Introduced by 

 Senators 
 Kuby: Diaz, Miranda, Ortiz, Sundareshan;� Representative Garcia

AN 
ACT

Amending title 40, chapter 2, article 1, 
arizona revised statutes, by adding section 40-207; relating to public service 
corporations.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Title 40, chapter 2, article 1, 
Arizona Revised Statutes, is amended by adding section 40-207, to read:

START_STATUTE40-207. Utilities; annual disclosures to the commission; civil penalty; 
definitions

A. On or before May 1, 2027 and each 
year thereafter, a utility shall report to the commission for the previous 
calendar year:

1. An itemized list of all of the 
following expenses: 

(a) Membership 
dues, sponsorships or other contributions to an industry trade association, 
group or related entity that is incorporated under 26 united states code 
section 501, including any portion of the membership dues, sponsorships or 
other contributions that support political activities or advertising.� This 
subdivision does not apply to fees for professional licenses that are related 
to an employee's job function.

(b) Charitable 
giving, including contributions to an organization that is qualified under 26 
united states code section 501(c)(3) or 501(c)(4). 

(c) Political 
influence activities. 

(d) Institutional 
advertising. 

(e) Promotional 
advertising.

(f) Payments 
made to outside attorneys who represent the utility in a proceeding before the 
commission, including fees paid to experts that testified on behalf of the 
utility. 

(g) Contributions 
to political candidates, political parties, CAMPAIGN committees, issue 
committees or independent EXPENDITURE committees, including political 
organizations as prescribed in 26 united states code section 527 or other 
related political expenses. 

(h) Costs, 
including marketing, administration or customer service costs, that are 
associated with products or services that are not regulated by the commission. 

(i) PENALTIES 
or fines that are imposed on a utility, including tax PENALTIES or fines.� 

(j) liability 
insurance costs and travel, lodging, food and beverage expenses for the 
utility's or an affiliate of the utility's board of directors and officers. 

(k) costs that 
are associated with an aircraft that is owned, leased or chartered by the 
utility's or an affiliate of the utility's board of directors and officers.

(l) Investor 
relations costs. 

(m) Litigation 
costs regarding existing or proposed federal, state or local regulations, 
legislation, ordinances or commission decisions. 

2. For 
each covered business unit, an itemized list of all of the following:

(a) The name and job title of each employee.

(b) A job description of each listed employee that is 
sufficient to describe the employee's responsibilities. 

(c) The total 
annual compensation that is provided to each listed employee. 

(d) The number 
of hours that are booked to an above-the-line account for each 
listed employee. 

(e) The 
percentage of total annual compensation that is booked to an above-the-line 
account for each employee. 

B. To the extent the UTILITY retains 
outside vendors to perform activities prescribed in subsection a of this 
section, the utility shall provide to the commission an itemized list of all 
expenses that are paid to the vendors.� The utility shall provide the federal 
energy regulatory commission's uniform system of accounts number under which 
each expense is logged and recorded and shall include documentation that 
identifies the time expended, the work performed and the total cost incurred.� 
Itemized lists shall include for each expense the billing amount, the billing 
date, the identity of payee and an explanation of the expense sufficient to 
describe its purpose.� The utility shall include a separate line item for each 
payment that is associated with an ACTIVITY described in subsection a of this 
section.

C. For each commission proceeding in 
which the utility is a party, the utility shall provide to the commission an 
itemized list of expenses booked to an above-the-line account for participation 
in that proceeding, including employee compensation, vendor expenses and other 
expenses.� The utility shall provide the Federal energy regulatory commission's 
uniform system of accounts number under which each expense is recorded.

D. The commission shall make all 
reports that are filed with the commission publicly available.

E. A utility shall clearly and 
conspicuously disclose in all of its public messages whether the costs of the 
public messages are being paid for by the utility's shareholders or ratepayers, 
consistent with advertising and FUNDRAISING DISCLOSURE STATEMENT REQUIREMENTS 
PURSUANT TO