Untitled Texas Attorney General Opinion ( 1984 )

The Attorney General of Texas .JIM MAlTOX December 28. 1984 Worney General ;u~mexcooBulldln9 Mr. Philip F. Rickett 6 Opinion No. ``-280 Chairman A~&. TX. 78711. 254S Public Utility Comhsion of Texas Ret Whether section 6(i) of 51214752501 7800 Shoal Creek Boul.evard article 1446~. V.T.C.S.. pro- ~0IOX91olS7ClM7 Suites 400-450N hibits former members and elecopier 5W475.0288 Austin, Texas 7875i’ employees of the Public Utility Commission from serving a ‘14 Jackson, Suite 700 public utility as an outside IalIas. TX. 75202-4506 consultant or attorney during 2141742.8944 the stated time period ~824 Alberta Ave.. Suite 180 Dear Chairman Rickettc;: El Paso. TX. 799052793 915/533-3484 You ask the following question about section 6(i) of article 1446~. V.T.C.S.. the Public Utility Regulatory Act. t Texas, SuIta 700 I ,ouston. TX. 77002.3111 Does s8zctlon 6(i) of the Public Utility lU223aSS Regulatory Act, article 1446~. V.T.C.S.. prohibit a member or employee of the Public Utility Conusission from representing or performing work 808 Broadway. Suite 312 .ubbock, TX. 79401.3479 for a publ:Lc utility in the capacity of an outside 1W747.5239 consultant or attorney during the perfod of time set forth ::u the section? ,309 N. Tenth. Suite S Section 6(i) of artic1.e 1446~. V.T.C.S., provides as follows: u(cAllsn. TX. 79.50%1685 5121882.4547 (I) No commissioner shall within two years, and no employee shall, within one year after his 200 Main Plaza. Suite 4W employment with the commission has ceased, be San Antonio. TX. 78205-2797 amoloyed by a public utility which was in the 51212254191 scope of the commissioner’s or employee’s official responsibi:l:ity while the conrmissioner or employee An Equal Opportunity/ was sssocl.e:ted with the commission. (Emphasis Alfirmative Action Employer added). You specifically inquire whether the phrase “be employed by a public utiliey” includes s,e:rving the utility as an outside consultant or attorney. Section 6(i) WILE;enacted by Senate Bill No. 232 of the Sixty- eighth Legislature rMch amended the Public Utility Regulatory Act. p. 1238 Mr. Philip F. Ricketts - Page :! (JM-280) Acts 1983. 66th Leg., ch. 274. at 1270. The same enactment amended section 6(b) which formerly prohibited Public Utility Commission officer5 and employees from having “any pecuniary interest . . . in any public utility or affiliated interest” while with the commission and for two yaars thereafter. Acts 1975, 64th Leg., ch. 721. at 2331. The 1983 amendment deleted the post-employment prohibition from section 6(b), quoted below with the deleted language shown in brackets. (b) No commiss:toner or employee of the com- mission may do any of the following during his period of services with the coresission [and for two years thereafter]: (1) have any pecuniary interest, either as an officer, director, partner, owner. employee, attorney, consultant:, br otherwise, in any‘public utility or affiliared interest, or in any person or corporation or csher business entity a signifi- cant portion of whose business consists of furnishing goods or services to public utilities or affiliated inte,cests. but not including a non- profit group or association solely supported by gratuitous contributions of money, property or services. . . . (Hmphasis added). Acts 1983, srrpra, at 1268. Section 6(b)(l) prohibilx s current commissioner or employee from having certain business rr!l.ationships with a public utility, an affiliated interest, or a business entity, a significant portion of whose business consists of Eurnishing goods or services to public utilities or affiliated interests. Section 6(i) applies the post employment restriction only to employment by a public utility within the scope of the individual ‘5 official responsibility while with the commission. The conference committee report on Senate Bill No. 232 indicates the legislature’s intent in enacting section 6(i). The House version of the bill provided a new Wo-year rule for former PUC commissioners only. The report stated as f,ollows: Under this prorision. commissioners could not go to work for a regulated utility for a period of two years after the termination of employment with the PVC. However, unlike current law. a commis- sioner could go to work for an affiliated interest or a firm that does substantial business with a regulated utility 5.5 long as the commissioner was p. 1239 . . Mr. Philip F. Ricketts - Page! 3 (JM-280) not involved in suc'h transectjons for a period of two years. (Emphal3:Lsadded). The Senate version applied e one year prohibition to employers and a two year prohibition to cosm~i,ssioners. administrative law judges, the general counsel, or chief hearing examiner. The conference committee combined the Senate and Aous8: to restrict post employment of commissioners to two years and employees to one year. Neither can work for a public ,xtility. (Emphasis added). The conference coarmittee report distinguishes between work for a regulated utility. which is not permitted during the statutory post- employment period, and work for an affiliated interest or a firm that does substantial business w:.r:h a utility which is not so prohibited. We believe this report exprc!c;ses the legislature's intent to continue a broad prohibition against isork for a public utility while removing the former prohibition against work for affiliated entities or entities that contract with public utilities. In our opinion, the section 6(i) restriction pr8~hibits a commissioner or employee of the Public Utility Commission f:rom representing or performing work for a public utility in the capacity of an outside consultant or attorney during the statutory time period. SUMMARY Section 6(i) of article 1446~. V.T.C.S.. prohibits a former member or employee of the Public Utility Ccmmission from serving a public utility as an 'outside consultant or outside attorney during c,h.e time period stated in that provision. JIM MATTOX Attorney General of Texas TOMGREEN First Assistant Attorney GeuPmral I,AVID R. RICHARDS Executive Assistant Attorne:r General p. 1240 Mr. Philip P. Ricketts - Peg{, 4 (JM-280) RlCK CILPIN Chairman, Opinion Committee Prepared by Susan Garrison Assistant Attorney General APPROVED: OPINION COMMITTEE Rick Gilpin, Chairman Colin Carl Susan Garrison Tony Guillory Jim ~oellinger Jennifer Riggs Nancy Sutton p. 1241