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