Second Regular Session Sixty-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 04-0332.01 Thomas Morris HOUSE BILL 04-1031 HOUSE SPONSORSHIP Weissmann, SENATE SPONSORSHIP (None), House Committees Senate Committees Business Affairs & Labor State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning the public utilities commission, and, in connection therewith, requiring the members of the public utilities commission to be elected and subjecting the rate and coverage decisions of the insurance commissioner to oversight by the public utilities commission. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Requires members of the public utilities commission to be elected for 6-year terms, one from each congressional district and, if the number of such districts is even, one at large. Staggers the length of the original members' terms so that approximately 1/3 of the board is elected every 2 years. Requires the board to elect a chair from among its members to serve for a 2-year term. Gives the commission jurisdiction to oversee the rate and coverage decisions of the insurance commissioner. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 40-2-101 (1) and (2), Colorado Revised Statutes, are amended to read: 40-2-101. Creation - election - term - subject to termination - repeal of article. (1) (a) A public utilities commission is hereby created, which shall be known as the public utilities commission of the state of Colorado, to consist of three members who shall be appointed by the governor with the consent of the senate. Persons holding office on July 1, 1993, shall continue to serve in such office, but the term of one of these persons shall expire on the Monday preceding the second Tuesday of January, 1995, of another, the Monday preceding the second Tuesday of January, 1996, and of the third, the Monday preceding the second Tuesday of January, 1997, all as the governor shall designate; except that such designation shall not result in the extension of the term of any member to more than four years' duration. Thereafter, appointments shall be made for terms of four years elected, one from each congressional district in the state and, if the total number of congressional districts of the state is an even number, one member elected from the state at large. Members' terms shall commence on the second Tuesday in January and, except as provided in paragraph (b) of this subsection (1), shall be for six years. (b) At the general election held in 2004, members shall be elected as follows: (I) One member shall be elected from the first congressional district for a two-year term; (II) One member shall be elected from the second congressional district for a two-year term; (III) One member shall be elected from the third congressional district for a four-year term; (IV) One member shall be elected from the fourth congressional district for a four-year term; (V) One member shall be elected from the fifth congressional district for a six-year term; (VI) One member shall be elected from the sixth congressional district for a six-year term; and (VII) One member shall be elected from the seventh congressional district for a six-year term. (c) The member of the commission from each congressional district of the state shall be nominated and elected by the registered electors of such district in the same manner as members of the house of representatives of the congress of the United States are nominated and elected. If the total number of congressional districts of the state is an even number, the at-large member of the board shall be nominated and elected at large in the same manner as state officers are nominated and elected. If the total number of congressional districts changes to an odd number during the term of the member elected at large, such member shall continue to serve until the expiration of his or her term. (d) Any member of the commission who was elected to office as a resident of a designated congressional district and who no longer resides in such congressional district solely because of a change made to the boundaries of such district subsequent to the 2010 federal decennial census is eligible to hold office for the remainder of the term for which the member was elected, notwithstanding such nonresidency. (e) Vacancies on the commission shall be filled in a manner analogous to that used to fill vacancies on the state board of education pursuant to section 22-2-105.5, C.R.S. (2) No more than two members of the public utilities commission shall be affiliated with the same political party, and any appointment to fill a vacancy shall be for the unexpired term. Each commissioner shall be a qualified elector of this state. The governor members of the commission shall designate one member of the commission as chair of the commission to serve for two years. The commissioners shall devote their entire time to the duties of their office to the exclusion of any other employment and shall receive such compensation as is designated by law. A majority of the commission shall constitute a quorum for the transaction of its business. SECTION 2. 40-2-102, Colorado Revised Statutes, is amended to read: 40-2-102. Oath - qualifications. Each commissioner, before entering upon the duties of his office, shall take the constitutional oath of office. No person in the employ of or holding any official relation to any corporation or person which said corporation or person that is subject in whole or in part to regulation by the commission, and no person owning stocks or bonds of any such corporation or who is in any manner pecuniarily interested therein shall be appointed to or hold the office of commissioner or be appointed or employed by the commission; but if any such person becomes the owner of such stocks or bonds or becomes pecuniarily interested in such corporation otherwise than voluntarily, he such person shall divest himself of such ownership or interest within six months; failing to do so, his such person's office or employment shall become vacant. SECTION 3. 10-4-407 (3), (4), and (5), Colorado Revised Statutes, are amended to read: 10-4-407. Hearings. (3) Any person aggrieved by the approval by the commissioner of a rate filing may make written application to the commissioner public utilities commission for a hearing thereon, and such application shall specify the grounds to be relied upon by the applicant. If the commissioner public utilities commission finds that the application is made in good faith, that the applicant would be so aggrieved if his such grounds are established, and that such grounds otherwise justify holding such a hearing, he the public utilities commission shall hold a hearing as provided in sections 24-4-102 to 24-4-107 section 24-4-105, C.R.S. (4) Any insurer or rating organization aggrieved by an order or decision of the commissioner made without a hearing may, within thirty days after notice of the order or decision to the insurer or rating organization, make written application to the commissioner public utilities commission for a hearing thereon. The commissioner public utilities commission shall hold a hearing as provided in sections 24-4-102 to 24-4-107 section 24-4-105, C.R.S. Within fifteen days after such hearing, the commissioner public utilities commission shall affirm, reverse, or modify his the commissioner's previous action, specifying his the reasons therefor. Pending such hearing and decision thereon, the commissioner public utilities commission may suspend or postpone the effective date of his the commissioner's previous action. (5) Hearings held under this part 4 shall be held by the commissioner or his designee public utilities commission. Any final action of the commissioner public utilities commission pursuant to this part 4 shall be subject to judicial review by the court of appeals pursuant to section 24-4-106 (11), C.R.S. SECTION 4. 10-4-418 (6), Colorado Revised Statutes, is amended to read: 10-4-418. Enforcement procedures - penalties. (6) Any findings, determination, rule, ruling, or order made by the commissioner shall be subject to review by the public utilities commission. Judicial review of final action by the public utilities commission shall be by the court of appeals, and proceedings on review shall be in accordance with the provisions of section 24-4-106 (11), C.R.S. SECTION 5. 10-16-216.5 (6), Colorado Revised Statutes, is amended to read: 10-16-216.5. Hearing procedure and judicial review - violations - penalty. (6) Any finding, determination, rule, ruling, or order made by the commissioner pursuant to this section shall be subject to judicial review by the court of appeals public utilities commission pursuant to section 24-4-106 (11) 24-4-105, C.R.S., and part 6 of title 40, C.R.S. SECTION 6. 10-16-218, Colorado Revised Statutes, is amended to read: 10-16-218. Judicial review. Any final action of the commissioner pursuant to part 1 of this article and this part 2 or of the public utilities commission pursuant to section 10-16-216.5 shall be subject to judicial review by the court of appeals pursuant to section 24-4-106 (11), C.R.S. SECTION 7. Effective date - applicability. (1) This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution (August 4, 2004, if adjournment sine die is on May 5, 2004); except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor. (2) The provisions of this act shall apply to actions taken by the commissioner of insurance occurring on or after the applicable effective date of this act.