Second Regular Session Seventy-third General Assembly STATE OF COLORADO INTRODUCED LLS NO. 22-0543.01 Jennifer Berman x3286 HOUSE BILL 22-1161 House Committees Senate Committees State, Civic, Military, & Veterans Affairs A BILL FOR AN ACT C ONCERNING A REQUIREMENT THAT CERTAIN STATEWIDE101 COMMISSIONERS BE ELECTED AT A GENERAL ELECTION , AND, IN102 CONNECTION THEREWITH , REQUIRING THE ELECTION OF THE103 COMMISSIONER OF INSURANCE , THE COMMISSIONERS OF THE104 AIR QUALITY CONTROL COMMISSION , THE VOTING105 COMMISSIONERS OF THE OIL AND GAS CONSERVATION106 COMMISSION, AND THE COMMISSIONERS OF THE PUBLIC107 UTILITIES COMMISSION AND REQUIRING THAT ELECTED108 COMMISSIONERS OF THE AIR QUALITY CONTROL COMMISSION109 AND PUBLIC UTILITIES COMMISSION COMMIT TO PRIORITIZING110 ENERGY RELIABILITY AND REDUCING CONSUMER COSTS AS PART111 OF THEIR OATHS OF OFFICE UPON ELECTION .112 HOUSE SPONSORSHIP Pico, Bradfield, Holtorf, Soper, Van Beber, Will SENATE SPONSORSHIP (None), Hisey, Kirkmeyer, Woodward Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) Section 1 of the bill requires the election of the commissioner of insurance. Sections 6 and 7 make conforming amendments. Section 2 repeals and reenacts existing statutes requiring the governor to appoint members of the air quality control commission to require the election of all commissioners. Section 3 requires the election of the voting members of the oil and gas conservation commission. Section 4 requires the election of all members of the public utilities commission, and section 5 makes conforming amendments. Sections 2 through 5 become effective on January 1, 2024. Because the Colorado constitution requires the appointment of the commissioner of insurance, sections 1, 6, and 7 only become effective on January 1, 2024, if, based on the passage of a concurrent resolution and a vote of the people, the governor declares a vote at a general election to change the Colorado constitution to require the election of the commissioner of insurance. Sections 2 and 4 also require that an elected commissioner's oath of office include a commitment to prioritizing energy reliability and reducing consumer costs above all other considerations in making decisions as a commissioner. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 10-1-104, amend (1);2 and add (1.5) as follows:3 10-1-104. Commissioner of insurance - election - other4 employees - repeal. (1) (a) The commissioner of insurance is the head5 of the division of insurance.6 (b) (I) S UBJECT TO SUBSECTION (1.5) OF THIS SECTION, the7 commissioner shall be appointed by, and serve at the pleasure of, the8 governor, subject to confirmation of the appointment by the senate9 HB22-1161-2- pursuant to section 23 of article IV of the state constitution. The1 commissioner shall be a person well versed in insurance and an elector of2 the state of Colorado and shall have no pecuniary interest in any3 insurance company or agency directly or indirectly, other than as a4 policyholder.5 (II) T HIS SUBSECTION (1)(b) IS REPEALED, EFFECTIVE FEBRUARY6 1, 2025.7 (1.5) (a) O N AND AFTER JANUARY 1, 2024, THE COMMISSIONER8 SHALL BE ELECTED AT A GENERAL ELECTION AND SHALL SERVE A9 FOUR-YEAR TERM. UPON REELECTION, THE COMMISSIONER MAY SERVE10 ADDITIONAL FOUR-YEAR TERMS. TO QUALIFY FOR ELECTION , THE11 COMMISSIONER MUST BE A QUALIFIED ELECTOR OF THE STATE OF12 C OLORADO.13 (b) I F THE COMMISSIONER HAS NOT SOUGHT REELECTION AFTER14 COMPLETING THE COMMISSIONER 'S TERM OR HAS BEEN DEFEATED IN THE15 GENERAL ELECTION, THE COMMISSIONER MAY CONTINUE TO SERVE UNTIL16 THE PERSON ELECTED TO SERVE AS THE COMMISSIONER HAS TAKEN THE17 OATH OF OFFICE PURSUANT TO SECTION 24-12-101 AND CAN BEGIN18 SERVING.19 SECTION 2. In Colorado Revised Statutes, repeal and reenact,20 with amendments, 25-7-104 as follows:21 25-7-104. Air quality control commission - created - election22 of commissioners - repeal. (1) (a) T HERE IS HEREBY CREATED IN THE23 DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT THE AIR QUALITY24 CONTROL COMMISSION . THE COMMISSION CONSISTS OF NINE VOTING25 COMMISSIONERS WHO SHALL BE ELECTED AT A GENERAL ELECTION . TO26 QUALIFY FOR ELECTION, A COMMISSIONER MUST BE A QUALIFIED ELECTOR27 HB22-1161 -3- OF THE STATE. EACH COMMISSIONER, BEFORE ENTERING UPON THE DUTIES1 OF THE OFFICE, SHALL TAKE AN OATH OF OFFICE IN ACCORDANCE WITH2 SECTION 24-12-101. AN ELECTED COMMISSIONER'S OATH OF OFFICE MUST3 INCLUDE A COMMITMENT TO PRIORITIZING ENERGY RELIABILITY AND4 REDUCING CONSUMER COSTS ABOVE ALL OTHER CONSIDERATIONS IN5 MAKING DECISIONS AS A COMMISSIONER .6 (b) C OMMISSIONERS SERVE THREE-YEAR TERMS AND MUST SEEK7 REELECTION TO SERVE ADDITIONAL THREE-YEAR TERMS. A COMMISSIONER8 WHO HAS NOT SOUGHT REELECTION AFTER COMPLETING THE9 COMMISSIONER'S TERM OR WHO HAS BEEN DEFEATED IN THE GENERAL10 ELECTION MAY CONTINUE TO SERVE UNTIL THE PERSON ELECTED TO SERVE11 IN THE COMMISSIONER'S SEAT HAS TAKEN THE OATH OF OFFICE PURSUANT12 TO SUBSECTION (1)(a) OF THIS SECTION AND CAN BEGIN SERVING.13 (c) (I) A PREVIOUSLY APPOINTED COMMISSIONER WHO HAS NOT14 SOUGHT ELECTION IN 2024 OR WHO HAS BEEN DEFEATED IN THE 202415 GENERAL ELECTION MAY CONTINUE TO SERVE UNTIL THE COMPLETION OF16 THE COMMISSIONER'S TERM, AND THE PERSON ELECTED TO SERVE IN THE17 COMMISSIONER'S SEAT SHALL THEN TAKE THE OATH OF OFFICE PURSUANT18 TO SUBSECTION (1)(a) OF THIS SECTION AND COMMENCE SERVING .19 (II) T HIS SUBSECTION (1)(c) IS REPEALED, EFFECTIVE SEPTEMBER20 1, 2027.21 (2) E ACH COMMISSIONER NOT OTHERWISE IN FULL -TIME22 EMPLOYMENT OF THE STATE RECEIVES A PER DIEM OF FORTY DOLLARS FOR23 EACH DAY ACTUALLY AND NECESSARILY SPENT IN THE DISCHARGE OF24 OFFICIAL DUTIES, BUT NOT TO EXCEED ONE THOUSAND TWO HUNDRED25 EIGHTY-FOUR DOLLARS IN ANY ONE YEAR. EACH COMMISSIONER RECEIVES26 TRAVELING AND OTHER NECESSARY EXPENSES ACTUALLY INCURRED IN27 HB22-1161 -4- THE PERFORMANCE OF OFFICIAL DUTIES .1 (3) E ACH YEAR, THE COMMISSION SHALL SELECT FROM ITS2 MEMBERSHIP A CHAIR, VICE-CHAIR, AND SECRETARY. THE SECRETARY OF3 THE COMMISSION SHALL KEEP A RECORD OF THE COMMISSION 'S4 PROCEEDINGS. THE COMMISSION SHALL HOLD REGULAR PUBLIC MONTHLY5 MEETINGS AND MAY HOLD SPECIAL MEETINGS ON THE CALL OF THE CHAIR6 OR, IF THE CHAIR IS UNAVAILABLE, ON THE CALL OF THE VICE-CHAIR, AT7 SUCH OTHER TIMES AS THE CHAIR OR VICE-CHAIR DEEMS NECESSARY. THE8 SECRETARY SHALL PROVIDE WRITTEN NOTICE OF THE TIME AND PLACE OF9 ANY MEETING TO EACH COMMISSIONER AT LEAST FIVE DAYS BEFORE THE10 MEETING.11 (4) T WO-THIRDS OF THE MEMBERSHIP OF THE COMMISSION12 CONSTITUTES A QUORUM. A MATTER BEFORE THE COMMISSION REQUIRES13 A MAJORITY VOTE OF THE COMMISSIONERS FOR THE COMMISSION TO MAKE14 A DETERMINATION ON THE MATTER .15 (5) A COMMISSIONER SHALL DISCLOSE TO THE COMMISSION IN A16 PUBLIC MEETING ANY POTENTIAL CONFLICTS OF INTEREST EXISTING AT THE17 TIME OF THE COMMISSIONER 'S ELECTION OR THAT ARISE DURING THE18 COMMISSIONER'S TERM.19 SECTION 3. In Colorado Revised Statutes, 34-60-104.3, repeal20 (2) and (5); and add (2.5) as follows:21 34-60-104.3. Oil and gas conservation commission - election of22 commissioners - report - publication - repeal. (2) (a) The commission 23 consists of seven members, five of whom shall be appointed by the24 governor with the consent of the senate. The executive director of the25 department of natural resources and the executive director of the26 department of public health and environment, or the executive directors'27 HB22-1161 -5- designees, are ex officio nonvoting members. A majority of the voting1 commissioners constitutes a quorum for the transaction of its business.2 (b) Each appointed commissioner must be a qualified elector of3 this state. Each appointed commissioner, before entering upon the duties4 of office, shall take the constitutional oath of office. Excluding the5 executive directors from consideration, no more than three members of6 the commission may be members of the same political party. To the7 extent possible, consistent with this subsection (2), the members shall be8 appointed taking into account the need for geographical representation of9 areas of the state with high levels of current or anticipated oil and gas10 activity or employment. The appointed members of the commission shall11 devote their entire time to the duties of their offices to the exclusion of12 any other employment and are entitled to receive compensation as13 designated by law.14 (c) One appointed member must be an individual with substantial15 experience in the oil and gas industry; one appointed member must have16 substantial expertise in planning or land use; one appointed member must17 have formal training or substantial experience in environmental18 protection, wildlife protection, or reclamation; one appointed member19 must have professional experience demonstrating an ability to contribute20 to the commission's body of expertise that will aid the commission in21 making sound, balanced decisions; and one appointed member must have22 formal training or substantial experience in public health.23 (d) No person may be appointed to serve on the commission or24 hold the office of commissioner if the person has a conflict of interest25 with oil and gas development in Colorado. Examples of conflicts of26 interest include being registered as a lobbyist at the local or state levels,27 HB22-1161 -6- serving in the general assembly within the prior three years, or serving in1 an official capacity with an entity that educates or advocates for or against2 oil and gas activity. This subsection (2)(d) shall be construed reasonably3 with the objective of disqualifying from the commission any person who4 might have an immediate conflict of interest or who may not be able to5 make balanced decisions about oil and gas regulation in Colorado. A6 person who has worked with or for an energy or environmental entity7 need not be disqualified if the person's experience shows subject matter8 knowledge coupled with an ability to render informed, thorough, and9 balanced decision-making.10 (e) Members of the commission shall be appointed for terms of11 four years each; except that the initial terms of two members are two12 years. The governor shall designate one member of the commission as13 chair of the commission. The chair shall delegate roles and14 responsibilities to commissioners and the director. The governor may at15 any time remove any appointed member of the commission, and by16 appointment the governor shall fill any vacancy on the commission. In17 case one or more vacancies occur on the same day, the governor shall18 designate the order of filling vacancies.19 (2.5) (a) (I) (A) T HE COMMISSION CONSISTS OF SEVEN20 COMMISSIONERS, FIVE OF WHOM ARE VOTING COMMISSIONERS WHO SHALL21 BE ELECTED AT A GENERAL ELECTION . EACH VOTING COMMISSIONER ,22 BEFORE COMMENCING THE DUTIES OF THE OFFICE , SHALL TAKE AN OATH23 OF OFFICE IN ACCORDANCE WITH SECTION 24-12-101. A MAJORITY OF THE24 VOTING COMMISSIONERS CONSTITUTES A QUORUM FOR THE TRANSACTION25 OF THE COMMISSION'S BUSINESS.26 (B) T HE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF NATURAL27 HB22-1161 -7- RESOURCES AND THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF1 PUBLIC HEALTH AND ENVIRONMENT , OR THE EXECUTIVE DIRECTORS '2 DESIGNEES, ARE EX OFFICIO, NONVOTING COMMISSIONERS .3 (C) T O QUALIFY FOR ELECTION AS A VOTING COMMISSIONER , A4 PERSON MUST BE A QUALIFIED ELECTOR OF THE STATE .5 (D) A COMMISSIONER SHALL DISCLOSE TO THE COMMISSION IN A6 PUBLIC MEETING ANY POTENTIAL CONFLICTS OF INTEREST THAT ARISE7 DURING THE COMMISSIONER'S TERM.8 (II) V OTING COMMISSIONERS SERVE FOUR -YEAR TERMS AND MUST9 SEEK REELECTION TO SERVE ADDITIONAL FOUR -YEAR TERMS. A VOTING10 COMMISSIONER WHO HAS NOT SOUGHT REELECTION AFTER COMPLETING11 THE COMMISSIONER'S TERM OR WHO HAS BEEN DEFEATED IN THE GENERAL12 ELECTION MAY CONTINUE TO SERVE UNTIL THE PERSON ELECTED TO SERVE13 IN THE COMMISSIONER'S SEAT HAS TAKEN THE OATH OF OFFICE PURSUANT14 TO SUBSECTION (2.5)(a)(I)(A) OF THIS SECTION AND CAN BEGIN SERVING.15 (III) (A) A PREVIOUSLY APPOINTED VOTING COMMISSIONER WHO16 HAS NOT SOUGHT ELECTION IN 2024 OR WHO HAS BEEN DEFEATED IN THE17 2024 GENERAL ELECTION MAY CONTINUE TO SERVE UNTIL THE18 COMPLETION OF THE COMMISSIONER 'S TERM, AND THE PERSON ELECTED TO19 SERVE IN THE COMMISSIONER 'S SEAT SHALL THEN TAKE THE OATH OF20 OFFICE PURSUANT TO SUBSECTION (2.5)(a)(I)(A) OF THIS SECTION AND21 COMMENCE SERVING.22 (B) T HIS SUBSECTION (2.5)(a)(III) IS REPEALED, EFFECTIVE23 S EPTEMBER 1, 2027.24 (b) T HE VOTING COMMISSIONERS SHALL DEVOTE THEIR ENTIRE25 TIME TO THE DUTIES OF THEIR OFFICES TO THE EXCLUSION OF ANY OTHER26 EMPLOYMENT AND ARE ENTITLED TO RECEIVE COMPENSATION AS27 HB22-1161 -8- DESIGNATED BY LAW.1 (c) T HE VOTING COMMISSIONERS SHALL DESIGNATE ONE VOTING2 COMMISSIONER TO SERVE AS CHAIR OF THE COMMISSION . THE CHAIR3 SHALL DELEGATE ROLES AND RESPONSIBILITIES TO THE COMMISSIONERS4 AND THE DIRECTOR.5 (5) This section takes effect on the earlier of July 1, 2020, or the 6 date on which all rules required to be adopted by section 34-60-1067 (2.5)(a), (11)(c), and (19) have become effective. The director shall notify8 the revisor of statutes in writing of the date on which the condition9 specified in this subsection (5) has occurred by e-mailing the notice to10 revisorofstatutes.ga@state.co.us.11 SECTION 4. In Colorado Revised Statutes, 40-2-101, repeal (1)12 and (2); and add (2.5) as follows:13 40-2-101. Creation - term - subject to termination - repeal -14 repeal of part. (1) A public utilities commission is hereby created,15 which shall be known as the public utilities commission of the state of16 Colorado, to consist of three members who shall be appointed by the17 governor with the consent of the senate. Persons holding office on July18 1, 1993, shall continue to serve in such office, but the term of one of these19 persons shall expire on the Monday preceding the second Tuesday of20 January, 1995, of another, the Monday preceding the second Tuesday of21 January, 1996, and of the third, the Monday preceding the second22 Tuesday of January, 1997, all as the governor shall designate; except that23 such designation shall not result in the extension of the term of any24 member to more than four years' duration. Thereafter, appointments shall25 be made for terms of four years.26 (2) No more than two members of the public utilities commission27 HB22-1161 -9- shall be affiliated with the same political party, and any appointment to1 fill a vacancy shall be for the unexpired term. Each commissioner shall2 be a qualified elector of this state. The governor shall designate one3 member of the commission as chair of the commission. The4 commissioners shall devote their entire time to the duties of their office5 to the exclusion of any other employment and shall receive such6 compensation as is designated by law. A majority of the commission shall7 constitute a quorum for the transaction of its business.8 (2.5) (a) (I) A PUBLIC UTILITIES COMMISSION IS HEREBY CREATED9 AS THE PUBLIC UTILITIES COMMISSION OF THE STATE OF COLORADO. THE10 COMMISSION CONSISTS OF THREE COMMISSIONERS ELECTED AT A GENERAL11 ELECTION. TO QUALIFY FOR ELECTION, A COMMISSIONER MUST BE A12 QUALIFIED ELECTOR OF THIS STATE. ELECTED COMMISSIONERS SERVE FOR13 TERMS OF FOUR YEARS AND MUST SEEK REELECTION TO SERVE14 ADDITIONAL FOUR-YEAR TERMS. AN ELECTED COMMISSIONER'S OATH OF15 OFFICE PURSUANT TO SECTION 40-2-102 (1) MUST INCLUDE A16 COMMITMENT TO PRIORITIZING ENERGY RELIABILITY AND REDUCING17 CONSUMER COSTS ABOVE ALL OTHER CONSIDERATIONS IN MAKING18 DECISIONS AS A COMMISSIONER.19 (II) A COMMISSIONER WHO HAS NOT SOUGHT REELECTION AFTER20 COMPLETING THE COMMISSIONER 'S TERM OR WHO HAS BEEN DEFEATED IN21 THE GENERAL ELECTION MAY CONTINUE TO SERVE UNTIL THE PERSON22 ELECTED TO SERVE IN THE COMMISSIONER'S SEAT HAS TAKEN THE OATH OF23 OFFICE PURSUANT TO SECTION 40-2-102 (1) AND CAN BEGIN SERVING.24 (III) (A) A PREVIOUSLY APPOINTED COMMISSIONER WHO HAS NOT25 SOUGHT ELECTION IN 2024 OR WHO HAS BEEN DEFEATED IN THE 202426 GENERAL ELECTION MAY CONTINUE TO SERVE UNTIL THE COMPLETION OF27 HB22-1161 -10- THE COMMISSIONER'S TERM, AND THE PERSON ELECTED TO SERVE IN THE1 COMMISSIONER'S SEAT SHALL THEN TAKE THE OATH OF OFFICE PURSUANT2 TO SECTION 40-2-102 (1) AND COMMENCE SERVING .3 (B) T HIS SUBSECTION (2.5)(a)(III) IS REPEALED, EFFECTIVE4 S EPTEMBER 1, 2027.5 (b) T HE COMMISSIONERS SHALL DESIGNATE ONE COMMISSIONER AS6 CHAIR OF THE COMMISSION. THE COMMISSIONERS SHALL DEVOTE THEIR7 ENTIRE TIME TO THE DUTIES OF THEIR OFFICE TO THE EXCLUSION OF ANY8 OTHER EMPLOYMENT AND SHALL RECEIVE SUCH COMPENSATION AS IS9 DESIGNATED BY LAW. A MAJORITY OF THE COMMISSION CONSTITUTES A10 QUORUM FOR THE TRANSACTION OF ITS BUSINESS .11 (c) A COMMISSIONER SHALL DISCLOSE TO THE COMMISSION IN A12 PUBLIC MEETING ANY POTENTIAL CONFLICTS OF INTEREST THAT ARISE13 DURING THE COMMISSIONER'S TERM.14 SECTION 5. In Colorado Revised Statutes, amend 40-2-102 as15 follows:16 40-2-102. Oath - qualifications. (1) Each commissioner, before17 entering upon the duties of his office, shall take the constitutional oath of18 office. No 19 (2) A person in the employ of EMPLOYED BY or holding any20 official OFFICE IN relation to any corporation or person which said21 corporation or person THAT is subject in whole or in part to regulation by22 the commission and no OR A person owning stocks or bonds of any such23 corporation or who is in any manner pecuniarily interested therein shall24 be appointed to or hold the office of commissioner or IN ANY SUCH25 CORPORATION IS NOT ELIGIBLE TO be appointed or employed by the26 commission; but, if any such A person becomes the owner of such stocks27 HB22-1161 -11- or bonds or becomes pecuniarily interested in such corporation otherwise1 than voluntarily, he THE PERSON shall divest himself of such ownership2 or interest within six months. failing to do so, his office or employment3 shall become vacant IF A PERSON FAILS TO DIVEST OF SUCH OWNERSHIP OR4 INTEREST AFTER SIX MONTHS , THE PERSON'S EMPLOYMENT WITH THE5 COMMISSION CEASES.6 SECTION 6. In Colorado Revised Statutes, 8-14.5-103, amend7 the introductory portion and (3.5) as follows:8 8-14.5-103. Definitions. As used in this article ARTICLE 14.5,9 unless the context otherwise requires:10 (3.5) "Commissioner" means the insurance commissioner,11 appointed ELECTED pursuant to section 10-1-104. C.R.S.12 SECTION 7. In Colorado Revised Statutes, 11-59-110, amend13 (1)(f) as follows:14 11-59-110. Exemptions from registration. (1) Subject to the15 requirements of subsection (2) of this section, the following issues of16 bonds by a district are exempted from all of the provisions of sections17 11-59-104 and 11-59-106:18 (f) Any issue of bonds insured as to the payment of the principal19 and interest on the debt by a policy of insurance issued by an insurance20 company authorized to do business as an insurance company in this state21 and authorized for such risk by the insurance commissioner appointed22 ELECTED pursuant to section 10-1-104; C.R.S.;23 SECTION 8. Act subject to petition - effective date. Except as24 otherwise provided in subsection (2) of this section, this act takes effect25 January 1, 2024; except that, if a referendum petition is filed pursuant to26 section 1 (3) of article V of the state constitution against this act or an27 HB22-1161 -12- item, section, or part of this act within the ninety-day period after final1 adjournment of the general assembly, then the act, item, section, or part2 will not take effect unless approved by the people at the general election3 to be held in November 2022 and, in such case, will take effect January4 1, 2024.5 (2) Sections 1, 6, and 7 of this act take effect only if, at the6 November 2022 statewide election, a majority of voters approve the ballot7 issue referred in accordance with House Concurrent Resolution 22-___.8 If the voters approve the ballot issue, then sections 1, 6, and 7 of this act9 take effect January 1, 2024.10 HB22-1161 -13-