AZ HB2737

Creates a process for Arizona legislature members to request the Attorney General investigate Corporation Commission decisions, orders, or rules alleged to violate state law or exceed constitutional authority within 60 days of adoption.

Requires the Attorney General to submit written findings within 30 days and provide copies to the Governor, legislature leadership, requesting members, and Secretary of State.

Authorizes the Attorney General to file a special action in Arizona Supreme Court if the Corporation Commission fails to resolve violations within 30 days or fails to begin good faith resolution with a published timeline.

Mandates a 10 percent withholding of the Corporation Commission's operating budget spread equally over four consecutive quarterly allocations if the Supreme Court determines a violation occurred, with withholding continuing annually until resolved.

Exempts rate-setting orders for public service corporations, decisions under title 40 chapters 2 articles 5 or 6.2, and rules on distributed generation facility interconnection from this investigation process.