Arizona Revised Statutes

Ariz. Rev. Stat. § 40-282 (2026)

Application for certificate; hearing; application upon contemplated franchise

✓ current as of May 2026
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A. If the applicant for a certificate of convenience and necessity is a corporation, a certified copy of its articles of incorporation shall be filed in the office of the commission before any certificate of convenience and necessity may issue.

B. Every applicant for a certificate shall submit to the commission evidence required by the commission to show that the applicant has received the required consent, franchise or permit of the proper county, city and county, municipal or other public authority.

C. The commission may, after a hearing, issue the certificate or refuse to issue it, or issue it for the construction of only a portion of the contemplated street railroad, line, plant or system, or extension thereof, or for the partial exercise only of the right or privilege, and may attach to the exercise of rights granted by the certificate terms and conditions it deems that the public convenience and necessity require. The commission may act after an application or after a hearing, if requested by any party, on an application for a certificate to provide any of the following telecommunications services:

1. Pay telephone service to end users if the applicant has not received a certificate to provide local exchange telecommunications service within the area where the pay telephone is or will be located.

2. Automated or live operator services accessed from a location where telephones are available to the public or transient users of the premises and where the applicant has not been certificated as either:

(a) A local exchange carrier for the location by January 1, 1996.

(b) A facilities based interexchange carrier by January 1, 1996.

3. Telecommunications services resold to the public for profit if the applicant obtains the services from another entity.

D. If a public service corporation desires to exercise a right or privilege under a franchise or permit which it contemplates securing, but which has not yet been granted to it, the corporation may apply to the commission for an order preliminary to the issue of the certificate. The commission may make an order declaring that it will thereafter, upon application, under rules it prescribes, issue the desired certificate, upon terms and conditions it designates, after the corporation has obtained the contemplated franchise or permit or may make an order issuing a certificate on the condition that the contemplated franchise or permit is obtained and on other terms and conditions it designates. If the commission makes an order preliminary to the issuance of the certificate, upon presentation to the commission of evidence that the franchise or permit has been secured by the corporation, the commission shall issue the certificate.

Notes of Decisions
Cited in 10 cases, 1959–2007 · leading case: City of Bisbee v. Arizona Water Co., 153 P.3d 389 (Ariz. Ct. App. 2007).
City of Bisbee v. Arizona Water Co., 153 P.3d 389 (Ariz. Ct. App. 2007). · cites it 6× “¶ 31 AWC argues, however, that not only is § 40-283(A) ambiguous, but also that A.R.S. § 40-282 “permits a utility to receive the rights to operate in a municipality by consents and permits, in addition to a franchise.”
James P. Paul Water Co. v. Arizona Corp. Comm'n, 671 P.2d 404 (Ariz. 1983). · cites it 2× “” The Commission’s authority to grant a certificate of convenience and necessity is controlled by the public interest, A.R.S. § 40-282(C). Therefore its authority to delete and reassign a parcel of land is controlled by the same because reassignment is equivalent to granting a…”
Trico Elec. Coop., Inc. v. Corp. Comm'n, 339 P.2d 1046 (Ariz. 1959). · cites it 4× “Suffice it to say that Subsection C of A.R.S. § 40-282 provides that: “The commission may, after hearing, issue the certificate or refuse to issue it, or issue it * * * for the *36 partial exercise only of the right or privilege, and may attach to the exercise of rights granted…”
James P. Paul Water Co. v. ARIZ. CORP. COM'N, 671 P.2d 404 (Ariz. 1983). · cites it 2× “" The Commission's authority to grant a certificate of convenience and necessity is controlled by the public interest, A.R.S. § 40-282(C). Therefore its authority to delete and reassign a parcel of land is controlled by the same because reassignment is equivalent to granting a…”
Paradise Valley Water Co. v. Arizona Corp. Com'n, 377 P.2d 768 (Ariz. 1963). · cites it 4× “The order of January 27th approved, without qualification, the application of Indian Bend to serve in the area, but, as contemplated by A.R.S. § 40-282, and by express reference to that section, made issuance of the certificate dependent upon securance of a franchise and health…”
Walker v. De Concini, 341 P.2d 933 (Ariz. 1959). · cites it 2× “1939, now A.R.S. § 40-282, the pertinent portion of the statute reads as follows: “Before any certificate may issue a certified copy of its articles of incorporation, if the applicant be a corporation, shall be filed in tbe office of the commission.”
City of Bisbee v. Arizona Water Co. (Ariz. Ct. App. 2007). · cites it 6× “¶31 AWC argues, however, that not only is § 40-283(A) ambiguous, but also that A.R.S. § 40-282 “permits a utility to receive the rights to operate in a municipality by consents and permits, in addition to a franchise.”
Gamet v. Glenn, 455 P.2d 967 (Ariz. 1969). · cites it 2× “It also sets forth the procedure for hearings on the applications: The only absolute requirement for issuance of a certificate is an affirmative showing that issuance thereof would best serve the public interest.”
City of Tucson v. Arizona Corp. Comm'n, 399 P.2d 913 (Ariz. Ct. App. 1965). · cites it 4× “The issues before this Court are: (1) Was the trial court correct in finding this was an action seeking to set aside an order of the Commission and that said complaint was not timely filed; and (2) Could the Certificate of Convenience and Necessity issue until the defendant…”
Arizona Pub. Serv. Co. v. Town of Paradise Valley, 610 P.2d 454 (Ariz. Ct. App. 1979). · cites it 2× “; A.R.S. §§ 40-282 and 40-283); and the recognition that such authority exists by such statutory provisions as A.”
— Ariz. Rev. Stat. § 40-282(B) — 2 cases
City of Bisbee v. Arizona Water Co., 153 P.3d 389 (Ariz. Ct. App. 2007). “¶ 31 AWC argues, however, that not only is § 40-283(A) ambiguous, but also that A.R.S. § 40-282 “permits a utility to receive the rights to operate in a municipality by consents and permits, in addition to a franchise.”
City of Bisbee v. Arizona Water Co. (Ariz. Ct. App. 2007). “¶31 AWC argues, however, that not only is § 40-283(A) ambiguous, but also that A.R.S. § 40-282 “permits a utility to receive the rights to operate in a municipality by consents and permits, in addition to a franchise.”
— Ariz. Rev. Stat. § 40-282(C) — 2 cases
James P. Paul Water Co. v. Arizona Corp. Comm'n, 671 P.2d 404 (Ariz. 1983). “” The Commission’s authority to grant a certificate of convenience and necessity is controlled by the public interest, A.R.S. § 40-282(C). Therefore its authority to delete and reassign a parcel of land is controlled by the same because reassignment is equivalent to granting a…”
James P. Paul Water Co. v. ARIZ. CORP. COM'N, 671 P.2d 404 (Ariz. 1983). “" The Commission's authority to grant a certificate of convenience and necessity is controlled by the public interest, A.R.S. § 40-282(C). Therefore its authority to delete and reassign a parcel of land is controlled by the same because reassignment is equivalent to granting a…”
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