HB2443 - 511R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 9-461.05, Arizona Revised Statutes, is amended to read:

START_STATUTE9-461.05. General plans; authority; scope

A. Each planning agency shall prepare and the governing body of each municipality shall adopt a comprehensive, long‑range general plan for the development of the municipality. The planning agency shall coordinate the production of its general plan with the creation of the state land department conceptual land use plans under title 37, chapter 2, article 5.1 and shall cooperate with the state land department regarding integrating the conceptual state land use plans into the municipality's general land use plan. The general plan shall include provisions that identify changes or modifications to the plan that constitute amendments and major amendments. The plan shall be adopted and readopted in the manner prescribed by section 9‑461.06.

B. The general plan shall be so prepared that all or individual elements of it may be adopted by the governing body and that it may be made applicable to all or part of the territory of the municipality.

C. The general plan shall consist of a statement of community goals and development policies. It shall include maps, any necessary diagrams and text setting forth objectives, principles, standards and plan proposals. The plan shall include the following elements:

1. A land use element that:

(a) Designates the proposed general distribution and location and extent of such uses of the land for housing, business, industry, agriculture, recreation, education, public buildings and grounds, open space and other categories of public and private uses of land as may be appropriate to the municipality.

(b) Includes a statement of the standards of population density and building intensity recommended for the various land use categories covered by the plan.

(c) Identifies specific programs and policies that the municipality may use to promote infill or compact form development activity and locations where those development patterns should be encouraged.

(d) Includes consideration of air quality and access to incident solar energy for all general categories of land use.

(e) Includes policies that address maintaining a broad variety of land uses, including the range of uses existing in the municipality when the plan is adopted, readopted or amended.

(f) For cities and towns with territory in the vicinity of a military airport or ancillary military facility as defined in section 28‑8461, includes consideration of military airport or ancillary military facility operations. On or before December 31, 2005, if a city or town includes land in a high noise or accident potential zone as defined in section 28‑8461, the city or town shall identify the boundaries of the high noise or accident potential zone in its general plan for purposes of planning land uses in the high noise or accident potential zone that are compatible with the operation of the military airport or ancillary military facility pursuant to section 28‑8481, subsection J.

(g) Includes sources of currently identified aggregates from maps that are available from state agencies, policies to preserve currently identified aggregates sufficient for future development and policies to avoid future incompatible land uses, except that this subdivision shall not be construed to affect any permitted underground storage facility or limit any person's right to obtain a permit for an underground storage facility pursuant to title 45, chapter 3.1.

2. A circulation element consisting of the general location and extent of existing and proposed freeways, arterial and collector streets, bicycle routes and any other modes of transportation as may be appropriate, all correlated with the land use element of the plan.

D. For cities and towns having a population of more than two thousand five hundred persons but less than ten thousand persons and whose population growth rate exceeded an average of two per cent per year for the ten‑year period before the most recent United States decennial census and for cities and towns having a population of ten thousand or more persons according to the most recent United States decennial census, the general plan shall include, and for other cities and towns the general plan may include:

1. An open space element that includes:

(a) A comprehensive inventory of open space areas, recreational resources and designations of access points to open space areas and resources.

(b) An analysis of forecasted needs, policies for managing and protecting open space areas and resources and implementation strategies to acquire additional open space areas and further establish recreational resources.

(c) Policies and implementation strategies designed to promote a regional system of integrated open space and recreational resources and a consideration of any existing regional open space plans.

2. A growth area element, specifically identifying those areas, if any, that are particularly suitable for planned multimodal transportation and infrastructure expansion and improvements designed to support a planned concentration of a variety of uses, such as residential, office, commercial, tourism and industrial uses. This element shall include policies and implementation strategies that are designed to:

(a) Make automobile, transit and other multimodal circulation more efficient, make infrastructure expansion more economical and provide for a rational pattern of land development.

(b) Conserve significant natural resources and open space areas in the growth area and coordinate their location to similar areas outside the growth area's boundaries.

(c) Promote the public and private construction of timely and financially sound infrastructure expansion through the use of infrastructure funding and financing planning that is coordinated with development activity.

3. An environmental planning element that contains analyses, policies and strategies to address anticipated effects, if any, of plan elements on air quality, water quality and natural resources associated with proposed development under the general plan. The policies and strategies to be developed under this element shall be designed to have community‑wide applicability and shall not require the production of an additional environmental impact statement or similar analysis beyond the requirements of state and federal law.

4. A cost of development element that identifies policies and strategies that the municipality will use to require development to pay its fair share toward the cost of additional public service needs generated by new development, with appropriate exceptions when if in the public interest. This element shall include:

(a) A component that identifies various mechanisms that are allowed by law and that can be used to fund and finance additional public services necessary to serve the development, including bonding, special taxing districts, development fees, in‑lieu fees, facility construction, dedications and service privatization.

(b) A component that identifies policies to ensure that any mechanisms that are adopted by the municipality under this element result in a beneficial use to the development, bear a reasonable relationship to the burden imposed on the municipality to provide additional necessary public services to the development and otherwise are imposed according to law.

5. A water resources element that addresses:

(a) The known legally and physically available surface water, groundwater and effluent supplies.

(b) The demand for water that will result from future growth projected in the general plan, added to existing uses.

(c) An analysis of how the demand for water that will result from future growth projected in the general plan will be served by the water supplies identified in subdivision (a) of this paragraph or a plan to obtain additional necessary water supplies.

E. The general plan shall include for cities of fifty thousand persons or more and may include for cities of less than fifty thousand persons the following elements or any part or phase of the following elements:

1. A conservation element for the conservation, development and utilization of natural resources, including forests, soils, rivers and other waters, harbors, fisheries, wildlife, minerals and other natural resources. The conservation element may also cover:

(a) The reclamation of land.

(b) Flood control.

(d) Regulation of the use of land in stream channels and other areas required for the accomplishment of the conservation plan.

(e) Prevention, control and correction of the erosion of soils, beaches and shores.

(f) Protection of watersheds.

2. A recreation element showing a comprehensive system of areas and public sites for recreation, including the following and, if practicable, their locations and proposed development:

(a) Natural reservations.

(b) Parks.

(d) Beaches.

(e) Playgrounds and playfields.

(f) Open space.

(g) Bicycle routes.

(h) Other recreation areas.

3. The circulation element provided for in subsection C, paragraph 2 of this section shall also include for cities of fifty thousand persons or more and may include for cities of less than fifty thousand persons recommendations concerning parking facilities, building setback requirements and the delineations of such systems on the land, a system of street naming and house and building numbering and other matters as may be related to the improvement of circulation of traffic. The circulation element may also include:

(a) A transportation element showing a comprehensive transportation system, including locations of rights‑of‑way, terminals, viaducts and grade separations. This element of the plan may also include port, harbor, aviation and related facilities.

(b) A transit element showing a proposed system of rail or transit lines or other mode of transportation as may be appropriate.

4. A public services and facilities element showing general plans for police, fire, emergency services, sewage, refuse disposal, drainage, local utilities, rights‑of‑way, easements and facilities for them.

5. A public buildings element showing locations of civic and community centers, public schools, libraries, police and fire stations and other public buildings.

6. A housing element consisting of standards and programs for the elimination of substandard dwelling conditions, for the improvement of housing quality, variety and affordability and for provision of adequate sites for housing. This element shall contain an identification and analysis of existing and forecasted housing needs. This element shall be designed to make equal provision for the housing needs of all segments of the community regardless of race, color, creed or economic level.

7. A conservation, rehabilitation and redevelopment element consisting of plans and programs for:

(a) The elimination of slums and blighted areas.

(b) Community redevelopment, including housing sites, business and industrial sites and public building sites.

8. A safety element for the protection of the community from natural and artificial hazards, including features necessary for such protection as evacuation routes, peak load water supply requirements, minimum road widths according to function, clearances around structures and geologic hazard mapping in areas of known geologic hazards.

9. A bicycling element consisting of proposed bicycle facilities such as bicycle routes, bicycle parking areas and designated bicycle street crossing areas.

10. An energy element that includes:

(a) A component that identifies policies that encourage and provide incentives for efficient use of energy.

(b) An assessment that identifies policies and practices that provide for greater uses of renewable energy sources.

11. A neighborhood preservation and revitalization element, including:

(a) A component that identifies city programs that promote home ownership, that provide assistance for improving the appearance of neighborhoods and that promote maintenance of both commercial and residential buildings in neighborhoods.

(b) A component that identifies city programs that provide for the safety and security of neighborhoods.

F. The water resources element of the general plan does not require:

1. New independent hydrogeologic studies.

2. The city or town to be a water service provider.

G. The land use element of a general plan of a city with a population of more than one million persons shall include protections from encroaching development for any shooting range that is owned by this state and that is located within or adjacent to the exterior municipal boundaries on or before January 1, 2004. The general plan shall establish land use categories within at least one‑half mile from the exterior boundaries of the shooting range that are consistent with the continued existence of the shooting range and that exclude incompatible uses such as residences, schools, hotels, motels, hospitals or churches except that land zoned to permit these incompatible uses on August 25, 2004 are exempt from this exclusion. For the purposes of this subsection, "shooting range" means a permanently located and improved area that is designed and operated for the use of rifles, shotguns, pistols, silhouettes, skeet, trap, black powder or any other similar sport shooting in an outdoor environment. Shooting range does not include:

1. Any area for the exclusive use of archery or air guns.

2. An enclosed indoor facility that is designed to offer a totally controlled shooting environment and that includes impenetrable walls, floor and ceiling, adequate ventilation, lighting systems and acoustical treatment for sound attenuation suitable for the range's approved use.

3. A national guard facility located in a city or town with a population of more than one million persons.

4. A facility that was not owned by this state before January 1, 2002.

H. The policies and strategies to be developed under these elements shall be designed to have community‑wide applicability and this section does not authorize the imposition of dedications, exactions, fees or other requirements that are not otherwise authorized by law. END_STATUTE

Sec. 2. Section 9-831, Arizona Revised Statutes, is amended to read:

START_STATUTE9-831. Definitions

In this article, unless the context otherwise requires:

1. "Fire and life safety inspection" means an inspection of a regulated person or facility conducted to ensure fire safety compliance.

1. 2. "Food and swimming pool inspection" means an inspection of a regulated person or facility conducted to ensure the safety of food services, swimming pools and other bathing places.

2. 3. "License" includes the whole or part of any municipal permit, certificate, approval, registration, charter or similar form of permission required by law. License does not include a transaction PRIVILEGE tax license.

3. 4. "Licensing" includes the municipal process respecting the grant, denial, renewal, revocation, suspension, annulment, withdrawal or amendment of a license.

4. 5. "Municipal" or "municipality" means an incorporated city or town.

5. 6. "Person" means an individual, partnership, corporation, association, governmental subdivision or unit of a governmental subdivision or a public or private organization of any character.

7. "Request for corrections" means a request for technical or clarifying corrections from an applicant who has submitted an administratively complete application for a license.

6. 8. "Substantive policy statement" means a written expression that is only advisory and that informs the general public of a municipality's current approach to, or opinion of, the requirements of the ordinances or codes, including, where if appropriate, the municipality's current practice, procedure or method of action based on that approach or opinion. A substantive policy statement does not include internal procedural documents that only affect the internal procedures of the municipality and that do not impose additional requirements or penalties on regulated parties or confidential information.

7. 9. "Working day" means a twenty-four hour period excluding weekends and legal holidays. END_STATUTE

Sec. 3. Section 9-833, Arizona Revised Statutes, is amended to read:

START_STATUTE9-833. Inspections; applicability

A. A municipal inspector or regulator who enters any premises of a regulated person for the purpose of conducting an inspection shall:

1. Present photo identification on entry of the premises.

2. On initiation of the inspection, state the purpose of the inspection and the legal authority for conducting the inspection.

3. Disclose any applicable inspection fees.

4. Except for a fire and life safety inspection of areas that are accessible to the general public or a food and swimming pool inspection, afford an opportunity to have an authorized on-site representative of the regulated person accompany the municipal inspector or regulator on the premises, except during confidential interviews.

5. Provide notice of the right to have:

(a) Copies of any original documents taken from the premises by the municipality during the inspection if the municipality is permitted by law to take original documents.

(b) A split or duplicate of any samples taken during the inspection if the split or duplicate of any samples, where if appropriate, would not prohibit an analysis from being conducted or render an analysis inconclusive.

6. Inform each person whose conversation with the municipal inspector or regulator during the inspection is tape recorded that the conversation is being tape recorded.

7. Inform each person interviewed during the inspection that statements made by the person may be included in the inspection report.

B. On initiation of, or two working days before, an inspection of any premises of a regulated person, except for a fire and life safety inspection of areas that are accessible to the general public or a food and swimming pool inspection that has up to one working day after an inspection, a municipal inspector or regulator shall provide the following in writing or electronically:

1. The rights described in subsection A of this section.

2. The name and telephone number of a municipal contact person available to answer questions regarding the inspection.

3. The due process rights relating to an appeal of a final decision of a municipality based on the results of the inspection, including the name and telephone number of a person to contact within the municipality and any appropriate municipality, county or state government ombudsman.

C. A municipal inspector or regulator shall obtain the signature of the regulated person or on-site representative of the regulated person on the writing prescribed in subsection B of this section indicating that the regulated person or on-site representative of the regulated person has read the writing prescribed in subsection B of this section and is notified of the regulated person's or on-site representative of the regulated person's inspection and due process rights. The municipality shall maintain a copy of this signature with the inspection report. Unless the regulated person at the time of the inspection is informed how the report can be located electronically, the municipality shall leave a copy with the regulated person or on-site representative of the regulated person. If a regulated person or on-site representative of the regulated person is not at the site or refuses to sign the writing prescribed in subsection B of this section, the municipal inspector or regulator shall note that fact on the writing prescribed in subsection B of this section.

D. A municipality that conducts an inspection shall give a copy of, or provide electronic access to, the inspection report to the regulated person or on-site representative of the regulated person either:

1. At the time of the inspection.

2. Notwithstanding any other state law, within thirty working days after the inspection.

3. As otherwise required by federal law.

E. The inspection report shall contain deficiencies identified during an inspection. Unless otherwise provided by law, the municipality may provide the regulated person an opportunity to correct the deficiencies unless the municipality determines that the deficiencies are:

1. Committed intentionally.

2. Not correctable within a reasonable period of time as determined by the municipality.

3. Evidence of a pattern of noncompliance.

4. A risk to any person, the public health, safety or welfare or the environment.

F. If the municipality allows the regulated person an opportunity to correct the deficiencies pursuant to subsection E of this section, the regulated person shall notify the municipality when the deficiencies have been corrected. Within thirty working days of receipt of notification from the regulated person that the deficiencies have been corrected, the municipality shall determine if the regulated person is in substantial compliance and notify the regulated person whether or not the regulated person is in substantial compliance, unless the determination is not possible due to conditions of normal operations at the premises. If the regulated person fails to correct the deficiencies or the municipality determines the deficiencies have not been corrected within a reasonable period of time, the municipality may take any enforcement action authorized by law for the deficiencies.

G. A municipality's decision pursuant to subsection E or F of this section is not an appealable municipal action.

H. At least once every month after the commencement of the inspection, a municipality shall provide the regulated person with an update, in writing or electronically, on the status of any municipal action resulting from an inspection of the regulated person. A municipality is not required to provide an update after the regulated person is notified that no municipal action will result from the municipality's inspection or after the completion of municipal action resulting from the municipality's inspection.

I. This section does not authorize an inspection or any other act that is not otherwise authorized by law.

J. This section applies only to inspections necessary for the issuance of a license or to determine compliance with licensure requirements. This section does not apply:

1. To criminal investigations and undercover investigations that are generally or specifically authorized by law.

2. If the municipal inspector or regulator has reasonable suspicion to believe that the regulated person may be or has been engaged in criminal activity.

3. to inspections by a county board of health or a local health department pursuant to section 36‑603.

K. If a municipal inspector or regulator gathers evidence in violation of this section, the violation shall not be a basis to exclude the evidence in a civil or administrative proceeding, if the penalty sought is the denial, suspension or revocation of the regulated person's license or is a civil penalty of more than one thousand dollars.

L. Failure of a municipal employee to comply with this section:

1. Constitutes cause for disciplinary action or dismissal pursuant to adopted municipal personnel policy.

2. Shall be considered by the judge and administrative law judge as grounds for reduction of any fine or civil penalty.

M. A municipality may adopt rules or ordinances to implement this section.

N. This section:

1. Shall not be used to exclude evidence in a criminal proceeding.

2. Does not apply to a municipal inspection that is requested and scheduled by the regulated person. END_STATUTE

Sec. 4. Section 9-835, Arizona Revised Statutes, is amended to read:

START_STATUTE9-835. Licensing time frames; compliance; consequence for failure to comply with time frame; exception

A. For any new ordinance or code requiring a license, a municipality shall have in place an overall time frame during which the municipality will either grant or deny each type of license that it issues. The overall time frame for each type of license shall state separately the administrative completeness review time frame and the substantive review time frame and shall be posted on the municipality's website or the website of an association of cities and towns if the municipality does not have a website.

B. On or before December 31, 2012, a municipality that issues licenses required under existing ordinances or codes shall have in place an overall time frame during which the municipality will either grant or deny each type of license that it issues. The overall time frame for each type of license shall state separately the administrative completeness review time frame and the substantive review time frame and shall be posted on the municipality's website or the website of an association of cities and towns if the municipality does not have a website. Municipalities shall prioritize the establishment of time frames for those licenses that have the greatest impact on the public.

C. In establishing time frames, municipalities shall consider all of the following:

1. The complexity of the licensing subject matter.

2. The resources of the municipality.

3. The economic impact of delay on the regulated community.

4. The impact of the licensing decision on public health and safety.

5. The possible use of volunteers with expertise in the subject matter area.

6. The possible increased use of general licenses for similar types of licensed businesses or facilities.

7. The possible increased cooperation between the municipality and the regulated community.

8. Increased municipal flexibility in structuring the licensing process and personnel including:

(a) Adult businesses and other licenses that are related to the first amendment.

(b) Master planned communities.

(c) Suspension of the substantive and overall time frames for purposes including delays caused by the need for public hearings or state or federal licenses.

9. That the substantive review time frames and overall time frames do not include the time required for an applicant to obtain other nonmunicipal licenses or to participate in meetings as required by law.

D. A municipality shall issue a written or electronic notice of administrative completeness or deficiencies to an applicant for a license within the administrative completeness review time frame. If the permit sought requires approval of more than one department of the municipality, each department may issue a written or electronic notice of administrative completeness or deficiencies.

E. If a municipality determines that an application for a license is not administratively complete, the municipality shall include a comprehensive list of the specific deficiencies in the written or electronic notice provided pursuant to subsection D of this section. If the municipality issues a written or electronic notice of deficiencies within the administrative completeness time frame, the administrative completeness review time frame and the overall time frame are suspended from the date the notice is issued until the date that the municipality receives the missing information from the applicant. The municipality may issue an additional written or electronic notice of administrative completeness or deficiencies based on the applicant's submission of missing information. If the permit sought requires approval of more than one department of the municipality, each department may issue an additional written or electronic notice of administrative completeness or deficiencies based on the applicant's submission of missing information.

F. If a municipality does not issue a written or electronic notice of administrative completeness or deficiencies within the administrative completeness review time frame, the application is deemed administratively complete. If a municipality issues a timely written or electronic notice of deficiencies, an application shall not be complete until all requested information has been received by the municipality. A municipality may consider an application withdrawn if, by fifteen days or more after the date of notice, as established by the municipality, the applicant does not supply the documentation or information requested or an explanation of why the information cannot be provided within the established time period.

G. During the substantive review time frame, a municipality may make one comprehensive written or electronic request for additional information corrections. If the municipality identifies legal requirements that were not included in the comprehensive request for corrections, the municipality may amend the comprehensive request for corrections once to include the legal requirements and the legal authority for the requirements. If the permit sought requires approval of more than one department of the municipality, each department may issue a comprehensive written or electronic request for additional information corrections. The municipality and applicant may mutually agree in writing or electronically to allow the municipality to submit supplemental requests for additional information. If the applicant fails to resolve an issue identified in a request for corrections, the municipality may make supplemental written or electronic requests for corrections that are limited to issues previously identified in a comprehensive request for corrections. If a municipality issues a comprehensive written or electronic request or a supplemental request by mutual written or electronic agreement for additional information corrections, the substantive review time frame and the overall time frame are suspended from the date the request is issued until the date that the municipality receives the additional information corrections from the applicant. If an applicant requests significant changes, alterations, additions or amendments to an application that are consistent with the purposes of the original application and that are not in response to the request for corrections, a municipality may make one additional comprehensive written or electronic request for corrections and may have no more than an additional fifty per cent of the substantive review time frame as established by the municipality for that license to grant or deny the license. Nothing shall prevent communication between a municipality and an applicant regarding a comprehensive written or electronic request for corrections or a supplemental request for corrections. A municipality may consider an application withdrawn if, by thirty days or more after the date of notice, as established by the municipality, the applicant does not supply the documentation or information requested or an explanation of why the information cannot be provided within the established time period.

H. Nothing shall prevent the municipality from continuing to process the application during the suspension of the substantive review time frame and overall time frame.

H. I. By mutual written or electronic agreement, a municipality and an applicant for a license may extend the substantive review time frame and the overall time frame. An extension of the substantive review time frame and the overall time frame may not exceed twenty-five fifty per cent of the overall time frame.

I. J. Unless a municipality and an applicant for a license mutually agree to extend the substantive review time frame and the overall time frame pursuant to subsection H I of this section, a municipality shall issue a written or electronic notice granting or denying a license to an applicant. If a municipality denies or withdraws an application for a license, the municipality shall include in the written or electronic notice at least the following information:

1. Justification for the denial or withdrawal with references to the statutes, ordinances, codes or substantive policy statements on which the denial or withdrawal is based.

2. An explanation of the applicant's right to appeal the denial or withdrawal. The explanation shall include the number of working days in which the applicant must file a protest challenging the denial or withdrawal and the name and telephone number of a municipal contact person who can answer questions regarding the appeals process.

3. An explanation of the applicant's right to resubmit the application, the total amount of fees that will be assessed if the applicant resubmits the application and the method in which those fees were CALCULATED.

J. K. If a municipality does not issue the applicant the written or electronic notice granting or denying a license within the overall time frame or within the mutually agreed upon on time frame extension, the municipality shall refund to the applicant all fees charged for reviewing and acting on the application for the license and shall excuse payment of any fees that have not yet been paid. The municipality shall not require an applicant to submit an application for a refund pursuant to this subsection. The refund shall be made within thirty working days after the expiration of the overall time frame or the time frame extension. The municipality shall continue to process the application. Notwithstanding any other statute, the municipality shall make the refund from the fund in which the application fees were originally deposited. The right to receive a refund of fees charged for reviewing and acting on the application for the license may not be waived by an applicant.

L. If an application for a license is denied and the applicant resubmits the application for the same purposes with only revisions or corrections to the original application, the municipality shall not assess any additional application fees that exceed the cost of processing the resubmitted revisions or corrections. This subsection does not apply to license applications that were denied for disqualifying criminal convictions or that were submitted fraudulently.

M. If an application for a license is withdrawn and the applicant resubmits the application for the same purpose, the municipality shall not assess any additional application fees that exceed fifty per cent of the original applicant fees that have not been refunded to the applicant. This subsection does not apply to license applications that were denied for disqualifying criminal convictions or that were submitted fraudulently.

K. N. This section does not apply to licenses a license that is issued within seven working days after receipt of the initial application or a permit that expire expires within twenty‑one working days after issuance. END_STATUTE

Sec. 5. Section 9-840, Arizona Revised Statutes, is amended to read:

START_STATUTE9-840. Exemptions

This article does not apply to:

1. An ordinance, code, regulation or substantive policy statement that relates only to the internal management of a municipality and that does not directly and substantially affect the procedural or substantive rights or duties of any segment of the public.

2. An ordinance, code, regulation or substantive policy statement that relates only to the physical servicing, maintenance or care of a municipal municipally owned or operated facilities or property.

3. An ordinance, regulation or substantive policy statement that relates to inmates or committed youth, a correctional or detention facility under the jurisdiction of the municipality or a patient admitted to an institution or treatment center pursuant to court order.

4. An ordinance, code, regulation or substantive policy statement that relates to a municipal contract.

5. The function or operation of a municipal airport, public safety department, police department, town marshal's office, fire department, ambulance service or zoning adjustment process pursuant to 9‑462.06. END_STATUTE

Sec. 6. Section 11-804, Arizona Revised Statutes, is amended to read:

START_STATUTE11‑804. Comprehensive plan; contents

A. The commission shall formulate and the board of supervisors shall adopt or readopt a long-term comprehensive plan for the development of the area of jurisdiction in the manner prescribed by this article. The comprehensive plan, with the accompanying maps, plats, charts and descriptive matter, shall show the commission's recommendations for the development of the area of jurisdiction. The comprehensive plan shall be made with the general purpose of guiding and accomplishing a coordinated, adjusted and harmonious development of the area of jurisdiction pursuant to the present and future needs of the county. The comprehensive plan shall be developed so as to conserve the natural resources of the county, to ensure efficient expenditure of public monies and to promote the health, safety, convenience and general welfare of the public. The comprehensive plan may include studies and recommendations relative to the location, character and extent of highways, railroads, bus and other transportation routes, bicycle facilities, bridges, public buildings, public services, schools, parks, open space, housing quality, variety and affordability, parkways, hiking and riding trails, airports, forests, wildlife areas, dams, projects affecting conservation of natural resources, air quality, water quality and floodplain zoning. In the preparation of the comprehensive plan, the commission shall make surveys and studies of the present conditions and prospective future growth of the area of the jurisdiction. The comprehensive plan shall be a public record, but its purpose and effect shall be primarily as an aid to the county planning and zoning commission and to the board of supervisors in the performance of their duties. The comprehensive plan shall include provisions that identify changes or modifications that constitute amendments and major amendments to the plan.

B. In addition to the other matters that are required or authorized under this section and this article, for counties with a population of more than one hundred twenty-five thousand persons, the comprehensive plan shall include, and for other counties the comprehensive plan may include:

1. Planning for land use that designates the proposed general distribution and location and extent of uses of the land for housing, business, industry, agriculture, recreation, education, public buildings and grounds, open space and other categories of public and private uses of land appropriate to the county. The land use plan shall include:

(a) A statement of the standards of population density and building intensity recommended for the various land use categories covered by the plan.

(b) Specific programs and policies that the county may use to promote compact form development activity and locations where those development patterns should be encouraged.

(d) Policies that address maintaining a broad variety of land uses, including the range of uses existing in the county at the time the plan is adopted, readopted or amended.

(e) Currently identified sources of aggregates from maps that are available from state agencies, policies to preserve currently identified aggregates sufficient for future development and policies to avoid future incompatible land uses, except that this subdivision shall not be construed to affect any permitted underground storage facility or limit any person's right to obtain a permit for an underground storage facility pursuant to title 45, chapter 3.1.

2. Planning for circulation consisting of the general location and extent of existing and proposed freeways, arterial and collector streets, bicycle routes and any other modes of transportation as may be appropriate, all correlated with the land use plan under paragraph 1 of this subsection.

3. Planning for water resources that addresses:

(a) The known legally and physically available surface water, groundwater and effluent supplies.

(b) The demand for water that will result from future growth projected in the comprehensive plan, added to existing uses.

(c) An analysis of how the demand for water that will result from future growth projected in the comprehensive plan will be served by the water supplies identified in subdivision (a) of this paragraph or a plan to obtain additional necessary water supplies.

4. Planning for energy use that:

(a) Encourages and provides incentives for efficient use of energy.

(b) Identifies policies and practices for greater use of renewable energy.

C. In addition to the other matters that are required or authorized under this section and this article, for counties with a population of more than two hundred thousand persons, the comprehensive plan shall include, and for other counties the comprehensive plan may include:

1. Planning for open space acquisition and preservation. The open space plan shall include:

(a) A comprehensive inventory of open space areas, recreational resources and designations of access points to open space areas and resources.

(c) Policies and implementation strategies designed to promote a regional system of integrated open space and recreational resources and a consideration of any existing regional open space plan.

2. Planning for growth areas, specifically identifying those areas, if any, that are particularly suitable for planned multimodal transportation and infrastructure expansion and improvements designed to support a planned concentration of a variety of uses, such as residential, office, commercial, tourism and industrial uses. The mixed use planning shall include policies and implementation strategies that are designed to:

(a) Make automobile, transit and other multimodal circulation more efficient, make infrastructure expansion more economical and provide for a rational pattern of land development.

(b) Conserve significant natural resources and open areas in the growth area and coordinate their location to similar areas outside the growth area's boundaries.

3. An environmental planning element that contains analyses, policies and strategies to address anticipated effects, if any, of plan elements on air quality, water quality and natural resources associated with proposed development under the comprehensive plan. The policies and strategies to be developed under this element shall be designed to have countywide applicability and shall not require the production of an additional environmental impact statement or similar analysis beyond the requirements of state and federal law.

4. A cost of development element that identifies policies and strategies that the county will use to require development to pay its fair share toward the cost of additional public facility needs generated by new development, with appropriate exceptions when if in the public interest. This element shall include:

(a) A component that identifies various mechanisms that are allowed by law and that can be used to fund and finance additional public services necessary to serve the development, including bonding, special taxing districts, development fees, in‑lieu fees and facility construction, dedications and privatization.

(b) A component that identifies policies to ensure that any mechanisms that are adopted by the county under this element result in a beneficial use to the development, bear a reasonable relationship to the burden imposed on the county to provide additional necessary public facilities to the development and otherwise are imposed pursuant to law.

D. The water resources element of the comprehensive plan does not require:

1. New independent hydrogeologic studies.

2. The county to be a water service provider.

E. In applying an open space element or a growth element of a comprehensive plan, a county shall not designate private or state land as open space, recreation, conservation or agriculture unless the county receives the written consent of the landowner or provides an alternative, economically viable designation in the comprehensive plan or zoning ordinance, allowing at least one residential dwelling per acre. If the landowner is the prevailing party in any action brought to enforce this subsection, a court shall award fees and other expenses to the landowner. Each county shall incorporate this subsection into its comprehensive plan and provide a process for a landowner to resolve discrepancies relating to this subsection.

F. The policies and strategies to be developed under these elements shall be designed to have regional applicability.

G. For counties with territory in the vicinity of a military airport or ancillary military facility as defined in section 28‑8461, the commission shall also consider military airport or ancillary military facility operations and, on or before December 31, 2005, shall identify the boundaries of any high noise or accident potential zone as defined in section 28‑8461 in its comprehensive plan for purposes of planning land uses in the high noise or accident potential zone that are compatible with the operation of the military airport or ancillary military facility pursuant to section 28‑8481, subsection J. END_STATUTE

Sec. 7. Section 11-1601, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1601. Definitions

In this article, unless the context otherwise requires:

1. "Design‑build" means a construction project delivery system in which the design and construction aspects are contracted for with a single entity known as the design‑builder or design‑build contractor, and in which the system is used to minimize the project risk for an owner and to reduce the delivery schedule by overlapping the design phase and construction phase of a project entity.

2. "fire and life safety inspection" means an inspection of a regulated person or facility conducted to ensure fire safety compliance.

1. 3. "Food and swimming pool inspection" means an inspection of a regulated person conducted to ensure the safety of food services, swimming pools and other bathing places.

2. 4. "License" includes the whole or part of any county permit, certificate, approval, registration, charter or similar form of permission required by law.

3. 5. "Licensing" includes the county process respecting the grant, denial, renewal, revocation, suspension, annulment, withdrawal or amendment of a license.

4. 6. "Person" means an individual, partnership, corporation, association, governmental subdivision or unit of a governmental subdivision, or a public or private organization of any character.

7. "Request for corrections" means a request for technical or clarifying corrections from an applicant who has submitted an administratively complete application for a license.

5. 8. "Substantive policy statement" means a written expression that is only advisory and that informs the general public of a county's current approach to, or opinion of, the requirements of the ordinances or regulations, including, where if appropriate, the county's current practice, procedure or method of action based on that approach or opinion. A substantive policy statement does not include internal procedural documents that only affect the internal procedures of the county and that do not impose additional requirements or penalties on regulated parties or confidential information.

6. 9. "Working day" means a twenty-four hour period excluding weekends and legal holidays. END_STATUTE

Sec. 8. Section 11-1603, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1603. Inspections; applicability

A. A county inspector or regulator who enters any premises of a regulated person for the purpose of conducting an inspection shall:

1. Present photo identification on entry of the premises.

2. On initiation of the inspection, state the purpose of the inspection and the legal authority for conducting the inspection.

3. Disclose any applicable inspection fees.

4. Except for a fire and life safety inspection of areas that are accessible to the general public or a food and swimming pool inspection, afford an opportunity to have an authorized on-site representative of the regulated person accompany the county inspector or regulator on the premises, except during confidential interviews.

5. Provide notice of the right to have:

(a) Copies of any original documents taken from the premises by the county during the inspection if the county is permitted by law to take original documents.

6. Inform each person whose conversation with the county inspector or regulator during the inspection is tape recorded that the conversation is being tape recorded.

7. Inform each person interviewed during the inspection that statements made by the person may be included in the inspection report.

B. On initiation of, or two working days before, an inspection of any premises of a regulated person, except for a fire and life safety inspection of areas that are accessible to the general public or a food and swimming pool inspection that has up to one working day after an inspection, a county inspector or regulator shall provide the following in writing or electronically:

1. The rights described in subsection A of this section.

2. The name and telephone number of a county contact person available to answer questions regarding the inspection.

3. The due process rights relating to an appeal of a final decision of a county based on the results of the inspection, including the name and telephone number of a person to contact within the county and any appropriate municipality, county or state government ombudsman.

C. A county inspector or regulator shall obtain the signature of the regulated person or on-site representative of the regulated person on the writing prescribed in subsection B of this section indicating that the regulated person or on-site representative of the regulated person has read the writing prescribed in subsection B of this section and is notified of the regulated person's or on-site representative of the regulated person's inspection and due process rights. The county shall maintain a copy of this signature with the inspection report. Unless the regulated person at the time of the inspection is informed how the report can be located electronically, the county shall leave a copy with the regulated person or on‑site representative of the regulated person. If a regulated person or on‑site representative of the regulated person is not at the site or refuses to sign the writing prescribed in subsection B of this section, the county inspector or regulator shall note that fact on the writing prescribed in subsection B of this section.

D. A county that conducts an inspection shall give a copy of, or provide electronic access to, the inspection report to the regulated person or on-site representative of the regulated person either:

1. At the time of the inspection.

2. Notwithstanding any other state law, within thirty working days after the inspection.

3. As otherwise required by federal law.

E. The inspection report shall contain deficiencies identified during an inspection. Unless otherwise provided by law, the county may provide the regulated person an opportunity to correct the deficiencies unless the county determines that the deficiencies are:

1. Committed intentionally.

2. Not correctable within a reasonable period of time as determined by the county.

3. Evidence of a pattern of noncompliance.

4. A risk to any person, the public health, safety or welfare or the environment.

F. If the county allows the regulated person an opportunity to correct the deficiencies pursuant to subsection E of this section, the regulated person shall notify the county when the deficiencies have been corrected. Within thirty working days of receipt of notification from the regulated person that the deficiencies have been corrected, the county shall determine if the regulated person is in substantial compliance and notify the regulated person whether or not the regulated person is in substantial compliance, unless the determination is not possible due to conditions of normal operations at the premises. If the regulated person fails to correct the deficiencies or the county determines the deficiencies have not been corrected within a reasonable period of time, the county may take any enforcement action authorized by law for the deficiencies.

G. A county decision pursuant to subsection E or F of this section is not an appealable county action.

H. At least once every month after the commencement of the inspection a county shall provide the regulated person with an update, in writing or electronically, on the status of any county action resulting from an inspection of the regulated person. A county is not required to provide an update after the regulated person is notified that no county action will result from the county's inspection or after the completion of county action resulting from the county's inspection.

I. This section does not authorize an inspection or any other act that is not otherwise authorized by law.

J. This section applies only to inspections necessary for the issuance of a license or to determine compliance with licensure requirements. This section does not apply:

1. To criminal investigations and undercover investigations that are generally or specifically authorized by law.

2. If the county inspector or regulator has reasonable suspicion to believe that the regulated person may be or has been engaged in criminal activity.

3. to inspections by a county board of health or a local health department pursuant to section 36‑603.

K. If a county inspector or regulator gathers evidence in violation of this section, the violation shall not be a basis to exclude the evidence in a civil or administrative proceeding, if the penalty sought is the denial, suspension or revocation of the regulated person's license or is a civil penalty of more than one thousand dollars.

L. Failure of a county employee to comply with this section:

1. Constitutes cause for disciplinary action or dismissal pursuant to chapter 2, article 10 of this title.

2. Shall be considered by the judge and administrative law judge as grounds for reduction of any fine or civil penalty.

M. A county may adopt rules or ordinances to implement this section.

N. This section:

1. Shall not be used to exclude evidence in a criminal proceeding.

2. Does not apply to a county inspection that is requested and scheduled by the regulated person. END_STATUTE

Sec. 9. Section 11-1605, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1605. Licensing time frames; compliance; consequence for failure to comply with time frame; exemption

A. For any new ordinance or regulation code requiring a license, a county shall have in place an overall time frame during which the county will either grant or deny each type of license that it issues. The overall time frame for each type of license shall state separately the administrative completeness review time frame and the substantive review time frame and shall be posted on the county's website or the website of an association of counties if the county does not have a website.

B. On or before December 31, 2012, a county that issues licenses required under existing ordinances or codes shall have in place an overall time frame during which the county will either grant or deny each type of license that it issues. The overall time frame for each type of license shall state separately the administrative completeness review time frame and the substantive review time frame and shall be posted on the county's website or the website of an association of counties if the county does not have a website. Counties shall prioritize the establishment of time frames for those licenses that have the greatest impact on the public.

C. In establishing time frames, counties shall consider all of the following:

1. The complexity of the licensing subject matter.

2. The resources of the county.

3. The economic impact of delay on the regulated community.

4. The impact of the licensing decision on public health and safety.

5. The possible use of volunteers with expertise in the subject matter area.

6. The possible increased use of general licenses for similar types of licensed businesses or facilities.

7. The possible increased cooperation between the county and the regulated community.

8. Increased county flexibility in structuring the licensing process and personnel including:

(a) Adult businesses and other licenses that are related to the first amendment.

(b) Master planned communities.

(c) Suspension of the substantive and overall time frames for purposes including delays caused by the need for public hearings or state or federal licenses.

9. That the substantive review time frames and overall time frames do not include the time required for an applicant to obtain other noncounty licenses or to participate in meetings as required by law.

D. A county shall issue a written or electronic notice of administrative completeness or deficiencies to an applicant for a license within the administrative completeness review time frame. If the permit sought requires approval of more than one department of the county, each department may issue a written or electronic notice of administrative completeness or deficiencies.

E. If a county determines that an application for a license is not administratively complete, the county shall include a comprehensive list of the specific deficiencies in the written or electronic notice provided pursuant to subsection D of this section. If the county issues a written or electronic notice of deficiencies within the administrative completeness time frame, the administrative completeness review time frame and the overall time frame are suspended from the date the notice is issued until the date that the county receives the missing information from the applicant. The county may issue an additional written or electronic notice of administrative completeness or deficiencies based on the applicant's submission of missing information. If the permit sought requires approval of more than one department of the county, each department may issue an additional written or electronic notice of administrative completeness or deficiencies based on the applicant's submission of missing information.

F. If a county does not issue a written or electronic notice of administrative completeness or deficiencies within the administrative completeness review time frame, the application is deemed administratively complete. If a county issues a timely written or electronic notice of deficiencies, an application shall not be complete until all requested information has been received by the county. A county may consider an application withdrawn if, by fifteen days or more after the date of notice, as established by the county, the applicant does not supply the documentation or information requested or an explanation of why the information cannot be provided within the established time period.

G. During the substantive review time frame, a county may make one comprehensive written or electronic request for additional information corrections. If the county identifies legal requirements that were not included in the comprehensive request for corrections, the county may amend the comprehensive request for corrections once to include the legal requirements and the legal authority for the requirements. If the permit sought requires approval of more than one department of the county, each department may issue a comprehensive written or electronic request for additional information corrections. The county and applicant may mutually agree in writing or electronically to allow the county to submit supplemental requests for additional information. If the applicant fails to resolve an issue identified in a request for corrections, the county may make supplemental written or ELECTRONIC requests for corrections that are limited to issues previously identified in a comprehensive request for corrections. If a county issues a comprehensive written or electronic request or a supplemental request by mutual written or electronic agreement for additional information corrections, the substantive review time frame and the overall time frame are suspended from the date the request is issued until the date that the county receives the additional information corrections from the applicant. If an applicant requests significant changes, alterations, additions or amendments to an application that are consistent with the purposes of the original application and that are not in response to a request for corrections and may have no more than an additional fifty per cent of the substantive review time frame as established by the county for that license to grant or deny the license, a county may make one additional comprehensive written or electronic request for corrections. Nothing shall prevent communication between a county and an applicant regarding a comprehensive written or electronic request for corrections or a supplemental request for corrections. A county may consider an application withdrawn if, by thirty days or longer after the date of notice, as established by the county, the applicant does not supply the documentation or information requested or an explanation of why the information cannot be provided within the established time period.

H. Nothing shall prevent the county from continuing to process the application during the suspension of the substantive review time frame and overall time frame.

H. I. By mutual written or electronic agreement, a county and an applicant for a license may extend the substantive review time frame and the overall time frame. An extension of the substantive review time frame and the overall time frame may not exceed twenty-five fifty per cent of the overall time frame.

I. J. Unless a county and an applicant for a license mutually agree to extend the substantive review time frame and the overall time frame pursuant to subsection H I of this section, a county shall issue a written or electronic notice granting or denying a license to an applicant. If a county denies or withdraws an application for a license, the county shall include in the written or electronic notice at least the following information:

1. Justification for the denial or withdrawal with references to the statutes, ordinances, regulations, substantive policy statements or delegation agreements on which the denial or withdrawal is based.

2. An explanation of the applicant's right to appeal the denial or withdrawal. The explanation shall include the number of working days in which the applicant must file a protest challenging the denial or withdrawal and the name and telephone number of a county contact person who can answer questions regarding the appeals process.

J. K. If a county does not issue to the applicant the written or electronic notice granting or denying a license within the overall time frame or within the mutually agreed upon on time frame extension, the county shall refund to the applicant all fees charged for reviewing and acting on the application for the license and shall excuse payment of any fees that have not yet been paid. The county shall not require an applicant to submit an application for a refund pursuant to this subsection. The refund shall be made within thirty working days after the expiration of the overall time frame or the time frame extension. The county shall continue to process the application. Notwithstanding any other statute, the county shall make the refund from the fund in which the application fees were originally deposited. The right to receive a refund of fees charged for reviewing and acting on the application for the license may not be waived by the applicant.

L. If an application for a license is denied because revisions or corrections were not submitted or considered within the allowed time frame, or withdrawn, and the applicant resubmits the application for the same purposes with only revisions or corrections to the original application, the county shall not assess any additional fees that exceed fifty per cent of the original application fees that have not been refunded to the applicant. This subsection does not apply to license applications that were denied for disqualifying criminal convictions or that were submitted fraudulently.

K. M. This section does not apply to licenses a license that is issued within seven working days after receipt of the initial application or a permit that expire expires within twenty‑one working days after issuance. END_STATUTE

Sec. 10. Section 11-1610, Arizona Revised Statutes, is amended to read:

START_STATUTE11‑1610. Exemptions

This article does not apply to:

1. A county function, power or duty to the extent that they are it is subject to title 49, chapter 3, article 3.

2. An ordinance, regulation or substantive policy statement that relates to only the internal management of a county and that does not directly and substantially affect the procedural or substantive rights or duties of any segment of the public.

3. An ordinance, regulation or substantive policy statement relating that relates to only the physical servicing, maintenance, operation or care of county owned or operated facilities or property.

4. An ordinance, regulation or substantive policy statement that relates to inmates or committed youth, a correctional or detention facility under the jurisdiction of the county or a patient admitted to an institution or treatment center pursuant to court order.

5. An ordinance, regulation or substantive policy statement relating that relates to a county contract.

6. A design‑build project in which, at the request of the applicant, the county agrees to exempt the project from this article. If there is no such agreement, all of the requirements of this article apply. END_STATUTE

Sec. 11. Section 48-3641, Arizona Revised Statutes, is amended to read:

START_STATUTE48-3641. Definitions

In this article, unless the context otherwise requires:

1. "District" means a district organized pursuant to article 1 of this chapter.

2. "Emergency" means a situation that creates an immediate threat to the health or safety of a person or property caused by flood, earthquake, hurricane, tornado, explosion, fire or other catastrophe.

3. "License" includes the whole or part of any district permit, certificate, approval, registration, charter or similar form of permission required by law.

4. "Licensing" includes the district process respecting the grant, denial, renewal, revocation, suspension, annulment, withdrawal or amendment of a license.

5. "Person" means an individual, partnership, corporation, association, governmental subdivision or unit of a governmental subdivision or a public or private organization of any character.

6. "Request for corrections" means seeking a technical or clarifying correction from an applicant who has submitted an administratively complete application for a license.

6. 7. "Substantive policy statement" means a written expression that is only advisory and that informs the general public of a district's current approach to, or opinion of, the requirements of the ordinances or regulations, including, where if appropriate, the district's current practice, procedure or method of action based on that approach or opinion. A substantive policy statement does not include internal procedural documents that only affect the internal procedures of the district and do not impose additional requirements or penalties on regulated parties or confidential information.

7. 8. "Working day" means a twenty-four hour period excluding weekends and legal holidays. END_STATUTE

Sec. 12. Section 48-3643, Arizona Revised Statutes, is amended to read:

START_STATUTE48-3643. Inspections; applicability

A. A district inspector or regulator who enters any premises of a regulated person for the purpose of conducting an inspection shall:

1. Present photo identification on entry of the premises.

2. On initiation of the inspection, state the purpose of the inspection and the legal authority for conducting the inspection.

3. Disclose any applicable inspection fees.

4. Afford an opportunity to have an authorized on-site representative of the regulated person accompany the district inspector or regulator on the premises, except during confidential interviews.

5. Provide notice of the right to have:

(a) Copies of any original documents taken from the premises by the district during the inspection if the district is permitted by law to take original documents.

(b) A split or duplicate of any samples taken during the inspection if the split or duplication of any samples, where if appropriate, would not prohibit an analysis from being conducted or render an analysis inconclusive.

6. Inform each person whose conversation with the district inspector or regulator during the inspection is tape recorded that the conversation is being tape recorded.

7. Inform each person interviewed during the inspection that statements made by the person may be included in the inspection report.

B. On initiation of, or two working days before, an inspection of any premises of a regulated person, a district inspector or regulator shall provide the following in writing or electronically:

1. The rights described in subsection A of this section.

2. The name and telephone number of a district contact person available to answer questions regarding the inspection.

3. The due process rights relating to an appeal of a final decision of a district based on the results of the inspection, including the name and telephone number of a person to contact within the district and any appropriate municipality, county, district or state government ombudsman.

C. A district inspector or regulator shall obtain the signature of the regulated person or on-site representative of the regulated person on the writing prescribed in subsection B of this section indicating that the regulated person or on-site representative of the regulated person has read the writing prescribed in subsection B of this section and is notified of the regulated person's or on-site representative of the regulated person's inspection and due process rights. The district shall maintain a copy of this signature with the inspection report. Unless the regulated person, at the time of the inspection, is informed how the report can be located electronically, the district shall leave a copy with the regulated person or on-site representative of the regulated person. If a regulated person or on‑site representative of the regulated person is not at the site or refuses to sign the writing prescribed in subsection B of this section, the district inspector or regulator shall note that fact on the writing prescribed in subsection B of this section.

D. A district that conducts an inspection pursuant to this section, shall give a copy of, or provide electronic access to, the inspection report to the regulated person or on-site representative of the regulated person either:

1. At the time of the inspection.

2. Notwithstanding any other state law, within thirty working days after the inspection.

3. As otherwise required by federal law.

E. The inspection report shall contain deficiencies identified during an inspection. Unless otherwise provided by law, the district may provide the regulated person an opportunity to correct the deficiencies unless the district determines that the deficiencies are:

1. Committed intentionally.

2. Not correctable within a reasonable period of time as determined by the district.

3. Evidence of a pattern of noncompliance.

4. A risk to any person, the public health, safety or welfare or the environment.

F. If the district allows the regulated person an opportunity to correct the deficiencies pursuant to subsection E of this section, the regulated person shall notify the district when the deficiencies have been corrected. Within thirty working days of receipt of notification from the regulated person that the deficiencies have been corrected, the district shall determine if the regulated person is in substantial compliance and notify the regulated person whether or not the regulated person is in substantial compliance, unless it is not possible due to conditions of normal operations at the premises. If the regulated person fails to correct the deficiencies or the district determines the deficiencies have not been corrected within a reasonable period of time, the district may take any enforcement action authorized by law for the deficiencies.

G. A district decision pursuant to subsection E or F of this section is not an appealable district action.

H. At least once every month after the commencement of the inspection a district shall provide a regulated person with an update, in writing or electronically, on the status of any district action resulting from an inspection of the regulated person. A district is not required to provide an update after the regulated person is notified that no district action will result from the district's inspection or after the completion of district action resulting from the district's inspection.

I. This section does not authorize an inspection or any other act that is not otherwise authorized by law.

J. This section applies only to inspections necessary for the issuance of a license or to determine compliance with licensure requirements. This section does not apply:

1. To criminal investigations and undercover investigations that are generally or specifically authorized by law.

2. If the district inspector or regulator has reasonable suspicion to believe that the regulated person may be or has been engaged in criminal activity.

3. If the district inspector or regulator reasonably believes that an emergency exists.

4. To inspections conducted pursuant to section 48‑3609, subsection K of persons not licensed by the district or which are not necessary for the issuance of a license.

K. If a district inspector or regulator gathers evidence in violation of this section, the violation shall not be a basis to exclude the evidence in a civil or administrative proceeding, if the penalty sought is the denial, suspension or revocation of the regulated person's license or a civil penalty of more than one thousand dollars.

L. Failure of a district employee to comply with this section:

1. Constitutes cause for disciplinary action or dismissal pursuant to adopted district personnel policy.

2. Shall be considered by the judge and administrative law judge as grounds for reduction of any fine or civil penalty.

M. A district may adopt rules or ordinances to implement this section.

N. This section:

1. Shall not be used to exclude evidence in a criminal proceeding.

2. Does not apply to district inspections that are requested and scheduled by the regulated person. END_STATUTE

Sec. 13. Section 48-3645, Arizona Revised Statutes, is amended to read:

START_STATUTE48-3645. Licensing time frames; compliance; consequence for failure to comply with time frame; exemption

A. For any new ordinance or regulation requiring a license, a district shall have in place an overall time frame during which the district will either grant or deny each type of license that it issues. The overall time frame for each type of license shall state separately the administrative completeness review time frame and the substantive review time frame and shall be posted on the district's website, if the district maintains a website.

B. On or before December 31, 2012, a district that issues licenses required under existing ordinances or codes shall have in place an overall time frame during which the district will either grant or deny each type of license that it issues. The overall time frame for each type of license shall state separately the administrative completeness review time frame and the substantive review time frame and shall be posted on the district's website, if the district maintains a website. Districts shall prioritize the establishment of time frames for those licenses that have the greatest impact on the public.

C. In establishing time frames, districts shall consider all of the following:

1. The complexity of the licensing subject matter.

2. The resources of the district.

3. The economic impact of delay on the regulated community.

4. The impact of the licensing decision on public health and safety.

5. The possible use of volunteers with expertise in the subject matter area.

6. The possible increased use of general licenses for similar types of licensed businesses or facilities.

7. The possible increased cooperation between the district and the regulated community.

8. Increased district flexibility in structuring the licensing process and personnel including:

(a) Master planned communities.

(b) Suspension of the substantive and overall time frames for purposes including delays caused by the need for public hearings or state or federal approvals.

9. That the substantive review and overall time frames do not include the time required by the applicant to obtain other nondistrict licenses or to participate in meetings as required by law.

D. A district shall issue a written or electronic notice of administrative completeness or deficiencies to an applicant for a license within the administrative completeness review time frame. If the permit sought requires approval of more than one department of the district, each department may issue a written or electronic notice of administrative completeness or deficiencies.

E. If a district determines that an application for a license is not administratively complete, the district shall include a comprehensive list of the specific deficiencies in the written or electronic notice provided pursuant to subsection D of this section. If the district issues a written or electronic notice of deficiencies within the administrative completeness time frame, the administrative completeness review time frame and the overall time frame are suspended from the date the notice is issued until the date that the district receives the missing information from the applicant. The district may issue an additional written or electronic notice of administrative completeness or deficiencies based on the applicant's submission of missing information. If the permit sought requires approval of more than one department of the district, each department may issue an additional written or electronic notice of administrative completeness or deficiencies based on the applicant's submission of missing information.

F. If a district does not issue a written or electronic notice of administrative completeness or deficiencies within the administrative completeness review time frame, the application is deemed administratively complete. If a district issues a timely written or electronic notice of deficiencies, an application shall not be complete until all requested information has been received by the district. A district may consider an application withdrawn if by fifteen days or longer after the date of the notice, as established by the district, the applicant does not supply the documentation or information requested or an explanation of why the information cannot be provided within the established time period.

G. During the substantive review time frame, a district may make one comprehensive written or electronic request for additional information corrections. If the district identifies legal requirements that were not included in the comprehensive request for corrections, the district may amend the comprehensive request for corrections once to include the legal requirements and the legal authority for the requirements. If the permit sought requires approval of more than one department of the district, each department may issue a comprehensive written or electronic request for additional information corrections. The district and applicant may mutually agree in writing or electronically to allow the district to submit supplemental requests for additional information. If the applicant fails to resolve an issue identified in a request for corrections, the district may make supplemental written or electronic requests for corrections that are limited to issues previously identified in a comprehensive request for corrections. If a district issues a comprehensive written or electronic request or a supplemental request by mutual written or electronic agreement for additional information for corrections, the substantive review time frame and the overall time frame are suspended from the date the request is issued until the date that the district receives the additional information corrections from the applicant. If an applicant requests significant changes, alterations, additions or amendments to an application that are consistent with the purposes of the original application and that are not in response to a request for correction, a district may make one additional comprehensive written or electronic request for corrections and may have no more than an additional fifty per cent of the substantive review time frame as established by the district for that license to grant or deny the license. Nothing shall prevent communication between a district and an applicant regarding a comprehensive written or electronic request for corrections or a supplemental request for corrections. A district may consider an application withdrawn if, by thirty days or more after the date of notice, as established by the district, the applicant does not supply the documentation or information requested or an explanation of why the information cannot be provided within the established time period.

H. Nothing shall prevent the district from continuing to process the application during the suspension of the substantive review time frame and overall time frame.

H. I. By mutual written or electronic agreement, a district and an applicant for a license may extend the substantive review time frame and the overall time frame. An extension of the substantive review time frame and the overall time frame may not exceed twenty-five fifty per cent of the overall time frame.

I. J. Unless a district and an applicant for a license mutually agree to extend the substantive review time frame and the overall time frame pursuant to subsection H I of this section, a district shall issue a written or electronic notice granting or denying a license to an applicant. If a district denies or withdraws an application for a license, the district shall include in the written or electronic notice at least the following information:

1. Justification for the denial or withdrawal with references to the statutes, ordinances, executive orders, substantive policy statements or delegation agreements on which the denial or withdrawal is based.

2. An explanation of the applicant's right to appeal the denial or withdrawal. The explanation shall include the number of working days in which the applicant must file a protest challenging the denial or withdrawal and the name and telephone number of a district contact person who can answer questions regarding the appeals process.

J. K. If a district does not issue to the applicant the written or electronic notice granting or denying a license within the overall time frame or within the mutually agreed upon time frame extension, the district shall refund to the applicant all fees charged for reviewing and acting on the application for the license and shall excuse payment of any fees that have not yet been paid. The district shall not require an applicant to submit an application for a refund pursuant to this subsection. The refund shall be made within thirty working days after the expiration of the overall time frame or the time frame extension. The district shall continue to process the application. Notwithstanding any other statute, the district shall make the refund from the fund in which the application fees were originally deposited. The right to receive a refund of fees charged for reviewing and acting on the application for the license may not be waived by the applicant.

L. If an application for a license is denied because revisions or corrections were not submitted or considered within the allowed time frame, or withdrawn, and the applicant resubmits the application for the same purposes with only revisions or corrections to the original application, the district shall not assess any additional fees that exceed fifty per cent of the original permit fee that has not been refunded to the applicant. This subsection does not apply to license applications that were denied for disqualifying criminal convictions or that were submitted fraudulently.

K. M. This section does not apply to licenses issued within seven working days after receipt of the initial application or a permit that expires within twenty-one working days after issuance. END_STATUTE

Sec. 14. Effective date

Sections 9‑461.05 and 11‑804, Arizona Revised Statutes, as amended by this act, are effective from and after December 31, 2013.