Chapter 0074 - 511R - S Ver of HB2443

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

Section 1. 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. 2. Section 9-832, Arizona Revised Statutes, is amended to read:

START_STATUTE9-832. Regulatory bill of rights

To ensure fair and open regulation by municipalities, a person:

1. Is eligible for reimbursement of fees and other expenses if the person prevails by adjudication on the merits against a municipality in a court proceeding regarding a municipality decision as provided in section 12‑348.

2. Is entitled to receive information and notice regarding inspections as provided in section 9‑833.

3. Is entitled to have a municipality not base a licensing decision in whole or in part on licensing conditions or requirements that are not specifically authorized as provided in section 9‑834, subsection A.

4. May have a municipality approve or deny the person's license application within a predetermined period of time as provided in section 9‑835.

5. Is entitled to receive written or electronic notice from a municipality on denial of a license application that:

(a) That Justifies the denial with references to the statute, ordinance, code or authorized substantive policy statements on which the denial is based as provided in section 9‑835.

(b) That Explains the applicant's right to appeal the denial as provided in section 9‑835.

6. Is entitled to receive information regarding the license application process at the time the person obtains an application for a license as provided in section 9-836.

7. May inspect all ordinances, codes and substantive policy statements of a municipality, including a directory of documents, at the office of the municipality or on the municipality's website as provided in section 9‑837.

8. Unless specifically authorized, may expect municipalities to avoid duplication of other laws that do not enhance regulatory clarity and to avoid dual permitting to the maximum extent practicable as provided in section 9‑834.

9. May file a complaint with the municipality concerning an ordinance, code or substantive policy statement that fails to comply with this section.

10. As provided in section 9-834, is entitled to have a municipality not request or initiate discussions about waiving any of the rights prescribed in this section. 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 9-834, Arizona Revised Statutes, is amended to read:

START_STATUTE9-834. Prohibited acts by municipalities

A. A municipality shall not base a licensing decision in whole or in part on a licensing requirement or condition that is not specifically authorized by statute, rule, ordinance or code. A general grant of authority does not constitute a basis for imposing a licensing requirement or condition unless the authority specifically authorizes the requirement or condition.

B. Unless specifically authorized, a municipality shall avoid duplication of other laws that do not enhance regulatory clarity and shall avoid dual permitting to the maximum extent practicable.

C. This section does not prohibit municipal flexibility to issue licenses or adopt ordinances or codes.

D. A municipality shall not request or initiate discussions with a person about waiving that person's rights. END_STATUTE

Sec. 5. 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; exemptions; definitions

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 or approvals from public utilities on residential or commercial development projects.

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 either:

1. Issued within seven working days after receipt of the initial application or a permit that expire expires within twenty‑one working days after issuance.

2. Necessary for the construction or development of a residential lot, including swimming pools, hardscape and property walls, subdivisions or master planned community.

O. For the purposes of this section:

1. "Master planned community" means development by one or more developers of real estate that consists of residential, commercial, education, health care, open space and recreational components and that is developed pursuant to a long range, multi-phase master plan providing comprehensive land use planning and staged implementation and development.

2. "Subdivision" means improved or unimproved land or lands divided for the purposes of financing, sale or lease, whether immediate or future, into four or more lots, tracts or parcels of land, or, if a new street is involved, any such property that is divided into two or more lots, tracts or parcels of land, or, any such property, the boundaries of which have been fixed by a recorded plat, which is divided into more than two parts. subdivision includes any condominium, cooperative, community apartment, townhouse or similar project containing four or more parcels, in which an undivided interest in the land is coupled with the right of exclusive occupancy of any unit located thereon, but plats of such projects need not show the buildings or the manner in which the buildings or airspace above the property shown on the plat are to be divided. END_STATUTE

Sec. 6. 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. 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 11-1602, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1602. Regulatory bill of rights

To ensure fair and open regulation by counties, a person:

1. Is eligible for reimbursement of fees and other expenses if the person prevails by adjudication on the merits against a county in a court proceeding regarding a county decision as provided in section 12‑348.

2. Is entitled to receive information and notice regarding inspections as provided in section 11‑1603.

3. Is entitled to have a county not base a licensing decision in whole or in part on licensing conditions or requirements that are not specifically authorized as provided in section 11‑1604.

4. May have a county approve or deny the person's license application within a predetermined period of time as provided in section 11‑1605.

5. Is entitled to receive written or electronic notice from a county on denial of a license application that:

(a) That Justifies the denial with references to the statute, ordinance, regulation, delegation agreement or authorized substantive policy statements on which the denial is based as provided in section 11‑1605.

(b) That Explains the applicant's right to appeal the denial as provided in section 11‑1605.

6. Is entitled to receive information regarding the license application process at the time the person obtains an application for a license as provided in section 11‑1606.

7. May inspect all ordinances, regulations and substantive policy statements of a county, including a directory of documents, at the office of the county or on the county's website as provided in section 11‑1607.

8. Unless specifically authorized, may expect counties to avoid duplication of other laws that do not enhance regulatory clarity and to avoid dual permitting to the maximum extent practicable as provided in section 11‑1604.

9. May file a complaint with the board of supervisors concerning an ordinance, regulation or substantive policy statement that fails to comply with this section.

10. As provided in section 11‑1604, is entitled to have a county not request or initiate discussions about waiving any of the rights prescribed in this section. END_STATUTE

Sec. 9. 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. 10. Section 11-1604, Arizona Revised Statutes, is amended to read:

START_STATUTE11-1604. Prohibited acts by county

A. A county shall not base a licensing decision in whole or in part on a licensing requirement or condition that is not specifically authorized by statute, rule, ordinance or delegation agreement. A general grant of authority does not constitute a basis for imposing a licensing requirement or condition unless the authority specifically authorizes the requirement or condition.

B. Unless specifically authorized, a county shall avoid duplication of other laws that do not enhance regulatory clarity and shall avoid dual permitting to the maximum extent practicable.

C. This section does not prohibit county flexibility to issue licenses or adopt ordinances or codes.

D. A county shall not request or initiate discussions with a person about waiving that person's rights. END_STATUTE

Sec. 11. 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; exemptions; definitions

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.

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 provided that the application is submitted before the time of destruction of the original application file pursuant to section 41‑151.15. 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 either:

1. Issued within seven working days after receipt of the initial application or a permit that expire expires within twenty‑one working days after issuance.

2. Necessary for the construction or development of a residential lot, including swimming pools, hardscape and property walls, subdivisions or master planned community.

N. For the purposes of this section:

2. "Subdivision" means improved or unimproved land or lands divided for the purposes of financing, sale or lease, whether immediate or future, into four or more lots, tracts or parcels of land, or, if a new street is involved, any such property that is divided into two or more lots, tracts or parcels of land, or, any such property, the boundaries of which have been fixed by a recorded plat, which is divided into more than two parts. Subdivision includes any condominium, cooperative, community apartment, townhouse or similar project containing four or more parcels, in which an undivided interest in the land is coupled with the right of exclusive occupancy of any unit located thereon, but plats of such projects need not show the buildings or the manner in which the buildings or airspace above the property shown on the plat are to be divided. END_STATUTE

Sec. 12. 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. 13. 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. 14. Section 48-3642, Arizona Revised Statutes, is amended to read:

START_STATUTE48-3642. Regulatory bill of rights

To ensure fair and open regulation by districts, a person:

1. Is eligible for reimbursement of fees and other expenses if the person prevails by adjudication on the merits against a district in a court proceeding regarding a district decision as provided in section 12‑348.

2. Is entitled to receive information and notice regarding inspections as provided in section 48‑3643.

3. Is entitled to have a district not base a licensing decision in whole or in part on licensing conditions or requirements that are not specifically authorized as provided in section 48‑3644.

4. May have a district approve or deny the person's license application within a predetermined period of time as provided in section 48‑3645.

5. Is entitled to receive written or electronic notice from a district on denial of a license application:

(a) That justifies the denial with references to the statute, ordinance, regulation, executive order, delegation agreement or authorized substantive policy statement on which the denial is based as provided in section 48‑3645.

(b) That explains the applicant's right to appeal the denial as provided in section 48‑3645.

6. Is entitled to receive information regarding the license application process at the time the person obtains an application for a license as provided in section 48‑3646.

7. May inspect all ordinances, regulations and substantive policy statements of a district, including a directory of documents, at the office of the district or a district website as provided in section 48‑3647.

8. Unless specifically authorized, may expect districts to avoid duplication of other laws that do not enhance regulatory clarity and to avoid dual permitting to the maximum extent practicable as provided in section 48‑3644.

9. May file a complaint with the board of review concerning an ordinance, regulation or substantive policy statement that fails to comply with this section.

10. As provided in section 48‑3644, is entitled to have a district not request or initiate discussions about waiving any of the rights prescribed in this section. END_STATUTE

Sec. 15. 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. 16. Section 48-3644, Arizona Revised Statutes, is amended to read:

START_STATUTE48-3644. Prohibited acts by district

A. A district shall not base a licensing decision in whole or in part on a licensing requirement or condition that is not specifically authorized by statute, rule, regulation, ordinance, executive order or delegation agreement. A general grant of authority does not constitute a basis for imposing a licensing requirement or condition unless the authority specifically authorizes the requirement or condition.

B. Unless specifically authorized, a district shall avoid duplication of other laws or executive orders that do not enhance regulatory clarity and shall avoid dual permitting to the maximum extent practicable.

C. This section does not prohibit district flexibility to issue licenses or adopt ordinances or regulations.

D. A district shall not request or initiate discussions with a person about waiving that person's rights. END_STATUTE

Sec. 17. 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; exemptions; definitions

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 or approvals from public utilities on residential or commercial development projects.

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 provided that the application is submitted before the time of destruction of the original application file pursuant to section 41‑151.15. 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 either:

1. Issued within seven working days after receipt of the initial application or a permit that expires within twenty-one working days after issuance.

2. Necessary for the construction or development of a residential lot, including swimming pools, hardscape and property walls, subdivisions or master planned community.

N. For the purposes of this section: