HB2990 rural groundwater management areas; establishment

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HB2990 - 572R - I Ver

REFERENCE TITLE:
rural groundwater management areas; establishment

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2990

Introduced by

Representative
Mathis: Senator Sundareshan

AN
ACT

amending
sections 11-823, 32-2181, 32-2183, 32-2197.08, 33-406, 41-1005, 45-108,
45-108.01 and 45-402, Arizona Revised Statutes; amending title 45, chapter 2,
Arizona Revised Statutes, by adding article 3.1; amending sections 45-453,
45-454, 45-596, 45-597, 45-598, 45-599, 45-601,
45-604, 45-632, 45-635, 45-812.01, 45-831.01, 45-832.01,
45-834.01, 45-841.01, 45-852.01, 45-855.01 and 45-2602, Arizona
Revised Statutes; relating to groundwater.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 11-823, Arizona Revised
Statutes, is amended to read:

START_STATUTE
11-823.

Water supply; adequacy; exemptions

A. To protect the public
health and safety, the general regulations adopted by the board pursuant to
section 11-821, subsection B, if approved by unanimous vote of the board
of supervisors, may provide that, except as provided in subsection
C
d
and subsection
D
e
, paragraph 1 of this section, the board or a county employee
who is

authorized by the adopted county ordinance
shall not approve a final plat for a subdivision composed of subdivided lands,
as defined in section 32-2101, located outside of an active management
area, as defined in section 45-402, unless one of the following applies:

1. The director of water resources has determined
that there is an adequate water supply for the subdivision pursuant to section
45-108 and the subdivider has included the report with the plat.

2. The subdivider has obtained a written commitment
of water service for the subdivision from a city, town or private water company
designated as having an adequate water supply by the director of water
resources pursuant to section 45-108.

B. Except as provided in subsection D of this section and
subsection E, paragraph 1 of this section, if the director of water resources
has given written notice pursuant to section 45-108, subsection h that a rural
groundwater management area council established pursuant to section 45-441.11
has adopted a mandatory adequacy requirement pursuant to section 45-441.13, the
board of supervisors or
a county employee who is authorized
by the adopted county ordinance

may not approve a final
plat for a subdivision composed of subdivided lands as defined in section
32-2101 that are located within a
rural groundwater management area, unless one of the following applies:

1. The
director of water resources has determined that there is an adequate water
supply for the subdivision pursuant to section 45-108 and the subdivider has
included the report with the plat.

2. The
subdivider has obtained a written commitment of water service for the
subdivision from a city, town or private water company designated as having an
adequate water supply by the director of water resources pursuant to section
45-108.

c.
If the board unanimously adopts the provision
authorized by subsection A of this section:

1. The board may include
in the general regulations an exemption from the provision for a subdivision
that the director of water resources has determined will have an inadequate
water supply because the water supply will be transported to the subdivision by
motor vehicle or train if all of the following apply:

(a) The
board determines that there is no feasible alternative water supply for the
subdivision and that the transportation of water to the subdivision will not
constitute a significant risk to the health and safety of the residents of the
subdivision.

(b) If the water to be
transported to the subdivision will be withdrawn or diverted in the service
area of a municipal provider as defined in section 45-561, the municipal
provider has consented to the withdrawal or diversion.

(c) If the water to be
transported is groundwater, the transportation complies with the provisions
governing the transportation of groundwater in title 45, chapter 2, article 8.

(d) The transportation
of water to the subdivision meets any additional conditions imposed by the
county.

2. The board shall
promptly give written notice of the adoption of the provision to the director
of water resources, the director of environmental quality and the state real
estate commissioner.� The notice shall include a certified copy of the
provision and any exemptions adopted pursuant to paragraph 1 of this
subsection. Water providers may be eligible to receive monies in a
water supply development fund, as otherwise provided by law.

3. The board shall not
rescind the provision or amend it in a manner that is inconsistent with
subsection A of this section. If the board amends the provision, it
shall give written notice of the amendment to the director of water resources,
the director of environmental quality and the state real estate
commissioner. The board may rescind an exemption adopted pursuant to
paragraph 1 of this subsection. If the board rescinds the exemption,
it shall give written notice of the rescission to the director of water
resources, the director of environmental quality and the state real estate
commissioner, and the board shall not readopt the exemption for at least five
years after the rescission becomes effective.

4. If the board or a
county employee who is

authorized by the adopted
county ordinance approves a subdivision plat pursuant to subsection A,
paragraph 1 or 2 of this section, the board shall note on the face of the plat
that the director of water resources has reported that the subdivision has an adequate
water supply or that the subdivider has obtained a commitment of water service
for the proposed subdivision from a city, town or private water company
designated as having an adequate water supply pursuant to section 45-108.

5. If the board or a
county employee who is

authorized by the adopted
county ordinance approves a subdivision plat pursuant to an exemption
authorized by paragraph 1 of this subsection or granted by the director of
water resources pursuant to section 45-108.02 or 45-108.03:

(a) The board shall give
written notice of the approval to the director of water resources and the
director of environmental quality.

(b) The board shall include on the face of the plat
a statement that the director of water resources has determined that the water
supply for the subdivision is inadequate and a statement describing the
exemption under which the plat was approved, including a statement that the
board or the director of water resources, whichever applies, has determined
that the specific conditions of the exemption were met. If the
director of water resources subsequently informs the board that the subdivision
is being served by a water provider that has been designated by the director as
having an adequate water supply pursuant to section 45-108, the board
shall record in the county recorder's office a statement disclosing that fact.

d.
Subsection A of this section does not apply to:

1. A proposed subdivision that the director of water
resources has determined will have an inadequate water supply pursuant to
section 45-108 if the director grants an exemption for the subdivision
pursuant to section 45-108.02 and the exemption has not expired or the
director grants an exemption pursuant to section 45-108.03.

2. A proposed subdivision that received final plat
approval from the county before the requirement for an adequate water supply
became effective in the county if the plat has not been materially changed
since it received the final plat approval. If changes were made to
the plat after the plat received the final plat approval, the director of water
resources shall determine whether the changes are material pursuant to the
rules adopted by the director to implement section 45-108.� If the county
approves a plat pursuant to this paragraph and the director of water resources
has determined that there is an inadequate water supply for the subdivision
pursuant to section 45-108, the county shall note this on the face of the
plat.

e.
If
the subdivision is composed of subdivided lands as defined in section 32-2101
outside of an active management area and the board has not adopted a provision
pursuant to subsection A of this section
or the director of the
department of water resources has not provided notice pursuant to section
45-108, subsection H
:

1. If the director of water resources has determined
that there is an adequate water supply for the subdivision pursuant to section
45-108 or if the subdivider has obtained a written commitment of water
service for the subdivision from a city, town or private water company
designated as having an adequate water supply by the director of water
resources pursuant to section 45-108, the board or a county employee who
is

authorized by the adopted county ordinance
shall note this on the face of the plat if the plat is approved.

2. If the director of
water resources has determined that there is an inadequate water supply for the
subdivision pursuant to section 45-108, the board or a county employee
who is

authorized by the adopted county ordinance
shall note this on the face of the plat if the plat is approved.
END_STATUTE

Sec. 2. Section 32-2181, Arizona Revised Statutes, is amended to read:

START_STATUTE
32-2181.

Notice to commissioner of intention to subdivide lands; unlawful
acting in concert; exceptions; deed restrictions; definition

A. Before
offering subdivided lands for sale or lease, the subdivider shall notify the
commissioner in writing of the subdivider's intention.� The notice shall
contain:

1. The name and address of
the owner. If the holder of any ownership interest in the land is
other than an individual, such as a corporation, partnership or trust,
the notice shall contain
a statement naming the type of legal
entity and listing the interest and the extent of any interest of each
principal in the entity. For the purposes of this section,
"principal" means any person or entity having a ten
per
cent
percent
or more financial interest or, if the
legal entity is a trust, each beneficiary of the trust holding a ten
per cent
percent
or more beneficial
interest.

2. The name and address of
the subdivider.

3. The legal description
and area of the land.

4. A true statement of the
condition of the title to the land, including all encumbrances on the land, and
a statement of the provisions agreed to by the holder of any blanket
encumbrance enabling a purchaser to acquire title to a lot or parcel free of
the lien of the blanket encumbrance on completion of all payments and
performance of all of the terms and provisions required to be made or performed
by the purchaser under the real estate sales contract by which the purchaser
has acquired the lot or parcel. The subdivider shall file copies of
documents acceptable to the department containing these provisions with the
commissioner before the sale of any subdivision lot or parcel subject to a
blanket encumbrance.

5. The terms and
conditions on which it is intended to dispose of the land, together with copies
of any real estate sales contract, conveyance, lease, assignment or other
instrument intended to be used, and any other information the owner or the
owner's agent or subdivider desires to present.

6. A map of the
subdivision that has been filed in the office of the county recorder in the
county in which the subdivision is located.

7. A brief but
comprehensive statement describing the land on and the locality in which the
subdivision is located.

8. A statement of the
provisions that have been made for permanent access and provisions, if any, for
health department approved sewage and solid waste collection and disposal and
public utilities in the proposed subdivision, including water, electricity, gas
and telephone facilities.

9. A statement as to the
location of the nearest public common and high schools available for the
attendance of
school age
school-age
pupils
residing on the subdivision property.

10. A statement of the use
or uses for which the proposed subdivision will be offered.

11. A statement of the
provisions, if any, limiting the use or occupancy of the parcels in the
subdivision, together with copies of any restrictive covenants affecting all or
part of the subdivision.

12. The name and business
address of the principal broker selling or leasing, within this state, lots or
parcels in the subdivision.

13. A true statement of
the approximate amount of indebtedness that is a lien on the subdivision or any
part of the subdivision and that was incurred to pay for the construction of
any on-site or off-site improvement, or any community or
recreational facility.

14. A true statement or
reasonable estimate, if applicable, of the amount of any indebtedness that has
been or is proposed to be incurred by an existing or proposed special district,
entity, taxing area or assessment district, within the boundaries of which the
subdivision, or any part of the subdivision, is located, and that is to pay for
the construction or installation of any improvement or to furnish community or
recreational facilities to the subdivision, and which amounts are to be obtained
by ad valorem tax or assessment, or by a special assessment or tax
upon
on
the subdivision or any part of the
subdivision.

15. A true statement as to
the approximate amount of annual taxes, special assessments or fees to be paid
by the buyer for the proposed annual maintenance of common facilities in the
subdivision.

16. A statement of the
provisions for easements for permanent access for irrigation water
where
if
applicable.

17. A true statement of
assurances for the completion of off-site improvements, such as roads,
utilities, community or recreational facilities and other improvements to be
included in the offering or represented as being in the offering, and approval
of the offering by the political subdivision with authority. This
statement shall include a trust agreement or any other evidence of assurances
for delivery of the improvements and a statement of the provisions, if any, for
the continued maintenance of the improvements.

18. A true statement of
the nature of any improvements to be installed by the subdivider, the estimated
schedule for completion and the estimated costs related to the improvements
that will be borne by purchasers of lots in the subdivision.

19. A true statement of
the availability of sewage disposal facilities and other public utilities,
including water, electricity, gas and telephone facilities in the subdivision,
the estimated schedule for their installation, and the estimated costs related
to the facilities and utilities that will be borne by purchasers of lots in the
subdivision.

20. A true statement as to
whether all or any portion of the subdivision is located in an open range or
area in which livestock may roam at large under the laws of this state and what
provisions, if any, have been made for
the
fencing
of
the subdivision to preclude livestock from roaming within the
subdivided lands.

21. If the subdivider is a
subsidiary corporation, a true statement identifying the parent corporation and
any of the following in which the parent or any of its subsidiaries is or has
been involved within the past five years:

(a) Any subdivision in this state.

(b) Any subdivision, wherever located, for which
registration is required pursuant to the federal interstate land sales full
disclosure act.

(c) Any subdivision, wherever located, for which
registration would have been required pursuant to the federal interstate land
sales full disclosure act but for the exemption for subdivisions whose lots are
all twenty acres or more in size.

22. A true statement
identifying all other subdivisions, designated in paragraph 21 of this
subsection, in which any of the following is or, within the last five years,
has been directly or indirectly involved:

(a) The holder of any
ownership interest in the land.

(b) The subdivider.

23. A true statement as to
whether all or any portion of the subdivision is located in territory in the
vicinity of a military airport or ancillary military facility as defined in
section 28-8461, in territory in the vicinity of a public airport as
defined in section 28-8486, on or after July 1, 2001, in a high noise or
accident potential zone as defined in section 28-8461 or on or after July
1 of the year in which the subdivision becomes located in a high noise or
accident potential zone.� The statement required pursuant to this paragraph
does not require the amendment or refiling of any notice filed before July 1,
2001 or before July 1 of the year in which the subdivision becomes located in a
high noise or accident potential zone.

24. If the subdivision is
a conversion from multifamily rental to condominiums as defined in section 33-1202,
a true statement as to the following:

(a) That the property is a conversion from
multifamily rental to condominiums.

(b) The date original construction was completed.

25. Other information and
documents and certifications as the commissioner may reasonably require
,

provided
except

that the subdivider shall not be required to disclose any critical
infrastructure information as defined in section 41-1801 or any
information contained in a report issued pursuant to section 41-4273.

B. The commissioner, on
application, may grant a subdivider of lots or parcels within a subdivision for
which a public report was previously issued by the commissioner an exemption
from all or part of the notification requirements of subsection A of this
section.� The subdivider shall file a statement with the commissioner
indicating the change of ownership in the lots or parcels together with any
material changes occurring subsequent to the original approval of the
subdivision within which the lots or parcels are located. The
statement shall further refer to the original approval by the commissioner.

C. If the subdivision is
within an active management area, as defined in section 45-402, the
subdivider shall accompany the notice with a certificate of assured water
supply issued by the director of water resources along with proof that all
applicable fees have been paid pursuant to sections 48-3772 and 48-3774.01,
unless the subdivider has obtained a written commitment of water service for
the subdivision from a city, town or private water company designated as having
an assured water supply by the director of water resources pursuant to section
45-576 or is exempt from the requirement pursuant to section 45-576.�
If the subdivider has submitted a certificate of assured water supply to a
city, town or county
prior to

before
approval
of the plat by the city, town or county and this has been noted on the face of
the plat, the submission constitutes compliance with this subsection if the
subdivider provides proof to the commissioner that all applicable fees have
been paid pursuant to sections 48-3772 and 48-3774.01.

D. It is unlawful for a
person or group of persons acting in concert to attempt to avoid this article
by acting in concert to divide a parcel of land or sell subdivision lots by
using a series of owners or conveyances or by any other method that ultimately
results in the division of the lands into a subdivision or the sale of
subdivided land.� The plan or offering is subject to this
article. Unlawful acting in concert pursuant to this subsection with
respect to the sale or lease of subdivision lots requires proof that the real
estate licensee or other licensed professional knew or with the exercise of
reasonable diligence should have known that property
which
that
the licensee listed or for which the licensee acted in
any capacity as agent was subdivided land subject to this article.� A familial
relationship alone is not sufficient to constitute unlawful acting in concert.

E. A creation of six or
more lots, parcels or fractional interests in improved or unimproved land, lots
or parcels of any size is subject to this article except when:

1. Each of the lots,
parcels or fractional interests represents, on a partition basis, thirty-six
acres or more in area of land located in this state, including to the
centerline of dedicated roads or easements, if any, contiguous to the land in
which the interests are held.

2. The lots, parcels or
fractional interests are the result of a foreclosure sale, the exercise by a
trustee under a deed of trust of a power of sale or the grant of a deed in lieu
of foreclosure. This paragraph does not allow circumvention of the
requirements of this article.

3. The lots, parcels or
fractional interests are created by a valid order or decree of a court pursuant
to and through compliance with title 12, chapter 8, article 7 or by operation
of law. This paragraph does not allow circumvention of the
requirements of this article.

4. The lots, parcels or
fractional interests consist of interests in any oil, gas or mineral lease,
permit, claim or right therein and such interests are regulated as securities
by the United States or by this state.

5. The lots, parcels or
fractional interests are registered as securities under the laws of the United
States or the laws of this state or are exempt transactions under section 44-1844,
44-1845 or 44-1846.

6. The commissioner by
special order exempts offerings or dispositions of any lots, parcels or
fractional interests from compliance with this article on written petition and
on a showing satisfactory to the commissioner that compliance is not essential
to the public interest or for the protection of buyers.

7. A sale or lease of a
lot, parcel or fractional interest occurs ten or more years after the sale or
lease of another lot, parcel or fractional interest and the other lot, parcel
or fractional interest is not subject to this article and is treated as an
independent parcel unless,
upon
on

investigation by the commissioner, there is evidence of intent to subdivide.

F. In areas outside of
active management areas established pursuant to title 45, chapter 2, article 2:

1. If the subdivision is
located in a county that has adopted the provision authorized by section 11-823,
subsection A,
in a rural GROUNDWATER management area for which a
rural groundwater management area council has adopted a mandatory adequacy
REQUIREMENT PURSUANT to section 45-441.13
or in a city or town
that has enacted an ordinance pursuant to section 9-463.01, subsection O,
the subdivider shall accompany the notice with a report issued by the director
of water resources pursuant to section 45-108 stating that the
subdivision has an adequate water supply, unless one of the following applies:

(a) The subdivider
submitted the report to a city, town or county before approval of the plat by
the city, town or county and this has been noted on the face of the plat.

(b) The subdivider has
obtained a written commitment of water service for the subdivision from a city,
town or private water company designated as having an adequate water supply by
the director of water resources pursuant to section 45-108.

(c) The plat was approved
pursuant to an exemption authorized by section 9-463.01, subsection K,
pursuant to an exemption authorized by section 11-823, subsection
B

C
, paragraph 1, pursuant to an
exemption granted by the director of water resources under section 45-108.02
and the exemption has not expired or pursuant to an exemption granted by the
director under section 45-108.03.� If the plat was approved pursuant to
an authorized exemption, the state real estate commissioner shall require that
all promotional material and contracts for the sale of lots in the subdivision
adequately display the following:

(i) The director of water
resources' report or the developer's brief summary of the report as approved by
the commissioner

on
the proposed water supply for the subdivision.

(ii) A statement
describing the exemption under which the subdivision was approved, including
the specific conditions of the exemption that were met.� If the plat was
approved by the legislative body of a city or town pursuant to an exemption
authorized by section 9-463.01, subsection K or by the board of
supervisors of a county pursuant to an exemption authorized by section 11-823,
subsection
B

C
, paragraph 1,
the

subdivider
shall record the document required by section 33-406.

(d) The subdivision
received final plat approval from the city, town or county before the
requirement for an adequate water supply became effective in the city, town or
county, and there have been no material changes to the plat since the final
plat approval. If changes were made to the plat after the final plat
approval, the director of water resources shall determine whether the changes
are material pursuant to the rules adopted by the director to implement section
45-108. If this subdivision applies, the state real estate
commissioner shall require that all promotional materials and contracts for the
sale of lots in the subdivision adequately display the director of water
resources' report or the developer's brief summary of the report as approved by
the commissioner on the proposed water supply for the subdivision.

2. If the subdivision is
not located in a county that has adopted the provision authorized by section 11-823,
subsection A,
in a rural groundwater management area in which a
rural groundwater management area council has adopted a mandatory adequacy
REQUIREMENT PURSUANT to section 45-441.13
or in a city or town
that has enacted an ordinance pursuant to section 9-463.01, subsection O,
and if the director of water resources, pursuant to section 45-108,
reports an inadequate on-site supply of water to meet the needs projected
by the developer or if no water is available, the state real estate
commissioner shall require that all promotional material and contracts for the
sale of lots in subdivisions approved by the commissioner adequately display
the director of water resources' report or the developer's brief summary of the
report as approved by the commissioner on the proposed water supply for the
subdivision.

G. The commissioner may
require the subdivider to supplement the notice of intention to subdivide lands
and may require the filing of periodic reports to update the information
contained in the original notice of intention to subdivide lands.

H. The commissioner may
authorize the subdivider to file as the notice of intention to subdivide lands,
in lieu of some or all of the requirements of subsection A of this section, a
copy of the statement of record filed with respect to the subdivision pursuant
to the federal interstate land sales full disclosure act if the statement
complies with the requirements of the act and the regulations pertinent to the
act.

I.
Neither

A real estate sales contract, conveyance, lease, assignment or other instrument
to transfer any interest in subdivided land
nor
and
any covenant or restriction affecting real property shall
not
contain any provision limiting the right of any party to
appear or testify in support of or opposition to zoning changes, building
permits or any other official acts affecting real property before a
governmental body or official considering zoning changes, building permits or
any other official acts affecting real property, whether the property is
located within or outside of the boundaries of the subdivision. All
contractual provisions that conflict with this subsection are declared to be
contrary to public policy.�
Nothing contained in
This
subsection
shall
does not
prohibit
private restrictions on the use of any real property.

J. Before offering
subdivided lands for lease or sale, the subdivider who makes any promises
through any form of advertising media that the subdivided lands will be
exclusively a retirement community or one that is limited to the residency of adults
or senior citizens shall include the promises in the deed restrictions
affecting any interest in real property within the subdivided lands.

K. Except as otherwise
provided in this section, a subdivider
shall
is
not
be
required to disclose items that
are over one mile

from the subdivision boundaries.� The
existence of foreign nations or tribal lands shall also be disclosed if located
within the one mile

radius of the subdivision boundaries.

END_STATUTE

Sec. 3. Section 32-2183, Arizona Revised
Statutes, is amended to read:

START_STATUTE
32-2183.

Subdivision public reports; denial of issuance; unlawful sales;
voidable sale or lease; order prohibiting sale or lease; investigations;
hearings; summary orders

A. On examination of a
subdivision, the commissioner, unless there are grounds for denial, shall issue
to the subdivider a public report authorizing the sale or lease in this state
of the lots, parcels or fractional interests within the subdivision.� The
report shall contain the data obtained in accordance with section 32-2181
and any other information that the commissioner determines is necessary to
implement the purposes of this article. If any of the lots, parcels
or fractional interests within the subdivision are located within territory in
the vicinity of a military airport or ancillary military facility as defined in
section 28-8461, under a military training route as delineated in the
military training route map prepared pursuant to section 37-102
,
in a military installation or range or Arizona national guard
site influence area as delineated in the maps prepared pursuant to section 37-102,
subsection H, paragraph 4, under restricted air space as delineated in the
restricted air space map prepared pursuant to section 37-102 or contained
in the military electronics range as delineated in the military electronics
range map prepared pursuant to section 37-102, the report shall include,
in bold twelve-point font block letters on the first page of the report,
the statements required pursuant to section 28-8484, subsection A,
section 32-2183.05 or section 32-2183.06 and, if the department has
been provided a map prepared pursuant to section 28-8484, subsection B or
section 37-102, the report shall include a copy of the
map. The military airport report requirements do not require the
amendment or reissuance of any public report issued on or before December 31,
2001 or on or before December 31 of the year in which the lots, parcels or
fractional interests within a subdivision become territory in the vicinity of a
military airport or ancillary military facility. The military
training route report requirements do not require the amendment or reissuance
of any public report issued on or before December 31, 2004. �The restricted air
space report requirements do not require the amendment or reissuance of any
public report issued on or before December 31, 2006. The military
electronics range report requirements do not require the amendment or
reissuance of any public report issued on or before December 31, 2008.
A
Military installation or range or Arizona national guard
site report requirements do not require the amendment or reissuance of any
public report issued on or before December 31, 2024. The
commissioner shall require the subdivider to reproduce the report, make the
report available to each initial prospective customer and furnish each initial
buyer or lessee with a copy before the buyer or lessee signs any offer to
purchase or lease, taking a receipt therefor.

B. This section does not require a public report
issued sixty or fewer days before the filing of the military electronics range
map or the military installation or range or Arizona national guard site
influence area map prepared pursuant to section 37-102 to meet the
military electronics range or military installation or range or Arizona
national guard site notification requirements of this section.

C. A public report issued
sixty-one or more days after the filing of the military electronics range map
or the military installation or range or Arizona national guard site influence
area map prepared pursuant to section 37-102 shall meet all of the
requirements of subsection A of this section.

D. Notwithstanding
subsection A of this section, a subdivider may elect to prepare a final public
report for use in the sale of improved lots as defined in section 32-2101,
as follows:

1. The subdivider shall
prepare the public report and provide a copy of the report to the commissioner
with the submission of the notification required by sections 32-2181 and
32-2184 and shall comply with all other requirements of this article.

2. An initial filing fee
of $500 or an amended filing fee of $250 shall accompany the notification
required by paragraph 1 of this subsection.

3. The department shall
assign a registration number to each notification and public report submitted
pursuant to this subsection and shall maintain a database of all of these
submissions.� The subdivider shall place the number on each public report.

4. On receipt of the
notification and public report, the department shall review and issue within
ten business days either a certification that the notification and public
report are administratively complete or a denial letter if it appears that the
application or project is not in compliance with all legal requirements, that
the applicant has a background of violations of state or federal law or that
the applicant or project presents an unnecessary risk of harm to the
public. If the commissioner has received the notification and public
report but has not issued a certification or a denial letter within ten
business days pursuant to this paragraph, the notification and public report
are administratively complete.

5. A subdivider may
commence sales or leasing activities as
permitted

allowed
under this article after obtaining a certificate of
administrative completeness from the commissioner.

6. Before or after the
commissioner issues a certificate of administrative completeness or, if
applicable, after the notification and public report are deemed to be
administratively complete pursuant to paragraph 4 of this subsection, the department
may examine any public report, subdivision or applicant that has applied for or
received the certificate. If the commissioner determines that the
subdivider or subdivision is not in compliance with any requirement of state
law or that grounds exist under this chapter to suspend, deny or revoke a
public report, the commissioner may commence an administrative action under
section 32-2154 or 32-2157.� If the subdivider immediately corrects
the deficiency and comes into full compliance with state law, the commissioner
shall vacate any action that the commissioner may have commenced pursuant to
section 32-2154 or 32-2157.

7. The department shall
provide forms and guidelines for the submission of the notification and public
report pursuant to this section.

E. The commissioner may
suspend, revoke or deny issuance of a public report on any of the following
grounds:

1. Failure to comply with
this article or the rules of the commissioner pertaining to this article.

2. The sale or lease would
constitute misrepresentation to or deceit or fraud of the purchasers or
lessees.

3. Inability to deliver
title or other interest contracted for.

4. Inability to
demonstrate that adequate financial or other arrangements acceptable to the
commissioner have been made for completion of all streets, sewers, electric,
gas and water utilities, drainage and flood control facilities, community and
recreational facilities and other improvements included in the offering.

5. Failure to make a
showing that the lots, parcels or fractional interests can be used for the
purpose for which they are offered.

6. The owner, agent,
subdivider, officer, director or partner, subdivider trust beneficiary holding
ten percent or more direct or indirect beneficial interest or, if a
corporation, any stockholder owning ten percent or more of the stock in the
corporation has:

(a) Been convicted of a
felony or misdemeanor involving fraud or dishonesty or involving conduct of any
business or a transaction in real estate, cemetery property, timeshare
intervals or membership camping campgrounds or contracts.

(b) Been permanently or
temporarily enjoined by order, judgment or decree from engaging in or
continuing any conduct or practice in connection with the sale or purchase of
real estate or cemetery property, timeshare intervals, membership camping
contracts or campgrounds, or securities or involving consumer fraud or the
racketeering laws of this state.

(c) Had an administrative
order entered against the person by a real estate regulatory agency or security
regulatory agency.

(d) Had an adverse
decision or judgment entered against the person involving fraud or dishonesty
or involving the conduct of any business or transaction in real estate,
cemetery property, timeshare intervals or membership camping campgrounds or
contracts.

(e) Disregarded or
violated this chapter or the rules of the commissioner pertaining to this
chapter.

(f) Controlled an entity
to which subdivision (b), (c), (d) or (e)
of this paragraph
applies.

7. Procurement or an
attempt to procure a public report by fraud, misrepresentation or deceit or by
filing an application for a public report that is materially false or
misleading.

8. Failure of the
declaration for a condominium created pursuant to title 33, chapter 9, article
2 to comply with the requirements of section 33-1215 or failure of the
plat for the condominium to comply with the requirements of section 33-1219. The
commissioner may require an applicant for a public report to submit a notarized
statement signed by the subdivider or an engineer or attorney licensed to
practice in this state certifying that the condominium plat and declaration of condominium
are in compliance with the requirements of sections 33-1215 and 33-1219.�
If the notarized statement is provided, the commissioner is entitled to rely on
this statement.

9. Failure of any blanket
encumbrance or valid supplementary agreement executed by the holder of the
blanket encumbrance to contain provisions that enable the purchaser to acquire
title to a lot or parcel free of the lien of the blanket encumbrance, on
completion of all payments and performance of all of the terms and provisions
required to be made or performed by the purchaser under the real estate sales
contract by which the purchaser has acquired the lot or parcel. The
subdivider shall file copies of documents acceptable to the commissioner
containing these provisions with the commissioner before the sale of any
subdivision lot or parcel subject to a blanket encumbrance.

10. Failure to demonstrate
permanent access to the subdivision lots or parcels.

11. The use of the lots
presents an unreasonable health risk.

F. It is unlawful for a
subdivider to sell any lot in a subdivision unless one of the following occurs:

1. All proposed or
promised subdivision improvements are completed.

2. The completion of all
proposed or promised subdivision improvements is assured by financial
arrangements acceptable to the commissioner. The financial
arrangements may be made in phases for common community and recreation facilities
required by a municipality or county as a stipulation for approval of a plan
for a master planned community.

3. The municipal or county
government agrees to prohibit occupancy and the subdivider agrees not to close
escrow for lots in the subdivision until all proposed or promised subdivision
improvements are completed.

4. The municipal or county
government enters into an assurance agreement with any trustee not to convey
lots until improvements are completed within the portion of the subdivision
containing these lots, if the improvements can be used and maintained
separately from the improvements required for the entire subdivision
plat. The agreement shall be recorded in the county in which the
subdivision is located.

G. If the subdivision is
within an active management area, as defined in section 45-402, the
commissioner shall deny issuance of a public report or the use of any exemption
pursuant to section 32-2181.02, subsection B unless the subdivider has
been issued a certificate of assured water supply by the director of water
resources and has paid all applicable fees pursuant to sections 48-3772
and 48-3774.01, or unless the subdivider has obtained a written
commitment of water service for the subdivision from a city, town or private
water company designated as having an assured water supply by the director of
water resources pursuant to section 45-576 or is exempt from the
requirement pursuant to section 45-576.

H. In areas outside of
active management areas, if the subdivision is located in a county that has
adopted the provision authorized by section 11-823, subsection A,
in a rural GROUNDWATER management area in which a rural groundwater
management area council has adopted a mandatory adequacy REQUIREMENT PURSUANT
to section 45-441.13
or in a city or town that has enacted an
ordinance pursuant to section 9-463.01, subsection O, the commissioner
shall deny issuance of a public report or the use of any exemption pursuant to
section 32-2181.02, subsection B unless one of the following applies:

1. The director of water
resources has reported pursuant to section 45-108 that the subdivision
has an adequate water supply.

2. The subdivider has
obtained a written commitment of water service for the subdivision from a city,
town or private water company designated as having an adequate water supply by
the director of water resources pursuant to section 45-108.

3. The plat was approved
pursuant to an exemption authorized by section 9-463.01, subsection K,
pursuant to an exemption authorized by section 11-823, subsection
B

4. The subdivision
received final plat approval from the city, town or county before the
requirement for an adequate water supply became effective in the city, town or
county, and there have been no material changes to the plat since the final
plat approval. If changes were made to the plat after the final plat
approval, the director of water resources shall determine whether the changes
are material pursuant to the rules adopted by the director to implement section
45-108.

I. A subdivider shall not
sell or lease or offer for sale or lease in this state any lots, parcels or
fractional interests in a subdivision without first obtaining a public report
from the commissioner except as provided in section 32-2181.01 or 32-2181.02,
and a certificate of administrative completeness issued pursuant to this
section. Unless exempt, the sale or lease of subdivided lands before
issuance of the public report or failure to deliver the public report to the
purchaser or lessee shall render the sale or lease rescindable by the purchaser
or lessee.� An action by the purchaser or lessee to rescind the transaction
shall be brought within three years after the date of execution of the purchase
or lease agreement by the purchaser or lessee. In any rescission
action, the prevailing party is entitled to reasonable attorney fees as
determined by the court.

J. On a print
advertisement in a magazine or newspaper or on an internet advertisement that
advertises a specific lot or parcel of a subdivider, the subdivider shall
include a disclosure stating that "a public report is available on the state
real estate department's website".

K. Any applicant objecting
to the denial of a public report, within thirty days after receipt of the order
of denial, may file a written request for a hearing. The
commissioner shall hold the hearing within twenty days after receipt of the
request for a hearing unless the party requesting the hearing has requested a
postponement. If the hearing is not held within twenty days after a
request for a hearing is received, plus the period of any postponement, or if a
proposed decision is not rendered within forty-five days after
submission, the order of denial shall be rescinded and a public report issued.

L. On the commissioner's
own motion, or when the commissioner has received a complaint and has
satisfactory evidence that the subdivider or the subdivider's agent is
violating this article or the rules of the commissioner or has engaged in any
unlawful practice as defined in section 44-1522 with respect to the sale
of subdivided lands or deviated from the provisions of the public report, the
commissioner may investigate the subdivision project and examine the books and
records of the subdivider. For the purpose of examination, the subdivider shall
keep and maintain records of all sales transactions and funds received by the
subdivider pursuant to the sales transactions and shall make them accessible to
the commissioner on reasonable notice and demand.

M. On the commissioner's
own motion, or when the commissioner has received a complaint and has
satisfactory evidence that any person has violated this article or the rules of
the commissioner or has engaged in any unlawful practice as defined in section
44-1522 with respect to the sale of subdivided lands or deviated from the
provisions of the public report or special order of exemption, or has been
indicted for fraud or against whom an information for fraud has been filed or
has been convicted of a felony, before or after the commissioner issues the
public report as provided in subsection A of this section, the commissioner may
conduct an investigation of the matter, issue a summary order as provided in
section 32-2157, or provide notice and hold a public hearing and, after
the hearing, may issue the order or orders the commissioner deems necessary to
protect the public interest and ensure compliance with the law, rules or public
report or the commissioner may bring action in any court of competent jurisdiction
against the person to enjoin the person from continuing the violation or
engaging in or doing any act or acts in furtherance of the
violation. The court may make orders or judgments, including the
appointment of a receiver,
that are
necessary to prevent
the use or employment by a person of any unlawful practices, or
which

that
may be necessary to restore to any person in
interest any monies or property, real or personal, that may have been acquired
by means of any practice in this article declared to be unlawful.

N. When it appears to the
commissioner that a person has engaged in or is engaging in a practice declared
to be unlawful by this article and that the person is concealing assets or self
or has made arrangements to conceal assets or is about to leave the state, the
commissioner may apply to the superior court, ex parte, for an order appointing
a receiver of the assets of the person or for a writ of ne exeat, or both.

O. The court, on receipt of an application for the
appointment of a receiver or for a writ of ne exeat, or both, shall examine the
verified application of the commissioner and other evidence that the
commissioner may present the court. If satisfied that the interests
of the public require the appointment of a receiver or the issuance of a writ
of ne exeat without notice, the court shall issue an order appointing the
receiver or issue the writ, or both.� If the court determines that the
interests of the public will not be harmed by the giving of notice, the court
shall set a time for a hearing and require notice be given as the court deems
satisfactory.

P. If the court appoints a receiver without notice,
the court shall further direct that a copy of the order appointing a receiver
be served on the person engaged in or engaging in a practice declared to be
unlawful under this article by delivering the order to the last address of the
person that is on file with the state real estate department. The
order shall inform the person that the person has the right to request a
hearing within ten days after the date of the order and, if requested, the
hearing shall be held within thirty days after the date of the order.
END_STATUTE

Sec. 4. Section 32-2197.08, Arizona Revised
Statutes, is amended to read:

START_STATUTE
32-2197.08.

Issuance of public report and amended public report by
commissioner on timeshare plan; denial of issuance; additional information; use
of another state's public report

A. On examination of a timeshare plan, the
commissioner, unless there are grounds for denial, shall approve for use by the
developer a public report authorizing the sale or lease of the timeshare
interests within the timeshare plan. For all timeshare interests
sold in this state, the commissioner shall require the developer to reproduce
the public report and furnish each prospective customer with a copy, taking a
receipt for each copy. The public report shall be made available to
each prospective purchaser in written format either by electronic means or in
hard copy.� The public report shall include the following:

1. The name and principal address of the owner and
developer.

2. A description of the type of timeshare interests
being offered.

3. A description of the existing and proposed
accommodations and amenities of the timeshare plan, including type and number,
any use restrictions and any required fees for use.

4. A description of any accommodations and amenities
that are committed to be built, including:

(a) The developer's schedule of commencement and
completion of all accommodations and amenities.

(b) The estimated number of accommodations per site
that may become subject to the timeshare plan.

5. A brief description of the duration, phases and
operation of the timeshare plan.

6. The current annual budget if available or the
projected annual budget for the timeshare plan.� The budget shall include:

(a) A statement of the amount or a statement that
there is no amount included in the budget as a reserve for repairs and
replacement.

(b) The projected common expense liability, if any,
by category of expenditures for the timeshare plan.

(c) A statement of any services or expenses that are
not reflected in the budget and that the developer provides or pays.

7. A description of any liens, defects or
encumbrances on or affecting the title to the timeshare interests.

8. A statement that by midnight of the tenth
calendar day after execution of the purchase agreement a purchaser may cancel
any purchase agreement for a timeshare interest from a developer together with
a statement providing the name and street address where the purchaser should
mail any notice of cancellation.� If, by agreement of the parties through the
purchase agreement, the purchase agreement allows for cancellation of the
purchase agreement for a period of time exceeding ten calendar days, the public
report shall include a statement that the cancellation of the purchase
agreement is allowed for that period of time exceeding ten calendar days.

9. A description of any bankruptcies, pending suits,
adjudications or disciplinary actions material to the timeshare interests of
which the developer has knowledge.

10. Any restrictions on alienation of any number or
portion of any timeshare interests.

11. Any current or expected fees or charges to be
paid by timeshare purchasers for the use of any amenities related to the
timeshare plan.

12. The extent to which financial arrangements have
been provided for completion of all promised improvements.

13. If the timeshare plan provides purchasers with
the opportunity to participate in any exchange programs, a description of the
name and address of the exchange companies and the method by which a purchaser
accesses the exchange programs.

14. Any other information that the developer, with
the approval of the commissioner, desires to include in the public report.

15. If the developer is offering a multisite
timeshare plan, the following information, which may be disclosed in a written,
graphic or tabular form:

(a) A description of each component site, including
the name and address of each component site.

(b) The number of accommodations and timeshare
periods, expressed in periods of use availability, committed to the multisite
timeshare plan and available for use by purchasers.

(c) Each type of accommodation in terms of the
number of bedrooms, bathrooms and sleeping capacity and a statement of whether
or not the accommodation contains a full kitchen. For the purposes
of this subdivision, "full kitchen" means a kitchen having a minimum
of a dishwasher, range, oven, sink and refrigerator.

(d) A description of amenities available for use by
the purchaser at each component site.

(e) A description of the reservation system,
including the following:

(i) The entity responsible for operating the
reservation system.

(ii) A summary of the rules governing access to and
use of the reservation system.

(iii) The existence of and an explanation regarding
any priority reservation features that affect a purchaser's ability to make
reservations for the use of a given accommodation on a first-reserved,
first-served basis.

(f) A description of any right to make any
additions, substitutions or deletions of accommodations or amenities and a
description of the basis on which accommodations and amenities may be added to,
substituted in or deleted from the multisite timeshare plan.

(g) A description of the purchaser's liability for
any fees associated with the multisite timeshare plan.

(h) The location and the anticipated relative use
demand of each component site in a multisite timeshare plan as well as any
periodic adjustment or amendment to the reservation system that may be needed
in order to respond to actual purchaser use patterns and changes in purchaser
use demand for the accommodations existing at the time within the multisite
timeshare plan.

(i) Any other information reasonably required by the
commissioner or established by rule that is necessary for the protection of
purchasers of timeshare interests in timeshare plans.

(j) Any other information that the developer, with
the approval of the commissioner, desires to include in the public report.

16. If a developer offers a nonspecific timeshare
interest in a multisite timeshare plan, the information set forth in paragraphs
1 through 14 of this subsection as to each component site.

17. Any other information that the commissioner
determines or establishes by rule is necessary to implement the purpose of this
article.

B. Except as otherwise provided in this subsection,
the requirements prescribed by subsection A of this section apply to a
developer's application for approval to use an amended public report for the
sale of timeshare interests in a timeshare plan, including an amended public
report to disclose and address a material change under section 32-2197.04. A
developer may elect to prepare an amended public report for use in the sale of
timeshare interests as follows:

1. The developer shall prepare the amended public
report and provide a copy of the report to the commissioner with the submission
of the application for an amended public report, including any notification
required by section 32-2197.04, and shall comply with all other
requirements of this article.

2. An amendment filing fee established pursuant to
section 32-2197.07 shall accompany the application prescribed by
paragraph 1 of this subsection.

3. On receipt of the application and amended public
report, the department shall review and, within fifteen business days if the
amendment adds less than six new component sites to the timeshare plan or
within thirty calendar days if the amendment adds six or more new component
sites to the timeshare plan, issue either a certification that the application
and amended public report are administratively complete or a denial letter if
it appears that the application, amended public report or timeshare plan is not
in compliance with all legal requirements, that the applicant has a background
of violations of state or federal law or that the applicant or timeshare plan
presents an unnecessary risk of harm to the public. If the
commissioner has received the application and amended public report but has not
issued a certification or a denial letter within the required time period, the
application and amended public report are deemed administratively complete.

4. The developer may commence sales or leasing
activities as allowed under this article using an amended public report when
the commissioner issues a certification of administrative completeness or as of
the date the application and amended public report are deemed administratively
complete pursuant to paragraph 3 of this subsection.� The certification may be
issued on paper or electronically.

5. Before or after the commissioner issues a
certification of administrative completeness or, if applicable, after the
application and amended public report are deemed to be administratively
complete pursuant to paragraph 3 of this subsection, the department may examine
any public report, timeshare plan or applicant that has applied for or received
the certification. If the commissioner determines that the public
report, timeshare plan or applicant is not in compliance with any requirement
of state law or that grounds exist under this chapter to suspend, deny or
revoke a public report, the commissioner may commence an administrative action
under section 32-2154, 32-2157 or 32-2197.14. If
the developer immediately corrects the deficiency and fully complies with state
law, the commissioner shall promptly vacate any action that the commissioner
may have commenced pursuant to section 32-2154, 32-2157 or 32-2197.14.

6. The department shall provide forms and guidelines
for the submission of the application and amended public report pursuant to
this subsection.

C. In the event of denial, suspension or revocation,
grounds shall be set forth in writing at the time of denial, suspension or
revocation. The commissioner may deny, suspend or revoke the public report on
any of the following grounds:

1. Failure to comply with this article or the rules
of the commissioner pertaining to this article.

2. The sale or lease would constitute
misrepresentation to or deceit or fraud of the purchasers or lessees.

3. Inability to demonstrate that adequate financial
or other arrangements acceptable to the commissioner have been made for
completion of the timeshare property, installation of all streets, sewers,
electric, gas and water utilities, drainage, flood control and other similar
improvements included in the offering.

4. The developer, including if an entity, an
officer, director, member, manager, partner, owner, trust beneficiary holding
ten percent or more beneficial interest, stockholder owning ten percent or more
of the stock or other person exercising control of the entity, has:

(a) Been convicted of a felony or misdemeanor
involving theft, fraud or dishonesty or involving the conduct of any business
or a transaction in real estate, cemetery property, timeshare interests or
membership camping campgrounds or contracts.

(b) Been permanently or temporarily enjoined by
order, judgment or decree from engaging in or continuing any conduct or
practice in connection with the sale or purchase of real estate, cemetery
property, timeshare interests, membership camping campgrounds or contracts, or
securities or involving consumer fraud or the
Arizona

racketeering laws
of this state
.

(d) Had an adverse decision or judgment entered
against him involving fraud or dishonesty or involving the conduct of any
business in or a transaction in real estate, cemetery property, timeshare
interests or membership camping campgrounds or contracts.

(e) Disregarded or violated this chapter or the
rules of the commissioner pertaining to this chapter.

(f) Participated in, operated or held an interest in
any entity to which subdivision (b), (c), (d), or (e) of this paragraph
applies.

5. If within this state, the timeshare property is
incompatible with the existing neighborhood and would introduce into a
neighborhood a character of property or use that would clearly be detrimental
to property values in that neighborhood.

D. If the timeshare property is within an active
management area, as defined in section 45-402, the commissioner shall
deny issuance of a public report unless the developer has been issued a
certificate of assured water supply by the director of water resources and has
paid all applicable fees pursuant to sections 48-3772 and 48-3774.01,
or unless the developer has obtained a written commitment of water service for
the timeshare property from a city, town or private water company designated as
having an assured water supply by the director of water resources pursuant to
section 45-576.

E. In areas outside of active management areas, if
the timeshare property is located in a county that has adopted the provision
authorized by section 11-823, subsection A,
in a rural
GROUNDWATER management area in which a rural groundwater management area
council has adopted a mandatory adequacy REQUIREMENT PURSUANT to section 45-441.13

or in a city or town that has enacted an ordinance pursuant to section 9-463.01,
subsection O, the commissioner shall deny issuance of a public report unless
one of the following applies:

1. The director of water resources has reported
pursuant to section 45-108 that the timeshare property has an adequate
water supply.

2. The developer has obtained a written commitment
of water service for the timeshare property from a city, town or private water
company designated as having an adequate water supply by the director of water
resources pursuant to section 45-108.

3. The timeshare property was approved pursuant to
an exemption authorized by section 9-463.01, subsection K, pursuant to an
exemption authorized by section 11-823, subsection
B

4. The subdivision received final plat approval from
the city, town or county before the requirement for an adequate water supply
became effective in the city, town or county, and there have been no material
changes to the plat since the final plat approval.� If changes were made to the
plat after the final plat approval, the director of water resources shall
determine whether the changes are material pursuant to the rules adopted by the
director to implement section 45-108.

F. In addition to providing to each prospective
customer a copy of the public report as required in subsection A of this
section, the developer shall also provide to each customer before the close of
any transaction information and materials that identify any timeshare exchange
companies currently under contract and disclosure statements regarding the use
of the timeshare exchange companies, as well as any additional information the
commissioner deems appropriate.

G. The commissioner may authorize for use in this
state by a developer of a timeshare plan in which all accommodations are
located outside of this state a current public report that is issued by another
jurisdiction or an equivalent registration and disclosure document that is
required before offering a timeshare plan for sale, lease or use and that is
issued by another jurisdiction.� This authorization does not constitute an
exemption from other applicable requirements of this article.
END_STATUTE

Sec. 5. Section 33-406, Arizona Revised
Statutes, is amended to read:

START_STATUTE
33-406.

Disclosure of transportation of water to property; definition

A. Notwithstanding section 33-411, subsection
D, a subdivider who sells a lot that was included in a plat approved by the
legislative body of a city or town pursuant to an exemption authorized by
section 9-463.01, subsection K or by the board of supervisors of a county
pursuant to an exemption authorized by section 11-823, subsection
B
c
, paragraph 1 shall record with
the plat a document that contains a legal description of the land that is
subject to the subdivision plat and that contains a statement that the lots are
served by a water supply that has been determined as inadequate and that the
water must be hauled to the lot.

B. For the purposes of this section,
"subdivider" has the same meaning as prescribed in section 32-2101.

END_STATUTE

Sec. 6. Section 41-1005, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1005.

Exemptions

A. This chapter does not apply to any:

1. Rule that relates to the use of public works,
including streets and highways, under the jurisdiction of an agency if the
effect of the order is indicated to the public by means of signs or signals.

2. Order or rule of the Arizona game and fish
commission that does the following:

(a) Opens, closes or alters seasons or establishes
bag or possession limits for wildlife.

(b) Establishes a fee pursuant to section 5-321,
5-322 or 5-327.

(d) Limits the number or use of licenses or permits
that are issued to nonresidents pursuant to section 17-332.

3. Rule relating to section 28-641 or to any
rule regulating motor vehicle operation that relates to speed, parking,
standing, stopping or passing enacted pursuant to title 28, chapter 3.

4. Rule concerning only the internal management of
an agency that does not directly and substantially affect the procedural or
substantive rights or duties of any segment of the public.

5. Rule that only establishes specific prices to be
charged for particular goods or services sold by an agency.

6. Rule concerning only the physical servicing,
maintenance or care of agency owned or operated facilities or property.

7. Rule or substantive policy statement concerning
inmates or committed youths of a correctional or detention facility in secure
custody or patients admitted to a hospital if made by the state department of
corrections, the department of juvenile corrections, the board of executive
clemency or the department of health services or a facility or hospital under
the jurisdiction of the state department of corrections, the department of
juvenile corrections or the department of health services.

8. Form whose contents or substantive requirements
are prescribed by rule or statute and instructions for the execution or use of
the form.

9. Capped fee-for-service schedule
adopted by the Arizona health care cost containment system administration
pursuant to title 36, chapter 29.

10. Fees prescribed by section 6-125.

11. Order of the director of water resources
adopting or modifying a management plan pursuant to title 45, chapter 2,
article
3.1 or
9.

12. Fees established under section 3-1086.

13. Fees established under sections 41-4010
and 41-4042.

14. Rule or other matter relating to agency contracts.

15. Fees established under section 32-2067 or
32-2132.

16. Rules made pursuant to section 5-111,
subsection A.

17. Rules made by the Arizona state parks board concerning
the operation of the Tonto natural bridge state park, the facilities located in
the Tonto natural bridge state park and the entrance fees to the Tonto natural
bridge state park.

18. Fees or charges established under section 41-511.05.

19. Emergency medical services protocols except as
provided in section 36-2205, subsection B.

20. Fee schedules established pursuant to section 36-3409.

21. Procedures of the state transportation board as
prescribed in section 28-7048.

22. Rules made by the state department of
corrections.

23. Fees prescribed pursuant to section 32-1527.

24. Rules made by the department of economic
security pursuant to section 46-805.

25. Schedule of fees prescribed by section 23-908.

26. Procedure that is established pursuant to title
23, chapter 6, article 6.

27. Rules, administrative policies, procedures and
guidelines adopted for any purpose by the Arizona commerce authority pursuant
to chapter 10 of this title if the authority provides, as appropriate under the
circumstances, for notice of an opportunity for comment on the proposed rules,
administrative policies, procedures and guidelines.

28. Rules made by a marketing commission or
marketing committee pursuant to section 3-414.

29. Administration of public assistance program
monies authorized for liabilities that are incurred for disasters declared
pursuant to sections 26-303 and 35-192.

30. User charges, tolls, fares, rents, advertising
and sponsorship charges, services charges or similar charges established
pursuant to section 28-7705.

31. Administration and implementation of the
hospital assessment pursuant to section 36-2901.08, except that the
Arizona health care cost containment system administration must provide notice
and an opportunity for public comment at least thirty days before establishing
or implementing the administration of the assessment.

32. Rules made by the Arizona department of
agriculture to adopt and implement the provisions of the federal milk ordinance
as prescribed by section 3-605.

33. Rules made by the Arizona department of
agriculture to adopt, implement and administer the United States food and drug
administration produce safety rule (21 Code of Federal Regulations part 112)
and any other federal produce safety regulation, order or guideline or other
requirement adopted pursuant to the FDA food safety modernization act (P.L.
111-353; 21 United States Code sections 2201 through 2252) as provided by title
3, chapter 3, article 4.1.

34. Calculations that are performed by the
department of economic security and that are associated with the adjustment of
the sliding fee scale and formula for determining child care assistance
pursuant to section 46-805.

35. Rules made by the Arizona department of
agriculture to implement and administer the livestock operator fire and flood
assistance grant program established by section 3-109.03.

B. Notwithstanding subsection A, paragraph 21 of
this section, if

the federal highway administration
authorizes the privatization of rest areas, the state transportation board
shall make rules governing the lease or license by the department of
transportation to a private entity for the purposes of privatization of a rest
area.

C. Coincident with
the
making
of
a final rule pursuant to an exemption from the applicability
of this chapter under this section, another statute or session law, the agency
shall:

1. Prepare a notice and follow formatting guidelines
prescribed by the secretary of state.

2. Prepare the rulemaking exemption notices pursuant
to chapter 6.2 of this title.

3. File a copy of the rule with the secretary of
state for publication pursuant to section 41-1012 and provide a copy to
the council.

D. Unless otherwise required by law, articles 2, 3,
4 and 5 of this chapter do not apply to the Arizona board of regents and the
institutions under its jurisdiction, except that the Arizona board of regents
shall make policies or rules for the board and the institutions under its
jurisdiction that provide, as appropriate under the circumstances, for notice
of and opportunity for comment on the policies or rules proposed.

E. Unless otherwise required by law, articles 2, 3,
4 and 5 of this chapter do not apply to the Arizona state schools for the deaf
and the blind, except that the board of directors of all the state schools for
the deaf and the blind shall adopt policies for the board and the schools under
its jurisdiction that provide, as appropriate under the circumstances, for
notice of and opportunity for comment on the policies proposed for adoption.

F. Unless otherwise required by law, articles 2, 3,
4 and 5 of this chapter do not apply to the state board of education, except
that the state board of education shall adopt policies or rules for the board
and the institutions under its jurisdiction that provide, as appropriate under
the circumstances, for notice of and opportunity for comment on the policies or
rules proposed for adoption.� In order to implement or change any rule, the
state board of education shall provide at least two opportunities for public
comment. The state board of education shall consider the fiscal
impact of any proposed rule pursuant to this subsection.

G. Unless otherwise required by law, articles 2, 3,
4 and 5 of this chapter do not apply to the state board for charter schools,
except that the board shall adopt policies or rules for the board and the
charter schools sponsored by the board that provide, as appropriate under the
circumstances, for notice of and opportunity for comment on the policies or
rules proposed for adoption. In order to implement or change any
policy or rule, the board shall provide at least two opportunities for public
comment. The state board for charter schools shall consider the
fiscal impact of any proposed rule pursuant to this subsection.
END_STATUTE

Sec. 7. Section 45-108, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-108.

Evaluation of subdivision water supply; definitions

A. In areas outside of active management areas
established pursuant to chapter 2, article 2 of this title, the developer of a
proposed subdivision
,
including dry lot subdivisions,
regardless of subdivided lot size,
prior to recordation of

before recording
the plat, shall submit plans for the
water supply for the subdivision and demonstrate the adequacy of the water
supply to meet the needs projected by the developer to the
director. The director shall evaluate the plans and issue a report
on the plans.

B. The director shall evaluate the proposed source
of water for the subdivision to determine whether there is an adequate water
supply for the subdivision, and shall forward a copy of the director's report
to the state real estate commissioner and the city, town or county responsible
for platting the subdivision.

C. The director may designate cities, towns and
private water companies as having an adequate water supply by reporting that
designation to the water department of the city or town or private water
company and the state real estate commissioner.

D. As an alternative to designation under subsection
C of this section, the director may designate a city or town that has entered
into a contract with the United States secretary of the interior or a county
water authority established pursuant to chapter 13 of this title for permanent
supplies of Colorado river water for municipal and industrial use as having an
adequate water supply if all of the following apply:

1. The city or town has entered into a contract with
each private water company that serves water within the city or town to provide
Colorado river water to those private water companies.

2. The Colorado river water for which the city or
town has contracted is sufficient together with other water supplies available
to the city or town and the private water companies that serve water within
that city or town to provide an adequate supply of water for the city or town.

3. The director finds that new subdivisions within
the city or town will be served primarily with Colorado river water by the city
or town or one of the private water companies that serve water within that city
or town.

E. The director shall not require a developer to
submit plans for the water supply pursuant to subsection A of this section if
either:

1. Both of the following apply:

(a) The developer has obtained a written commitment
of water service from cities, towns or private water companies that have been
designated as having an adequate water supply.

(b) That city, town or private water company has
been designated as having an adequate water supply pursuant to subsection C of
this section.

2. All of the following apply:

(a) The city or town has been designated as having
an adequate water supply pursuant to subsection D of this section.

(b) The developer has obtained a written commitment
of water service from the city or town or a private water company that serves
water within that city or town.

F. The director may revoke a designation made
pursuant to this section when the director finds that the water supply may
become inadequate.

G.
The
this

state
of Arizona
and the director or department shall not
be liable for any report, designation or evaluation prepared in good faith
pursuant to this section.

H. If the director receives written notice from the
board of supervisors of a county that it has adopted the provision authorized
by section 11-823, subsection A, the director shall give written notice
of the provision to the mayors of all cities and towns in the county.� A city
or town that receives the notice shall comply with section 9-463.01,
subsections J, K, L, M and N.
If a rural groundwater
management area council adopts a mandatory adequacy requirement pursuant to
section 45-441.13, the director shall give written notice of the
provision to all of the following:

1. The mayors of all cities and towns
within the rural groundwater management area. A city or town that receives the
notice shall comply with section 9-463.01, subsections J and M.

2. The boards of supervisors of all
counties with lands within the boundaries of the rural groundwater management
area. A county that receives the notice shall comply with section 11-823.

3. The real estate commissioner.

4. The director of environmental
quality.

I. For the purposes of this section
:
,

1.
"Adequate water
supply" means both of the following:

(
a
)
Sufficient groundwater, surface water or effluent
of adequate quality will be continuously, legally and physically available to
satisfy the water needs of the proposed use for at least one hundred years.

(
b
)
The financial capability has been demonstrated to
construct the water facilities necessary to make the supply of water available
for the proposed use, including a delivery system and any storage facilities or
treatment works. The director may accept evidence of the
construction assurances required by section 9-463.01,
11-823

11-822
or 32-2181 to satisfy this requirement.

2. "Rural groundwater management
area" has the same meaning prescribed in section 45-402.

3. "Rural groundwater management
area council" means a council that is formed to manage a rural groundwater
management area pursuant to chapter 2, article 3.1 of this title.

END_STATUTE

Sec. 8. Section 45-108.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-108.01.

Application for water report or designation of adequate water
supply; notice; objections; hearing; appeals

A. On receipt of an application for a water report
or an application by a city, town or private water company to be designated as
having an adequate water supply under section 45-108, if the proposed use
is in a county that has adopted the provision authorized by section 11-823,
subsection A,
in a rural groundwater management area in which a
rural GROUNDWATER MANAGEMENT area council has adopted a mandatory adequacy
REQUIREMENT PURSUANT to section 45-441.13
or in a city or town
that has enacted an ordinance pursuant to section 9-463.01, subsection O,
the director shall publish notice of the application once each week for two
consecutive weeks in a newspaper of general circulation in the groundwater
basin in which the applicant proposes to use water.� The first publication
shall occur within fifteen days after the application is determined or deemed
to be administratively complete. If the application is substantially
modified after notice of the application is given pursuant to this subsection,
the director shall give notice of the application as modified in the manner
prescribed by this subsection. The first publication of any
subsequent notice shall occur within fifteen days after the modified
application is determined or deemed to be administratively complete.

B. Notice pursuant to subsection A of this section
shall state that written objections to the application may be filed with the
director by residents and landowners within the groundwater basin within
fifteen days after the last publication of notice.� An objection shall state
the name and mailing address of the objector and be signed by the objector, the
objector's agent or the objector's attorney.� The grounds for objection are
limited to whether the application meets the criteria for determining an adequate
water supply set forth in section 45-108, subsection I.� The objection
shall clearly set forth reasons why the application does not meet the criteria.

C. In appropriate cases, including cases in which a
proper written objection to the application has been filed, an administrative
hearing may be held before the director's decision on the application if the
director deems a hearing necessary.� Thirty days before the date of the
hearing, the director shall give notice of the hearing to the applicant and to
any person who filed a proper written objection to the
application. The hearing shall be scheduled for at least sixty days
but not more than ninety days after the expiration of the time in which to file
objections.

D. If the application is for a water report:

1. If the director determines that an adequate water
supply exists for the proposed use, the director shall issue a water report
stating that the water supply for the subdivision is adequate.

2. If the director determines that an adequate water
supply does not exist, the director shall issue a water report stating that the
water supply for the subdivision is inadequate.

E. If the application is for a designation of
adequate water supply:

1. If the director determines that an adequate water
supply exists for the proposed use, the director shall approve the application.

2. If the director determines that an adequate water
supply does not exist, the director shall deny the application.

F. The applicant or a person who contested the
application by filing a proper objection pursuant to subsection B of this
section may seek judicial review of the final decision of the director as
provided in section 45-114, subsection B in the superior court.

G. Section 45-114, subsections A and B govern
administrative proceedings, rehearings or reviews and judicial reviews of final
decisions of the director under this section.� If an administrative hearing is
held, it shall be conducted in the groundwater basin in which the use is
located.
END_STATUTE

Sec. 9. Section 45-402, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-402.

Definitions

In this chapter, unless the context otherwise requires:

1. "Accounting period" means the calendar
year, except such other twelve-month period as may be otherwise agreed on
by the director and the owner of a farm or a district on behalf of its
landowners.

2. "Active management area" means a
geographical

geographic
area that has been
designated pursuant to article 2 of this chapter as requiring active management
of groundwater or, in the case of the Santa Cruz active management area, active
management of any water, other than stored water, withdrawn from a well.

3. "Animal industry use" means the
production, growing and feeding of livestock, range livestock or poultry, as
such

those
terms are defined in section 3-1201. Animal
industry use is included in the term and general treatment of industry in this
chapter, unless specifically provided otherwise.

4. "City" or "town" means a city
or town incorporated or chartered under the constitution and laws of this
state.

5. "Conservation district" means a multi-county
water conservation district established under title 48, chapter 22.

6. "Convey" means to transfer the
ownership of a grandfathered right from one person to another.

7. "Date of the designation of the active
management area" means:

(a) With respect to an initial active management
area, June 12, 1980.

(b) With respect to a subsequent active management
area, the date on which the director's order designating the active management
area becomes effective as provided in section 45-414 or the date on which
the final results of an election approving the establishment of the active
management area pursuant to section 45-415 are certified by the board of
supervisors of the county or counties in which the active management area is
located.

8. "Exempt well" means a well that has a
pump with a maximum capacity of not more than thirty-five gallons per
minute and that is used to withdraw groundwater pursuant to section 45-454.

9. "Expanded animal industry use" means
increased water use by an animal industrial enterprise on the land in use by
the enterprise on June 12, 1980 or on immediately adjoining land, excluding
irrigation uses.

10. "Farm" means an area of irrigated land
that is under the same ownership, that is served by a water distribution system
common to the irrigated land and to which can be applied common conservation,
water measurement and water accounting procedures.

11. "Farm unit" means:

(a) With respect to areas outside an active
management area and with respect to an active management area other than the
Santa Cruz active management area, one or more farms that are irrigated with
groundwater and that are contiguous or in proximity to each other with similar
soil conditions, crops and cropping patterns.

(b) With respect to the Santa Cruz active management
area, one or more farms that are irrigated with water, other than stored water,
withdrawn from a well and that are contiguous or in proximity to each other
with similar soil conditions, crops and cropping patterns.

12. "Grandfathered right" means a right to
withdraw and use groundwater pursuant to article 5 of this chapter based on the
fact of lawful withdrawals and use of groundwater before the date of the
designation of an active management area.

13. "Groundwater basin" means an area
that, as nearly as known facts allow as determined by the director pursuant to
this chapter, may be designated so as to enclose a relatively hydrologically
distinct body or related bodies of groundwater, which shall be described
horizontally by surface description.

14. "Groundwater replenishment district"
or "replenishment district" means a district that is established
pursuant to title 48, chapter 27.

15. "Groundwater withdrawal permit" means
a permit issued by the director pursuant to article 7 of this chapter.

16. "Initial active management area" means
the Phoenix, Prescott or Pinal active management area established by section 45-411,
the Tucson active management area established by section 45-411 and
modified by section 45-411.02 and the Santa Cruz active management area
established by section 45-411.03.

17. "Integrated farming operation" means:

(a) With respect to land within an irrigation non-expansion
area, more than ten acres of land that are contiguous or in close proximity,
that may be irrigated pursuant to section 45-437, that are not under the
same ownership and that are farmed as a single farming operation.

(b) With respect to land within an active management
area, two or more farms that are contiguous or in close proximity, that
collectively have more than ten irrigation acres and that are farmed as a
single farming operation.

18. "Irrigate" means to apply water to two
or more acres of land to produce plants or parts of plants for sale or human
consumption, or for use as feed for livestock, range livestock or poultry, as
such

those
terms are defined in section 3-1201.

19. "Irrigation acre" means an acre of
land, as determined in section 45-465, subsection B, to which an
irrigation grandfathered right is appurtenant.

20. "Irrigation district" means a
political subdivision, however designated, established pursuant to title 48,
chapter 17 or 19.

21. "Irrigation grandfathered right" means
a grandfathered right determined pursuant to section 45-465.

22. "Irrigation non-expansion area"
means a
geographical

geographic
area
that has been designated pursuant to article 3 of this chapter as having
insufficient groundwater to provide a reasonably safe supply for the irrigation
of the cultivated lands at the current rate of withdrawal.

23. "Irrigation use" means:

(a) With respect to areas outside an active
management area and with respect to an active management area other than the
Santa Cruz active management area, the use of groundwater on two or more acres
of land to produce plants or parts of plants for sale or human consumption, or
for use as feed for livestock, range livestock or poultry, as
such

those
terms are defined in section 3-1201.

(b) With respect to the Santa Cruz active management
area, the use of water, other than stored water, withdrawn from a well on two
or more acres of land to produce plants or parts of plants for sale or human
consumption, or for use as feed for livestock, range livestock or poultry, as
such

those
terms are defined in section 3-1201.

24. "Irrigation water duty" or "water
duty" means the amount of water in acre-feet per acre that is
reasonable to apply to irrigated land in a farm unit during the accounting
period, as determined by the director pursuant to sections 45-564 through
45-568 or as prescribed in section 45-483.

25. "Member land" means real property that
qualifies as a member land of a conservation district as provided by title 48,
chapter 22.

26. "Member service area" means the
service area of a city, town or private water company that qualifies as a
member service area of a conservation district as provided by title 48, chapter
22.

27. "Non-irrigation grandfathered
right" means a grandfathered right determined pursuant to section 45-463,
45-464, 45-469 or 45-472.

28. "Non-irrigation use" means:

(a) With respect to areas outside an active
management area and with respect to an active management area other than the
Santa Cruz active management area, a use of groundwater other than an
irrigation use.

(b) With respect to the Santa Cruz active management
area, a use of water, other than stored water, withdrawn from a well, other
than an irrigation use.

29. "Person" means an individual, public
or private corporation, company, partnership, firm, association, society,
estate or trust, any other private organization or enterprise, the United
States, any state, territory or country or a governmental entity, political
subdivision or municipal corporation organized under or subject to the
constitution and laws of this state.

30. "Private water company" means:

(a) With respect to areas outside an active
management area and with respect to an active management area other than the
Santa Cruz active management area, any entity that distributes or sells
groundwater, except a political subdivision or an entity that is established
pursuant to title 48 and that is not regulated as a public service corporation
by the Arizona corporation commission under a certificate of public convenience
and necessity. A city or town is not a private water company.

(b) With respect to the Santa Cruz active management
area, any entity that distributes or sells water, other than stored water,
withdrawn from a well, except a political subdivision or an entity that is
established pursuant to title 48 and that is not regulated as a public service
corporation by the Arizona corporation commission under a certificate of public
convenience and necessity. A city or town is not a private water
company.

31.
"rural
groundwater management area
" means a geographic area
that is designated pursuant to article 3.1 of this chapter as requiring
management of groundwater.

31.

32.
"Service
area" means:

(a) With respect to a city or town, the area of land
actually being served water, for a non-irrigation use, by the city or
town plus:

(i) Additions to such area that contain an operating
distribution system owned by the city or town primarily for the delivery of
water for a non-irrigation use.

(ii) The service area of a city, town or private
water company that obtains its water from the city pursuant to a contract
entered into before the date of the designation of the active management area.

(b) With respect to a private water company, the
area of land of the private water company actually being served water, for a
non-irrigation use, by the private water company plus additions to such
area that contain an operating distribution system owned by the private water
company primarily for the delivery of water for a non-irrigation use.

32.

33.
"Service
area of an irrigation district" means:

(a) With respect to an irrigation district that was
engaged in the withdrawal, delivery and distribution of groundwater as of the
date of the designation of the active management area, the area of land within
the boundaries of the irrigation district actually being served water by the
irrigation district at any time during the five years preceding the date of the
designation of the active management area plus any areas as of the date of the
designation of the active management area within the boundaries of the
irrigation district that contain an operating system of canals, flumes, ditches
and other works owned or operated by the irrigation district. The
service area may be modified pursuant to section 45-494.01.

(b) With respect to an irrigation district that was
not engaged in the withdrawal, delivery and distribution of groundwater as of
the date of the designation of the active management area:

(i) The acres of member lands within the boundaries
of the irrigation district that were legally irrigated at any time from
January 1, 1975 through January 1, 1980 for initial active management
areas or during the five years preceding the date of the designation of the
active management area for subsequent active management areas.

(ii) Any areas of land that contain an operating
system of canals, flumes, ditches and other works owned or operated by the
irrigation district for the withdrawal, delivery and distribution of water,
except that additional areas containing an operating system of canals, flumes,
ditches and other works owned or operated by the irrigation district may not be
added after December 31, 2027.

33.

34.
"Stored
water" means water that is stored underground for the purpose of recovery
pursuant to a permit issued under chapter 3.1 of this title.

34.

35.
"Subbasin"
means an area that, as nearly as known facts allow as determined by the
director pursuant to this chapter, may be designated so as to enclose a
relatively hydrologically distinct body of groundwater within a groundwater
basin, which shall be described horizontally by surface description.

35.

36.
"Subsequent
active management area" means an active management area established after
June 12, 1980 pursuant to article 2 of this chapter.

36.

37.
"Subsidence"
means the settling or lowering of the surface of land that results from the
withdrawal of groundwater.

37.

38.
"Transportation"
means the movement of groundwater from the point of withdrawal to the point of
use.

38.

39.
"Type 1 non-irrigation grandfathered
right" means a non-irrigation grandfathered right associated with
retired irrigated land and determined pursuant to section 45-463, 45-469
or 45-472.

39.

40.
"Type 2 non-irrigation grandfathered
right" means a non-irrigation grandfathered right not associated
with retired irrigated land and determined pursuant to section 45-464.

40.

41.
"Water
district" means an active management area water district that is
established under title 48, chapter 28 and that has adopted an ordinance or
resolution to undertake water district groundwater replenishment obligations as
defined and used in title 48, chapter 28, article 7.

41.

42.
"Water
district member land" means real property that qualifies as water district
member land of a water district as provided by title 48, chapter 28.

42.

43.
"Water
district member service area" means the service area of the city, town or
private water company that qualifies as a water district member service area of
a water district as provided by title 48, chapter 28.

43.

44.
"Well"
means a man-made opening in the earth through which water may be
withdrawn or obtained from beneath the surface of the earth except as provided
in section 45-591.01.
END_STATUTE

Sec. 10. Title 45, chapter 2, Arizona Revised
Statutes, is amended by adding article 3.1, to read:

ARTICLE 3.1. RURAL GROUNDWATER
MANAGEMENT AREAS

START_STATUTE
45-441.

Definitions

In this article, unless the context otherwise
requires:

1. "certificated volume"
means the annual volume of groundwater that is identified by the director on a
certificate of groundwater use issued pursuant to section 45-441.10.

2. "council" means the
rural groundwater management area council for a rural groundwater management
area.

3. "Date of designation"
means the date that the director's order designating an area as a rural
groundwater management area becomes effective pursuant to section 45-441.06,
subsection B.

4. "date of initiation"
means the date of the first publication of notice of the initiation of
proceedings to designate a rural groundwater management area.

5. "groundwater allocation"
means the annual certificated volume or the permitted volume minus any annual
conservation volume for that year.

6. "management period"
means the TEN-YEAR period during which each management plan is in effect.

7. "municipal provider"
means a city, town, private water company or irrigation district that supplies
water for non-irrigation use.

8. "Municipal
use" means all non-irrigation uses of water supplied by a city,
town, private water company or irrigation district, except for uses of water,
other than Colorado River water, that is released for beneficial use from
storage, diversion or distribution facilities to avoid spilling that would
otherwise occur due to uncontrolled surface water inflows that exceed facility
capacity.

9. "Permitted volume" means
the annual volume of groundwater that is identified by the director in a permit
for groundwater use issued pursuant to section 45-441.10.

10. "Safe-yield"
means a groundwater management goal that attempts to achieve and thereafter
maintain a long-term balance between the annual amount of groundwater
withdrawn in a rural groundwater management area and the annual amount of
natural and artificial recharge in a rural groundwater management area.
END_STATUTE

START_STATUTE
45-441.01.

Initial rural groundwater management areas; maps

A. Five initial rural groundwater
management areas are ESTABLISHED on the effective date of this section.� The
five initial rural groundwater management areas are:

1. The gila bend rural groundwater
management area that includes the gila bend groundwater basin.

2. The hualapai valley rural
groundwater management area that includes the hualapai valley groundwater
basin.

3. The ranegras plain rural groundwater
management area that includes the ranegras plain groundwater basin.

4. The san simon valley rural
groundwater management area that includes the san simon valley subbasin.

5. The willcox rural groundwater
management area that includes the willcox groundwater basin.

B. The boundaries of each initial
rural groundwater management area shall be the same as the boundaries of the
basin or subbasin that the rural groundwater management area includes and that
are shown on the maps that are made and filed in the director's office PURSUANT
to section 45-404.
END_STATUTE

START_STATUTE
45-441.02.

Rural groundwater management areas; groundwater use

A. Notwithstanding any other law, in
a rural groundwater management area, a person may:

1. Withdraw and use groundwater only
in accordance with this article or section 45-454 relating to exempt
wells.

2. Store water in a storage facility
as defined in section 45-802.01 only in accordance with chapter 3.1 of
this title.

B. All uses of groundwater in a rural
groundwater management area are subject to conservation requirements as
authorized by this article and determined by a council.

END_STATUTE

START_STATUTE
45-441.03.

Initiation for rural groundwater management area; procedures

A. The
designation of a basin, subbasin or geographic area within the regional aquifer
systems of northern Arizona as a rural groundwater management area may be
initiated by the director on the director's written finding that one or more of
the criteria prescribed in section 45-441.04 are met or by petition to
the director that is signed by either of the following:

1. The majority of a board of
supervisors for a county with lands in which the plurality of the registered
voters in the groundwater basin, subbasin or geographic area within the
regional aquifer systems of northern Arizona specified in the petition
resides. A board that petitions to designate a rural groundwater
management area shall include with the petition for designation a resolution
passed by the board, including a statement that the designation of a rural
groundwater management area will serve the public interest.

2. Ten percent of the registered
voters residing within the groundwater basin, subbasin or geographic area
within the regional aquifer systems of northern Arizona specified in the
petition as of the most recent report compiled by the county recorder in
compliance with section 16-168, subsection h.� The form of the petition
shall be the same as for an initiative petition and the applicant for such
petition shall comply with section 19-111. If the proposed
rural groundwater management area is located in two or more counties, the
number of registered voters required to sign the petition shall be ten percent
of the registered voters residing within the boundaries of the proposed rural
groundwater management area, as of the most recent report compiled by the county
recorder in compliance with section 16-168, subsection h, within the
county in which the plurality of the registered voters in the groundwater
basin, subbasin or geographic area within the regional aquifer systems of
northern Arizona resides.

B. After receiving a petition signed
by registered voters pursuant to subsection A, paragraph 2 of this section, the
director shall transmit the petition to the county recorder of each county in
which the proposed rural groundwater management area is located for
verification of signatures. Additionally, the director shall
transmit a map of the proposed rural groundwater management area to the county
recorder of each county included. The map shall be on a scale
adequate to show with substantial accuracy where the boundaries of the proposed
rural groundwater management area cross the boundaries of county voting
precincts.� The director shall transmit to the county recorder all other
factual data concerning the boundaries of the proposed rural groundwater management
area that may aid the county recorder in determining which registered voters of
the county are residents of the proposed rural groundwater management area.
END_STATUTE

START_STATUTE
45-441.04.

Rural groundwater management area; criteria

A. The
director may designate a groundwater basin, subbasin or geographic area within
the regional aquifer systems of northern Arizona that is not included within an
active management area as a rural groundwater management area if the director
determines that one or more of the following criteria apply:

1. Management practices are necessary
to preserve the existing supply of groundwater for future needs.

2. Land subsidence or fissuring is
endangering property or potential groundwater storage capacity.

3. The use of groundwater is
resulting in actual or threatened water quality degradation.�

B. A rural groundwater management
area may include more than one groundwater basin.� A rural groundwater
management area may not be smaller than a groundwater subbasin or include only
a portion of a groundwater subbasin, except in the regional aquifer systems of
northern Arizona.

C. Beginning in 2031 and every ten
years thereafter, the director shall review all groundwater basins that are not
included within an active management area or a rural groundwater management
area to determine whether such groundwater basins meet any of the criteria for
rural groundwater management areas as prescribed in this section.
END_STATUTE

START_STATUTE
45-441.05.

Proceedings for designation; limit on expansion of groundwater
use; notice

A. If the director initiates
proceedings to designate a rural groundwater management area pursuant to
section 45-441.03:

1. The following apply:

(
a
) An
irrigation groundwater user may irrigate within the proposed rural groundwater
management area only those acres of land that were legally irrigated at any
time during the five years preceding the date of initiation.

(
b
) A
nonirrigation groundwater user may use groundwater within the proposed rural
groundwater management area for uses that were legally conducted at any time
during the five years preceding the date of initiation.� This subdivision does
not prohibit a municipal provider from withdrawing or delivering groundwater
necessary to protect public health and safety.

(
c
) The
limitation on the acres that may be irrigated and the limitation on
non-irrigation uses prescribed in subdivisions (
a
) and
(
b
) of this paragraph shall continue in effect until the
director makes a final determination pursuant to this section, except that if
the director designates the proposed rural groundwater management area, the
limitations shall continue for each user until that user's application for a
certificate of groundwater use is approved or denied pursuant to section 45-441.08.

2. The
director shall:

(
a
) Give notice of the initiation of proceedings to designate
the proposed rural groundwater management area, as prescribed in subsection B
of this section.

(
b
) Conduct at
least one public meeting to provide information within the director's
possession regarding the designation of the groundwater basin, subbasin or
geographic area within the regional aquifer systems of northern Arizona as a
rural groundwater management area.

(
c
) Hold a
public hearing to receive public comment on the following:

(
i
) whether to
issue an order designating the groundwater basin, subbasin or geographic area
within the regional aquifer systems of northern Arizona as a rural groundwater
management area.

(
ii
) The
boundaries and any basins and subbasins of the proposed rural groundwater
management area.

B. The director shall give reasonable
notice of the initiation of proceedings to designate the proposed rural
groundwater management area, which shall include publication once each week for
two consecutive weeks in a newspaper of general circulation in each county in
which the proposed rural groundwater management area is located.� Any notice
shall contain the following:

1. The legal description and a map
clearly identifying the lands to be included in the proposed rural groundwater
management area and any basins and subbasins.

2. The time and place of the public
meeting, which shall be held not less than fourteen days after the first
publication of the notice and not less than fourteen days before the public
hearing. The meeting shall be held at a location within the proposed rural
groundwater management area or within a county with lands in which the
plurality of the registered voters in the groundwater basin resides.

3. The time and place of the public
hearing, which shall be held not less than thirty days and not more than sixty
days after the first publication of the notice.� The public hearing shall be
held at a location within the proposed rural groundwater management area or
within a county with lands in which the plurality of the registered voters in
the groundwater basin resides.

4. Any other information the director
deems necessary.

C. At the public hearing, the
director shall provide information within the director's possession regarding
the designation of the groundwater basin, subbasin or geographic area within
the regional aquifer systems of northern Arizona as a rural groundwater
management area.� Any person may appear at the hearing, either in person or by
representative, and submit oral or documentary evidence for or against the
proposed action. In making a determination, the director shall give
full consideration to public comment.

END_STATUTE

START_STATUTE
45-441.06.

Order for designation; public record; publication; judicial
review

A. Within
forty-five days after a hearing to DESIGNATE an area as a rural
groundwater management area, the director shall make and file with the
department written findings with respect to the proposed action.� If the
director decides to declare the area a rural groundwater management area, the
director shall make and file an order designating the rural groundwater
management area.

B. The findings and order shall be
published in the same manner as the notice of initiation proceedings prescribed
in section 45-441.05 and the order is effective when published for the
final time.� All factual data, the map of the rural groundwater management
area, hearing records and public comments are a public record and shall be made
available for public examination during regular business hours.� The findings
and order are subject to judicial review as provided in section 45-114,
subsection c.

C. The director shall file a true
copy of the map in the office of the county recorder of the county or counties
where the rural groundwater management area is located.

END_STATUTE

START_STATUTE
45-441.07.

Application for certificate of groundwater use; notice

A. Within ninety days after the date
Of designation, the director shall provide notice that a person must apply for
a certificate of groundwater use to use, receive or withdraw groundwater from a
nonexempt well in the rural groundwater management area to all of the following
in the area where the rural groundwater management area is located:

1. The clerk of the board of
supervisors of the county or counties.

2. The mayor of each city or town.

3. Each private water company.

4. The presiding officer of each
political subdivision of this state established pursuant to title 48, chapter
17, 18, 19 or 20.

5. Each owner of real property within
the rural groundwater management area that is listed on the tax rolls of the
county and that is not located in a vacant subdivision or within the service
area of a city, town or private water company in the rural groundwater
management area.

B. The director shall include with
the written notice a declaration that it is the duty of the recipient to
forward the notice to the beneficial owner of the property and a statement that
a person who fails to apply for a certificate of groundwater use within a rural
groundwater management area waives and relinquishes any eligibility to
withdraw, receive or use groundwater pursuant to a certificate of groundwater
use.

C. For the purposes of this section,
the director may provide written notice in any manner the director determines
is CONSISTENT with the purposes of this section.

END_STATUTE

START_STATUTE
45-441.08.

Application for certificate of groundwater use; criteria;
substantial capital investment in future groundwater use

A. Except
for the withdrawal of groundwater that is consistent with section 45-454,
a person may withdraw an annual volume of groundwater for use within a rural
groundwater management area only pursuant to a certificate of groundwater use
or a permit for groundwater use if the director determines that one of the
following applies:

1. The person owns land that was
irrigated with groundwater that was legally withdrawn from a nonexempt well at
any time during the five years preceding the date of initiation.

2. The person was legally withdrawing
groundwater from a nonexempt well for non-irrigation use at any time during the
five years preceding the date of initiation.

3. The person has made a substantial
capital investment in a project in reliance on the ability to withdraw
groundwater before the date of initiation.�

b. Within fifteen months after the
date of designation, a person who is eligible for a certificate of groundwater
use shall apply to the director on a form provided by the department and
provide verification of the history of legal withdrawal and use of
groundwater. The director shall accept any of the following methods
as proper verification:

1. For irrigation uses, evidence of
the average amount of groundwater withdrawn or used annually over the ten years
before the date of initiation.� For the purposes of calculating the average
pursuant to this paragraph, the director shall use only those years in which
groundwater for irrigation was actually withdrawn. The average
amount of groundwater used may be demonstrated by using any of the following:

(
a
) data from a
water measuring device that is approved by the director pursuant to section 45-604.

(
b
) a
calculation of the average amount of water that is required to irrigate the
crops historically grown in the farm unit based on the total irrigation
requirement per acre of the historically grown crops and a reasonable
irrigation efficiency for the farm unit after factoring in the historic
conditions and infrastructure.

(
c
) any other
method the director determines to be reasonable.

2. For non-irrigation uses, evidence
of the highest amount of groundwater withdrawn or used in any year in the five
years before the date of initiation. The average amount of
groundwater used may be demonstrated by using data from a water measuring
device approved by the director pursuant to section 45-604 or any other method
the director determines to be reasonable.

3. For
municipal uses, the groundwater demand associated with plats recorded before
the date of initiation and determinations of an adequate water supply issued
pursuant to section 45-108 before the date of initiation that is not
included as non-irrigation use.�

4. Evidence of a substantial capital
investment in future groundwater use as prescribed by this section and evidence
of a reasonable volume of groundwater likely to be used for that purpose.

5. For any groundwater use that is
initiated less than twelve months before the date of initiation, a reasonable
estimate of the amount of groundwater that is expected to be used in a
twelve-month period based on the person's groundwater use as of the date of
initiation.

6. Evidence of a variance from the
ten-year historical average use due to temporary conservation efforts during
the ten-year period.

C. For the purposes of this section,
substantial capital investment in future groundwater use:

1. Does not include:

(
a
) Costs that
are associated with the purchase of land on which groundwater is to be
withdrawn or used.

(
b
) Costs that
are associated with the application for a certificate of groundwater use.

2. May include one or more of the
following:

(
a
) For
irrigation use, costs that are related to the subjugation of land for
irrigation use, including on-site irrigation distribution facilities and a well
or wells, if the drilling and construction were substantially commenced before
the date of initiation. The director may consider reasonable estimates of the
likely cost of the applicant's own labor had the applicant contracted for those
services.

(
b
) For
non-irrigation uses, costs that are related to one or more of the following:

(
i
) The
acquisition of permits and approvals, including legal, technical and
environmental services that are required to obtain the authorization to proceed
with the project.

(
ii
) the
acquisition or lease of land for the purposes of rights-of-way.

(
iii
) The
improvement of land for the intended use, including construction of any
project-related infrastructure.

(
iv
) The
construction of groundwater-related infrastructure, including water
distribution facilities, the drilling of wells, groundwater treatment
facilities, water and power transmission and other project-associated
facilities.

(
v
) The
construction and maintenance of ancillary structures that are critical to the
project.

D. The director shall review and
evaluate applications. The director may request additional information from an
applicant and conduct independent investigations as necessary to determine
whether an application satisfies the criteria prescribed in this section.

E. A person who does not file an
application for a certificate of groundwater use or a permit for groundwater
use with the department within fifteen months after the designation of the
rural groundwater management area waives and relinquishes any eligibility to
withdraw, receive or use groundwater pursuant to this article.
END_STATUTE

START_STATUTE
45-441.09.

Rural groundwater management areas; withdrawal of groundwater;
compliance account; conveyances; retirement

A. A person with a certificate of
groundwater use or a permit of groundwater use may annually withdraw, receive
or use groundwater in the rural groundwater management area subject to the
requirements of this section.

B. Each council may establish one or
more policies for the maintenance of a compliance account for each certificate
of groundwater use in a rural groundwater management area in the council's
management plan.

C. A person who is entitled to use
groundwater pursuant to a certificate of groundwater use may:

1. Use up to one hundred twenty-five
percent of the groundwater allocation.� If the person withdraws more than the
groundwater allocation, the director shall register a debit to the compliance
account.� The owner of a certificate of groundwater use and the person using
groundwater pursuant to the certificate violate this section if the compliance
account for the certificate of groundwater use is in arrears at any time in
excess of twenty-five percent of the certificated volume.� The owner or person
may remedy the violation by purchasing compliance account credits pursuant to
paragraph 3 of this subsection in an amount sufficient to eliminate any
negative balance.

2. Use less than the groundwater
allocation in one accounting period and use the remaining amount allowed by the
certificate in one or more of the ten succeeding calendar years.� If the person
withdraws less than the groundwater allocation for that year, the director
shall register a credit to the compliance account.� Compliance accounts cannot
roll over more than twenty-five percent of the certificated volume in one year.

3. A person that has compliance
account credits and that does not have a debit registered against the person's
compliance account or has settled all debits may sell or assign the entirety or
any portion of the person's compliance account credits to another person within
the same subbasin of the rural groundwater management area for any existing
use, subject to any conservation or other requirements adopted pursuant to a
rural groundwater management area plan. Any compliance account credits that a
person conveys to another person shall be reduced by twenty percent on each
conveyance.

D. A person with a certificate of
groundwater use may sell, assign or lease all or part of the person's
certificated volume granted under the certificate to another person within the
same rural groundwater management area for any new or existing use, subject to
any conservation or other requirements adopted pursuant to a rural groundwater
management area plan. Any portion of a certificate of groundwater use that a
person conveys to another person shall be reduced by fifteen percent on each conveyance
except:

1. A conveyance consisting of a
change in ownership where the certificate of groundwater use is used in the
same location for the same type of use.

2. A conveyance consisting of a
change in location to one or more farms under common ownership that are
irrigated with groundwater and that are contiguous to each other and within the
same subbasin.

3. For a lease or any other temporary
conveyance, the conveyance reduction is only applicable during the term of the
conveyance.

E. A person may convey all or part of
a certificate of groundwater use by filing an application on a form prescribed
by the director.� On a determination that the information in the application is
administratively complete and accurate, the director shall issue a certificate
of groundwater use to the recipient and, if applicable, a revised certificate
of groundwater use for any retained certificated volume to the transferor. The
conveyance becomes effective in the year the certificate and any revised certificate
are issued, unless a later year is requested in the notice.

F. A person with a certificate of
groundwater use may retire all or part of the certificate of groundwater
use. A person who proposes to retire all or part of a certificate of
groundwater use shall notify the director of the retirement on a form
prescribed by the director.� After receiving notice of retirement of all or
part of a certificate of groundwater use, the director shall issue to the
person who retired the certificate of groundwater use a revised certificate of
groundwater use for the portion of the certificate not retired, if any.
END_STATUTE

START_STATUTE
45-441.10.

Application registry; objections; hearing; permit for groundwater
use; perfection of certificate; issuance of certificate of groundwater use

A. The director shall maintain a
registry of applications for certificates of groundwater use and make the
registry available for inspection during regular business
hours. Within fifteen days after a determination that an application
for a certificate of groundwater use is administratively complete, the director
shall include the application in the registry for not less than forty-five
days.

B. The director shall include with
the registry a statement that RESIDENTS of the rural groundwater management
area may object in writing to the issuance of any certificate on the registry
within fifteen days after the last date the application is listed on the
registry. An objection shall state the name and mailing address of
the objector, be signed by the objector, the objector's agent or the objector's
attorney and clearly set forth reasons why the certificate should not be issued.�
a person may object only on The grounds that the certificate application does
not meet the criteria prescribed in section 45-441.08.

C. In appropriate cases, including
cases where a person has filed a proper written objection to the certificate or
permit application, The director may hold an administrative hearing challenging
the director's decision on an application for a CERTIFICATE of groundwater
use. Not later than thirty days before the hearing, The director
shall provide notice of the hearing to the applicant and to any person who
filed a proper written objection to the issuance of the certificate or permit.�
The hearing shall be scheduled for not less than sixty days nor more than
ninety days after the expiration of the time in which to file objections.

D. If the director finds that the
applicant satisfies the criteria prescribed in SECTION 45-441.08,
subsection a, paragraph 1 or 2, the director shall issue a certificate of
groundwater use to the applicant that states the certificated volume.

E. If the director finds that the
applicant satisfies the criteria prescribed in section 45-441.08,
subsection a, paragraph 3, the director shall issue a permit for groundwater
use to the applicant that states the permitted volume.� The permit shall
specify the terms and conditions for perfection of the permitted use, including
any acceptable method for demonstrating that the groundwater has been put to
use for the purpose described in the application and a reasonable time within
which the permitted use must be perfected.� The permit may include provisions
for incremental perfection of the groundwater use.� A permit may be conveyed to
another person but may not be perfected for a use other than the use described
in the application.

F. Evidence of use of groundwater
pursuant to the terms and conditions of a permit for groundwater use shall
demonstrate that the associated volume of groundwater use has been perfected.�
On satisfactory demonstration of perfection of a groundwater use pursuant to a
permit issued under this section, or any volume thereof, the director shall
issue a certificate of groundwater use or modify a previously issued
certificate of groundwater use to include the perfected volume.� If less than
the full permitted volume is perfected, the director shall also issue a revised
permit for groundwater use for the remainder.

G. An aggrieved party or a person who
contested a certificate or permit by filing a proper objection pursuant to
subsection b of this section may seek judicial review of the final decision of
the director as provided in section 45-114, subsection b in the superior
court.

H. Section 45-114, subsections
a and b govern administrative proceedings, rehearing or review and judicial
review of final decisions of the director under this section.� If an
administrative hearing is held, the director shall conduct the hearing in the
rural groundwater management area in which the use is located or within a
county with lands in which the plurality of the registered voters in the
groundwater basin resides.
END_STATUTE

START_STATUTE
45-441.11.

Rural groundwater management area council; membership

A. A rural groundwater management
area council shall be established in each rural groundwater management area.�
The council shall be composed of five members who are knowledgeable of the
condition, development and use of groundwater within the rural groundwater
management area.� Four of the five members shall reside within the rural
groundwater management area.� Council members consist of:

1. One member who is or who
represents an industrial user with a certificate of groundwater use in the
rural groundwater management area.

2. One member who is or who
represents an irrigation user with a certificate of groundwater use in the
rural groundwater management area.

3. One member who is or who
represents a municipal provider with a certificate of groundwater use in the
rural groundwater management area.

4. Two at-large members who reside in
the rural groundwater management area and who do not qualify for appointment
pursuant to paragraphs 1, 2 and 3 of this subsection.

b. a council member may only serve on
one rural groundwater management area council.

C. council Members shall be appointed
within ninety days after the date of designation by the following entities:

1. One member who is appointed by the
governor.

2. One member who is appointed by the
governor from a list of three names the speaker of the house of representatives
provides to the governor.

3. One member who is appointed by the
governor from a list of three names the president of the senate provides to the
governor.

4. One member who is appointed by the
governor from a list of three names the minority leader of the house of
representatives provides to the governor.

5. One member who is appointed by the
governor from a list of three names the minority leader of the senate provides
to the governor.

D. The initial council members shall
assign themselves by lot to staggered terms of not more than six years in
office, with each staggered term to end from and after December 31 of an
even-numbered year.� All subsequent members serve six-year terms.� The
chairperson shall notify all appointing authorities of these terms.� All
council members shall serve or continue in office for the respective terms and
until their successors are appointed or a council member is removed for cause
by the governor.

E. If a vacancy occurs, the governor
shall appoint a replacement council member pursuant to subsection A of this
section.

END_STATUTE

START_STATUTE
45-441.12.

Rural groundwater management area council; powers and duties

a. a
rural groundwater management area council shall:

1. Adopt
one of the following management goals for the rural groundwater management
area:

(
a
) To reduce
overdraft by a percentage to be set by the council but not less than fifty
percent from the overdraft at the date of initiation.

(
b
) to reduce groundwater
pumping to stabilize the aquifer for the benefit of current and future
generations.

(
c
) safe-yield.

2. Develop a management plan for each
management period that includes water management practices and other possible
actions that address the groundwater conditions identified as the reason for
the designation of a rural groundwater management area and that will achieve
the management goal adopted for the rural groundwater management area.

3. Cooperate with federally
recognized indian tribes, cities, towns, counties or public or private agencies
or organizations to engage in coordinated regional water resources planning.

4. Keep minutes of all meetings and
preserve all records, reports and information relative to the work and programs
of the council in a permanent, indexed and systematically filed form that is
available to public inspection during regular business hours in the office of
the department.

5. Elect a chairperson and a vice
chairperson from the council membership who serve two-year terms that expire on
the third monday of each even-numbered year.

6. Designate a person or persons to
execute all documents and instruments on behalf of the council.

7. Form a technical committee to
provide technical support to the council. The technical committee
shall include at least one representative from the department and may include
members of the council or members of the public as selected by the council.

B. a rural groundwater management
area council may:

1. Request technical assistance from
the department to develop a management plan for the rural groundwater
management area.

2. Gather information and data.

3. Establish a steering committee
that consists of members of the public and members of the council to solicit
and receive public participation, comment and advice from residents of the
rural groundwater management area and other interested parties on the
development and operation of the rural groundwater management area and
management plan.

C. The council and any steering
committee established by the council are subject to title 38, chapter 3,
article 3.1.
END_STATUTE

START_STATUTE
45-441.13.

Rural groundwater management area council; management plan;
notice

A. not
less than one hundred eighty days after the designation of a rural groundwater
management area, the council shall adopt a management goal for the rural
groundwater management area.� If the council does not adopt a management goal
within that time, the management goal shall be to reduce overdraft by a
percentage to be set by the council but not less than fifty percent from the
overdraft at the date of initiation.

B. not less than two years after the
designation of a rural groundwater management area, The council shall develop
and submit a management plan to the director for adoption.� The council shall
submit the management plans for the subsequent management periods to the
director not less than fifteen months before the expiration of the previous
management plan.

C. The management plan shall include
all of the following:

1. A description of the appropriate
physical, geographic, hydrologic and economic conditions of the area and how
the management goal relates to those conditions.

2. A summary of current groundwater
conditions and current groundwater management in the area, including
groundwater conservation programs adopted by federally recognized indian
tribes, federal and state agencies and local governments.

3. Methods to monitor and report on
the progress of achieving the management goals.

4. Requirements for the location of
new and replacement wells within a rural groundwater management area.

5. Limitations on lost and
unaccounted for water applicable to any municipal provider.

6. A conservation program applicable
to all municipal uses pursuant to certificates of groundwater use.� The program
shall:

(
a
) identify a
suite of best management practices from which each municipal provider may
select a number of management practices to implement.� The program may assign
points to each management practice and require implementation of a cumulative number
of points according to the number of service connections.

(
b
) include
requirements for reducing lost and unaccounted for water.

(
c
) include a
requirement to implement a minimum number of best management practices program
that requires the municipal provider to implement the municipal provider's
choice of conservation programs approved by the department.� Requirements for
each municipal certificate of groundwater use shall include requirements for
lost and unaccounted for water.

7. A schedule for annual conservation
reductions in groundwater use for all uses of groundwater pursuant to
certificates of groundwater use, other than municipal uses.� Each annual
conservation reduction shall be a percentage of the certificated volume for
each year and may not change by more than two percentage points in any single
year.� The schedule for annual conservation reductions shall be consistent with
subsections f and g of this section.

D. A rural groundwater management
area management plan may include:

1. A program to approve and fund
incentives and voluntary compensated water conservation plans with actions that
landowners and water users in the rural groundwater management area may
participate in to conserve or augment groundwater supplies within the rural
groundwater management area.

2. Groundwater withdrawal fees to be
set, levied and collected by the director from each person withdrawing
groundwater in a rural groundwater management area pursuant to a certificate of
groundwater use.� The director shall use the monies collected pursuant to a
groundwater withdrawal fee for conservation programs that support the
conservation, reuse and recharge of water supplies pursuant to the rural
groundwater management area management plan.� conservation Programs that are
adopted pursuant to this paragraph may include:

(
a
) voluntary
land or water use agreements with landowners or water users.

(
b
) Stormwater
retention and recharge incentives.

(
c
) Low water
use development incentives.

(
d
) incentives
for low water use practices, fixtures or landscaping.

(
e
) Irrigation
efficiency, conservation and low water use agricultural incentives.

3. Notwithstanding any other law, A
requirement that the county board of supervisors or the council of a city or
town not approve a final plat for a subdivision composed of subdivided lands as
defined in section 32-2101 that are located within the rural groundwater
management area unless one of the following applies:

(
a
) the
director has determined that there is an adequate water supply for the
subdivision pursuant to section 45-108 and the subdivider has included
the report with the plat.

(
b
) the
subdivider has obtained a written commitment of water service for the
subdivision from a city, town or private water company designated as having an
adequate water supply by the director pursuant to section 45-108.

E. Not later than three years before
the end of each management period, the director shall issue a report on the
rural groundwater management area. The report shall include all of
the following:

1. a description of groundwater
management activities in the rural groundwater management area.

2. information about the hydrologic
conditions in the rural groundwater management area.

3. a determination of whether the
management goal has been achieved or maintained during the current management
period.

F. For the first management period,
the annual conservation reductions shall be ten percent of the certificated
volume by the tenth year.

G. For
the second groundwater management period, the schedule for annual conservation
reductions shall be adjusted according to the following:

1. If the director's report pursuant
to subsection e of this section determines that the management goal has not
been achieved or maintained during the current management period, the schedule
for the next management period shall increase the annual conservation
reductions by a minimum of an additional five percentage points up to an
additional ten percentage points over the management period.

2. If the
director's report pursuant to subsection e of this section determines that the
management goal has been achieved or maintained, the schedule for the next
management period may maintain the annual conservation reductions for the last year
of the current management period.

H. For the third and fourth
groundwater management periods, the schedule for annual conservation reductions
shall be adjusted according to the following:

2. If the director's report pursuant
to subsection e of this section determines that the management goal has been
achieved or maintained, the schedule for the next management period may
maintain the annual conservation reductions for the last year of the current
management period or decrease the annual conservation reductions by up to ten
percentage points over the management period.

3. The conservation reductions in
effect in the fourth management period do not expire after the end of the
fourth management period.
END_STATUTE

START_STATUTE
45-441.14.

Submission of a management plan; director's review; notice;
hearing; final plan approval

A. Within ninety days after a
council's submittal of a management plan to the director, the director shall
review the management plan to make preliminary determinations whether it
satisfies all of the requirements prescribed in section 45-441.13,
subsection C and whether its implementation is legal, feasible and consistent
with achieving the management goal of the rural groundwater management area.�
If the director makes a preliminary determination that the management plan does
not satisfy the requirements prescribed in section 45-441.13, subsection
C or that its implementation is not legal, feasible or consistent with
achieving the management goal, the director shall return the management plan to
the council with a written explanation of all deficiencies.� If the director
makes a preliminary determination that the management plan satisfies the
requirements prescribed in section 45-441.13, subsection C and that
implementation is legal, feasible and consistent with achieving the management
goal, the director shall notify the council in writing that the management plan
is complete.

B. If the director notifies the
council of any deficiencies in the management plan, the council shall address
the deficiencies and submit a revised management plan not later than sixty days
after receiving the notice of DEFICIENCY.� The director shall review the
revised management plan as prescribed in subsection A of this section.

C. Before final adoption of a
management plan, The director shall hold a public hearing on the management
plan.

D. The director shall PROVIDE notice
of the hearing not less than thirty days after notifying the council that the
management plan is complete.� The notice shall include a summary of the
management plan, a map or a description of the boundaries of the rural
groundwater management area and the time and place of the hearing.� The notice
shall be published once each week for two consecutive weeks in a newspaper of
general circulation in each county in which the rural groundwater management
area is located.

E. The hearing shall be held at a
location within the rural groundwater management area or within a county with
lands in which the plurality of the registered voters in the groundwater basin
resides.� The hearing shall be held not less than thirty days and not more than
sixty days after the initial notice is published.

F. At the public hearing to approve
the management plan, one or more members of the council shall present data and information
in support of the management plan and a summary of all public comment
considered when considering the management plan.

G. Any person may appear at the
hearing, either in person or by representative, and submit oral or documentary
evidence for or against the adoption of the management plan.�

H. Within thirty days after the
hearing, the council shall submit to the director any written response to
public comments given orally or in writing at the hearing.

I. Within sixty days after the
hearing, the director shall make and file with the department a written summary
and findings of all matters considered during the hearing and any written
comments received.

J. If in the findings under
subsection i of this section the director determines that the management plan
satisfies all of the requirements prescribed in section 45-441.13,
subsection C and that plan implementation is legal, feasible and consistent
with achieving the management goal of the rural groundwater management area,
the director shall issue an order adopting the management plan. If
the director determines that modifications to the management plan are necessary
in order to make such determinations, the director shall make the
modifications, shall issue an order adopting the modified plan and shall
include the director's reasons for the modifications.

K. The director shall publish notice
of the adopted management plan.� The notice shall include a summary of the
management plan, findings and order. The notice shall be published
once each week for two consecutive weeks in a newspaper of general circulation
in each county in which the rural groundwater management area is
located. The order is final when the notice is published for the
last time. The adopted management plan shall take effect from and
after December 31 of the calendar year in which the management plan is adopted.

L. All information that is compiled
by the director pursuant to the development and approval of the management
plan, including all records of the hearings and public comments, copies of the
findings, the management goals and the management plan, are public
records. The director shall make these records available for public
inspection during regular business hours.

M. The director's final decision is
subject to rehearing or review and judicial review as provided in section 45-114,
subsection c.

N. If the council does not submit a
management plan within the time prescribed in section 45-441.13,
subsection B, the director shall do all of the following:

1. Issue an order extending the
effective date of the current management plan and management period by one
year.

2. Prepare a management plan.

3. Otherwise implement the procedures
prescribed in this section.

O. If the council does not submit a
revised management plan within the time prescribed in subsection b of this
section, the director shall make the necessary revisions and otherwise
implement the procedures prescribed in this section.
END_STATUTE

START_STATUTE
45-441.15.

Rural groundwater management area fund; report

A. The rural groundwater management
area fund is established consisting of legislative
appropriations. the department shall administer the
fund. Monies in the fund are continuously appropriated and are
exempt from the provisions of section 35-190 relating to lapsing of
appropriations.�

b. On notice from the director, the
state treasurer shall invest and divest monies in the fund as provided by
section 35-313, and monies earned from investment shall be credited to the
fund.� Separate accounts shall be established within the fund for each rural
groundwater management area from which the monies are collected. The
monies in each account shall be used for the benefit of the rural groundwater
management area with which the account is associated.

C. The department shall spend monies
in the fund to implement and support rural groundwater management areas that
are established pursuant to this article, including administering the plan
implemented by the department, and may grant monies to provide conservation
assistance to any person with a certificate of groundwater use within the rural
groundwater management area and to implement programs to approve, incentivize
and fund voluntary, compensated conservation plans to conserve, reuse and recharge
water supplies as approved by the director.

D. The department may not exercise
the power of eminent domain to acquire property using monies from the fund.

E. On or before october 1 of each
year, the director shall submit an annual report to the president of the
senate, the speaker of the house of representatives and the chairpersons of the
senate and house of representatives committees on natural resources, energy and
water, or their successor committees, and shall provide a copy of this report
to the secretary of state.� The report shall include information on the amount
of monies spent or encumbered in the fund during the preceding fiscal year and
a summary of the projects, activities and expenditures relating to implementing
and supporting rural groundwater management areas and voluntary compensated
land and water conservation plans and incentives. The director shall provide
copies of the report to all members of all councils.

END_STATUTE

Sec. 11. Section 45-453, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-453.

Groundwater rights and uses in areas outside active management
areas; amounts; transportation; irrigation non-expansion areas

In areas outside of active management areas, a person may:

1. Withdraw and use groundwater for reasonable and
beneficial use, except as provided in article 8.1 of this chapter.

2. Transport groundwater pursuant to articles 8 and
8.1 of this chapter.

3. Use groundwater for irrigation purposes within
the exterior boundaries of an irrigation non-expansion area only pursuant to
article 3 of this chapter.

4. wITHDRAW AND USE GROUNDWATER IN A
RURAL GROUNDWATER MANAGEMENT area AS PRESCRIBED IN ARTICLE 3.1 OF THIS CHAPTER.

END_STATUTE

Sec. 12. Section 45-454, Arizona Revised Statutes, is amended to read:

START_STATUTE
45-454.

Exemption of small non-irrigation wells; definitions

A. Withdrawals of
groundwater for non-irrigation uses from wells having a pump with a maximum
capacity of not more than thirty-five gallons per minute
which

that
were drilled before April 28, 1983 or
which

that
were drilled after April 28, 1983 pursuant to a
notice of intention to drill
which

that

was on file with the department on such date are exempt from this chapter,
except that:

1. Wells drilled before June 12, 1980
which

that
are not abandoned or capped or wells
which

that
were not completed on June 12, 1980 but for which a
notice of intention to drill was on file with the Arizona water commission on
such date are subject to subsections J, K and L of this section and must be
registered pursuant to section 45-593.� If two or more wells in an active
management area
or rural groundwater management area
are
exempt under this paragraph and are used to serve the same non-irrigation
use at the same location, the aggregate quantity of groundwater withdrawn from
the wells shall not exceed fifty-six acre-feet per year.

2. Wells drilled between June 12, 1980 and April 28,
1983, except as provided in paragraph 1 of this subsection, and wells drilled
after April 28, 1983 pursuant to a notice of intention to drill
which

that
was on file with the department on April 28, 1983,
are subject to subsections G, I, J and K of this section.

B. Withdrawals of groundwater for non-irrigation
uses from wells having a pump with a maximum capacity of not more than thirty-five
gallons per minute drilled on or after April 28, 1983, except wells drilled
after April 28, 1983 pursuant to a notice of intention to drill which was on
file with the department on such date, are exempt from this chapter, except
that:

1. Such wells are subject to subsections G through K
of this section.

2. In an active management area
or
rural groundwater management area
, other than a subsequent active
management area
or rural GROUNDWATER management area
designated
for a portion of a groundwater basin in the regional aquifer systems of
northern Arizona, withdrawals of groundwater from such wells for non-irrigation
uses other than domestic purposes and stock watering shall not exceed ten
acre-feet per year.

3. In a subsequent active management area that is
designated for a portion of a groundwater basin in the regional aquifer systems
of northern Arizona, groundwater withdrawn from such wells may be used only for
domestic purposes and stock watering.

C. On or after
January 1, 2006, an exempt well otherwise allowed by this section may not be
drilled on land if any part of the land is within one hundred feet of the
operating water distribution system of a municipal provider with an assured water
supply designation within the boundaries of an active management area
established on or before July 1, 1994, as shown on a digitized service area map
provided to the director by the municipal provider and updated by the municipal
provider as specified by the director.

D. On request from the owner of the land on which an
exempt well is prohibited pursuant to subsection C of this section on a form
prescribed by the director, the director shall issue an exemption from
subsection C of this section if the landowner demonstrates to the satisfaction
of the director that any of the following applies:

1. The landowner submitted a written request for
service to the municipal provider that operates the distribution system and the
municipal provider did not provide written verification to the landowner within
thirty calendar days after
receipt of

receiving

the request that water service is available to the landowner after
payment of any applicable fee to the municipal provider.

2. The total capital cost and fees for connecting to
the operating water distribution system exceed the total capital cost and fees
for drilling and fully equipping an exempt well.

3. If the applicant must obtain an easement across
other land to connect to the water distribution system of the municipal
provider, the applicant sent the owner of the land a request for the easement
by certified mail, return receipt requested, and either the applicant did not
receive a response to the request within thirty calendar days of mailing the
request or the request was denied.

4. The landowner does not qualify for an exemption
pursuant to paragraph 1, 2 or 3 of this subsection and the landowner provides
written verification from the municipal provider that the landowner shall not
receive or request water service from the municipal provider while the exempt
well is operational.� The exemption for that well is revoked if the landowner
or any subsequent landowner receives water service from the municipal
provider.� In determining whether to approve or reject a permit application
filed under section 45-599, the director shall not consider any impacts
the proposed well may have on an exempt well drilled pursuant to this
paragraph.

E. This section does not prohibit a property owner,
after January 1, 2006, from drilling a replacement exempt well for a lawful
exempt well if the replacement well does not increase the total number of
operable exempt wells on the applicant's land.

F. A remediation well drilled for the purpose of
remediating groundwater is exempt from this section if it meets one of the
following:

1. The remediation well is for an approved
department of environmental quality or United States environmental protection
agency remediation program.

2. A registered geologist certifies that the
remediation well is for the purpose of remediation.

G. A person shall file a notice of intention to
drill with the director pursuant to section 45-596 before drilling an
exempt well or causing an exempt well to be drilled.

H. The registered well owner shall file a completion
report pursuant to section 45-600, subsection B.

I. In an active management area
and
rural groundwater management area
only one exempt well may be drilled or
used to serve the same non-irrigation use at the same location, except
that a person may drill or use a second exempt well to serve the same non-irrigation
use at the same location if the director determines that all of the following
apply:

1. Because of its location, the first exempt well is
not capable of consistently producing more than three gallons per minute of
groundwater when equipped with a pump with a maximum capacity of thirty-five
gallons per minute.

2. The second exempt well is located on the same
parcel of land as the first exempt well, the parcel of land is at least one
acre in size, all groundwater withdrawn from both exempt wells is used on that
parcel of land and there are no other exempt wells on that parcel of land.

3. Combined withdrawals from both wells do not
exceed five acre-feet per year.

4. If the second exempt well is drilled after
January 1, 2000, the county health authority for the county in which the well
is located or any other local health authority that controls the installation
of septic tanks or sewer systems in the county has approved the location of the
well in writing after physically inspecting the well site.

5. Use of two wells for the same non-irrigation use
at the same location is not contrary to the health and welfare of the public.

J. An exempt well is subject to sections 45-594
and 45-595.

K. Groundwater withdrawn from an exempt well may be
transported only pursuant to articles 8 and 8.1 of this chapter.

L. A person who owns land from which exempt
withdrawals were being made as of the date of the designation of the active
management area is not eligible for a certificate of grandfathered right for a
type 2 non-irrigation use for such withdrawals.

M. A person who owns land from which
exempt withdrawals were being made as of the date of the designation of a rural
groundwater management area is not eligible for a certificate of groundwater
use for such withdrawals.

n.
For the purposes of this section:

1. "Domestic
purposes" means uses related to the supply, service and activities of
households and private residences and includes the application of water to less
than two acres of land to produce plants or parts of plants for sale or human
consumption, or for use as feed for livestock, range livestock or poultry, as
such terms are defined in section 3-1201.

2. "Municipal provider" means a city,
town, private water company or irrigation district that supplies water for
non-irrigation use.

3. "Stock watering" means the watering of
livestock, range livestock or poultry, as such terms are defined in section 3-1201.

END_STATUTE

Sec. 13. Section 45-596, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-596.

Notice of intention to drill; fee

A. In an area
that is
not
subject to active management
or the JURISDICTION of a rural
groundwater management area council established pursuant to article 3.1 of this
chapter
, a person may not drill or cause to be drilled any well or
deepen an existing well without first filing
a
notice of
intention to drill pursuant to subsection C of this section or obtaining a
permit pursuant to section 45-834.01.� Only one notice of intention to
drill is required for all wells that are drilled by or for the same person to
obtain geophysical, mineralogical or geotechnical data within a single section
of land.

B. In an active management area
or
rural groundwater management area
, a person may not drill or cause to be
drilled an exempt well, a replacement well in approximately the same location
or any other well for which a permit is not required under this article,
article 7 of this chapter or section 45-834.01 or deepen an existing well
without first filing a notice of intention to drill pursuant to subsection C of
this section.� Only one notice of intention to drill is required for all wells
that are drilled by or for the same person to obtain geophysical, mineralogical
or geotechnical data within a single section of land.

C. A notice of intention to drill shall be filed
with the director on a form that is prescribed and furnished by the director
and that shall include:

1. The name and mailing address of the person filing
the notice.

2. The legal description of the land on which the
well is proposed to be drilled and the name and mailing address of the owner of
the land.

3. The legal description of the location of the well
on the land.

4. The depth, diameter and type of casing of the
proposed well.

5. Such legal description of the land on which the
groundwater is proposed to be used as may be required by the director to
administer this chapter.

6. When construction is to begin.

7. The proposed uses to which the groundwater will
be applied.

8. The name and well driller's license number of the
well driller who is to construct the well.

9. The design pumping capacity of the well.

10. If for a replacement well, the maximum capacity
of the original well and the distance of the replacement well from the original
well.

11. Proof that the director determines to be
satisfactory that the person proposing to construct the well holds a valid
license issued by the registrar of contractors pursuant to title 32, chapter 10
and that the license is of the type necessary to construct the well described
in the notice of intention to drill.� If the proposed well driller does not
hold a valid license, the director may accept proof that the proposed well
driller is exempt from licensing as prescribed by section 32-1121.

12. If any water from the proposed well will be used
for domestic purposes as defined in section 45-454, evidence of
compliance with the requirements of subsection F of this section.

13. If for a second exempt well at the same location
for the same use pursuant to section 45-454, subsection I, proof that the
requirements of that subsection are met.

14. If for a well to obtain geophysical,
mineralogical or geotechnical data within a single section of land, the
information prescribed by this subsection for each well that will be included
in that section of land before each well is drilled.

15. Such other information as the director may
require.

D. On receiving a notice of intention to drill and
the fee required by subsection L of this section, the director shall endorse on
the notice the date of its receipt.� The director shall then determine whether
all information that is required has been submitted and whether the
requirements of subsection C, paragraphs 11 and 12 and subsection I of this
section have been met.� If so, within fifteen days
of
after
receipt of the notice, or such longer time as provided
in subsection J of this section, the director shall record the notice, mail a
drilling card that authorizes the drilling of the well to the well driller
identified in the notice and mail written notice of the issuance of the
drilling card to the person filing the notice of intention to drill at the
address stated in the notice.� On receipt of the drilling card, the well
driller may proceed to drill or deepen the well as described in the notice of
intention to drill.� If the director determines that the required information
has not been submitted or that the requirements of subsection C, paragraphs 11
and 12 or subsection I of this section have not been met, the director shall
mail a statement of the determination to the person giving the notice to the
address stated in the notice, and the person giving the notice may not proceed
to drill or deepen the well.

E. The well shall be completed within one year after
the date of the notice
of intention to drill
unless the
director approves a longer period of time pursuant to this
subsection. If the well is not completed within one year or within
the time approved by the director pursuant to this subsection, the person shall
file a new notice before proceeding with further construction. At
the time the drilling card for the well is issued, the director may provide for
and approve a completion period that is greater than one year but not
to exceed

more than
five years
from
after
the date of the notice if both
of the following apply:

1. The proposed well is a nonexempt well within an
active management area
or rural groundwater management area

and qualifies as a replacement well in approximately the same location as
prescribed in rules adopted by the director pursuant to section 45-597.

2. The applicant has submitted evidence that
demonstrates one of the following:

(a) This state or a political subdivision of this
state has acquired or has begun a condemnation action to acquire the land on
which the original well is located.

(b) The original well has been rendered inoperable
due to flooding, subsidence or other extraordinary physical circumstances that
are beyond the control of the well owner.

F. If any water from a proposed well will be used
for domestic purposes as defined in section 45-454 on a parcel of land of
five or fewer acres, the applicant shall submit a well site plan of the
property with the notice of intention to drill.� The site plan shall:

1. Include the county assessor's parcel
identification number.

2. Show the proposed well location and the location
of any septic tank or sewer system that is either located on the property or
within one hundred feet of the proposed well site.

3. Show written approval by the county health
authority that controls the installation of septic tanks or sewer systems in
the county, or by the local health authority in areas where the authority to
control installation of septic tanks or sewer systems has been delegated to a
local authority. In areas where there is no local or county
authority that controls the installation of septic tanks or sewer systems, the
applicant shall apply for approval directly to the department
of
water resources
.

G. Before approving a well site plan submitted
pursuant to subsection F of this section, the county or local health authority
or the department
of water resources
, as applicable,
pursuant to subsection F of this section, shall review the well site plan and
determine whether the proposed well location complies with applicable local
laws, ordinances and regulations and any laws or rules adopted under this title
and title 49 regarding the placement of wells and the proximity of wells to
septic tanks or sewer systems.� If the health authority or the department
of water resources
, as applicable, pursuant to subsection F of
this section, finds that the proposed well location complies with this title
and title 49 and with local requirements, it shall endorse the site plan and
the proposed well placement in a manner indicating approval. On
endorsement, the director
of water resources
shall approve
the construction of the well
,
if all remaining
requirements have been met. If the health authority is unable to
determine whether the proposed well location complies with this title and title
49 and local requirements, it shall indicate this on the site plan and the
decision to approve or reject the proposed construction rests with the director

of water resources
. If parcel size, geology or
location of improvements on the property prevents the well from being drilled
in accordance with this title and title 49 or local requirements, the property
owner may apply for a variance. The property owner shall make the
request for a variance to the county or local authority if a county or local
law, ordinance or regulation prevents the proposed construction. If
a law or rule adopted under this title or title 49 prevents the proposed
construction, the property owner shall make the request for a variance directly
to the department
of water resources
.� The request for a
variance shall be in the form and shall contain the information that the
department
of water resources
, county or local authority
may require.� The department
of water resources
, or the
county or local authority whose law, ordinance or regulation prevents the
proposed construction, may expressly require that a particular variance shall
include certification by a registered professional engineer or geologist that
the location of the well will not pose a health hazard to the applicant or
surrounding property or inhabitants. If all necessary variances are
obtained, the director
of water resources
shall approve
the construction of the well if all remaining requirements have been met.

H. If a well that was originally drilled as an
exploration well, a monitor well or a piezometer well or for any use other than
domestic use is later proposed to be converted to use for domestic purposes as
defined in section 45-454, the well owner shall file a notice of
intention to drill and shall comply with this section before the well is
converted and any water from that well is used for domestic purposes.

I. Except as prescribed in subsection K of this
section, the director shall not approve the drilling of the well if the
director determines that the well will likely cause the migration of
contaminated groundwater from a remedial action site to another well, resulting
in unreasonably increasing damage to the owner of the well or persons using
water from the well.� In making this determination, the director of water
resources shall follow the applicable criteria in the rules adopted by the director
of water resources pursuant to section 45-598, subsection A and shall
consult with the director of environmental quality.� For the purposes of this
subsection:

1. "Contaminated groundwater" means
groundwater that has been contaminated by a release of a hazardous substance,
as defined in section 49-201, or a pollutant, as defined in section 49-201.

2. "Remedial
action site" means any of the following:

(a) The site of a
remedial action undertaken pursuant to the comprehensive environmental
response, compensation, and liability act of 1980, as amended (P.L. 96-510;
94 Stat. 2767; 42 United States Code sections 9601 through 9657), commonly
known as "superfund".

(b) The site of a corrective action undertaken
pursuant to title 49, chapter 6.

(d) The site of a remedial action undertaken
pursuant to title 49, chapter 2, article 5, including mitigation of a
nonhazardous release undertaken pursuant to an order issued by the department
of environmental quality pursuant to section 49-286.

(e) The site of a remedial action undertaken
pursuant to the resource conservation and recovery act of 1976 (P.L. 94-580;
90 Stat. 2795; 42 United States Code sections 6901 through 6992).

(f) The site of remedial action undertaken pursuant
to the department of defense environmental restoration program (P.L. 99-499;
100 Stat. 1719; 10 United States Code section 2701).

J. Except as prescribed in subsection K of this
section, the director shall approve or deny the drilling of a well within forty-five
days after receipt of the notice of intention to drill if one of the following
applies:

1. The proposed well is located within a remedial
action site.

2. The proposed well is located within one mile of
any of the following remedial action sites:

(a) A remedial action undertaken pursuant to title
49, chapter 2, article 5, including mitigation of a nonhazardous release
undertaken pursuant to an order issued by the department of environmental
quality pursuant to section 49-286.

(b) A remedial action undertaken pursuant to the
comprehensive environmental response, compensation, and liability act of 1980,
as amended (P.L. 96-510; 94 Stat. 2767; 42 United States Code sections
9601 through 9657), commonly known as "superfund".

(c) A remedial action undertaken pursuant to the
department of defense environmental restoration program (P.L. 99-499; 100
Stat. 1719; 10 United States Code section 2701).

3. The proposed well is located within one-half mile
of either of the following remedial action sites:

(a) A remedial action undertaken pursuant to title
49, chapter 1, article 5.

(b) A remedial action undertaken pursuant to the
resource conservation and recovery act of 1976 (P.L. 94-580; 90 Stat.
2795; 42 United States Code sections 6901 through 6992).

4. The proposed well is located within five hundred
feet of the site of a corrective action undertaken pursuant to title 49,
chapter 6.

K. Subsections I and J of this section do not apply
to the deepening of a well or to the drilling of a replacement well in
approximately the same location.

L. A notice of intention to drill filed under this
section shall be accompanied by a filing fee of
one hundred fifty
dollars
$150
, except that a notice filed for a
proposed well that will not be located within an active management area
,

an irrigation
nonexpansion area
,
or a rural
groundwater management area
that will be used solely for domestic
purposes as defined in section 45-454 and that will have a pump with a
maximum capacity of not more than thirty-five gallons per minute shall be
accompanied by a filing fee of
one hundred dollars
$100
.� The director shall deposit, pursuant to sections 35-146
and 35-147, all fees collected pursuant to this subsection in the well
administration and enforcement fund established by section 45-606.
END_STATUTE

Sec. 14. Section 45-597, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-597.

Deepening and replacement of wells in active management areas or
rural groundwater management areas; filing of notice

A. A person
who is
entitled to
withdraw groundwater in an active management area
or a rural
GROUNDWATER management area
or a person
who is

entitled to recover stored water pursuant to section 45-834.01 may deepen
an existing well or construct a replacement well at approximately the same
location. The director shall by rule define what constitutes a
replacement well, including the distance from the original well site that is
deemed to be the same location for a replacement well.

B.
Prior to

Before
deepening an existing well or constructing a replacement well at
approximately the same location, the person shall file a notice of intention to
drill pursuant to section 45-596 and provide the director with any other
information as the director may by
rules

rule
require.
END_STATUTE

Sec. 15. Section 45-598, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-598.

New wells and replacement wells in new locations in active
management areas or rural groundwater management areas; rules; permit required

A. The director shall adopt rules governing the
location of new wells and replacement wells in new locations in active
management areas
and rural groundwater management areas

to prevent unreasonably increasing damage to surrounding land or other water
users from the concentration of wells.

B. A person
who is
entitled to
withdraw groundwater in an active management area pursuant to article 5 or 6 of
this chapter
or a rural groundwater MANAGEMENT area pursuant to
article 3.1 of this chapter
may construct a new well or a replacement
well in a new location if the location of the new well or the replacement well
complies with the rules adopted by the director pursuant to subsection A of
this section and if the person has applied for and received a permit from the
director pursuant to section 45-599.

C. An applicant for a general industrial use permit
pursuant to sections 45-515 and 45-521 who proposes to construct a
new well or a replacement well in a new location shall also apply for a permit
pursuant to section 45-599.

D. A person who is entitled to withdraw groundwater
in an active management area under article 5 or 6 of this chapter
or a rural groundwater MANAGEMENT area pursuant to article 3.1 of this
chapter
may withdraw groundwater under article
3.1,
5
or 6 of this chapter from a well drilled to withdraw groundwater pursuant to a
groundwater withdrawal permit issued under article 7 of this chapter if the
location of the well complies with the rules adopted by the director under
subsection A of this section and if the person has applied for and received a
permit from the director pursuant to section 45-599. A person
who is
entitled to withdraw groundwater in an active management
area under a general industrial use permit issued under section 45-515
may withdraw groundwater under section 45-515 from a well used to
withdraw groundwater pursuant to another category of groundwater withdrawal
permit issued under article 7 of this chapter if the location of the well
complies with the rules adopted by the director under subsection A of this
section and if the person has applied for and received a permit from the
director pursuant to section 45-599.
END_STATUTE

Sec. 16. Section 45-599, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-599.

Permit application; contents; correction of defective
application; issuance of permit; fee

A. An application for a permit to construct a new
well or replacement well in a new location shall be made on a form that is
prescribed and furnished by the director and that includes:

1. The name and mailing address of the applicant.

2. The legal description of the land
upon
on
which the new well is proposed to be constructed and the
name and mailing address of the owner of the land.

3. The legal description of the proposed location of
the new well on the land.

4. If for a replacement well, the legal description
of the land
upon
on
which the
original well is located, the name and mailing address of the owner of the
land, the legal description of the location of the original well on the land,
the depth and diameter of the original well and evidence of proper abandonment.

5. The depth, diameter and type of casing of the new
well.

6. Such legal description of the land
upon
on
which the groundwater is proposed to be used as may be
required by the director to administer this chapter.

7. When construction is to begin.

8. The proposed use of the groundwater to be
withdrawn.

9. The design pumping capacity of the new well.

10. The name and well driller's license number of
the well driller who is to construct the well.

11. The estimated time required to complete the
well, if more than one year from the date of receipt of the permit.

12. Such other information including any maps,
drawings and data as the director may require.

B.
Upon
On

receipt of a permit application and the fee required by subsection J of this
section, the director shall endorse on the application the date of its
receipt. If the application is incorrect or incomplete, the director
may request additional information from the applicant.� The director may
conduct independent investigations as may be necessary to determine whether the
application should be approved or rejected.

C. The director shall approve an application for a
permit for a new well or a replacement well in a new location if the proposed
well complies with the rules adopted pursuant to section 45-598,
subsection A and, if the proposed well is in the Santa Cruz active management
area, if the location of the proposed well is consistent with the management
plan for the active management area.

D. Except as provided in subsection E of this
section, within sixty days
of
after

receipt of a complete and correct application and the fee required by
subsection J of this section, the director shall approve or reject the
application and mail notice of the action to the applicant.

E. If the director determines that an administrative
hearing should be held before approving or rejecting an application, the
director shall notify the applicant of the date of the hearing within sixty
days
of
after
receipt of the
complete and correct application and the fee required by subsection J of this
section.

F. If at the request of the applicant the director
determines that an emergency exists, the director shall expedite all decisions
under this section.

G. If the application is approved, the director
shall issue a permit and the applicant may proceed to construct the
well. If the application is rejected, the applicant shall not
proceed with construction of the well. The well shall be completed
within one year of receipt of the permit, unless the director in granting the
permit approves a longer period to complete the well. If the well is
not completed within one year or the longer period approved by the director,
the applicant shall file a new application before proceeding with construction.

H. The permit shall state the following:

1. The legal description of the land
upon
on
which the well may be constructed.

2. The legal description of the location of the new
well on the land.

3. The depth and diameter of the well and type of
casing.

4. The maximum pumping capacity of the well.

5. The legal description of the land
upon
on
which the groundwater will be used.

6. The use of the groundwater to be withdrawn.

7. The latest date for completing the well.

I. Section 45-114, subsections A and B govern
administrative proceedings, rehearing or review and judicial review of final
decisions of the director under this section. If an administrative
hearing is held, it shall be conducted in the active management area
or rural groundwater management area
in which the use is
located
or within a county with lands in which the plurality of
the registered voters in the groundwater basin resides
.

J. An application for a permit filed under this
section shall be accompanied by a filing fee of one hundred fifty dollars.� The
director shall deposit, pursuant to sections 35-146 and 35-147, all
fees collected pursuant to this subsection in the well administration and
enforcement fund established by section 45-606.
END_STATUTE

Sec. 17. Section 45-601, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-601.

Operating rules for multiple wells

The director may adopt rules governing pumping patterns of
persons who withdraw groundwater or recover stored water, as defined in section
45-802.01, from multiple wells in an active management area
or rural groundwater management area
to minimize damage to
adjacent groundwater users.� The director may not require a person who
withdraws groundwater or recovers stored water from multiple wells to change
the person's pumping patterns if the person or user cannot reasonably
accommodate such changes.
END_STATUTE

Sec. 18. Section 45-604, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-604.

Water measuring devices

A. Except as provided in subsections B, C and D of
this section, a person who withdraws groundwater from a nonexempt well in an
active management area
,

or an

irrigation non-expansion area
or rural groundwater
management area
, a person who withdraws water from a
non-exempt

�NONEXEMPT
well in the Santa Cruz active management area
or a person who withdraws groundwater for transportation to an initial active
management area pursuant to article 8.1 of this chapter shall use a water
measuring device approved by the director.

B. A person with a type 2 non-irrigation
grandfathered right or a groundwater withdrawal permit in the amount of ten or
fewer acre-feet per year is not required to use a water measuring device
to measure withdrawals pursuant to that grandfathered right or groundwater
withdrawal permit unless the person holds more than one such right or permit in
the aggregate amount of more than ten acre-feet per year and withdraws
more than ten acre-feet of groundwater per year pursuant to those rights
or permits from one well.

C. In an irrigation non-expansion area:

1. A person who withdraws ten or fewer acre-feet of
groundwater per year from a
non-exempt
NONEXEMPT
well for a non-irrigation use is not required
to use a water measuring device to measure withdrawals from that well.

2. A person who withdraws groundwater from a
non-exempt

NONEXEMPT
well for an
irrigation use is not required to use a water measuring device to measure
withdrawals from that well if both of the following apply:

(a) Groundwater withdrawn from the well for an
irrigation use is used only on land that is owned by a person who has the right
under section 45-437 to irrigate ten or fewer contiguous acres at the
place of the use.

(b) Groundwater withdrawn from the well is not used
on land that is part of an integrated farming operation.

D. In an active management area, a person, other
than an irrigation district, who withdraws groundwater from a
non-exempt

NONEXEMPT
well for use pursuant to an irrigation
grandfathered right that is appurtenant to ten or fewer irrigation acres is not
required to use a water measuring device to measure withdrawals from that well
unless groundwater withdrawn from the well is also used pursuant to either a
service area right pursuant to article 6 of this chapter or a grandfathered
groundwater right other than an irrigation grandfathered right that is
appurtenant to irrigation acres that are exempt from irrigation water duties
pursuant to section 45-563.02.

E. The director shall adopt rules setting forth the
requirements and specifications for water measuring devices.�
If
the director modifies the rules after December 31, 2025, the modified rules
shall provide that any water measuring device must continue to be approved by
the director for use within rural groundwater management areas pursuant to
article 3.1 of this chapter.

END_STATUTE

Sec. 19. Section 45-632, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-632.

Records and annual report of groundwater pumping, transportation
and use; penalty

A. Each person who is required to file an annual
report under this section or who files an annual report under subsection E of
this section shall maintain current accurate records of the person's
withdrawals, transportation, deliveries and use of groundwater and, in the
Santa Cruz active management area, current accurate records of the person's
withdrawals, deliveries and use of all water withdrawn from a well, as
prescribed by the director under subsection
P
Q
of this section.

B. Except as provided in subsections C and D of this
section, an annual report shall be filed with the director by each person who:

1. Owns or leases a right under this chapter to
withdraw, receive or use groundwater in an active management area, unless a
report is filed for that person by an irrigation district under subsection E of
this section or by another person in a form acceptable to the director.

2. Uses groundwater
which
that
is transported from an active management area.

3. Is an individual user subject to a municipal
conservation requirement for appropriate conservation measures included in a
management plan adopted by the director pursuant to article 9 of this chapter.

4. Withdraws groundwater for transportation to an
initial active management area pursuant to article 8.1 of this chapter.

5. Withdraws water from a well in the Santa Cruz
active management area or who uses water, other than stored water, withdrawn
from a
non-exempt

NONEXEMPT
well
in the Santa Cruz active management area.

6. wITHDRAWS GROUNDWATER FROM A
NONEXEMPT WELL IN A RURAL GROUNDWATER MANAGEMENT AREA.

C. Persons who withdraw groundwater from exempt
wells and non-irrigation customers of cities, towns, private water
companies and irrigation districts, except customers receiving water pursuant
to a permit, are exempt from the record keeping and reporting requirements of
this section for such water.

D. A person who owns or leases an irrigation
grandfathered right that is appurtenant to ten or fewer irrigation acres is
exempt from the record keeping and reporting requirements of this section for
the irrigation grandfathered right unless one of the following applies:

1. The land to which the irrigation grandfathered
right is appurtenant is part of an integrated farming operation.

2. Groundwater is withdrawn from the land to which
the irrigation grandfathered right is appurtenant and delivered for use
pursuant to either a service area right pursuant to article 6 of this chapter
or a grandfathered groundwater right other than an irrigation grandfathered
right that is appurtenant to irrigation acres that are exempt from irrigation
water duties pursuant to section 45-563.02.

3. Groundwater is withdrawn from land that is both
owned by the owner of the irrigation grandfathered right and contiguous to the
land to which the irrigation grandfathered right is appurtenant and delivered
for use pursuant to either a service area right pursuant to article 6 of this
chapter or a grandfathered groundwater right other than an irrigation
grandfathered right that is appurtenant to irrigation acres that are exempt
from irrigation water duties pursuant to section 45-563.02.

E. An irrigation district
which
THAT
delivers and distributes groundwater in an active
management area may file an annual report with the director for each person
with an irrigation grandfathered right appurtenant to irrigation acres within
the service area of the irrigation district, if the irrigation district
delivers all the water used on the person's irrigation acres. If an
irrigation district files an annual report for such a person, the irrigation
district shall report the following information for each such person:

1. The name of the person and the certificate number
of the person's irrigation grandfathered right.

2. The quantity of groundwater, if any, delivered
during the calendar year.

F. Persons who are required to report under
subsection B, paragraph 1 of this section and who withdraw groundwater during
the calendar year in an active management area shall report the following
information for each well:

1. The registration number and location of the well.

2. The quantity of groundwater withdrawn from the
well during the calendar year. A person who, under section 45-604,
subsection B, is not required to use and does not use a water measuring device
to measure withdrawals made pursuant to a type 2 non-irrigation grandfathered
right or a groundwater withdrawal permit shall estimate the quantity of
groundwater withdrawn pursuant to the grandfathered right or withdrawal permit.

3. The quantity of fuel or electricity consumed by
the pump during the calendar year.

4. The uses to which the groundwater was applied or
the persons to whom the groundwater was delivered during the calendar year.

G. Persons who are required to report under
subsection B, paragraph 1 of this section and who use groundwater during the
calendar year in an active management area and persons who are required to
report under subsection B, paragraph 2 of this section shall report the
following information:

1. The source of the groundwater, including:

(a) The name of the person from whom the groundwater
was obtained.

(b) The registration number and location of the
well, if known.

2. The quantity of groundwater used during the
calendar year.

3. The specific uses to which the groundwater was
applied during the calendar year.

H. Persons who are required to report under
subsection B, paragraph 4 of this section and who transport groundwater during
the calendar year to an initial active management area under article 8.1 of
this chapter shall report the following information:

1. The registration number and location of each
well.

2. The quantity of groundwater withdrawn from each
well during the calendar year.

3. The quantity of groundwater transported during
the calendar year to an initial active management area.

4. The quantity of groundwater that was withdrawn
during the calendar year and that was not transported to an initial active
management area and the uses to which the groundwater was applied.

5. The quantity of fuel or electricity consumed by
each pump during the calendar year.

6. The uses to which the groundwater was applied or
the persons to whom the groundwater was delivered during the calendar year.

I. Persons who are required to report under
subsection B, paragraph 1 of this section and who neither withdraw nor use
groundwater during the calendar year shall report the following information:

1. The fact that no groundwater was withdrawn or
used during the calendar year.

2. The registration number and location of each
well, if any.

J. Persons who are required to report under
subsection B, paragraph 5 of this section and who withdraw water from a
non-exempt

NONEXEMPT
well in the Santa
Cruz active management area during the calendar year shall report the following
information:

1. The registration number and location of the well.

2. The quantity of water, by type, withdrawn from
the well during the calendar year.

3. The quantity of fuel or electricity consumed by
the pump during the calendar year.

4. The uses to which the water was applied or the
persons to whom the water was delivered during the calendar year.

K. Persons who are required to report under
subsection B, paragraph 5 of this section and who use water withdrawn from a
non-exempt

NONEXEMPT
well in the Santa
Cruz active management area during the calendar year shall report the following
information:

1. The source of the water, including:

(a) The name of the person from whom the water was
obtained.

(b) The registration number and location of the
well, if known.

2. The quantity of the water, by type, used during
the calendar year.

3. The specific uses to which the water was applied
during the calendar year.

L. A person who is required to report
pursuant TO subsection b, paragraph 6 of this section and who withdraws water
from a nonexempt well in a rural groundwater management area during the
calendar year shall report the following information:

1. The registration number and
location of the well.

2. The quantity of water, by type, by
legal authority and by use that is withdrawn from the well during the calendar
year.

3. The specific uses to which the
water was applied during the calendar year.

4. If the person did not withdraw the
water for the person's own use, any person to whom the water was delivered,
other than municipal use customers of a municipal provider.

M.
If
a person both withdraws groundwater in an active management area and uses such
water, the person may combine the information required by subsections F and G
of this section into one report. If a person both withdraws water,
other than stored water, from a
non-exempt

NONEXEMPT

well in the Santa Cruz active management area and uses such water, the
person may combine the information required by subsections J and K of this
section into one report.

N.
The
director may require such other information in the report as may be necessary
to accomplish the management goals of the applicable active management area
OR RURAL GROUNDWATER MANAGEMENT AREA
.

O.
Each
report shall contain either a sworn statement or a certification, under penalty
of perjury, that the information contained in the report is true and correct
according to the best belief and knowledge of the person filing the report.

P.
The
annual report shall be maintained on a calendar year basis and shall be filed
with the director no later than March 31 of each year for the preceding
calendar year. If a person who is required under this section to
file an annual report for calendar year 1985 or any subsequent calendar year
fails to file a report for the calendar year in question on or before March 31
of the following year, the director may assess and collect a penalty of
twenty-five dollars
$25
for each month or
portion of a month that the annual report is delinquent. The total
penalty assessed under this subsection shall not exceed
one
hundred fifty dollars
$150
. The
director shall deposit, pursuant to sections 35-146 and 35-147, all
penalties collected under this subsection in the state general fund.

Q.
The
records and reports required to be kept and filed under this section shall be
in such form as the director prescribes. The director shall prepare
blank forms and distribute them on a timely schedule throughout each active
management area
and rural groundwater management area
and
furnish them
upon
on

request. Failure to receive or obtain the forms does not relieve any
person from keeping the required records or making any required report. The
director shall cooperate with cities and towns, private water companies and
irrigation districts in establishing the form of the records and reports to be
kept and filed by them.
END_STATUTE

Sec. 20. Section 45-635, Arizona Revised Statutes, is amended to read:

START_STATUTE
45-635.

Violation; civil penalties

A. A person who is
determined pursuant to section 45-634 to be in violation of this chapter
or a permit, rule, regulation or order issued or adopted pursuant to this
chapter may be assessed a civil penalty in an amount not exceeding:

1. Except as provided in paragraph 3 of this
subsection,
one hundred dollars
$100

per day of violation not directly related to illegal withdrawal, use or
transportation of groundwater.

2.
Ten thousand dollars
$10,000
per day of violation directly related to illegal
withdrawal, use or transportation of groundwater.

3. In the Santa Cruz active management area,
ten thousand dollars
$10,000
per day of
violation for a violation of an applicable conservation requirement established
by the director pursuant to article 9 of this chapter for the withdrawal of
water, other than stored water, from a well or the distribution or use of
water, other than stored water, withdrawn from a well.

B. In addition to or in lieu of the
monetary penalties under subsection A, paragraph 2 of this section, the
director may require a person who is determined to be in violation of article
3.1 of this chapter to reduce the person's use of groundwater in the future by
a volume that is equivalent to the volume of groundwater unlawfully withdrawn.

B.
C.
An
action to recover penalties under this section shall be brought by the director
in the superior court in the county in which the violation occurred.

C.
D.
In
determining the amount of the penalty, the court shall consider the degree of
harm to the public, whether the violation was knowing or wilful, the past
conduct of the defendant, whether the defendant should have been on notice of
the violation, whether the defendant has taken steps to cease, remove or
mitigate the violation and any other relevant information.

D.
E.
All
civil penalties assessed pursuant to this section shall be deposited, pursuant
to sections 35-146 and 35-147, in the state general fund.
END_STATUTE

Sec. 21. Section 45-812.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-812.01.

Groundwater savings facility permit

A. A person may apply to the director for a
groundwater savings facility permit and may operate a groundwater savings
facility only pursuant to a permit.

B. The director may issue a permit to operate a
groundwater savings facility if the director determines that all of the
following apply:

1. Operation of the
facility will cause the direct reduction or elimination of groundwater
withdrawals in an active management area
,

an irrigation non-expansion area
or a rural groundwater
management area
by means of delivery of water other than groundwater
pumped from within that active management area
,

or
irrigation non-expansion area
or rural
groundwater management area
that the recipient will use in lieu of
groundwater that the recipient would otherwise have used.

2. The applicant will deliver water other than groundwater
pumped from within the active management area
,

or
irrigation non-expansion area
or rural
groundwater management area
in which the groundwater savings facility is
located to an identified groundwater user who will use and agrees in writing to
use the water delivered to the facility on a gallon-for-gallon
substitute basis directly in lieu of groundwater that otherwise would have been
pumped from within the active management area
,

or
irrigation non-expansion area
or rural
groundwater management area
.

3. The in lieu water is the only reasonably
available source of water for the recipient other than groundwater pumped from
within the same active management area
,

irrigation non-expansion area
or rural groundwater management
area
in which the groundwater savings facility is located.

4. The water delivered as in lieu water would not
have been a reasonable alternative source of water for the recipient except
through the operation of the groundwater savings facility.

5. The water delivered to the recipient as in lieu
water was not delivered before October 1, 1990.

6. The applicant has submitted a plan satisfactory
to the director that describes how the applicant will prove the quantity of
groundwater saved at the facility each year and what evidence will be submitted
with the applicant's annual report as required by section 45-875.01 to
prove the groundwater savings. The plan may rely on the following
factors:

(a) The recipient's cost of pumping groundwater
relative to the cost of in lieu water and alternative sources of water
available to the recipient.

(b) The historic quantity of groundwater pumped by
the recipient at the location of the intended use of the in lieu water.

(d) The recipient's legal right to withdraw or use
groundwater pursuant to chapter 2 of this title.

(e) The amount of central Arizona project water for
which the recipient anticipates accepting delivery.

(f) The historic amount of power used to pump
groundwater at the groundwater savings facility compared to the power used
during a year in which the recipient received in lieu water.

(g) The factors that prevent the recipient from
using the water delivered as in lieu water without the operation of the
groundwater savings facility.

(h) Any other criteria the director may deem to be
relevant.
END_STATUTE

Sec. 22. Section 45-831.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-831.01.

Water storage permits

A. A person may apply to the director for a water
storage permit and may store water at a storage facility only pursuant to a
water storage permit.

B. The director may issue a water storage permit to
store water at a storage facility if the director determines that all of the
following apply:

1. The applicant has a right to use the proposed
source of water. Any determination made by the director for purposes of this
subsection regarding the validity, nature, extent or relative priority of a
water right claimed by the applicant or another person is not binding in any
other administration proceeding or in any judicial proceeding.

2. The applicant has applied for any water quality
permit required by the department of environmental quality under title 49,
chapter 2, article 3 and by federal law.

3. The water storage will occur at a permitted
storage facility.

C. In addition to the requirements of subsection B
of this section, if the applicant has applied for a water storage permit to
store water at a groundwater savings facility, the director shall not issue the
water storage permit unless the applicant has agreed in writing to comply with
the plan by which the quantity of groundwater saved at the facility will be
proved each year.

D. If the director issues a water storage permit,
the director may make, if possible, the following determinations:

1. Whether the water to be stored is water that
cannot reasonably be used directly by the applicant and otherwise meets the
requirements of section 45-852.01 for long-term storage credits.

2. If use of the water to be stored is appurtenant
to a particular location, and if so, where the water may be legally used after
recovery. Any determination made by the director for purposes of this
subsection regarding the validity, nature, extent or relative priority of a
water right claimed by the applicant or another person is not binding in any
other administrative proceeding or in any judicial proceeding.

E. The director may issue a water storage permit for
a period of not more than fifty years, except that:

1. On request of the
holder of the permit, the director may renew the permit if the director
determines that the requirements of subsection B of this section apply and, if
the requirement of subsection C of this section applied at the time of issuance,
that the requirement of subsection C of this section applies at the time of
renewal.

2. Subject to the provisions of this chapter, the
holder of long-term storage credits earned pursuant to the permit may
recover the water over a period longer than the duration of the permit.

F. The holder of a water storage permit may apply to
the director for approval to convey the permit to another
person. The director may approve the conveyance if the director
determines that the person to whom the permit is to be conveyed and the water
storage will continue to meet the applicable requirements of this
section. If long-term storage credits accrued pursuant to the
water storage permit are being assigned pursuant to section 45-854.01
with the water storage permit, the director shall be given notice of the
impending assignment of long-term storage credits at the time the holder
of the water storage permit applies to convey the permit.

G. A person who holds a water storage permit may
apply to the director on a form approved by the director for a modification of
that water storage permit. The director may modify the permit within
twenty days
of

after
receiving the
application without complying with section 45-871.01 if all of the
following apply:

1. The holder of the storage facility permit with
which the water storage permit is affiliated has consented to the modification.

2. The modification to the water storage permit does
not require a modification of the affiliated water storage facility permit.

3. The only modification requested is to add an
amount of Colorado river water as a type of water to be stored under the water
storage permit.

4. Water storage of Colorado river water has
previously been permitted at the affiliated storage facility.

5. The person requesting the modification has the
right to use the Colorado river water.

H. A water storage permit shall include the
following information:

1. The name and mailing address of the person to
whom the permit is issued.

2. The storage facility where the water storage will
occur and the name of the active management area,
rural
groundwater management area
, irrigation non-expansion area,
groundwater basin or groundwater
sub-basin

subbasin
, as applicable, in which that facility is located.

3. The maximum annual amount of water that may be
stored.

4. If the applicable finding of subsection D of this
section has been made, whether the water to be stored is water that cannot
reasonably be used directly by the applicant.

5. If the applicable finding of subsection D of this
section has been made, any restrictions on where the water to be stored may
legally be used.

6. Other conditions consistent with this chapter.

7. The duration of the permit.

I. If the water storage will occur at a groundwater
savings facility, the water storage permit shall include, in addition to the
information required by subsection H of this section, the requirements of the
plan by which the quantity of groundwater saved at the storage facility will be
proved each year.

J. If the director of the department of water
resources decides to issue a water storage permit and the applicant has not
received a water quality permit required by the department of environmental
quality under title 49, chapter 2, article 3 and by federal law, the director
of the department of water resources shall make receipt of the water quality
permit a condition of the water storage permit and the holder of the water
storage permit shall not store water until receiving the water quality permit.
END_STATUTE

Sec. 23. Section 45-832.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-832.01.

Use of stored water

A. Water that has been stored pursuant to a water
storage permit may be used or exchanged only in the manner in which it was
permissible to use or exchange the water before it was stored.

B. Water that has been stored pursuant to a water
storage permit may be used only in the location in which it was permissible to
use the water before it was stored.

C. Water that has been stored pursuant to a water
storage permit may be used for replenishment purposes only in the active
management area
or

rural groundwater
management area
in which the water is stored, unless the water is
recovered and transported to another active management area
or
rural groundwater management area
.

D. Stored water may be used only as follows:

1. The water may be recovered by the storer and used
on an annual basis in accordance with section 45-851.01.

2. The water may be credited to the storer's
long-term storage account, if the water meets the requirements of section 45-852.01,
and the long-term storage credits may be used in accordance with
the
provisions of
this chapter.

3. A district that is storing water may have the
stored water credited to its master replenishment account, if the water would
meet the requirements of long-term storage credits as prescribed by section 45-852.01.

4. A conservation
district that is storing water may have the stored water credited to its
conservation district account, if the water would meet the requirements of
long-term storage credits as prescribed by section 45-852.01.

5. A water district that is storing water may have
the stored water credited to its water district account, if the water would
meet the requirements of long-term storage credits as prescribed by section 45-852.01.

END_STATUTE

Sec. 24. Section 45-834.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-834.01.

Recovery of stored water; recovery well permit; emergency
temporary recovery well permit; well construction

A. A person who holds long-term storage
credits or who may recover water on an annual basis may recover the water
stored pursuant to a water storage permit only:

1. If the person seeking to recover stored water has
applied for and received a recovery well permit under this article.

2. For water stored within an active management area
or rural groundwater management area
, if one of the following
applies:

(a) The proposed recovery well is located within the
area of impact of the stored water, as determined by the director, and either
the person recovering the water is the storer or the stored water to be
recovered is Colorado River water.� If the stored water to be recovered is
effluent that is stored in a managed underground storage facility and if the
proposed recovery well is not an already constructed well owned by the person
recovering the water and is located within the exterior boundaries of the service
area of a city, town, private water company or irrigation district, that city,
town, private water company or irrigation district must be notified by the
person recovering the stored water and must have the right to offer to recover
the water stored on behalf of that person.� If the city, town, private water
company or irrigation district offers to recover the water on behalf of the
person seeking recovery and the water that is offered for recovery is of
comparable quality to the water that the person could recover, the person
seeking to recover the water shall consider accepting the best offer from the
city, town, private water company or irrigation district overlying the area of
impact that has offered to recover the stored water.

(b) The proposed recovery well is located outside
the area of impact of the stored water, as determined by the director, and all
of the following apply:

(i) The proposed recovery well is located within the
same active management area
or rural groundwater management area

as storage.

(ii) The director determines that recovery at the
proposed location is consistent with the management plan and achievement of the
management goal for the active management area
or rural
groundwater management area
.

(iii) If the proposed recovery well is located
within the exterior boundaries of the service area of a city, town, private
water company or irrigation district, that city, town, private water company or
irrigation district is the person seeking to recover the water or has consented
to the location of the recovery well.

(iv) If the proposed recovery well is located
outside, but within three miles of, the exterior boundaries of the service area
of a city, town, private water company or irrigation district, the closest
city, town, private water company or irrigation district has consented to the
location of the recovery well.

(c) The proposed recovery well is located within the
area of impact of the stored water, as determined by the director, the person
recovering the water is not the storer, the stored water to be recovered is not
Colorado River water and all of the conditions prescribed by subdivision (b),
items (i) through (iv) of this paragraph are met.

3. For water stored outside of an active management
area
or rural groundwater management area
, if recovery
will occur within the same irrigation non-expansion area, groundwater
basin or groundwater
sub-basin

subbasin
, as applicable, in which the water was stored.

B. Before recovering from any well water stored
pursuant to a water storage permit, a person shall apply for and receive a
recovery well permit from the director.� The director shall issue the recovery
well permit if the director determines that:

1. If the application is for a new well, as defined
in section 45-591, or except as provided in paragraphs 2 and 3 of this
subsection for an existing well, as defined in section 45-591, the
proposed recovery of stored water will not unreasonably increase damage to
surrounding land or other water users from the concentration of wells.� The
director shall make this determination pursuant to rules adopted by the
director.

2. If the applicant is a city, town, private water
company or irrigation district in an active management area
or
rural groundwater management area
and the application is for an existing
well within the service area of the city, town, private water company or
irrigation district, the applicant has a right to use the existing well.

3. If the applicant is a conservation district and
the application is for an existing well within the conservation district and
within the groundwater basin or
sub-basin
subbasin
in which the stored water is located, the applicant
has a right to use the existing well.

C. A city, town, private water company or irrigation
district in an active management area
or rural groundwater
management area
may apply with a single application to the director to
have all existing wells, as defined in section 45-591, that the applicant
has the right to use within its service area listed as recovery wells on the
recovery well permit, if those wells otherwise meet the requirements of this
section.

D. If the applicant is a conservation district, the
director may issue an emergency temporary recovery well permit without
complying with section 45-871.01, subsection F if the director determines
that all of the following apply:

1. The conservation district cannot reasonably
continue to supply central Arizona project water directly to a city, town,
private water company or irrigation district due to an unplanned failure of a
portion of the central Arizona project delivery system.

2. The emergency temporary recovery well permit is
necessary to allow the conservation district to provide immediate delivery of
replacement water to the city, town, private water company or irrigation
district.

3. The application is for an existing well as
defined in section 45-591 that is within the groundwater basin or
groundwater
sub-basin
subbasin

in which the stored water is located, is within the conservation district and
is within the service area of the city, town, private water company or
irrigation district.

E. An emergency temporary recovery well permit
issued pursuant to subsection D of this section may be issued for a period of
up to ninety days and may be extended for additional ninety day periods if the
director determines that the conditions prescribed in subsection D of this
section continue to apply.

F. If the application for a recovery well permit is
approved, the director shall issue a permit and the applicant may proceed to
construct or use the well.� If the application is rejected, the applicant shall
not proceed to construct or use the well.� A new well shall be completed within
one year of receipt of the permit, unless the director in granting the permit
approves a longer period to complete the well.� If the well is not completed
within one year or the longer period approved by the director, the applicant
shall file a new application before proceeding with construction.

G. A recovery well permit shall include the
following information:

1. The name and mailing address of the person to
whom the permit is issued.

2. The legal description of the location of the
existing well or proposed new well from which stored water may be recovered
pursuant to the permit.

3. The purpose for which the stored water will be
recovered.

4. The depth and diameter of the existing well or
proposed new well from which stored water may be recovered pursuant to the
permit.

5. The legal
description of the land on which the stored water will be used.

6. The maximum
pumping capacity of the existing well or proposed new well.

7. If the permit is for a proposed new well, the
latest date for completing the proposed new well.

8. Any other information as the director may
determine.
END_STATUTE

Sec. 25. Section 45-841.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-841.01.

Accrual of long-term storage credits; Indian water rights
settlements

A. To further the implementation of Indian water
rights settlements in this state, an Indian community may accrue long-term
storage credits as prescribed by this section.

B. This section applies only to the settlement of a
water rights claim by a federally recognized Indian community in this state if
the settlement provides for off-reservation storage of its central
Arizona project water and only after the settlement results in a dismissal with
prejudice of a class action claim that has been pending in the United States
district court for more than five years.

C. Before accruing any long-term storage
credits under this section, both of the following conditions apply:

1. A party seeking to participate in the accrual of
long-term storage credits under this section shall file written notice
with the director that the requirements of subsection B of this section have
been met.

2. The director shall find that the requirements of
subsection B of this section have been met.

D. Before accruing any long-term storage
credits under this section, a party seeking to participate in the accrual of
long-term storage credits under this section shall file with the director
all of the following information:

1. A written notice of the party's intent to begin
the delivery of central Arizona project water that is available to the Indian
community to the holder of grandfathered groundwater rights in an active
management area
or rural groundwater management area
.

2. A sworn statement by the holder of the
grandfathered groundwater rights that the holder will use the water delivered
off of Indian community lands on a gallon-for-gallon substitute
basis instead of groundwater that otherwise would have been pumped pursuant to
the grandfathered groundwater rights
or CERTIFICATE of
groundwater use
from within an active management area
or
rural groundwater management area
.

3. A listing and description of the grandfathered
groundwater rights that will not be exercised by the holder because of the
delivery of the water that is delivered by the Indian community.

4. A hydrologic report assessing the effect of
nonexercise of grandfathered groundwater rights under this section on any
underground storage facility that was constructed as a state demonstration
project and that is located within ten miles of the point of withdrawal for the
grandfathered groundwater rights.

E. The director shall review the hydrologic report
filed pursuant to subsection D, paragraph 4 of this section and shall make such
modifications to the state demonstration project's underground storage facility
permit as the director deems appropriate.

F. If the director determines that the parties have
complied with subsection D of this section, the Indian community may begin
accruing long-term storage credits for the delivery of central Arizona
project water to the holder of the grandfathered groundwater rights, but only
if the following apply:

1. By March 31 of each year, the holder of the
grandfathered groundwater rights files an annual report with the director for
the preceding calendar year.� The annual report shall include the following
information:

(a) The total quantity of water received from the
Indian community during the year for use by the holder under this section.

(b) A listing of those grandfathered groundwater
rights that were not exercised during the year by the holder because of the
receipt of central Arizona project water delivered by the Indian community.

2. The director finds that the water reported as
received by the grandfathered groundwater right holder was used on a gallon-for-gallon
substitute basis for groundwater.

3. The Indian community has offered to sell the
Arizona water banking authority ten
per cent

percent
of any long-term storage credits accruable by the
Indian community under this section at a price per acre-foot at the time
of sale equal to the authority's cost of delivering and storing water at an
underground storage facility that was constructed as a state demonstration
project and that is located within ten miles of the point of withdrawal of any
of the grandfathered groundwater rights identified in the list filed with the
director pursuant to subsection D, paragraph 3 of this section, except that any
credits purchased pursuant to such offer may not be recovered within five miles
of the exterior reservation boundary of the Indian community.

G. The water that is received under this section by
the holder of the grandfathered groundwater right is deemed to be groundwater
for all purposes of chapter 2 of this title as if the holder had withdrawn it
from a well. The holder is responsible for all records, reports and
fees required by chapter 2 of this title relating to the water received.

H. The director shall establish a long-term
storage account for the Indian community in accordance with section 45-852.01
and each year shall credit to that long-term storage account ninety-five

per cent

percent
of the water
received by the holder of the grandfathered groundwater right during the
preceding year that meets the requirements of subsection F of this section.

I. Long-term storage credits accrued pursuant
to this section may be used or assigned in any manner that is consistent with
this chapter.

J. The maximum amount of long-term storage
credits that may be accrued by an Indian community under this section in any
year is ten thousand acre-feet.
END_STATUTE

Sec. 26. Section 45-852.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-852.01.

Long-term storage accounts

A. The director shall establish one long-term
storage account for each person holding long-term storage
credits. The director shall establish subaccounts within the long-term
storage account according to each active management area
, rural
groundwater management area
, irrigation non-expansion area,
groundwater basin or groundwater subbasin in which the person's stored water is
located.� The long-term storage account shall be further subdivided by
type of water, if the person holds long-term storage credits for more
than one type of water.

B. Water stored pursuant to a water storage permit
at a storage facility may be credited to a long-term storage account if
the director determines that all of the following apply:

1. Either:

(a) The water that was stored was water that cannot
reasonably be used directly.

(b) The water was stored in a groundwater savings
facility located in an active management area
or rural
groundwater management area
that does not have a management goal of
achieving or maintaining a safe yield condition, the water was stored between
January 1, 2020 and December 31, 2026 and the director determines that the
storage assists in implementing within this state a drought contingency plan
for the lower basin of the Colorado River. The total maximum amount
that may qualify under this subdivision is fifteen thousand acre-feet per
year.

2. If the stored water was stored at a storage
facility within an active management area
or rural groundwater
management area
, either:

(a) The water would not have been naturally
recharged within the active management area
or rural groundwater
management area
.

(b) If the water was stored at a managed underground
storage facility that has been designated as a facility that could add value to
a national park, national monument or state park and the water stored is
effluent, the water stored is water that could have been used or disposed of by
the storer by means other than discharging the effluent into the stream.

3. The stored water was not recovered on an annual
basis pursuant to section 45-851.01.

C. The director shall credit ninety-five
percent of the recoverable amount of stored water that meets the requirements
of subsection B of this section to the storer's long-term storage
account, except that:

1. If the water was stored at a managed underground
storage facility that does not qualify as an existing effluent managed
underground storage facility and that had not been designated at the time of
storage as a facility that could add value to a national park, national
monument or state park and the water stored is effluent, the director shall
credit to the storer's long-term storage account fifty percent of the
recoverable amount of water that meets the requirements of subsection B of this
section. For storage of effluent in a managed underground storage
facility that is located in a recreational corridor channelization district
established pursuant to title 48, chapter 35, the director may increase the
storage credits earned from fifty percent to ninety-five percent if both
of the following apply:

(a) The effluent was not discharged into the stream
where the facility is located before the permit application for that facility
was filed.

(b) The director determines that the storage of
effluent in the facility will provide a greater benefit to aquifer conditions
in the active management area
or rural groundwater management
area
or, if outside an active management area
or rural
groundwater management area
, to the groundwater basin than would accrue
to the active management area
, rural groundwater management area

or groundwater basin if the effluent is used or disposed of in another manner.

2. If the water was stored at a groundwater savings
facility and the storer has not met the burden of proving that one hundred
percent of the in lieu water was used on a gallon-for-gallon
substitute basis for groundwater, the director shall credit to the storer's
long-term storage account only the percentage of the in lieu water that
meets the requirements of subsection B of this section and that was proven to
the director's satisfaction as being used on a gallon-for-gallon
substitute basis for groundwater.

3. The director shall credit to the storer's
long-term storage account ninety percent of the recoverable amount of the water
that meets the requirements of subsection B of this section if all of the
following apply:

(a) The stored water was central Arizona project
water that qualifies as water that cannot reasonably be used directly due
solely to the exclusion of groundwater withdrawn by the storer for mineral
extraction or metallurgical processing under section 45-802.01, paragraph
23, subdivision (c).

(b) The storer was engaged in mineral extraction and
metallurgical processing within an initial active management area on or before
January 1, 2011.

(c) All exterior boundaries of the storage facility
that is used to store the stored water are more than twenty miles from a well
owned by the storer on January 1, 2012 and that well is not an exempt well and
any one or more of the following apply:

(i) The well is an existing well as defined in
section 45-591, paragraph 1.

(ii) The department has issued a permit for the well
under section 45-599, subsection C.

(iii) The well was drilled pursuant to a mineral
extraction and metallurgical processing permit issued by the department under
section 45-514.

4. Except as otherwise provided in paragraph 2 of
this subsection, the director shall credit to the storer's long-term
storage account or conservation district account one hundred percent of the
recoverable amount of water that meets the requirements of subsection B of this
section if any of the following applies:

(a) The water stored was effluent that was stored at
a constructed underground storage facility, a groundwater savings facility or a
managed underground storage facility that was designated at the time of storage
as a facility that could add value to a national park, national monument or
state park.

(b) The water was stored in an active management
area
or rural groundwater management area
and the stored
water is water from outside the active management area
or rural
groundwater management area
that would not have reached the active
management area
or rural groundwater management area

without the efforts of the holder of the long-term storage credits.

(c) The water was stored outside an active
management area
or rural groundwater management area
and
the stored water is water from outside the groundwater basin in which the water
was stored that would not have reached the groundwater basin without the
efforts of the holder of the long-term storage credits.

(d) The water was stored for purposes of
establishing and maintaining a replenishment reserve pursuant to section 48-3772,
subsection E.

(e) The water was stored for replenishment purposes
pursuant to section 48-3771 and credited directly to a conservation
district account pursuant to section 45-859.01, subsection E.

D. The director shall credit a person's long-term
storage account by the amount of long-term storage credits assigned to
that person by another holder of long-term storage credits pursuant to
section 45-854.01.

E. The director shall debit the appropriate
subaccount of a person's long-term storage account:

1. One hundred percent of the amount of stored water
that the holder of the long-term storage credits has recovered during the
calendar year pursuant to the permit.

2. The amount of long-term storage credits
that the person has assigned to another person or transferred to a master
replenishment account, conservation district account or water district account.

3. If the water was stored in an active management
area
or rural groundwater management area
, the amount of
water during the calendar year that migrates to a location outside the active
management area
or rural groundwater management area
or
to a location within the active management area
or rural
groundwater management area
where it cannot be beneficially used within
a reasonable period of time by persons other than the storer with rights to
withdraw and use groundwater.

4. If the water was stored outside of an active
management area
or rural groundwater management area
, the
amount of water during the calendar year that migrates to a location outside
the groundwater basin in which the storage facility is located or to a location
in the groundwater basin where it cannot be beneficially used within a
reasonable period of time by persons other than the storer with rights to
withdraw and use groundwater.

5. The amount of long-term storage credits
that the storer, pursuant to section 45-853.01, subsection B, has applied
to offset groundwater withdrawn or used in excess of the storer's per capita
municipal conservation requirements under the second management plan.

6. The amount of long-term storage credits
that are held by the Arizona water banking authority and that the authority has
chosen to extinguish.

F. To the extent the total amount of water withdrawn
by a person from wells designated as recovery wells pursuant to section 45-834.01
during a calendar year exceeds the amount of stored water recovered by the
person on an annual basis pursuant to section 45-851.01 and the amount of
long-term storage credits recovered by the person, the excess amount of
water recovered shall be considered groundwater withdrawn pursuant to chapter 2
of this title.
END_STATUTE

Sec. 27. Section 45-855.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-855.01.

Effect of long-term storage credits on assured water supply and
adequate water supply

A. In an active management area
or
rural groundwater management area
, except as provided in section 45-853.01,
subsection C, and on the request of a person who holds long-term storage
credits, the director shall include the amount of long-term storage
credits requested by the person in determining whether to issue a certificate
of assured water supply to the person pursuant to section 45-576, or if
the person is a city, town or private water company, whether to designate or
redesignate the city, town or private water company as having an assured water
supply. This subsection
shall

does

not
be construed to
prohibit or require the
director to include projected additions to a long-term storage account in
determining whether to issue a certificate of assured water supply to the
person, or if the person is a city, town or private water company, whether to
designate or redesignate the city, town or private water company as having an
assured water supply.

B. Outside an active management area

or rural groundwater management area
, except as provided in section 45-853.01,
subsection C and on the request of a person who holds long-term storage
credits, the director shall include the amount of long-term storage credits
requested by the person in determining whether to issue a report of adequate
water supply pursuant to section 45-108 for a subdivision to the person,
or if the person is a city, town or private water company, whether to designate
the city, town or private water company as having an adequate water
supply. This subsection
shall

does

not
be construed to
prohibit or require the
director to include projected additions to a long-term storage account in
determining whether to issue a report of adequate water supply for a
subdivision to the person, or if the person who holds the long-term storage
account is a city, town or private water company, whether to designate the
city, town or private water company as having an adequate water supply.

C. Long-term storage credits included by the
director in making the determinations and designations in subsections A and B
of this section are not assignable by the person holding the credits, unless
the director has determined that the credits will continue to be used for the
subdivision for which the certificate of assured water supply or certificate of
adequate water supply has been issued or for the service area that has been
designated as having an assured water supply or an adequate water supply.
END_STATUTE

Sec. 28. Section 45-2602, Arizona Revised
Statutes, is amended to read:

START_STATUTE
45-2602.

Establishment of
southside protection zones; reporting requirements

A. The following southside protection zones are
established on
the

effective date of this
section
december 14, 2007
:

1. The eastern protection zone north.

2. The eastern protection zone south.

3. The western municipal and industrial protection
zone.

4. The western municipal protection zone.

5. The central protection zone.

B. The boundaries of the southside protection zones
established under subsection A
of this section
are shown
on the maps that are dated March 25, 2002 and that are on file in the
department.� The maps shall be available for examination by the public during
regular business hours.

C. Each person in the Pinal active management area
who withdraws underground water during a calendar year in a southside protection
zone established under this section, other than the central protection zone,
shall file an annual report with the director no later than March 31 of each
year for the preceding calendar year.� The report shall contain the following
information in addition to any other information required by section 45-632:

1. The amount of underground water withdrawn within
the southside protection zone and the name of the protection zone.

2. If the underground water was used for a
nonirrigation use, the purpose for which the underground water was used, the
location of the use, the acreage of the parcel or parcels of land on which the
underground water was used and the date the use commenced.

3. The amount of any water replenished during the
year pursuant to section 45-2611, subsection B, paragraph 2, the water
use for which the water was replenished and the manner in which the water was
replenished.

4. The amount of any water replaced during the year
pursuant to section 45-2611, subsection B, paragraph 3, the water use for
which the water was replaced and the manner in which the water was replaced.

D. A person who is required to file an annual report
for a year under subsection C of this section:

1. Shall use a water measuring device approved by
the director unless exempt under section 45-604.

2. Shall maintain current accurate records of the
person's withdrawals, transportation, deliveries and use of underground water
as prescribed by the director.�

3. May combine the report with an annual report for
the same year filed under section 45-632.�

4. Shall comply with the requirements prescribed in
section 45-632, subsections
N, O and P

O, P and Q
and is subject to the penalties prescribed in
section 45-632, subsection
O

P
as
if the report was required by section 45-632.

E. A person who withdraws underground water from an
exempt well is exempt from the record keeping and reporting requirements of
subsections C and D of this section.� For the purposes of this subsection,
"exempt well" means a well that has a pump with a maximum capacity of
not more than thirty-five gallons per minute, that is used to withdraw
underground water and that would qualify as an exempt well under section 45-454
if used to withdraw groundwater.

F. If stored water is withdrawn in the Pinal active
management area in a southside protection zone established under this section,
other than the central protection zone, the annual report filed under section
45-875.01, subsection D shall include:

1. The amount of stored water withdrawn within the
southside protection zone and the name of the protection zone.

2. If the stored water was used for a nonirrigation
use, the purpose for which the water was used, the acreage of the parcel or
parcels of land on which the water was used, the location of the use and the
date the use commenced.

3. The identification of the storage facility in
which the water was stored.

4. The amount of any water replenished during the
year pursuant to section 45-2611, subsection B, paragraph 2, the water
use for which the water was replenished and the manner in which the water was
replenished.

5. The amount of any water replaced during the year
pursuant to section 45-2611, subsection B, paragraph 3, the water use for
which the water was replaced and the manner in which the water was replaced.
END_STATUTE

Sec. 29.
Department of water resources; expediated
rulemaking

The department of water resources may
conduct expedited rulemaking to implement this act.

Sec. 30.
Willcox basin;
applicability; delayed repeal

A. On the effective date of
this act:

1. The Willcox active
management area established pursuant to section 45-412, Arizona Revised
Statutes, is repealed and supplanted by the Willcox rural groundwater
management area.

2. The director of water
resources shall file an order designating the Willcox active management area as
repealed and supplanted by the Willcox rural groundwater management area.� The
order shall be published not less than once each week for two weeks immediately
following the effective date of this act in a newspaper of general circulation
in each county where the Willcox rural groundwater management area is located.

B. This section is repealed
from and after December 31, 2026.

Sec. 31.
Short title

This act may be cited as the
"Rural Groundwater Management Act".

rural groundwater management areas; establishment

Plain English Breakdown

Establishment of Rural Groundwater Management Areas

What This Bill Does

Who It Names or Affects

Terms To Know

Limits and Unknowns

Bill History

Official Summary Text

Current Bill Text