PREFILED    JAN 05 2018

REFERENCE TITLE: produce safety rule; state administration

 

 

 

 

State of Arizona

Senate

Fifty-third Legislature

Second Regular Session

2018

 

 

SB 1063

 

Introduced by

Senators Griffin: Borrelli, Brophy McGee, Burges, Fann, Otondo, Pratt; Representatives Barton, Bowers, Clodfelter, Cook, John, Nutt, Peten

 

 

AN ACT

 

amending sections 3-102, 3-144, 3-401 and 3-413, Arizona Revised Statutes; repealing section 3-415, Arizona Revised Statutes, as amended by Laws 2011, chapter 77, section 10; amending section 3-415, Arizona Revised Statutes, as amended by Laws 2011, chapter 281, section 12, amending sections 3-441, 3-443, 3-444, 3-445, 3-446, 3-447, 3-448, 3-449, 3-449.02, 3-449.03, 3-449.04, 3-449.05, 3-450, 3-458, 3-466 and 3-481, Arizona Revised Statutes; repealing section 3-483, Arizona Revised Statutes; amending title 3, chapter 3, article 4, Arizona Revised Statutes, by adding a new section 3-483; amending sections 3-484, 3-485, 3-486, 3-487, 3-488, 3-489, 3-490, 3-491, 3-492, 3-494, 3-496, 3‑497, 3-498 and 3-521, Arizona Revised Statutes; amending title 3, chapter 3, Arizona Revised Statutes, by adding article 4.1; amending sections 3-527.01, 3-527.02, 36‑104, 36-136, 41-1005 and 49-221, Arizona Revised Statutes; relating to produce safety.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


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

Section 1.  Section 3-102, Arizona Revised Statutes, is amended to read:

START_STATUTE3-102.  Department organization

A.  The Arizona department of agriculture is established consisting of the following divisions:

1.  The animal services division, which is responsible for milk, dairy, livestock and aquaculture regulation, the state veterinarian, meat, poultry and egg inspection and performing the administrative functions authorized or contracted pursuant to law for the Arizona beef council.

2.  The plant services division, which is responsible for the fruit and vegetable standardization program and entomological services.

3.  The environmental services division, which is responsible for regulating seed, feed and agricultural chemicals, including pesticides and fertilizers, and for native plant protection.

4.  The weights and measures services division, which is responsible for the inspection, testing and licensing of commercial weighing, measuring and counting devices.

5.  The pest management division, which is responsible for regulating pest management and pest management services as defined in section 3‑3601.

6.  The citrus, fruit and vegetable division, which is responsible for the citrus, fruit and vegetable standardization and produce safety program under chapter 3, articles 2, 4, 4.1 and 4.3 of this title.

B.  The following are established in addition to and separate from the divisions of the department:

1.   The state agricultural laboratory.

2.  An The office of agriculture safety.

3.  An The office of inspections.

4.  An The office of commodity development and promotion.

C.  The department shall have a central administrative service office providing:

1.  Data processing, accounting and budgeting, records management, publications, property control and personnel services and training.

2.  A program to cross‑train appropriate personnel to enable them to perform similar functions or comparable work for different administrative units in the department. END_STATUTE

Sec. 2.  Section 3-144, Arizona Revised Statutes, is amended to read:

START_STATUTE3-144.  State agricultural laboratory; maintenance and purpose; fees

A.  The state agricultural laboratory is established and maintained to carry out this article and for laboratory examinations, diagnosis, analysis, testing, quantifying and identification necessary to perform the functions and duties prescribed by this article.

B.  The state agricultural laboratory:

1.  May accept samples from any person for regulatory, diagnostic and research purposes.

2.  Shall report test results only to the party that provided the original sample.

C.  The state agricultural laboratory may collect fees for laboratory services as prescribed by the director. END_STATUTE

Sec. 3.  Heading change

The chapter heading of title 3, chapter 3, Arizona Revised Statutes, is changed from "marketing of agricultural products" to "marketing and produce safety".

Sec. 4.  Section 3-401, Arizona Revised Statutes, is amended to read:

START_STATUTE3-401.  Definitions

In this article, unless the context otherwise requires:

1.  "Affected commodity" means the specific citrus, fruit or vegetable that is regulated pursuant to article 2 or 4 of this chapter and that is subject to the marketing agreement or order or the proposed marketing agreement or order.

2.  "Affected person" means a producer or shipper of an affected commodity.

3.  "Associate director" means the associate director of the citrus, fruit and vegetable division of the department.

3.  4.  "Marketing agreement" or "agreement" means an agreement that is developed by producers or shippers of the affected commodity and that is entered into by the director pursuant to this article.

4.  5.  "Marketing commission" or "commission" means the marketing commission established under section 3‑413.

5.  6.  "Marketing committee" or "committee" means a marketing committee established by a marketing agreement according to section 3‑426.

6.  7.  "Marketing order" or "order" means an order that is developed by producers or shippers of the affected commodity and that is issued by the director pursuant to this article.

7.  8.  "Person" means any individual, firm, corporation, trust, association or partnership.

8.  9.  "Producer" means a person who that has a financial interest in producing or causing citrus, fruit or vegetable commodities to be produced for market in commercial quantities.

9.  10.  "Shipper" means a person that engages in shipping, transporting, selling or marketing citrus, fruits or vegetables under the shipper's own registered trademark or label or a person who that first markets the fruits or vegetables for the producer.

10.  "Supervisor" means the supervisor of standardization of the Arizona department of agriculture.

11.  "Volume" means cartons or the equivalent weight of Arizona grown Arizona-grown products marketed in the preceding marketing season.

12.  "Written assent" means a signed statement of an affected person consenting to the terms of a marketing order. END_STATUTE

Sec. 5.  Section 3-413, Arizona Revised Statutes, is amended to read:

START_STATUTE3-413.  Marketing commission; appointment; term

A.   The marketing commission is composed of three to nine members with rotating terms of three years.  Two-thirds of the members shall be appointed collectively by the director and supervisor associate director, from nominations of affected persons or representative commodity associations and one-third shall be selected by the other members of the marketing commission.

B.  Members shall be selected to represent areas of this state that produce the affected commodity on the basis of the volume of total production in this state for the affected commodity.

C.   The marketing commission shall be composed of persons who are regulated by the marketing order and shall include both producers and shippers if the marketing order regulates both categories.

D.  Commission members are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2. END_STATUTE

Sec. 6.  Repeal

Section 3-415, Arizona Revised Statutes, as amended by Laws 2011, chapter 77, section 10, is repealed.

Sec. 7.  Section 3-415, Arizona Revised Statutes, as amended by Laws 2011, chapter 281, section 12, is amended to read:

START_STATUTE3-415.  Administrative services; interagency agreements; reimbursement

A.  The marketing commission or marketing committee may employ staff at a rate of compensation determined by the commission or committee, to serve at the pleasure of the commission or committee, and may shall prescribe the terms and conditions of employment of employees as necessary to perform the functions prescribed by this article, the marketing order or the marketing agreement.  The commission or committee may provide, at a rate or amount determined by the commission or committee, compensation, vehicles and vehicle expense, health care benefits, life insurance, retirement and any other cost or expense associated with employment. Reimbursement for travel and subsistence expenses for commission or committee employees shall be in the amount prescribed by title 38, chapter 4, article 2.  All employees of the commission or committee are exempt from title 38, chapter 4, articles 1 and 4 article 1 and title 41, chapter 4, articles 5 and 6 and are not under the jurisdiction of the department of administration.

B.  The commission or committee may also enter into an interagency agreement pursuant to title 11, chapter 7, article 3 with the department to provide necessary administrative services to the commission or committee, including:

1.  Providing secretarial and other services necessary for the commission or committee to carry out its activities.

2.  Establishing separate operating accounts for the commission or committee.

3.  Providing necessary financial and accounting services to the commission or committee, including the issuance of checks, payment of bills approved by the commission or committee, annual audits, expenditure and receipt reports whether monthly or annually, preparation of annual budget and any other activities requested by the commission or committee.

4.  Receiving mail and other communication for the commission or committee.

5.  Receiving monies authorized under this article for deposit in the appropriate trust funds for the exclusive purpose of implementing, continuing and supporting the respective marketing order or marketing agreement.  The commission or committee shall administer the trust fund as trustee.  The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35‑310 and which shall not be commingled with any other monies in the state treasury except for investment purposes.  On notice from the commission or committee, the state treasurer shall invest and divest any trust fund monies deposited in the state treasury as provided by sections 35‑313 and 35‑314.03, and monies earned from investment shall be credited to the trust fund.  The beneficiary of the trust is the agricultural program established by the marketing order or marketing agreement.  The trust fund shall be used solely for those purposes on the order of the commission or committee. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year or at the termination of the marketing order or agreement, do not revert to the state general fund.

6.  Accepting donated monies on behalf of the commission or committee to be credited to the account of the commission or committee.

7.  Providing space for the meetings of the commission or committee.

8.  Providing any other administrative services that the commission or committee requests or finds necessary.

C.  If the department performs any function under this article, it acts as the agent of the marketing commission or marketing committee and has no authority or control over the commission or committee or the commission's or committee's employees or assets.  The commission or committee shall reimburse the department for any administrative services the department provides from the monies received under the marketing order or marketing agreement in an amount agreed on by the commission or committee and the director.  Any services provided by citrus, fruit and vegetable standardization or the department in the normal scope of services are not subject to reimbursement from a marketing commission or marketing committee. END_STATUTE

Sec. 8.  Section 3-441, Arizona Revised Statutes, is amended to read:

START_STATUTE3-441.  Definitions

In this article, unless the context otherwise requires:

1.  "Associate director" means the associate director of the citrus, fruit and vegetable division of the department.

1.  2.  "Bulk lot" means citrus fruit that is not contained in a box, carton, crate or lug but may be contained in a bin or a similar container and is set apart from citrus fruit that is packaged in containers authorized pursuant to this article or rules adopted pursuant to this article.

2.  3.  "By‑products" means any product from citrus fruit that is commercially processed or manufactured for resale.

3.  4.  "Citrus" or "citrus fruit" means the fruit of any orange, lemon, lime, grapefruit, tangerine, cumquat kumquat or other citrus tree which that produces edible citrus fruit suitable for human consumption.

4.  5.  "Commission merchant" means a person who that receives on consignment or solicits from the producer any citrus fruit for sale on commission on behalf of the producer or accepts any citrus fruit in trust from the producer for the purpose of resale.  Commission merchant does not include a shipper.

5.  6.  "Containers" or "packages" means any container used for packing, shipping or selling citrus fruit.

6.  7.  "Dealer" means a person that sells, markets or distributes citrus fruit that the person purchased from a producer or markets as an agent, broker or commission merchant, except at retail.  Dealer does not include a shipper.

7.  8.  "Lot" means a unit of identical or similar items that are grouped or consolidated in one or more containers for packaging or transporting or a cluster of identical or similar items that are included in the same shipping order, bill of lading or other itemized transport order.

8.  9.  "Packer" means a person, other than a producer, shipper or dealer, that is engaged in the business of packing any citrus fruit.

9.  10.  "Person" includes an individual, firm, association, partnership, trust or corporation.

10.  11.  "Producer" means a person that is engaged in this state in the business of producing or causing citrus fruit to be produced for market in commercial quantities.

11.  12.  "Shipper" means a person who that ships, transports, sells or markets citrus fruit under the person's registered trademark or label or a person who that first markets the citrus fruit on behalf of the producer.  Shipper does not include a commission merchant.

12.  "Supervisor" means the supervisor of standardization employed pursuant to section 3‑483. END_STATUTE

Sec. 9.  Section 3-443, Arizona Revised Statutes, is amended to read:

START_STATUTE3-443.  Associate director; inspectors

A.  This article and the rules adopted pursuant to this article shall be enforced by the supervisor of standardization associate director. The supervisor, In addition to the powers conferred upon him by this article, the associate director shall have the powers provided by article articles 4, 4.1 and 4.3 of this chapter.

B.  The supervisor associate director shall instruct the inspectors with regard to the inspection of citrus fruit and the method of determining the maturity and condition of the citrus fruit, as provided by rules adopted pursuant to this article.

C.  Citrus, fruit and vegetable standardization and the office of commodities development and promotion shall cooperate in establishing and administering marketing orders and marketing agreements. END_STATUTE

Sec. 10.  Section 3-444, Arizona Revised Statutes, is amended to read:

START_STATUTE3-444.  Inspectors; powers and enforcement procedures; warning notice; disposal notice; civil penalty

A.  Inspectors may enter any facility, during operating hours, or a commercial vehicle in this state where fresh citrus fruit is produced, stored, packed or delivered for shipment, is transported or is offered for sale and inspect representative samples of the fresh citrus fruit and containers in order to determine compliance with this article and rules adopted pursuant to this article.

B.  If all or part of a lot, including containers, fails to comply with this article or rules adopted pursuant to this article, the inspector may affix a warning notice to all or part of the lot stating the reason why it is held.  No person, Other than an inspector, a person may not detach, alter or destroy the affixed warning notice except by the authorization of the inspector, the supervisor associate director, the supervisor's associate director's designee, the director or a court order.

C.  The inspector shall issue a notice of noncompliance to the person in possession of the lot or part of the lot that states:

1.  A description of the lot or part of the lot.

2.  The specific section of law on which the noncompliance is alleged.

3.  The place where the lot or part of the lot is held.

4.  The specific method of inspection, including the sample size.

5.  The defect that caused the violation.

6.  The percentage of defective product in the sample.

7.  That the lot or part of the lot is subject to disposal if it is not reconditioned and brought into compliance within the time prescribed according to rules adopted pursuant to this article.

D.  If the person who is served with the notice of noncompliance does not own the lot, the person shall notify the inspector in writing of the name and address of the owner.  If the person knowingly conceals the name or address of the owner, the person is liable for any loss to the lot that the owner sustains.

E.  If the lot is reconditioned and brought into compliance within the prescribed time period and the lot otherwise complies with this article and rules adopted pursuant to this article, the inspector shall remove the warning notice, issue a notice of compliance to the person in possession and release the lot for sale.

F.  If the owner does not recondition and bring the lot into compliance within the prescribed time period, the inspector, after receiving the written consent of the owner, may divert the lot or part of the lot to other lawful purposes or destroy the lot or part of the lot.

G.  If the owner refuses to give consent to the inspector to divert or destroy the lot or part of the lot and the owner does not recondition and bring the lot into compliance within the prescribed time period, the inspector may attach a disposal notice to the lot or part of the lot that violates this article or rules adopted pursuant to this article and deliver a copy of the disposal notice to the owner.  The disposal notice requires the owner to properly dispose of the lot or part of the lot by:

1.  Diverting it to another lawful purpose, such as contributing it to a nonprofit charitable organization.

2.  Selling it, other than in regular channels of trade, such as for processing.

3.  Destroying it.

H.  A person who violates the terms of a disposal notice is subject to a civil penalty of at least twenty‑five dollars for each carton but not more than one thousand dollars. END_STATUTE

Sec. 11.  Section 3-445, Arizona Revised Statutes, is amended to read:

START_STATUTE3-445.  Rulemaking; definition

A.  The supervisor Pursuant to section 3‑527.02, the associate director may recommend to the director for adoption rules that are not in conflict with this article as the supervisor associate director deems necessary to carry out the provisions of this article.

B.  Upon On recommendation of the supervisor associate director, the director shall prescribe:

1.  Standards and grades for citrus fruit produced in this state and a standard for citrus fruit without specific standards pursuant to section 3‑446.  In establishing the specific standards, the supervisor associate director shall consider factors that apply to the product, including maturity, color, shape, size, firmness, freedom from decay, diseases, mechanical and plant pest injury and any other factors that indicate quality and condition.

2.  The size, dimensions, labeling and markings of containers that are to be used to pack citrus fruit and the packing arrangements of the commodity in the container.

3.  A permit system for experimental containers, experimental products and experimental packs, including an application, permit number, quantity allowed by the permit, duration of the permit and record keeping recordkeeping and renewal provisions.

4.  Sampling rules for lots and containers of citrus fruit to reasonably produce a fair representation of the entire lot or container sampled.

5.  The time period allowed to recondition citrus fruit pursuant to section 3‑444.

6.  Appropriate reporting and record keeping recordkeeping requirements for shippers, including:

(a)  Reporting totals for each citrus variety shipped.

(b)  A requirement for records to be retained for the preceding two years on the amount of each citrus variety sold by the shipper for each producer for purposes of reporting under article 1 of this chapter.

(c)  A requirement for records to be retained for the preceding year on the percentage ownership interest of each producer for each citrus variety sold by the shipper.

7.  Appropriate reporting and record keeping recordkeeping requirements for commission merchants.

C.  For the purposes of this section, "year" has the same meaning prescribed in section 3‑450. END_STATUTE

Sec. 12.  Section 3-446, Arizona Revised Statutes, is amended to read:

START_STATUTE3-446.  Adopting new or revised standards; exception

A.  Twenty‑five per cent percent of the producers or shippers of a citrus fruit may petition the supervisor associate director to adopt a standard.

B.  Twenty‑five per cent percent of the producers or shippers of a citrus fruit for which a standard has been established by rule may petition the supervisor associate director to modify the standard.

C.  Within thirty days after receiving a valid petition under subsection A or B of this section, the supervisor associate director, after notifying all other known producers and shippers of the citrus fruit, shall hold a public meeting to receive comment on the proposed new standard.  Within fifteen days after the meeting, the supervisor associate director shall either deny the petition in writing stating the reasons for denial or initiate rule making rulemaking proceedings.

D.  This section does not apply to any commodity that is exempt from standardization under section 3‑450. END_STATUTE

Sec. 13.  Section 3-447, Arizona Revised Statutes, is amended to read:

START_STATUTE3-447.  Citrus, fruit and vegetable trust fund; administration

A.  The citrus, fruit and vegetable trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program programs established by this article and article 4 of this chapter.  The trust fund consists of revenues from assessments and other monies designated for deposit in the trust fund by this article and article 4 of this chapter.  The trust fund shall be used solely for the purpose of administering and enforcing the provisions of this article and article 4 of this chapter.

B.  The director shall administer the citrus, fruit and vegetable trust fund as trustee.  The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35‑310 and which shall not be commingled with any other monies in the state treasury except for investment purposes.  On notice from the director, the state treasurer shall invest any trust fund monies deposited in the state treasury pursuant to sections 35‑313 and 35‑314.03, and all interest earned on these monies shall be credited to the trust fund.

C.  The beneficiaries of the trust are the agricultural programs established by this article and article 4 of this chapter.

D.  Monies in the citrus, fruit and vegetable trust fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.  Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.

E.  The department shall make a detailed accounting on or before November 1 of each year of all monies paid into and disbursed from the citrus, fruit and vegetable trust fund during the preceding fiscal year and transmit the report to the citrus, fruit and vegetable advisory council on or before December 1.

F.  Any monies remaining unexpended in the citrus, fruit and vegetable trust fund on June 30 of each year shall be carried forward to the following year, and the supervisor associate director shall take that amount into account in computing the assessments for that year. END_STATUTE

Sec. 14.  Section 3-448, Arizona Revised Statutes, is amended to read:

START_STATUTE3-448.  Assessments; procedures; failure to pay; penalty and interest; hearing; definition

A.  In order to provide the necessary monies to enforce this article and article 4 of this chapter, the supervisor associate director shall assess a charge against each shipper in an amount of not more than one and one‑fourth cents per standard carton, or the equivalent weight, of each kind of fruit and vegetable, including citrus, that is shipped and regulated under this article and article 4 of this chapter.  For bulk shipments of citrus used for by‑products with destinations both inside and outside this state, a charge is assessed of not more than two dollars for each lot.

B.  All monies collected from the assessments under this section shall be paid to deposited in the citrus, fruit and vegetable trust fund.

C.  The supervisor associate director, pursuant to section 3‑527.02, shall set the amount of the charges under this section annually with the approval of the director, but not in amounts greater than necessary to provide revenues to defray all of the proper expenses of carrying out the provisions of this article and article 4 of this chapter.  The supervisor associate director may establish assessments for each commodity based on the time that is necessary to inspect the commodity.

D.  Before the supervisor associate director may set or the director may approve an increase in the assessment, the supervisor associate director shall provide thirty days' advance notice of a public hearing and the amount of the proposed assessment to all shippers who that are licensed under sections 3‑449 and 3‑492 and to any other interested party.  The supervisor associate director shall receive testimony at the hearing regarding the proposed increase in the assessment.  Title 41, chapter 6 does not apply to setting or collecting assessments under this section.

E.  The supervisor associate director shall compute the amount of assessments within the limits of this section and may bill the assessments twice monthly.  Each shipper shall pay the charges to the supervisor associate director within sixty days after the billing date.

F.  A shipper who that fails to pay the required assessment within sixty days after the billing date is subject to a penalty of ten per cent percent of the amount of the total assessment plus interest at a rate of two per cent percent per month on the unpaid balance.

G.  A shipper may request a hearing before the supervisor associate director to protest the amount of assessment, penalty or interest imposed.  If requested, the supervisor associate director shall hold the hearing. After the hearing the supervisor associate director shall enter an order determining the amount of the fee, penalty and interest.  The shipper shall pay that amount within ten days after notice of the supervisor's associate director's determination unless the decision is appealed to the director.  The shipper may appeal the decision of the supervisor associate director to the director.  If the supervisor's associate director's decision is appealed, the director shall review the record of the hearing and affirm, modify or reverse the supervisor's associate director's decision.

H.  For the purposes of this section, in addition to the definition of shipper contained in section 3‑441, "shipper" shall also include includes shipper as defined in section 3‑481. END_STATUTE

Sec. 15.  Section 3-449, Arizona Revised Statutes, is amended to read:

START_STATUTE3-449.  Annual licensing; fees; application; penalty

A.  A person may not transact business as a citrus fruit dealer or shipper without first obtaining a license as provided in this article.  The license expires on August 1 of each year and is renewable annually. The license fee shall be determined according to the annual gross sales based on the dealer's or shipper's previous fiscal year as follows:

1.  If the annual gross sales are five hundred thousand dollars or more, the annual fee is four hundred fifty dollars.

2.  If the annual gross sales are between two hundred thousand dollars and five hundred thousand dollars, the annual fee is three hundred dollars.

3.  If the annual gross sales are two hundred thousand dollars or less, the annual fee is one hundred fifty dollars.

4.  If the person was not in business the previous fiscal year, the annual fee is one hundred fifty dollars.

B.  If a person engages in business in more than one category as a dealer or shipper, the license designation shall be based on the category in which most of the licensee's business is conducted.

C.  The license fees collected by the supervisor associate director shall be paid into deposited in the citrus, fruit and vegetable trust fund.

D.  The application for a dealer or shipper license shall contain the following information:

1.  The full name of the person applying for the license.

2.  Whether the applicant is an individual, partnership, firm, corporation, association, trust or cooperative association and the full name of each member of the partnership or firm, the full name of each officer and director of the association or corporation or the full name of each trustee.

3.  The principal business address of the applicant in this state and elsewhere and the address where the applicant conducts the described business.

4.  The name of the statutory agent in this state for service of legal notice.

5.  The category of license for which the applicant is applying.

6.  A statement of the facts, signed under penalty of perjury, entitling the applicant to a license under the applicable category and stating whether the applicant has ever had any license to handle citrus, fruit or vegetables in any state denied, suspended or revoked.

7.  If the applicant acts as a commission merchant, a schedule of commissions and charges for services, which may not be altered during the term of the license except by written agreement between the parties involved.

E.  The supervisor associate director shall issue to the applicant a license to conduct the business described for a period of one year unless it is revoked for cause.

F.  An applicant who tenders a renewal application for a license that is received by the supervisor associate director after August 15 shall pay a penalty of twenty‑five dollars.  An applicant who tenders a renewal application for a license that is received after September 1 shall pay a penalty of fifty dollars.  All penalties shall be deposited in the citrus, fruit and vegetable trust fund. END_STATUTE

Sec. 16.  Section 3-449.02, Arizona Revised Statutes, is amended to read:

START_STATUTE3-449.02.  Denial or revocation of license; hearing

A.  In determining whether to refuse to issue a license, the supervisor associate director shall consider:

1.  The facts and circumstances surrounding a prior denial or revocation in any state and the date of the prior denial or revocation.

2.  The financial condition of the applicant as of the date of the application.

3.  Any outstanding judgments against the applicant.

4.  Previous violations of this article and rules adopted pursuant to this article by any person who is an officer, director, member or trustee of the applicant.

5.  Fraudulent, misleading or incomplete statements in the application.

6.  Any other facts the supervisor associate director considers necessary to determine the qualifications of the applicant.

B.  The supervisor associate director may revoke a license if the licensee commits any of the following acts:

1.  Fails or refuses within a reasonable time to render a true account of sale, to make a proper settlement of the account or to pay for citrus fruit, fruit or vegetables received.

2.  Fails or refuses to pay assessment fees, penalties or interest due and owing under this article and rules adopted pursuant to this article for a period of four months.

3.  Knowingly makes false or misleading statements as to the condition of any citrus fruit, fruit or vegetable.

4.  Makes fraudulent charges or returns for handling or selling any citrus fruit, fruit or vegetable or for rendering any service in connection with handling or selling any citrus fruit, fruit or vegetables.

5.  Makes fraudulent or misleading statements to obtain a license.

6.  Reconsigns a consignment to receive, collect or charge more than one commission without the consent of the consignor.

7.  Any violation of section 3‑466.

C.  A person whose license has been denied or revoked may request a hearing pursuant to title 41, chapter 6, article 10. END_STATUTE

Sec. 17.  Section 3-449.03, Arizona Revised Statutes, is amended to read:

START_STATUTE3-449.03.  Recordkeeping; confidentiality; inspection

A.  A shipper shall keep records on the amount of each citrus variety the shipper sells for each producer for a period of two years.  The shipper shall report the records for purposes of marketing orders.

B.  Individual totals of commodities produced or shipped are not subject to public disclosure and are strictly confidential.  If a shipper presents a signed and notarized release to the supervisor associate director or the supervisor's associate director's agent, a person may receive individual totals of commodities shipped by the shipper.

C.  Records of shippers are subject to inspection during business hours by the supervisor associate director or the supervisor's associate director's designee.

D.  The supervisor associate director or designee may investigate any records of any transaction of a commission merchant for possible violations of this article.

E.  Every person licensed under this article shall keep an accurate and complete record, which shall record the amount and character of all citrus fruit received from any person for payment or sale, the date of receiving the shipment, the name of the consignee, the condition of the shipment if it arrives in other than good condition in the city or town in which it is to be sold by the licensee and the date when the shipment is sold, together with the price for which the shipment sold.

F.  The records of a licensee pertaining to the receipt, packing, loading, shipment and sale of citrus fruit affected by this article shall at all times be open to inspection upon on demand by any consignor as to an entry concerning citrus fruit received by the licensee from the consignor. END_STATUTE

Sec. 18.  Section 3-449.04, Arizona Revised Statutes, is amended to read:

START_STATUTE3-449.04.  Appeals from inspections; fee

A.  If the owner, or the owner's agent, of all or part of a lot disagrees with the decision of an inspector as to whether the lot or part of the lot conforms to the standards adopted pursuant to this article, the owner or agent may request that the supervisor associate director or the supervisor's associate director's designee, other than the inspector, review the testing procedures used by the inspector.  When reviewing the procedures, the supervisor associate director or designee shall consider the accuracy of the test instruments, the inspection methods, including the sample size, the defect determination, the percentage of the defective product and any other relevant information.

B.  The supervisor associate director or designee shall conduct the review within eight hours of after the request.

C.  If the supervisor associate director or designee determines that the inspector used improper testing procedures, a new inspection shall be ordered of the lot or part of the lot within four hours after completing the review in order to determine compliance.  The determination after the reinspection is final.

D.  The person who requests the review shall pay a fee of twenty‑five dollars for the review.  All monies collected under this subsection shall be deposited in the citrus, fruit and vegetable trust fund. END_STATUTE

Sec. 19.  Section 3-449.05, Arizona Revised Statutes, is amended to read:

START_STATUTE3-449.05.  Unlawful possession; inspection; proof of ownership; seizure; exceptions

A.  If an inspector or peace officer has probable cause to believe that at least fifty pounds of citrus fruit are in unlawful possession, the inspector or peace officer shall request proof of ownership from the person in possession.

B.  If an inspector has probable cause to believe that at least fifty pounds of citrus fruit are in unlawful possession in a vehicle, the inspector may request a peace officer to stop the vehicle for inspection and request proof of ownership from the person in possession.

C.  Except as provided in subsection D of this section, for the purposes of this section, proof of ownership includes all of the following:

1.  The name, address and telephone number of the seller.

2.  The name, address and telephone number of the buyer, or consignee if not sold.

3.  The common or generic name and quantity of the citrus fruit.

4.  The date of the transaction and the date the transportation began.

D.  A bill of lading, a bill of sale, data obtainable by electronic transmission or a similar type of document is considered proof of ownership for the purposes of this section.

E.  The buyer and seller shall retain a copy of the documents showing proof of ownership for sixty days after delivery.

F.  An inspector or peace officer may seize and hold a citrus fruit if, after requesting or inspecting the offered proof of ownership, the inspector or peace officer reasonably believes that the person is in unlawful possession of the citrus fruit.

G.  If an investigation reveals the lawful owner of the citrus fruit that has been seized pursuant to this section, the citrus fruit shall be released to the owner or the owner's agent.  If a seized citrus fruit remains unclaimed after a reasonable period of time, the supervisor associate director may donate the citrus fruit to a nonprofit charitable organization.  If the citrus fruit does not comply with the standards prescribed pursuant to this article, the supervisor associate director may destroy it.

H.  This section does not apply to:

1.  Citrus fruit that is transported from the farm where it is produced to a commercial packing plant in this state for processing or packing.

2.  Citrus fruit that is transported and accompanied by a valid disposal order issued by an inspector to comply with this article or rules adopted pursuant to this article. END_STATUTE

Sec. 20.  Section 3-450, Arizona Revised Statutes, is amended to read:

START_STATUTE3-450.  Exemption from citrus fruit standardization; definitions

A.  The supervisor associate director shall exempt any citrus fruit commodity from all rules established pursuant to section 3‑445, subsection B, paragraphs 1 through 5 and shall exempt the collection of assessments for the commodity subject to this article if the exemption is supported by at least fifty‑one per cent percent of the producers who that produce at least fifty‑one per cent percent of the total quantity of that particular citrus fruit commodity that was marketed during the preceding year and all of the other requirements of this section have been met.  For the purposes of this subsection, "quantity" means the percentage of ownership interest a producer has in the marketed cartons.

B.  To initiate the exemption process, a producer or shipper shall present to the supervisor associate director a petition signed by producers, under penalty of perjury, who that represent at least one‑third of the cartons of the commodity produced in the previous year.  The petition shall be submitted on a form prescribed and furnished by the supervisor associate director.  On receiving the petition, the supervisor associate director shall negotiate with the petitioner a fee for the estimated costs of the notification, balloting and certification process under this section. The petitioner is responsible for all costs associated with this process and shall pay to the supervisor associate director at least one‑half of the fee before proceeding with the petition process.

C.  Within ten days after receiving the fee payment under subsection B of this section, the supervisor associate director shall send a notice and a ballot to each shipper of the commodity by certified mail, return receipt requested.  The notice shall include a statement that the shipper shall must notify each producer the shipper represents of the exemption petition and of the producer's right to support or oppose the exemption.

D.  Within sixty days after receiving the notice from the supervisor associate director, each shipper shall return the ballot to the supervisor associate director, filed under penalty of perjury, containing the following information:

1.  The name of each producer of the particular commodity that the shipper deals with.

2.  The total number of cartons produced in the preceding year by each producer based on the percentage of ownership.

3.  The vote of each producer based on the percentage of ownership of cartons.

E.  If a shipper fails to return the ballot as prescribed by subsection D of this section, the supervisor associate director may audit the shipper to ensure compliance with section 3‑449.03.

F.  Within ninety days after receiving the ballots issued under this section, the supervisor associate director shall review the ballots and determine the results. On payment of the full amount of the costs of the petition process as determined under subsection B of this section, the supervisor associate director shall certify and issue the results of the ballots.  If the supervisor associate director certifies that the ballots meet the requirements of this section, the supervisor associate director shall provide public notice of the date the exemption becomes effective, which shall be within ninety days after the supervisor associate director certifies and issues the results of the balloting.

G.  Information provided by shippers to the supervisor associate director for the purposes of this section is confidential and is not a public record, and the supervisor associate director shall not disclose the information for any purpose except for the purpose of an appeal under subsection H of this section.

H.  The petitioner and any producer or shipper of the commodity for which exemption is being sought has the right to appeal to the director on any of the following issues:

1.  The validity of the petition submitted under subsection B of this section.

2.  The notice requirements of this section.

3.  The sufficiency of the submitted ballots.

4.  The costs of the petition process.

I.  All monies collected by the supervisor associate director pursuant to this section shall be deposited in the citrus, fruit and vegetable trust fund established by section 3‑447.

J.  The procedures prescribed by this section also apply for producers and shippers to rescind an exemption that was previously granted under this section.  The rescission becomes effective on July 1 of a year as determined by the supervisor associate directorNo A rescission may not take effect until the exemption has been in effect for at least two years.

K.  For the purposes of this section:

1.  "Producer" means a single legal entity that has a percentage ownership interest in the marketed commodity.

2.  "Year" means July 1 through June 30. END_STATUTE

Sec. 21.  Section 3-458, Arizona Revised Statutes, is amended to read:

START_STATUTE3-458.  Interstate shipments; requirements; out‑of‑state inspection certificates; irregular containers

A.  It is unlawful for a person, firm, company, organization or corporation to import from another state for sale, to transport for delivery or to deliver for sale or to sell within this state a load or lot of citrus fruit unless it conforms to the grades and standards of maturity, condition and pack established pursuant to this article and rules adopted pursuant to this article.

B.  The supervisor associate director shall examine each load or lot of citrus fruit entering the state to ascertain whether the fruit conforms to the established standards.

C.  Citrus fruit grown in states which that enforce grading standards equivalent to those established in this state may be permitted to enter this state when accompanied by an inspection certificate issued by the state or county enforcement authority in which the citrus fruit were was grown disclosing that the load or lot conforms to the legally established standards in that state.  The certificates shall be surrendered to the supervisor associate director.

D.  Citrus fruit which enter that enters the state in carload lots shall be accompanied by an inspection certificate, which shall be surrendered to the supervisor associate director by the receiver thereof.  All shipments coming into the state by truck or other conveyance shall be inspected at the point of regular inspection by the supervisor associate director, and the certificates shall there be taken up by the supervisor associate director, and when coming in by railroad shall be inspected and the certificate taken up by the inspector at the point of destination.

E.  When a motor vehicle is detained and its contents are found not to conform to the standards established pursuant to this article, the supervisor, his associate director or the associate director's duly authorized inspectors shall refuse entry of the citrus fruit into the this state, but any load or lot of citrus fruit while in transit and consigned to a destination not within the this state shall be is exempt from these requirements when complying with the state quarantine requirements.

F.  Citrus fruit may be offered for sale, sold or transported in, into or through this state in irregular containers, other than standard packages, when the irregular containers are so marked as to clearly indicate that they are not standard packages prescribed pursuant to this article. END_STATUTE

Sec. 22.  Section 3-466, Arizona Revised Statutes, is amended to read:

START_STATUTE3-466.  Civil penalties; hearing

A.  A person is subject to a civil penalty of not more than five hundred dollars if the person does either of the following:

1.  Acts as a dealer or shipper without a valid license.

2.  Knowingly falsifies or causes to be falsified information in a record intended to show proof of ownership.

B.  A person shall be is subject to a civil penalty of not more than three hundred dollars if the person does any of the following:

1.  Makes a written or oral false, deceptive or misleading representation or assertion concerning the quality, size, maturity or condition of citrus fruit.

2.  Alters, removes or destroys a warning notice from a lot or part of a lot to which it was affixed except on written authorization of an inspector, the supervisor associate director or the director or by court order.

3.  Alters a notice of noncompliance, notice of compliance or notice of disposal that is issued by an inspector.

4.  Refuses to submit any container or lot of citrus fruit governed pursuant to this article to an inspection of a representative sample or to refuse to stop and permit inspection of a representative sample of any commercial vehicle containing citrus fruit governed pursuant to this article.

C.  A commission merchant is subject to a civil penalty of not more than five hundred dollars if the commission merchant does any of the following:

1.  Knowingly makes a false or misleading statement as to the condition of any citrus fruit.

2.  Makes a fraudulent charge or return for handling or selling citrus fruit or for rendering any service in connection with handling or selling citrus fruit.

3.  Reconsigns a consignment to receive, collect or charge more than one commission without the consent of the consignor.

4.  Sells citrus fruit at less than market price to a person with whom the consignment merchant has a direct or indirect financial connection.

5.  Makes a sale and directly or indirectly receives a portion of the purchase price other than the commission specified in the contract.

D.  A person who is charged with violating this article or rules adopted pursuant to this article may request a hearing pursuant to title 41, chapter 6, article 10.

E.  Civil penalties collected pursuant to this section shall be deposited in the citrus, fruit and vegetable trust fund. END_STATUTE

Sec. 23.  Section 3-481, Arizona Revised Statutes, is amended to read:

START_STATUTE3-481.  Definitions

In this article, unless the context otherwise requires:

1.  "Associate director" means the associate director of the division.

2.  "Bulk lot" means fresh fruit or vegetables that are not contained in a box, carton, crate or lug but may be contained in a bin or a similar container and are set apart from fresh fruit and vegetables that are packaged in containers authorized pursuant to this article or rules adopted pursuant to this article.

3.  "By‑products" means a product that is commercially processed or manufactured for resale from fruits or vegetables or their juices.

4.  "Commission merchant" means a person who that receives on consignment or solicits from the producer any fruit or vegetable for sale on commission on behalf of the producer or who that accepts any fruit or vegetable in trust from the producer for the purpose of resale.  Commission merchant does not include a shipper.

5.  "Container" means a box, carton or lug that is used for packing, shipping or selling fruit or vegetables that are authorized by this article or rules adopted pursuant to this article.

6.  "Dealer" means a person that sells, markets or distributes fruit or vegetables that the person purchased from a producer or markets as an agent, broker or commission merchant, except at retail.  Dealer does not include a shipper.

7.  "Division" means the plant services citrus, fruit and vegetable division of the Arizona department of agriculture.

8.  "Lot" means a unit of identical or similar items that are produced by one person and that are grouped or consolidated in one or more containers for packaging or transporting or a cluster of identical or similar items that are produced by one person and that are included in the same shipping order, bill of lading or other itemized transport order.

9.  "Packer" means a person, other than a producer, shipper or dealer, that is engaged in the business of harvesting or packing fruit or vegetables.

10.  "Person" includes an individual, firm, association, partnership, trust or corporation.

11.  "Producer" means a person that is engaged in this state in the business of producing or causing fruit or vegetables to be produced for market in commercial quantities.

12.  "Shipper" means a person who that ships, transports, sells or markets fruit or vegetables under the person's registered trademark or label or a person who that first markets the fruit or vegetables on behalf of the producer.  Shipper does not include a commission merchant.

13.  "Supervisor" means the supervisor of standardization employed pursuant to section 3‑483. END_STATUTE

Sec. 24.  Repeal

Section 3-483, Arizona Revised Statutes, is repealed.

Sec. 25.  Title 3, chapter 3, article 4, Arizona Revised Statutes, is amended by adding a new section 3-483, to read:

START_STATUTE3-483.  Associate director; qualifications

A.  The associate director, as appointed and authorized by the director, shall administer and enforce this article and articles 2, 4.1 and 4.3 of this chapter and rules adopted pursuant to those articles.  The director may delegate to the associate director any of the director's administrative responsibilities, powers or duties as the director considers to be necessary or desirable for the proper administration of those articles.

B.  Before appointing the associate director, the director shall consult with the citrus, fruit and vegetable advisory council.

C.  If the associate director dies, resigns or is discharged, the director shall appoint a successor as soon as practicable.

D.  The associate director must be experienced in both of the following:

1.  Management, budgets and program administration.

2.  Citrus, fruit or vegetable quality assurance practices or produce safety procedures. END_STATUTE

Sec. 26.  Section 3-484, Arizona Revised Statutes, is amended to read:

START_STATUTE3-484.  Deputies and clerks; compensation; expenses

A.  The compensation of the supervisor associate director shall be as determined pursuant to section 38‑611.  The supervisor associate director, with the approval of the director, shall fix the duties of each deputy and clerk.  Compensation of the deputies and clerks shall be as determined pursuant to section 38‑611.

B.  The compensation of the supervisor associate director and all expenses properly incurred in the enforcement of this article, including but not limited to compensation, travel and subsistence expenses and office expenses, shall be paid from the citrus, fruit and vegetable trust fund provided for in established by section 3‑447. END_STATUTE

Sec. 27.  Section 3-485, Arizona Revised Statutes, is amended to read:

START_STATUTE3-485.  Relationship of standardization and marketing order programs

A.  Citrus, fruit and vegetable standardization and the office of commodities development and promotion shall cooperate in establishing and administering marketing orders and marketing agreements.

B.  The supervisor associate director may perform inspections and collect assessments and other monies on behalf of a marketing commission or marketing committee authorized under section 3‑414.  Any monies collected shall be disbursed through the commission or committee. END_STATUTE

Sec. 28.  Section 3-486, Arizona Revised Statutes, is amended to read:

START_STATUTE3-486.  Inspectors; powers and enforcement procedures; warning notice; disposal notice; civil penalty

A.  Inspectors may enter any facility, during operating hours, or a commercial vehicle in this state where fresh fruit or vegetables are produced, stored, packed or delivered for shipment, are transported or are offered for sale and inspect representative samples of the fresh fruit or vegetables and containers in order to determine compliance with this article and rules adopted pursuant to this article.

B.  If all or part of a lot, including containers, fails to comply with this article or rules adopted pursuant to this article, the inspector may affix a warning notice to all or part of the lot stating the reason why it is held.  No person, Other than an inspector, a person may not detach, alter or destroy the affixed warning notice except by the authorization of the inspector, the supervisor associate director, the supervisor's associate director's designee, the director or a court order.

C.  The inspector shall issue a notice of noncompliance to the person in possession of the lot or part of the lot that states:

1.  A description of the lot or part of the lot.

2.  The specific section of law on which the noncompliance is alleged.

3.  The place where the lot or part of the lot is held.

4.  The specific method of inspection, including the sample size.

5.  The defect that caused the violation.

6.  The percentage of defective product in the sample.

7.  That the lot or part of the lot is subject to disposal if it is not reconditioned and brought into compliance within the time prescribed according to rules adopted pursuant to this article.

D.  If the person who is served with the notice of noncompliance does not own the lot, the person shall notify the inspector in writing of the name and address of the owner.  If the person knowingly conceals the name or address of the owner, the person is liable for any loss to the lot that the owner sustains.

E.  If the lot is reconditioned and brought into compliance within the prescribed time period and the lot otherwise complies with this article and rules adopted pursuant to this article, the inspector shall remove the warning notice, issue a notice of compliance to the person in possession and release the lot for sale.

F.  If the owner does not recondition and bring the lot into compliance within the prescribed time period, the inspector, after receiving the written consent of the owner, may divert the lot or part of the lot to other lawful purposes or destroy the lot or part of the lot.

G.  If the owner refuses to give consent to the inspector to divert or destroy the lot or part of the lot and the owner does not recondition and bring the lot into compliance within the prescribed time period, the inspector may attach a disposal notice to the lot or part of the lot that violates this article or rules adopted pursuant to this article and deliver a copy of the disposal notice to the owner.  The disposal notice requires the owner to properly dispose of the lot or part of the lot by:

1.  Diverting it to another lawful purpose, such as contributing it to a nonprofit charitable organization.

2.  Selling it, other than in regular channels of trade, such as for processing.

3.  Destroying it.

H.  A person who violates the terms of a disposal notice is subject to a civil penalty of at least twenty‑five dollars for each carton but not more than one thousand dollars. END_STATUTE

Sec. 29.  Section 3-487, Arizona Revised Statutes, is amended to read:

START_STATUTE3-487.  Rulemaking; definition

A.  The supervisor Pursuant to section 3‑527.02, the associate director may recommend to the director for adoption rules not in conflict with this article, as the supervisor associate director deems necessary to carry out the provisions of this article.

B.  Upon On recommendation of the supervisor associate director, the director shall prescribe:

1.  Standards and grades for fruit and vegetables produced in this state and a standard for fruit and vegetables without specific standards.  In establishing the specific standards, the supervisor associate director shall consider factors that apply to the product, including maturity, color, shape, size, firmness, freedom from decay, diseases, mechanical and plant pest injury and any other factors that indicate quality and condition.

2.  The size, dimensions, labeling and markings of containers that are to be used to pack fruit or vegetables and the packing arrangements of the commodity in the container.

3.  A permit system for experimental containers, experimental products and experimental packs, including an application, permit number, quantity allowed by the permit, duration of the permit and record keeping recordkeeping and renewal provisions.

4.  Sampling rules for lots and containers of fruit and vegetables to reasonably produce a fair representation of the entire lot or container sampled.

5.  The time period allowed to recondition fruit or vegetables pursuant to section 3‑486.

6.  Appropriate reporting and record keeping recordkeeping requirements for shippers, including:

(a)  Reporting totals for each commodity shipped.

(b)  A requirement for records to be retained for the preceding two years on the amount of each commodity sold by the shipper for each producer for purposes of reporting under article 1 of this chapter.

(c)  A requirement for records to be retained for the preceding year on the percentage ownership interest of each producer for each commodity sold by the shipper.

7.  Appropriate reporting and record keeping recordkeeping requirements for commission merchants.

C.  For the purposes of this section, "year" has the same meaning prescribed in section 3‑491. END_STATUTE

Sec. 30.  Section 3-488, Arizona Revised Statutes, is amended to read:

START_STATUTE3-488.  Confidentiality of records; inspection of records

A.  Individual totals of commodities produced or shipped are not subject to public disclosure and are strictly confidential.  If a shipper presents a signed and notarized release to the supervisor associate director or the supervisor's associate director's agent, a person may receive individual totals of commodities shipped by the shipper.

B.  Records of shippers are subject to inspection during business hours by the supervisor associate director or the supervisor's associate director's designee.  The supervisor associate director or designee may investigate any records of any transaction of a commission merchant for possible violations of this article. END_STATUTE

Sec. 31.  Section 3-489, Arizona Revised Statutes, is amended to read:

START_STATUTE3-489.  Requests for inspection by unlicensed or unregistered persons; fees

A.  A person who is not licensed under article 2 of this chapter or this article and who requests inspection of citrus, fruit, vegetables or nuts shall pay a fee to the citrus, fruit and vegetable trust fund.  The supervisor associate director shall set the amount of the fee by rule and shall assess and collect the fee for inspection service performed by the supervisor associate director or the supervisor's associate director's employees.  The fee shall be an amount reasonably necessary to cover the costs of inspection and processing of the necessary documentation.  Before setting the fee, the supervisor associate director shall consult with the citrus, fruit and vegetable advisory council.

B.  The fee is due and payable on completing the inspection.  If the fee is not paid, the supervisor associate director may refuse to perform any further inspection services.

C.  The supervisor associate director may prescribe a different scale of fees for different locations and different commodities based on the amount of time necessary to inspect the commodities.  The supervisor associate director may assess a charge for traveling expenses pursuant to title 38, chapter 4, article 2.

D.  This section does not apply to any inspection services performed pursuant to article 1 of this chapter. END_STATUTE

Sec. 32.  Section 3-490, Arizona Revised Statutes, is amended to read:

START_STATUTE3-490.  Unlawful possession; inspection; proof of ownership; seizure; exceptions

A.  If an inspector or peace officer has probable cause to believe that at least fifty pounds of fruit or vegetables that are regulated pursuant to this article are in unlawful possession, the inspector or peace officer shall request proof of ownership from the person in possession.

B.  If an inspector has probable cause to believe that at least fifty pounds of any fruit or vegetables that are regulated pursuant to this article are in unlawful possession in a vehicle, the inspector may request a peace officer to stop the vehicle for inspection and request proof of ownership from the person in possession.

C.  Except as provided in subsection D of this section, for the purposes of this section, proof of ownership includes all of the following:

1.  The name, address and telephone number of the seller.

2.  The name, address and telephone number of the buyer, or consignee if not sold.

3.  The common or generic name and quantity of the fruit or vegetable.

4.  The date of the transaction and the date the transportation began.

D.  A bill of lading, a bill of sale, data obtainable by electronic transmission or a similar type of document is considered proof of ownership for the purposes of this section.

E.  The buyer and seller shall retain a copy of the documents showing proof of ownership for sixty days after delivery.

F.  An inspector or peace officer may seize and hold a fruit or vegetable if, after requesting or inspecting the offered proof of ownership, the inspector or peace officer reasonably believes that the person is in unlawful possession of a fruit or vegetable regulated under this article.

G.  If an investigation reveals the lawful owner of the fruit or vegetable that has been seized pursuant to this section, the fruit or vegetable shall be released to the owner or the owner's agent.  If a seized fruit or vegetable remains unclaimed after a reasonable period of time, the supervisor associate director may donate the fruit or vegetable to a nonprofit charitable organization.  If the fruit or vegetable does not comply with the standards prescribed pursuant to this article, the supervisor associate director may destroy it.

H.  This section does not apply to:

1.  Fruit or vegetables that are transported from the farm where they are produced to a commercial packing plant in this state for processing or packing.

2.  Fruit or vegetables that are transported and accompanied by a valid disposal order issued by an inspector to comply with this article or rules adopted pursuant to this article. END_STATUTE

Sec. 33.  Section 3-491, Arizona Revised Statutes, is amended to read:

START_STATUTE3-491.  Exemption from fruit or vegetable standardization; definitions

A.  The supervisor associate director shall exempt any fruit or vegetable commodity from all rules established pursuant to section 3‑487, subsection B, paragraphs 1 through 5 and shall exempt the collection of assessments for the commodity subject to this article if the exemption is supported by at least fifty‑one per cent percent of the producers who that produce at least fifty‑one per cent percent of the total quantity of that particular fruit or vegetable commodity that was marketed during the preceding year and all of the other requirements of this section have been met.  For the purposes of this subsection, "quantity" means the percentage of ownership interest a producer has in the marketed cartons.

B.  To initiate the exemption process, a producer or shipper shall present to the supervisor associate director a petition signed by producers, under penalty of perjury, who that represent at least one‑third of the cartons of the commodity produced in the previous year.  The petition shall be submitted on a form prescribed and furnished by the supervisor associate director.  On receiving the petition, the supervisor associate director shall negotiate with the petitioner a fee for the estimated costs of the notification, balloting and certification process under this section. The petitioner is responsible for all costs associated with this process and shall pay to the supervisor associate director at least one‑half of the fee before proceeding with the petition process.

C.  Within ten days after receiving the fee payment under subsection B of this section, the supervisor associate director shall send a notice and a ballot to each shipper of the commodity by certified mail, return receipt requested.  The notice shall include a statement that the shipper shall must notify each producer the shipper represents of the exemption petition and of the producer's right to support or oppose the exemption.

D.  Within sixty days after receiving the notice from the supervisor associate director, each shipper shall return the ballot to the supervisor associate director, filed under penalty of perjury, containing the following information:

1.  The name of each producer of the particular commodity that the shipper deals with.

2.  The total number of cartons produced in the preceding year by each producer based on the percentage of ownership.

3.  The vote of each producer based on the percentage of ownership of cartons.

E.  If a shipper fails to return the ballot as prescribed by subsection D of this section, the supervisor associate director may audit the shipper to ensure compliance with this article.

F.  Within ninety days after receiving the ballots issued under this section, the supervisor associate director shall review the ballots and determine the results. On payment of the full amount of the costs of the petition process as determined under subsection B of this section, the supervisor associate director shall certify and issue the results of the ballots.  If the supervisor associate director certifies that the ballots meet the requirements of this section, the supervisor associate director shall provide public notice of the date the exemption becomes effective, which shall be within ninety days after the supervisor associate director certifies and issues the results of the balloting.

G.  Information provided by shippers to the supervisor associate director for the purposes of this section is confidential and is not a public record, and the supervisor associate director shall not disclose the information for any purpose except for the purpose of an appeal under subsection H of this section.

H.  The petitioner and any producer or shipper of the commodity for which exemption is being sought has the right to appeal to the director on any of the following issues:

1.  The validity of the petition submitted under subsection B of this section.

2.  The notice requirements of this section.

3.  The sufficiency of the submitted ballots.

4.  The costs of the petition process.

I.  All monies collected by the supervisor associate director pursuant to this section shall be deposited in the citrus, fruit and vegetable trust fund established by section 3‑447.

J.  The procedures prescribed by this section also apply for producers and shippers to rescind an exemption that was previously granted under this section.  The rescission becomes effective on July 1 of a year as determined by the supervisor associate directorNo A rescission may not take effect until the exemption has been in effect for at least two years.

K.  For the purposes of this section:

1.  "Producer" means a single legal entity that has a percentage ownership interest in the marketed commodity.

2.  "Year" means July 1 through June 30. END_STATUTE

Sec. 34.  Section 3-492, Arizona Revised Statutes, is amended to read:

START_STATUTE3-492.  Licensing dealers and shippers; application; fees; penalty

A.  A person may not act as a dealer or shipper without first obtaining a license as provided in this article.  Application for the license shall be filed with the supervisor associate director and accompanied by a license fee determined according to the annual gross sales based on the dealer's or shipper's previous fiscal year as follows:

1.  If the annual gross sales are five hundred thousand dollars or more, the annual fee is five hundred dollars.

2.  If the annual gross sales are between two hundred thousand dollars and five hundred thousand dollars, the annual fee is three hundred fifty dollars.

3.  If the annual gross sales are two hundred thousand dollars or less, the annual fee is two hundred dollars.

4.  If the person was not in business the previous fiscal year, the annual fee is two hundred dollars.

B.  If a person engages in business in more than one category as a dealer or shipper, the license designation shall be based on the category in which most of the licensee's business is conducted.

C.  The monies received as license fees under this section shall be paid into the citrus, fruit and vegetable trust fund.  The license shall expire on September 1 of each year and is renewable annually.

D.  The application for a dealer or shipper license shall contain the following information:

1.  The full name of the person applying for the license.

2.  Whether the applicant is an individual, partnership, firm, corporation, association, trust or cooperative association and the full name of each member of the partnership or firm, the full name of each officer and director of the association or corporation or the full name of each trustee.

3.  The principal business address of the applicant in this state and elsewhere and the address where the applicant conducts the described business.

4.  The name of the statutory agent in this state for service of legal notice.

5.  The category of license for which the applicant is applying.

6.  A statement of the facts, signed under penalty of perjury, entitling the applicant to a license under the applicable category and stating whether the applicant has ever had any license to handle citrus, fruit or vegetables in any state denied, suspended or revoked.

7.  If the applicant acts as a commission merchant, a schedule of commissions and charges for services, which may not be altered during the term of the license except by written agreement between the parties involved.

E.  The supervisor associate director shall issue to the applicant a license to conduct the business described for a period of one year unless it is revoked for cause.

F.  An applicant who tenders a renewal application for a license that is received by the supervisor associate director after September 15 shall pay a penalty of twenty‑five dollars.  An applicant who tenders a renewal application for a license that is received after October 1 shall pay a penalty of fifty dollars.  All penalties shall be deposited in the citrus, fruit and vegetable trust fund. END_STATUTE

Sec. 35.  Section 3-494, Arizona Revised Statutes, is amended to read:

START_STATUTE3-494.  Denial or revocation of license; hearing

A.  In determining whether to refuse to issue a license, the supervisor associate director shall consider:

1.  The facts and circumstances surrounding a prior denial or revocation in any state and the date of the prior denial or revocation.

2.  The financial condition of the applicant as of the date of the application.

3.  Any outstanding judgments against the applicant.

4.  Previous violations of this article and rules adopted pursuant to this article by any person who is an officer, director, member or trustee of the applicant.

5.  Fraudulent, misleading or incomplete statements in the application.

6.  Any other facts the supervisor associate director considers necessary to determine the qualifications of the applicant.

B.  The supervisor associate director may revoke a license if the licensee commits any of the following acts:

1.  Failing Fails or refusing refuses within a reasonable time to render a true account of sale, to make a proper settlement of the account or to pay for citrus fruit, fruit or vegetables received.

2.  Failing Fails or refusing refuses to pay assessment fees, penalties or interest due and owing under this article and rules adopted pursuant to this article for a period of four months.

3.  Knowingly making makes false or misleading statements as to the condition of any citrus fruit, fruit or vegetable.

4.  Making Makes fraudulent charges or returns for handling or selling any citrus fruit, fruit or vegetable or for rendering any service in connection with handling or selling any citrus fruit, fruit or vegetables.

5.  Making Makes fraudulent or misleading statements to obtain a license.

6.  Reconsigning Reconsigns a consignment to receive, collect or charge more than one commission without the consent of the consignor.

7.  Any violation of section 3‑521.

C.  A person whose license has been denied or revoked may request a hearing pursuant to title 41, chapter 6, article 10. END_STATUTE

Sec. 36.  Section 3-496, Arizona Revised Statutes, is amended to read:

START_STATUTE3-496.  List of licensees; display of license

A.  The supervisor associate director may publish a pamphlet containing a list of all licensed dealers and shippers and the rules pertaining to the enforcement of this article.

B.  Each licensed dealer and shipper shall keep the license in the dealer's or shipper's office or at the dealer's or shipper's principal place of business. END_STATUTE

Sec. 37.  Section 3-497, Arizona Revised Statutes, is amended to read:

START_STATUTE3-497.  Adopting new or revised standards; exception

A.  Ten or ten per cent percent of the producers or shippers of a fruit or vegetable, whichever is less, may petition the supervisor associate director to adopt a standard.

B.  Ten or ten per cent percent, whichever is less, of the producers or shippers of a fruit or vegetable for which a standard has been established by rule may petition the supervisor associate director to modify the standard.

C.  Within thirty days after receiving a valid petition, the supervisor associate director, after notifying all other known producers and shippers of the fruit or vegetable, shall hold a public meeting to receive comment on the proposed new standard.  Within fifteen days after the meeting, the supervisor associate director shall either deny the petition in writing stating the reasons for denial or initiate rule making rulemaking proceedings.

D.  This section does not apply to any commodity that is exempt from standardization under section 3‑491. END_STATUTE

Sec. 38.  Section 3-498, Arizona Revised Statutes, is amended to read:

START_STATUTE3-498.  Appeals from inspection; fee

A.  If the owner, or the owner's agent, of all or part of a lot disagrees with the decision of an inspector as to whether the lot or part of the lot conforms to the standards and other rules adopted pursuant to this article, the owner or agent may request that the supervisor associate director or the supervisor's associate director's designee, other than the inspector, review the testing procedures used by the inspector.  When reviewing the procedures, the supervisor associate director or designee shall consider the accuracy of the test instruments, the inspection methods, including the sample size, the defect determination, the percentage of the defective product and any other relevant information.

B.  The supervisor associate director or designee shall conduct the review within eight hours of after the request.  If the supervisor associate director or designee determines that the inspector used improper testing procedures, a new inspection shall be ordered of the lot or part of the lot within four hours after completing the review in order to determine compliance.  The determination after the reinspection is final.

C.  The person who requests the review shall pay a fee of twenty‑five dollars for the review.  All monies collected under this subsection shall be deposited in the citrus, fruit and vegetable trust fund. END_STATUTE

Sec. 39.  Section 3-521, Arizona Revised Statutes, is amended to read:

START_STATUTE3-521.  Civil penalties; hearing

A.  A person is subject to a civil penalty of not more than five hundred dollars if the person does either of the following:

1.  Acts as a dealer or shipper without a valid license.

2.  Knowingly falsifies or causes to be falsified information in a record intended to show proof of ownership.

B.  A person shall be is subject to a civil penalty of not more than three hundred dollars if the person does any of the following:

1.  Makes a written or oral false, deceptive or misleading representation or assertion concerning the quality, size, maturity or condition of fruit or vegetables.

2.  Alters, removes or destroys a warning notice from a lot or part of a lot to which it was affixed except on written authorization of an inspector, the supervisor associate director or the director or by court order.

3.  Alters a notice of noncompliance, notice of compliance or notice of disposal that is issued by an inspector.

4.  Refuses to submit any container or lot of fruit or vegetables governed by this article to an inspection of a representative sample or refuses to stop and permit inspection of a representative sample of any commercial vehicle containing fruit and vegetables governed by this article.

C.  A commission merchant is subject to a civil penalty of not more than five hundred dollars if the commission merchant does any of the following:

1.  Knowingly makes a false or misleading statement as to the condition of any fruit or vegetable.

2.  Makes a fraudulent charge or return for handling or selling a fruit or vegetable or for rendering any service in connection with handling or selling a fruit or vegetable.

3.  Reconsigns a consignment to receive, collect or charge more than one commission without the consent of the consignor.

4.  Sells a fruit or vegetable at less than market price to a person with whom the consignment merchant has a direct or indirect financial connection.

5.  Makes a sale and directly or indirectly receives a portion of the purchase price other than the commission specified in the contract.

D.  A person who is charged with violating this article or rules adopted pursuant to this article may request a hearing before an administrative law judge pursuant to title 41, chapter 6, article 10.  The decision of the administrative law judge is subject to review by the director as provided by title 41, chapter 6, article 10.

E.  Civil penalties collected pursuant to this section shall be deposited in the citrus, fruit and vegetable trust fund. END_STATUTE

Sec. 40.  Title 3, chapter 3, Arizona Revised Statutes, is amended by adding article 4.1, to read:

ARTICLE 4.1.  PRODUCE SAFETY

START_STATUTE3-525.  Definitions

In this article, unless the context otherwise requires:

1.  "Associate director" means the associate director of the citrus, fruit and vegetable division of the department.

2.  "Farm" has the same meaning prescribed in 21 Code of federal Regulations section 112.3 and includes production farms and harvesting, holding and packing operations.

3.  "Harvesting":

(a)  Has the same meaning prescribed in 21 Code of federal Regulations section 112.3 and is limited to activities performed on produce without additional manufacturing or processing on a farm.

(b)  Includes:

(i)  Activities that are traditionally performed on farms for the purposes of removing produce from the place it was grown or raised and preparing it for use as food.

(ii)  Separating the edible portion of the produce from the crop plant and removing or trimming part of the produce.

(iii)  Cooling, field coring, gathering, hulling, shelling, removing stems from, trimming outer leaves from and washing produce grown on a farm.

(c)  Does not include activities that transform produce into a processed food.

4.  "Holding":

(a)  Has the same meaning prescribed in 21 Code of federal Regulations section 112.3.

(b)  Includes:

(i)  Storage of produce in facilities such as warehouses and cold storage facilities.

(ii)  Activities performed incidental to the storage of produce, such as fumigating citrus during storage.

(iii)  Activities performed as a practical necessity for the distribution of produce, such as blending produce and breaking down pallets.

(c)  Does not include activities that transform produce into a processed food.

5.  "Packing":

(a)  Has the same meaning prescribed in 21 Code of federal Regulations section 112.3.

(b)  Includes:

(i)  Placing produce into a container.

(ii)  Repacking.

(iii)  Activities performed incidental to packing or repacking produce, such as sorting, culling, grading and weighing or conveying and other incidental activities performed for the safe or effective packing or repacking of produce.

(c)  Does not include:

(i)  Activities that transform produce into a processed food.

(ii)  Packaging produce for retail sale.

6.  "Produce":

(a)  Means any harvested part of a fruit or vegetable that is consumed raw, including mushrooms, sprouts, tree nuts and herbs, and that is subject to the requirements of the produce safety rule as provided by 21 Code of Federal Regulations sections 112.1 and 112.2. 

(b)  Does not include food grains or seeds of arable crops.

7.  "Produce safety rule" means 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). END_STATUTE

START_STATUTE3-525.01.  Produce safety rule; state administration; powers and duties; advisory council

A.  The department is designated as the agency for this state for all purposes of the produce safety rule.

B.  The director may:

1.  Negotiate, consult and collaborate with the United States food and drug administration and do all things consistent with this article that are necessary to obtain and maintain federal approval and delegation of authority to regulate produce that is subject to the produce safety rule with respect to produce that is grown, harvested, packed or held in this state.

2.  Consult, cooperate, collaborate and, if necessary, enter into formal intergovernmental and interagency agreements and memoranda of understanding with federal agencies, with agencies, instrumentalities and political subdivisions of this state and with nongovernmental organizations concerning the application of the produce safety rule as necessary to administer this article.

3.  Apply for, accept and spend federal and other nonstate financial aid and allowances that may be available for the purpose of administering this article.

4.  Accept advisory, technical and training assistance in planning and otherwise developing the produce safety activities under this article, including curricular and instructional materials, equipment and other materials and assistance that are useful for administering this article.

5.  Facilitate cooperation among federal, state, local and private entities to help coordinate and enhance the protection of agriculture and food systems.

6.  Use any available federal process to petition for a variance, waiver or exemption from federal requirements that may be desirable, advantageous or necessary to accommodate state or local conditions or considerations.

C.  The associate director shall:

1.  Establish training activities and outreach and technical assistance programs to encourage the acceptance, cooperation, participation and compliance by owners, lessees, operators and designated representatives of farms, harvesters, holders, packers, commodity groups and other members of the regulated community.

2.  Establish a continuing program for training employees and agents of the department to ensure a high level of knowledge of the law and skill in identifying, assessing and addressing risks to public health with the least disruption of a safe food supply.

3.  Plan, develop, coordinate and administer the state program for administering the requirements of this article, including technical, laboratory and training activities.

D.  As authorized by the director, the associate director may:

1.  Use the cooperative extension service under chapter 1, article 3 of this title to the extent possible to accomplish the purposes of this article.

2.  Issue certificates as evidence of completion of formal training programs by owners, lessees, operators and designated representatives of farms.

E.  The citrus, fruit and vegetable advisory council shall assist and advise the director and associate director on matters under this article pursuant to article 4.3 of this chapter. END_STATUTE

START_STATUTE3-525.02.  Produce safety trust fund

A.  The produce safety trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established pursuant to this article.  The trust fund consists of:

1.  Monies appropriated by the legislature for that purpose.

2.  Monies collected pursuant to this article.

3.  Gifts, grants and other donations from public or private sources and designated for deposit in the trust fund.

B.  Monies in the produce safety trust fund are continuously appropriated to the department and shall be used solely for the purpose of administering and enforcing this article.

C.  The director shall administer the produce safety trust fund as trustee.  The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury under this section, which are considered to be trust monies as defined in section 35‑310 and which may not be commingled with any other monies in the state treasury except for investment purposes.  On notice from the director, the state treasurer shall invest any trust fund monies in the state treasury pursuant to sections 35-313 and 35-314.03, and all interest earned on these monies shall be credited to the trust fund.

D.  The beneficiary of the trust is the agricultural program established pursuant to this article.

E.  Monies in the produce safety trust fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.  Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund but shall be carried forward to the following year.

F.  The department shall maintain a detailed accounting of all monies deposited in and disbursed from the produce safety trust fund. END_STATUTE

START_STATUTE3-525.03.  Cross-compliance; alternate program

To reduce the cost and confusion from applying provisions of similar laws, the director and the United States food and drug administration may approve an alternate program that is comparable and equivalent to this article and rules adopted pursuant to this article.  Compliance with the approved alternate program constitutes compliance with this article and rules adopted pursuant to this article.  END_STATUTE

START_STATUTE3-525.04.  Inventory of farms; covered farms; information requirements; qualified exemptions

A.  The department shall maintain an inventory of farms in this state that are subject to the requirements of this article.

B.  A farm having average annual sales during the previous three‑year period of twenty-five thousand dollars or more on a rolling basis, adjusted annually according to annual changes in the GDP price deflator as defined in section 41-563, is a covered farm for the purposes of this section.

C.  Each covered farm as described in subsection B of this section shall submit information requested by the associate director not later than October 1 of each year.  The associate director shall prescribe the manner and form for submission, including electronic submission, requiring only the minimum information considered necessary to accomplish the purposes of this article.  A farm shall notify the department within sixty days after a material change to any of the information previously submitted during the year.

D.  A farm that does not meet the requirements of subsection B of this section is not a covered farm and is not subject to the requirements of this article.

E.  The associate director may issue a qualified exemption from the requirements of this article to a covered farm that satisfies the requirements, terms and conditions prescribed in 21 Code of federal regulations section 112.5.  To obtain a qualified exemption, a farm that is eligible for a qualified exemption under this subsection must comply with all of the following:

1.  Apply for the exemption on a form issued by the associate director.

2.  Receive approval for the exemption.

3.  Maintain and demonstrate compliance with the requirements prescribed by this article and the rules adopted pursuant to this article. END_STATUTE

START_STATUTE3-525.05.  Inspections and investigations; records; notice; report

A.  The owner, lessee, operator or designated representative of a covered farm under section 3-525.04 shall allow an authorized employee or agent of the department to enter the premises at reasonable times to:

1.  Inspect records, investigate and determine compliance with the produce safety rule, this article and rules adopted pursuant to this article.

2.  Follow up or complete prior inspections or determine the status of or compliance with corrective measures.

B.  The owner, lessee, operator or designated representative of a farm shall:

1.  Maintain records required by the produce safety rule, this article and rules adopted pursuant to this article.

2.  Make those records available to an authorized employee or agent of the department within twenty-four hours after an electronic or written request.

C.  Inspections and investigations under this section shall be on reasonable notice to the owner, lessee, operator or designated representative of the farm unless reasonable grounds exist to believe that such a notice would impede the enforcement of this article.  The director may, and if required by law shall, apply for and obtain warrants for entry and inspection.

D.  The owner, lessee, operator or designated representative of a farm that is subject to a qualified exemption under section 3-525.04 shall allow an authorized employee or agent of the department to enter the premises at reasonable times:

1.  To review relevant records to confirm that the farm complies with the requirements for its qualified exemption.

2.  For an active investigation of a food-borne illness outbreak that is linked to the farm, for the purpose of inspecting and securing representative and relevant samples or specimens.

E.  The department shall use the state agricultural laboratory, a laboratory certified by the state agricultural laboratory or any other laboratory recognized by the United States food and drug administration for any necessary laboratory analysis of samples or specimens secured through an inspection pursuant to this section.

F.  Except as otherwise provided by this section, inspections are subject to the requirements of section 41-1009.

G.  On request, the associate director shall issue a copy of the inspection report to the farm's owner, lessee, operator or designated representative.

H.  This section does not limit the department's authority to respond to an emergency or a public health hazard, including communication with applicable state and federal agencies. END_STATUTE

START_STATUTE3-525.06.  Production and harvesting standards; violations; corrective actions; civil penalty; appeals

A.  Consistent with the produce safety rule, the director shall administer science-based minimum standards for the safe production and harvesting of produce to minimize the risk of serious adverse health consequences or death.

B.  If the director finds that produce is being grown, harvested, packed or held in violation of this article and rules adopted pursuant to this article, the director may consult and coordinate with applicable federal, state, tribal and local officials to produce a corrective action plan that includes reinspection, education, training and alternate enforcement approaches with the goal of addressing the present violation and preventing future violations.

c.  The director shall adopt rules to address, correct and remediate violations of this article and rules adopted pursuant to this article that are progressively graduated according to the nature and urgency of the violation and the risk to public health and safety.

D.  To remedy violations that are associated with risks or hazards to public health and to prevent the entry of contaminated produce into the marketplace, the director may take any action to enforce this article and rules adopted pursuant to this article, including:

1.  A stop sale order.

2.  The Seizure and embargo of offending produce.

E.  The director may assess a civil penalty of not more than one thousand dollars for each violation of this article or a rule adopted pursuant to this article.  The department shall transmit any monies received under this section to the state treasurer for deposit in the produce safety trust fund established by section 3-525.02.

F.  A person who violates this article or rules adopted pursuant to this article may request a hearing before an administrative law judge pursuant to title 41, chapter 6, article 10.  The decision of the administrative law judge is subject to review by the director as provided by title 41, chapter 6, article 10.END_STATUTE

START_STATUTE3-525.07.  Access to public information; exceptions; disclosure

A.  Documents, data and records received by the department and employees and agents of the department from a farm under this article are public records and are subject to disclosure as provided by law, except for:

1.  Trade secrets, the disclosure of which would give an unfair advantage to competitors or would otherwise cause substantial harm to the farm's competitive position.

2.  Financial information.

3.  Documents, data and records derived from inspections and investigations under this article.

B.  Any documents, data and records may be disclosed on a confidential basis to agencies or instrumentalities of any of the following that have data sharing agreements or data sharing credentials with the department or the United States food and drug administration:

1.  The United States.

2.  This state.

3.  Political subdivisions of this state with which the director has a memorandum of understanding for the purposes of this subsection.

4.  Indian tribal governments in this state.

5.  Any other state:

(a)  From which produce was transported into this state.

(b)  Into which produce is transported from this state.

C.  Any documents, data and records may be disclosed pursuant to:

1.  The order of a court of competent jurisdiction.

2.  A signed and notarized release by a farm authorizing the disclosure of specific information to a specific person or persons for a specific reason or reasons.

D.  aggregate statistical data derived from confidential information may be disclosed if the data does not identify, or enable the identification of, and is not attributable to, any individual farm.  Information may not be disclosed pursuant to this subsection if a farm demonstrates that disclosure would give an unfair advantage to competitors or would otherwise cause substantial harm to the farm's competitive position.

E.  A person, including a former employee or agent of the department or a person previously having an administrative duty for the department, who receives confidential information while an employee or agent of the department or while performing an administrative or enforcement duty for the department may not disclose that information except as provided in this article. END_STATUTE

START_STATUTE3-525.08.  Violations; classification; injunctive relief

A.  A person is guilty of a class 1 misdemeanor who knowingly:

1.  Impedes, obstructs, hinders, improperly influences or otherwise prevents or attempts to prevent the director, the associate director or any authorized employee, inspector or agent of the department in performing any duty in connection with this article.

2.  Makes any materially false statement or representation in any written document required to be submitted or maintained pursuant to section 3-525.04 or 3-525.05.

B.  An inspector is guilty of a class 1 misdemeanor who knowingly:

1.  Makes a wrong or improper inspection pursuant to this article.

2.  Accepts monies or other consideration either directly or indirectly in exchange for an improper performance of the inspector's duty.

3.  Seizes any produce improperly or unlawfully while acting under this article.

4.  Fails to request that the proper authorities bring an action to prosecute a violation of this article or rules adopted pursuant to this article.

C.  If a person fails or refuses to comply with or continues to violate any provision of this article or a rule adopted pursuant to this article, the director may apply for and the court may grant a temporary restraining order or preliminary or permanent injunction.  A decision to seek injunctive relief does not preclude other forms of relief or enforcement against the violator. END_STATUTE

START_STATUTE3-525.09.  Rules

A.  Pursuant to section 3-527.02, the associate director may recommend to the director for adoption rules that are not in conflict with this article as the associate director considers to be necessary to carry out the purposes of this article.

B.  At least thirty days before any hearing at which a new rule or a change in an existing rule will be considered, the director shall send a copy of the notice to persons or entities that have requested notice for the purposes of this subsection.

C.  Rules adopted pursuant to this section are exempt from the provisions of title 41, chapter 6 relating to administrative procedure. END_STATUTE

Sec. 41.  Section 3-527.01, Arizona Revised Statutes, is amended to read:

START_STATUTE3-527.01.  Citrus, fruit and vegetable advisory council; membership; terms; vacancy; compensation; definition

A.  The citrus, fruit and vegetable advisory council is established consisting of members appointed by the governor as follows:

1.  One citrus producer.

2.  One apple, grape or tree fruit producer.

3.  One iceberg lettuce producer from Yuma county.

4.  Four fruit or vegetable producers, excluding producers exclusively engaged in growing citrus, apples, grapes or tree fruit, including one fruit or vegetable producer from Maricopa, Pinal or Pima county and one from Yuma or La Paz county.

5.  One member from Santa Cruz county who is subject to article 4.1 of this chapter.  If no person from Santa Cruz county applies for the position, the governor may appoint a member at large who is engaged in harvesting, holding or packing as defined in section 3-525 and who is subject to article 4.1 of this chapter.

6.  One member who operates a farm or an entity engaged in harvesting or packing that is subject to article 4.1 of this chapter and for which, on a rolling basis during the three-year period before the member's appointment, the farm's average annual monetary value of produce sold or the value of the entity's harvesting or packing services was at least two hundred fifty thousand dollars but not more than five hundred thousand dollars.

B.  The governor may consult with any recognized citrus, fruit and vegetable growers and shipper organizations organization in this state in making appointments to the council.

C.  The term of office of each council member is three years and shall begin on January 1 and end on December 31 of the appropriate year.  On the expiration of a term of a member or in the event of a vacancy, a successor shall be appointed by the governor.

D.  The office of any member is deemed vacant and the governor shall appoint a person to fill the remainder of the term under any of the following circumstances:

1.  The member is no longer a producer meets the qualifications for appointment.

2.  The member is unable to perform the duties on the council.

3.  The member has become a resident of another state.

4.  The absence of The member is absent from four consecutive council meetings if the absences have not been excused by the council.

E.  Members of the council are not eligible to receive compensation but are eligible for reimbursement of expenses pursuant to title 38, chapter 4, article 2.

F.  For the purposes of this section, "producer" means a person that is engaged in the business of producing citrus, fruits or vegetables in this state or causing citrus, fruits or vegetables to be produced in this state for distribution and sale through interstate commerce. END_STATUTE

Sec. 42.  Section 3-527.02, Arizona Revised Statutes, is amended to read:

START_STATUTE3-527.02.  Powers and duties of the council

A.  The council shall:

1.  Annually elect a chairman and vice‑chairman vice chairman from among its members.

2.  Meet at least once each calendar quarter and at such additional times as called by the chairman or if requested by four or more members of the council.

3.  Keep a permanent record of its proceedings and make these records available for public inspection for any lawful purpose.

B.  The council shall be advisory to advise the supervisor of standardization and the director and the associate director of the citrus, fruit and vegetable division on all matters pertaining to articles 2, and 4 and 4.1 of this chapter, including the following:

1.  Review all statutes and rules relating to articles 2, and 4 and 4.1 of this chapter.

2.  Make recommendations concerning inspection services, inspection procedures and training concerning articles 2, and 4 and 4.1 of this chapter.

3.  Make recommendations concerning amendments to existing statutes relating to articles 2, and 4 and 4.1 of this chapter.

4.  Review all proposed changes in statutes relating to articles 2, and 4 and 4.1 of this chapter which that the department recommends to the legislature.

5.  Make recommendations concerning additions, modifications or repeals of rules relating to articles 2, and 4 and 4.1 of this chapter.

6.  Review all additions, modifications or repeals of rules relating to articles 2, and 4 and 4.1 of this chapter that are proposed to be adopted by the director.

7.  Make recommendations concerning the annual budget and fees that are necessary to provide procedures and services relating to articles 2, and 4 and 4.1 of this chapter.

8.  Review procedures and make recommendations regarding enforcement actions under article 2, or 4 or 4.1 of this chapter.

9.  Review and make recommendations relating specifically to the following matters under article 4.1 of this chapter:

(a)  Produce safety policies that are proposed or adopted by statute, rule, guidance document or order or as applied in practice.

(b)  The implementation and operation of the produce safety program under article 4.1 of this chapter, including the adequacy and sources of funding for those purposes.

(c)  The progress and success of education, training and outreach efforts pursuant to section 3-525.01, subsection C, paragraphs 1 and 2.

(d)  The perception, evidence and consequences of overregulation of farms under the requirements of article 4.1 of this chapter.

9.  10.  Recommend any other items that the council deems to be appropriate for furthering the purposes of article 2, or 4 or 4.1 of this chapter.

C.  If the council makes any recommendations pursuant to subsection B of this section, the supervisor of standardization or the director or the associate director of the citrus, fruit and vegetable division, as appropriate, shall accept the recommendations if they are found to be practicable and in the interests of the citrus, fruit and vegetable industry.  The supervisor or director, as appropriate, shall provide the council with a written statement of the actions taken on the recommendations of the council within twenty working days.  If the director or associate director does not accept all or any part of the council's recommendations, the director or associate director shall provide a written statement of reasons to the council within fifteen days.

D.  Recommendations made pursuant to subsection B, paragraph 2 or 8 of this section shall not include actions relating to individual inspection personnel or individual enforcement actions. END_STATUTE

Sec. 43.  Section 36-104, Arizona Revised Statutes, is amended to read:

START_STATUTE36-104.  Powers and duties

This section is not to be construed as a statement of the department's organization.  This section is intended to be a statement of powers and duties in addition to the powers and duties granted by section 36‑103.  The director shall:

1.  Administer the following services:

(a)  Administrative services, which shall include at a minimum the functions of accounting, personnel, standards certification, electronic data processing, vital statistics and the development, operation and maintenance of buildings and grounds utilized used by the department.

(b)  Public health support services, which shall include at a minimum:

(i)  Consumer health protection programs, consistent with paragraph 25 of this section, that include at least the functions of community water supplies, general sanitation, vector control and food and drugs.

(ii)  Epidemiology and disease control programs that include at least the functions of chronic disease, accident and injury control, communicable diseases, tuberculosis, venereal disease and others.

(iii)  Laboratory services programs.

(iv)  Health education and training programs.

(v)  Disposition of human bodies programs.

(c)  Community health services, which shall include at a minimum:

(i)  Medical services programs that include at least the functions of maternal and child health, preschool health screening, family planning, public health nursing, premature and newborn program, immunizations, nutrition, dental care prevention and migrant health.

(ii)  Dependency health care services programs that include at least the functions of need determination, availability of health resources to medically dependent individuals, quality control, utilization control and industry monitoring.

(iii)  Children with physical disabilities services programs.

(iv)  Programs for the prevention and early detection of an intellectual disability.

(d)  Program planning, which shall include at least the following:

(i)  An organizational unit for comprehensive health planning programs.

(ii)  Program coordination, evaluation and development.

(iii)  Need determination programs.

(iv)  Health information programs.

2.  Include and administer, within the office of the director, staff services, which shall include at a minimum budget preparation, public information, appeals, hearings, legislative and federal government liaison, grant development and management and departmental and interagency coordination.

3.  Make rules and regulations for the organization and proper and efficient operation of the department.

4.  Determine when a health care emergency or medical emergency situation exists or occurs within the this state that cannot be satisfactorily controlled, corrected or treated by the health care delivery systems and facilities available.  When such a situation is determined to exist, the director shall immediately report that situation to the legislature and the governor.  The report shall include information on the scope of the emergency, recommendations for solution of the emergency and estimates of costs involved.

5.  Provide a system of unified and coordinated health services and programs between the this state and county governmental health units at all levels of government.

6.  Formulate policies, plans and programs to effectuate the missions and purposes of the department.

7.  Make contracts and incur obligations within the general scope of the department's activities and operations subject to the availability of funds monies.

8.  Be designated as the single state agency for the purposes of administering and in furtherance of each federally supported state plan.

9.  Provide information and advice on request by local, state and federal agencies and by private citizens, business enterprises and community organizations on matters within the scope of the department's duties subject to the departmental rules and regulations on the confidentiality of information.

10.  Establish and maintain separate financial accounts as required by federal law or regulations.

11.  Advise with and make recommendations to the governor and the legislature on all matters concerning the department's objectives.

12.  Take appropriate steps to reduce or contain costs in the field of health services.

13.  Encourage and assist in the adoption of practical methods of improving systems of comprehensive planning, of program planning, of priority setting and of allocating resources.

14.  Encourage an effective use of available federal resources in this state.

15.  Research, recommend, advise and assist in the establishment of community or area health facilities, both public and private, and encourage the integration of planning, services and programs for the development of the state's health delivery capability.

16.  Promote the effective utilization use of health manpower and health facilities that provide health care for the citizens of this state.

17.  Take appropriate steps to provide health care services to the medically dependent citizens of this state.

18.  Certify training on the nature of sudden infant death syndrome, which shall include information on the investigation and handling of cases involving sudden and unexplained infant death for use by law enforcement officers as part of their basic training requirement.

19.  Adopt protocols on the manner in which an autopsy shall be conducted under section 11‑597, subsection D in cases of sudden and unexplained infant death.

20.  Cooperate with the Arizona‑Mexico commission in the governor's office and with researchers at universities in this state to collect data and conduct projects in the United States and Mexico on issues that are within the scope of the department's duties and that relate to quality of life, trade and economic development in this state in a manner that will help the Arizona‑Mexico commission to assess and enhance the economic competitiveness of this state and of the Arizona‑Mexico region.

21.  Administer the federal family violence prevention and services act grants, and the department is designated as this state's recipient of federal family violence prevention and services act grants.

22.  Accept and spend private grants of monies, gifts and devises for the purposes of methamphetamine education.  The department shall disburse these monies to local prosecutorial or law enforcement agencies with existing programs, faith based faith‑based organizations and nonprofit entities that are qualified under section 501(c)(3) of the United States internal revenue code, including nonprofit entities providing services to women with a history of dual diagnosis disorders, and that provide educational programs on the repercussions of methamphetamine use.  State general fund monies shall not be spent for the purposes of this paragraph.  If the director does not receive sufficient monies from private sources to carry out the purposes of this paragraph, the director shall not provide the educational programs prescribed in this paragraph.  Grant monies received pursuant to this paragraph are no not lapsing and do not revert to the state general fund at the close of the fiscal year.

23.  Identify successful methamphetamine prevention programs in other states that may be implemented in this state.

24.  Pursuant to chapter 13, article 8 of this title, coordinate all public health and risk assessment issues associated with a chemical or other toxic fire event if a request for the event is received from the incident commander, the emergency response commission or the department of public safety and if funding is available.  Coordination of public health issues shall include general environmental health consultation and risk assessment services consistent with chapter 13, article 8 of this title and, in consultation with the Arizona poison control system, informing the public as to potential public health risks from the environmental exposure.  Pursuant to chapter 13, article 8 of this title, the department of health services shall also prepare a report, in consultation with appropriate state, federal and local governmental agencies, that evaluates the public health risks from the environmental exposure.  The department of health services' report shall include any department of environmental quality report and map of smoke dispersion from the fire, the results of any environmental samples taken by the department of environmental quality and the toxicological implications and public health risks of the environmental exposure.  The department of health services shall consult with the Arizona poison control system regarding toxicology issues and shall prepare and produce its report for the public as soon as practicable after the event.  The department of health services shall not use any monies pursuant to section 49‑282, subsection E to implement this paragraph.

25.  Consult, cooperate, collaborate and, if necessary, enter into interagency agreements and memoranda of understanding with the Arizona department of agriculture concerning its administration, pursuant to title 3, chapter 3, article 4.1, of this state's authority under 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).END_STATUTE

Sec. 44.  Section 36-136, Arizona Revised Statutes, is amended to read:

START_STATUTE36-136.  Powers and duties of director; compensation of personnel; rules; definition

A.  The director shall:

1.  Be the executive officer of the department of health services and the state registrar of vital statistics but shall not receive compensation for services as registrar.

2.  Perform all duties necessary to carry out the functions and responsibilities of the department.

3.  Prescribe the organization of the department.  The director shall appoint or remove personnel as necessary for the efficient work of the department and shall prescribe the duties of all personnel.  The director may abolish any office or position in the department that the director believes is unnecessary.

4.  Administer and enforce the laws relating to health and sanitation and the rules of the department.

5.  Provide for the examination of any premises if the director has reasonable cause to believe that on the premises there exists a violation of any health law or rule of this state.

6.  Exercise general supervision over all matters relating to sanitation and health throughout this state.  When in the opinion of the director it is necessary or advisable, a sanitary survey of the whole or of any part of this state shall be made.  The director may enter, examine and survey any source and means of water supply, sewage disposal plant, sewerage system, prison, public or private place of detention, asylum, hospital, school, public building, private institution, factory, workshop, tenement, public washroom, public restroom, public toilet and toilet facility, public eating room and restaurant, dairy, milk plant or food manufacturing or processing plant, and any premises in which the director has reason to believe there exists a violation of any health law or rule of this state that the director has the duty to administer.

7.  Prepare sanitary and public health rules.

8.  Perform other duties prescribed by law.

B.  If the director has reasonable cause to believe that there exists a violation of any health law or rule of this state, the director may inspect any person or property in transportation through this state, and any car, boat, train, trailer, airplane or other vehicle in which that person or property is transported, and may enforce detention or disinfection as reasonably necessary for the public health if there exists a violation of any health law or rule.

C.  The director, after consultation with the department of administration, may take all necessary steps to enhance the highest and best use of the state hospital property, including contracting with third parties to provide services, entering into short‑term lease agreements with third parties to occupy or renovate existing buildings and entering into long‑term lease agreements to develop the land and buildings.  The director shall deposit any monies collected from contracts and lease agreements entered into pursuant to this subsection in the Arizona state hospital charitable trust fund established by section 36‑218.  At least thirty days before issuing a request for proposals pursuant to this subsection, the department of health services shall hold a public hearing to receive community and provider input regarding the highest and best use of the state hospital property related to the request for proposals.  The department shall report to the joint committee on capital review on the terms, conditions and purpose of any lease or sublease agreement entered into pursuant to this subsection relating to state hospital lands or buildings or the disposition of real property pursuant to this subsection, including state hospital lands or buildings, and the fiscal impact on the department and any revenues generated by the agreement.  Any lease or sublease agreement entered into pursuant to this subsection relating to state hospital lands or buildings or the disposition of real property pursuant to this subsection, including state hospital lands or buildings, must be reviewed by the joint committee on capital review.

D.  The director may deputize, in writing, any qualified officer or employee in the department to do or perform on the director's behalf any act the director is by law empowered to do or charged with the responsibility of doing.

E.  The director may delegate to a local health department, county environmental department or public health services district any functions, powers or duties that the director believes can be competently, efficiently and properly performed by the local health department, county environmental department or public health services district if:

1.  The director or superintendent of the local health agency, environmental agency or public health services district is willing to accept the delegation and agrees to perform or exercise the functions, powers and duties conferred in accordance with the standards of performance established by the director of the department of health services.

2.  Monies appropriated or otherwise made available to the department for distribution to or division among counties or public health services districts for local health work may be allocated or reallocated in a manner designed to ensure the accomplishment of recognized local public health activities and delegated functions, powers and duties in accordance with applicable standards of performance.  Whenever in the director's opinion there is cause, the director may terminate all or a part of any delegation and may reallocate all or a part of any funds that may have been conditioned on the further performance of the functions, powers or duties conferred.

F.  The compensation of all personnel shall be as determined pursuant to section 38‑611.

G.  The director may make and amend rules necessary for the proper administration and enforcement of the laws relating to the public health.

H.  Notwithstanding subsection I, paragraph 1 of this section, the director may define and prescribe emergency measures for detecting, reporting, preventing and controlling communicable or infectious diseases or conditions if the director has reasonable cause to believe that a serious threat to public health and welfare exists.  Emergency measures are effective for no longer than eighteen months.

I.  The director, by rule, shall:

1.  Define and prescribe reasonably necessary measures for detecting, reporting, preventing and controlling communicable and preventable diseases.  The rules shall declare certain diseases reportable.  The rules shall prescribe measures, including isolation or quarantine, that are reasonably required to prevent the occurrence of, or to seek early detection and alleviation of, disability, insofar as possible, from communicable or preventable diseases.  The rules shall include reasonably necessary measures to control animal diseases transmittable to humans.

2.  Define and prescribe reasonably necessary measures, in addition to those prescribed by law, regarding the preparation, embalming, cremation, interment, disinterment and transportation of dead human bodies and the conduct of funerals, relating to and restricted to communicable diseases and regarding the removal, transportation, cremation, interment or disinterment of any dead human body.

3.  Define and prescribe reasonably necessary procedures that are not inconsistent with law in regard to the use and accessibility of vital records, delayed birth registration and the completion, change and amendment of vital records.

4.  Except as relating to the beneficial use of wildlife meat by public institutions and charitable organizations pursuant to title 17, prescribe reasonably necessary measures to ensure that all food or drink, including meat and meat products and milk and milk products sold at the retail level, provided for human consumption is free from unwholesome, poisonous or other foreign substances and filth, insects or disease‑causing organisms.  The rules shall prescribe reasonably necessary measures governing the production, processing, labeling, storing, handling, serving and transportation of these products.  The rules shall prescribe minimum standards for the sanitary facilities and conditions that shall be maintained in any warehouse, restaurant or other premises, except a meat packing plant, slaughterhouse, wholesale meat processing plant, dairy product manufacturing plant or trade product manufacturing plant.  The rules shall prescribe minimum standards for any truck or other vehicle in which food or drink is produced, processed, stored, handled, served or transported.  The rules shall provide for the inspection and licensing of premises and vehicles so used, and for abatement as public nuisances of any premises or vehicles that do not comply with the rules and minimum standards.  The rules shall provide an exemption relating to food or drink that is:

(a)  Served at a noncommercial social event such as a potluck.

(b)  Prepared at a cooking school that is conducted in an owner‑occupied home.

(c)  Not potentially hazardous and prepared in a kitchen of a private home for occasional sale or distribution for noncommercial purposes.

(d)  Prepared or served at an employee-conducted function that lasts less than four hours and is not regularly scheduled, such as an employee recognition, an employee fund‑raising or an employee social event.

(e)  Offered at a child care facility and limited to commercially prepackaged food that is not potentially hazardous and whole fruits and vegetables that are washed and cut on‑site for immediate consumption.

(f)  Offered at locations that sell only commercially prepackaged food or drink that is not potentially hazardous.

(g)  Baked and confectionary goods that are not potentially hazardous and that are prepared in a kitchen of a private home for commercial purposes if packaged with a label that clearly states the address of the maker, includes contact information for the maker, lists all the ingredients in the product and discloses that the product was prepared in a home.  The label must be given to the final consumer of the product.  If the product was made in a facility for individuals with developmental disabilities, the label must also disclose that fact.  The person preparing the food or supervising the food preparation must obtain a food handler's card or certificate if one is issued by the local county and must register with an online registry established by the department pursuant to paragraph 13 of this subsection.  For the purposes of this subdivision, "potentially hazardous" means baked and confectionary goods that meet the requirements of the food code published by the United States food and drug administration, as modified and incorporated by reference by the department by rule.

(h)  A whole fruit or vegetable grown in a public school garden that is washed and cut on-site for immediate consumption.

(i)  Produce in a packing or holding facility that is subject to the United States food and drug administration produce safety rule (21 Code of Federal Regulations part 112) as administered by the Arizona department of agriculture pursuant to title 3, chapter 3, article 4.1.  For the purposes of this subdivision, "holding", "packing" and "produce" have the same meanings prescribed in section 3-525.

5.  Prescribe reasonably necessary measures to ensure that all meat and meat products for human consumption handled at the retail level are delivered in a manner and from sources approved by the Arizona department of agriculture and are free from unwholesome, poisonous or other foreign substances and filth, insects or disease‑causing organisms.  The rules shall prescribe standards for sanitary facilities to be used in identity, storage, handling and sale of all meat and meat products sold at the retail level.

6.  Prescribe reasonably necessary measures regarding production, processing, labeling, handling, serving and transportation of bottled water to ensure that all bottled drinking water distributed for human consumption is free from unwholesome, poisonous, deleterious or other foreign substances and filth or disease‑causing organisms.  The rules shall prescribe minimum standards for the sanitary facilities and conditions that shall be maintained at any source of water, bottling plant and truck or vehicle in which bottled water is produced, processed, stored or transported and shall provide for inspection and certification of bottled drinking water sources, plants, processes and transportation and for abatement as a public nuisance of any water supply, label, premises, equipment, process or vehicle that does not comply with the minimum standards.  The rules shall prescribe minimum standards for bacteriological, physical and chemical quality for bottled water and for the submission of samples at intervals prescribed in the standards.

7.  Define and prescribe reasonably necessary measures governing ice production, handling, storing and distribution to ensure that all ice sold or distributed for human consumption or for the preservation or storage of food for human consumption is free from unwholesome, poisonous, deleterious or other foreign substances and filth or disease‑causing organisms.  The rules shall prescribe minimum standards for the sanitary facilities and conditions and the quality of ice that shall be maintained at any ice plant, storage and truck or vehicle in which ice is produced, stored, handled or transported and shall provide for inspection and licensing of the premises and vehicles, and for abatement as public nuisances of ice, premises, equipment, processes or vehicles that do not comply with the minimum standards.

8.  Define and prescribe reasonably necessary measures concerning sewage and excreta disposal, garbage and trash collection, storage and disposal, and water supply for recreational and summer camps, campgrounds, motels, tourist courts, trailer coach parks and hotels.  The rules shall prescribe minimum standards for preparation of food in community kitchens, adequacy of excreta disposal, garbage and trash collection, storage and disposal and water supply for recreational and summer camps, campgrounds, motels, tourist courts, trailer coach parks and hotels and shall provide for inspection of these premises and for abatement as public nuisances of any premises or facilities that do not comply with the rules.  Primitive camp and picnic grounds offered by this state or a political subdivision of this state are exempt from rules adopted pursuant to this paragraph but are subject to approval by a county health department under sanitary regulations adopted pursuant to section 36‑183.02.  Rules adopted pursuant to this paragraph do not apply to two or fewer recreational vehicles as defined in section 33‑2102 that are not park models or park trailers, that are parked on owner‑occupied residential property for less than sixty days and for which no rent or other compensation is paid.  For the purposes of this paragraph, "primitive camp and picnic grounds" means camp and picnic grounds that are remote in nature and without accessibility to public infrastructure such as water, electricity and sewer.

9.  Define and prescribe reasonably necessary measures concerning the sewage and excreta disposal, garbage and trash collection, storage and disposal, water supply and food preparation of all public schools.  The rules shall prescribe minimum standards for sanitary conditions that shall be maintained in any public school and shall provide for inspection of these premises and facilities and for abatement as public nuisances of any premises that do not comply with the minimum standards.

10.  Prescribe reasonably necessary measures to prevent pollution of water used in public or semipublic swimming pools and bathing places and to prevent deleterious health conditions at these places.  The rules shall prescribe minimum standards for sanitary conditions that shall be maintained at any public or semipublic swimming pool or bathing place and shall provide for inspection of these premises and for abatement as public nuisances of any premises and facilities that do not comply with the minimum standards.  The rules shall be developed in cooperation with the director of the department of environmental quality and shall be consistent with the rules adopted by the director of the department of environmental quality pursuant to section 49‑104, subsection B, paragraph 12.

11.  Prescribe reasonably necessary measures to keep confidential information relating to diagnostic findings and treatment of patients, as well as information relating to contacts, suspects and associates of communicable disease patients.  In no event shall confidential information be made available for political or commercial purposes.

12.  Prescribe reasonably necessary measures regarding human immunodeficiency virus testing as a means to control the transmission of that virus, including the designation of anonymous test sites as dictated by current epidemiologic and scientific evidence.

13.  Establish an online registry of food preparers that are authorized to prepare food for commercial purposes pursuant to paragraph 4 of this subsection.

14.  Prescribe an exclusion for fetal demise cases from the standardized survey known as "the hospital consumer assessment of healthcare providers and systems".

J.  The rules adopted under the authority conferred by this section shall be observed throughout the state and shall be enforced by each local board of health or public health services district, but this section does not limit the right of any local board of health or county board of supervisors to adopt ordinances and rules as authorized by law within its jurisdiction, provided that the ordinances and rules do not conflict with state law and are equal to or more restrictive than the rules of the director.

K.  The powers and duties prescribed by this section do not apply in instances in which regulatory powers and duties relating to public health are vested by the legislature in any other state board, commission, agency or instrumentality, except that with regard to the regulation of meat and meat products, the department of health services and the Arizona department of agriculture within the area delegated to each shall adopt rules that are not in conflict.

L.  The director, in establishing fees authorized by this section, shall comply with title 41, chapter 6.  The department shall not set a fee at more than the department's cost of providing the service for which the fee is charged.  State agencies are exempt from all fees imposed pursuant to this section.

M.  After consultation with the state superintendent of public instruction, the director shall prescribe the criteria the department shall use in deciding whether or not to notify a local school district that a pupil in the district has tested positive for the human immunodeficiency virus antibody.  The director shall prescribe the procedure by which the department shall notify a school district if, pursuant to these criteria, the department determines that notification is warranted in a particular situation.  This procedure shall include a requirement that before notification the department shall determine to its satisfaction that the district has an appropriate policy relating to nondiscrimination of the infected pupil and confidentiality of test results and that proper educational counseling has been or will be provided to staff and pupils.

N.  Until the department adopts exemptions by rule as required by subsection I, paragraph 4, subdivision (f) of this section, food and drink are exempt from the rules prescribed in subsection I of this section if offered at locations that sell only commercially prepackaged food or drink that is not potentially hazardous, without a limitation on its display area.

O.  Until the department adopts exemptions by rule as required by subsection I, paragraph 4, subdivision (h) of this section, a whole fruit or vegetable grown in a public school garden that is washed and cut on‑site for immediate consumption is exempt from the rules prescribed in subsection I of this section.

P.  Until the department adopts an exclusion by rule as required by subsection I, paragraph 14 of this section, the standardized survey known as "the hospital consumer assessment of healthcare providers and systems" may not include patients who experience a fetal demise.

Q.  For the purposes of this section, "fetal demise" means a fetal death that occurs or is confirmed in a licensed hospital.  Fetal demise does not include an abortion as defined in section 36‑2151. END_STATUTE

Sec. 45.  Section 41-1005, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1005.  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.

(c)  Establishes a license classification, fee or application fee pursuant to title 17, chapter 3, article 2.

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 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.

B.  Notwithstanding subsection A, paragraph 21 of this section, at such time as 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 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. END_STATUTE

Sec. 46.  Section 49-221, Arizona Revised Statutes, is amended to read:

START_STATUTE49-221.  Water quality standards in general

A.  The director shall adopt, by rule, water quality standards for all navigable waters and for all waters in all aquifers to preserve and protect the quality of those waters for all present and reasonably foreseeable future uses.

B.  The director may adopt, by rule, water quality standards for waters of the state other than those described in subsection A of this section, including standards for the use of water pumped from an aquifer that does not meet the standards adopted pursuant to section 49‑223, subsections A and B and that is put to a beneficial use other than drinking water.  These standards may include standards for the use of water pumped as part of a remedial action.  In adopting such standards, the director shall consider the economic, social and environmental costs and benefits that would result from the adoption of a water quality standard at a particular level or for a particular water category.

C.  In setting standards pursuant to subsection A or B of this section, the director shall consider, but not be limited to, the following:

1.  The protection of the public health and the environment.

2.  The uses which that have been made, are being made or with reasonable probability may be made of these waters.

3.  The provisions and requirements of the clean water act and safe drinking water act and the regulations adopted pursuant to those acts.

4.  The degree to which standards for one category of waters could cause violations of standards for other, hydrologically connected, water categories.

5.  Guidelines, action levels or numerical criteria adopted or recommended by the United States environmental protection agency or any other federal agency.

6.  Any unique physical, biological or chemical properties of the waters.

D.  Water quality standards shall be expressed in terms of the uses to be protected and, if adequate information exists to do so, numerical limitations or parameters, in addition to any narrative standards which that the director may deem deems appropriate.

E.  The director may adopt by rule water quality standards for the direct reuse of reclaimed water.  In establishing these standards, the director shall consider the following:

1.  The protection of public health and the environment.

2.  The uses that are being made or may be made of the reclaimed water.

3.  The degree to which standards for the direct reuse of reclaimed water may cause violations of water quality standards for other hydrologically connected water categories.

F.  If the director proposes to adopt water quality standards for agricultural water, the director shall consult, cooperate, collaborate and, if necessary, enter into interagency agreements and memoranda of understanding with the Arizona department of agriculture relating to its administration, pursuant to title 3, chapter 3, article 4.1, of this state's authority relating to agricultural water under the United States food and drug administration produce safety rule (21 Code of Federal Regulations part 112, subpart E) 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).  For the purposes of this subsection:

1.  "Agricultural water":

(a)  Means water that is used in a covered activity on produce where water is intended to, or is likely to, contact produce or food contact surfaces.

(b)  Includes all of the following:

(i)  Water used in growing activities, including irrigation water, water used for preparing crop sprays and water used for growing sprouts.

(ii)  Water used in harvesting, packing and holding activities, including water used for washing or cooling harvested produce and water used for preventing dehydration of produce.

2.  "Covered activity" means growing, harvesting, packing or holding produce.  Covered activity includes processing produce to the extent that the activity is within the meaning of farm as defined in section 3-525.

3.  "Harvesting" has the same meaning prescribed in section 3-525.

4.  "Holding" has the same meaning prescribed in section 3-525.

5.  "Packing" has the same meaning prescribed in section 3-525.

6.  "Produce" has the same meaning prescribed in section 3-525. END_STATUTE