Arizona 2025 Regular Session

Arizona House Bill HB2073 Compare Versions

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11 PREFILED JAN 08 2025 REFERENCE TITLE: watersheds; beneficial use; instream flows State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HB 2073 Introduced by Representative Travers AN ACT amending sections 17-231, 17-298, 45-101, 45-105, 45-151, 45-152.01 and 45-172, Arizona Revised Statutes; relating to waters. (TEXT OF BILL BEGINS ON NEXT PAGE)
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6868 amending sections 17-231, 17-298, 45-101, 45-105, 45-151, 45-152.01 and 45-172, Arizona Revised Statutes; relating to waters.
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7878 Be it enacted by the Legislature of the State of Arizona: Section 1. Section 17-231, Arizona Revised Statutes, is amended to read: START_STATUTE17-231. General powers and duties of the commission A. The commission shall: 1. Adopt rules and establish services it deems necessary to carry out the provisions and purposes of this title. 2. Establish broad policies and long-range programs for the management, preservation and harvest of wildlife. 3. Establish hunting, trapping and fishing rules and prescribe the manner and methods that may be used in taking wildlife, but the commission shall not limit or restrict the magazine capacity of any authorized firearm. 4. Be responsible for the enforcement of laws for the protection of wildlife. 5. Provide for the assembling and distribution of information to the public relating to wildlife and activities of the department. 6. Prescribe rules for the expenditure, by or under the control of the director, of all funds arising from appropriation, licenses, gifts or other sources. 7. Exercise such powers and duties necessary to carry out fully the provisions of this title and in general exercise powers and duties that relate to adopting and carrying out policies of the department and control of its financial affairs. 8. Prescribe procedures for use of department personnel, facilities, equipment, supplies and other resources in assisting search or rescue operations on request of the director of the division of emergency management. 9. 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. B. The commission may: 1. Conduct investigations, inquiries or hearings in the performance of its powers and duties. 2. Establish game management units or refuges for the preservation and management of wildlife. 3. Construct and operate game farms, fish hatcheries, fishing lakes or other facilities for or relating to the preservation or propagation of wildlife. 4. Expend funds Spend monies to provide training in the safe handling and use of firearms and safe hunting practices. 5. Remove or permit allow to be removed from public or private waters fish which that hinder or prevent propagation of game or food fish and dispose of such fish in such manner as it may designate. 6. Purchase, sell or barter wildlife for the purpose of stocking public or private lands and waters and take at any time in any manner wildlife for research, propagation and restocking purposes or for use at a game farm or fish hatchery and declare wildlife salable when in the public interest or the interest of conservation. 7. Enter into agreements with the federal government, with other states or political subdivisions of the this state and with private organizations for the construction and operation of facilities and for management studies, measures or procedures for or relating to the preservation and propagation of wildlife and expend funds spend monies for carrying out such agreements. 8. Prescribe rules for the sale, trade, importation, exportation or possession of wildlife. 9. Expend Spend monies for the purpose of producing publications relating to wildlife and activities of the department for sale to the public and establish the price to be paid for annual subscriptions and single copies of such publications. All monies received from the sale of such publications shall be deposited in the game and fish publications revolving fund. 10. Contract with any person or entity to design and produce artwork on terms that, in the commission's judgment, will produce an original and valuable work of art relating to wildlife or wildlife habitat. 11. Sell or distribute the artwork authorized under paragraph 10 of this subsection on such terms and for such price as it deems acceptable. 12. Consider the adverse and beneficial short-term and long-term economic impacts on resource dependent communities, small businesses and the this state of Arizona, of policies and programs for the management, preservation and harvest of wildlife by holding a public hearing to receive and consider written comments and public testimony from interested persons. 13. Adopt rules relating to range operations at public shooting ranges operated by and under the jurisdiction of the commission, including the hours of operation, the fees for the use of the range, the regulation of groups and events, the operation of related range facilities, the type of firearms and ammunition that may be used at the range, the safe handling of firearms at the range, the required safety equipment for a person using the range, the sale of firearms, ammunition and shooting supplies at the range, and the authority of range officers to enforce these rules, to remove violators from the premises and to refuse entry for repeat violations. 14. Solicit and accept grants, gifts or donations of money or other property from any source, which may be used for any purpose consistent with this title. 15. acquire and lease surface water rights for watershed HEALTH uses and instream uses. For the purposes of this paragraph, "watershed Health uses" has the same meaning prescribed in section 45-101. C. The commission shall confer and coordinate with the director of water resources with respect to the commission's activities, plans and negotiations relating to water development and use, restoration projects under the restoration acts pursuant to chapter 4, article 1 of this title, where water development and use are involved, the abatement of pollution injurious to wildlife and in the formulation of fish and wildlife aspects of the director of water resources' plans to develop and utilize use water resources of the state and shall have jurisdiction over fish and wildlife resources and fish and wildlife activities of projects constructed for the state under or pursuant to the jurisdiction of the director of water resources. D. The commission may enter into one or more agreements with a multi-county water conservation district and other parties for participation in the lower Colorado river multispecies conservation program under section 48-3713.03, including the collection and payment of any monies authorized by law for the purposes of the lower Colorado river multispecies conservation program. END_STATUTE Sec. 2. Section 17-298, Arizona Revised Statutes, is amended to read: START_STATUTE17-298. Expenditures from fund; purpose and amounts; annual report A. Monies received pursuant to section 5-572 shall be spent as follows: 1. Five percent on public access, including maintenance and operation expenses. 2. Sixty percent on the identification, inventory, acquisition, protection and management, including maintenance and operations, of property with sensitive habitat, watershed health uses and instream uses. At least twenty percent of the monies available under this paragraph shall be spent to acquire property with sensitive habitat used by endangered, threatened and candidate species. Not more than twenty percent of the monies available under this paragraph may be spent on the operation and maintenance of the acquired property, including the acquired property's infrastructure. The commission may dispose of any lands acquired for use as habitat by an endangered, threatened or candidate species under this paragraph when the species no longer qualifies as an endangered, threatened or candidate species. The Arizona game and fish commission shall dispose of the land in a manner consistent with the preservation of the species of concern. The disposal may include conservation easements and fee simple transfers with associated instruments of protection. The commission shall follow the guidelines established pursuant to section 37-803 relating to the disposition of real property by a state agency. In addition, disposal shall include a written agreement between the commission and the purchaser requiring the purchaser to incorporate management actions to ensure proper maintenance of the species of concern. Management actions may include maintenance of habitat, selective control of nonnative species, maintenance of genetic viability, monitoring of populations and habitat, coordinating conservation activities, funding conservation actions and assessing conservation progress. For the purposes of this paragraph, "watershed Health uses" has the same meaning prescribed in section 45-101. 3. Fifteen percent on habitat evaluation or habitat protection. 4. Fifteen percent on urban wildlife and urban wildlife habitat programs. 5. Five percent on environmental education. B. All monies earned as interest on monies received pursuant to section 5-572 shall be spent only in the percentages and for the purposes described in subsection A of this section or for costs of administering the Arizona game and fish commission heritage fund in such amounts as determined by the Arizona game and fish commission. C. On or before December 31, the commission shall submit its annual report to the president of the senate, the speaker of the house of representatives and the chairmen of the senate and house of representatives committees on natural resources and agriculture, or their successor committees, and shall provide a copy of this report to the secretary of state. The annual report shall include information on: 1. The amount of monies spent or encumbered in the fund during the preceding fiscal year and a summary of the projects, activities and expenditures relating to: (a) Property acquisition, operation and maintenance. (b) Identification, inventory, protection and management of sensitive habitat. (c) Habitat evaluation and protection. (d) Urban wildlife. (e) Environmental education. (f) Public access. 2. The number and location of parcels of property acquired during the preceding fiscal year. 3. For personal and real properties acquired with fund monies during the preceding fiscal year, the amount of property tax revenue paid to each taxing jurisdiction during the last full tax year prior to acquisition. 4. The amount of money spent from the fund during the preceding fiscal year for employee personal services. 5. The number of full-time employees employed in the preceding fiscal year in connection with property acquisition, including survey, appraisal and other related activities. 6. The total number of full-time employees employed in the preceding fiscal year for the programs listed in subsection A of this section. 7. A list of the grants awarded during the preceding fiscal year, including information on the recipients, purposes and amounts. END_STATUTE Sec. 3. Section 45-101, Arizona Revised Statutes, is amended to read: START_STATUTE45-101. Definitions In this title, unless the context otherwise requires: 1. "Appropriator" means the person or persons initiating or perfecting the right to use appropriable water based on state law, or the person's successor or successors in interest. 2. "Department" means the department of water resources. 3. "Director" means the director of water resources, who is also the director of the department. 4. "Effluent" means water that has been collected in a sanitary sewer for subsequent treatment in a facility that is regulated pursuant to title 49, chapter 2. Such water remains effluent until it acquires the characteristics of groundwater or surface water. 5. "Groundwater" means water under the surface of the earth regardless of the geologic structure in which it is standing or moving. Groundwater does not include water flowing in underground streams with ascertainable beds and banks. 6. "Interstate stream" means any stream constituting or flowing along the exterior boundaries of this state, and any tributary originating in another state or foreign country and flowing into or through this state. 7. "Riparian area" means a geographically delineated area with distinct resource values, that is characterized by deep-rooted plant species that depend on having roots in the water table or its capillary zone and that occurs within or adjacent to a natural perennial or intermittent stream channel or within or adjacent to a lake, pond or marsh bed maintained primarily by natural water sources. Riparian area does not include areas in or adjacent to ephemeral stream channels, artificially created stockponds, man-made storage reservoirs constructed primarily for conservation or regulatory storage, municipal and industrial ponds or man-made water transportation, distribution, off-stream storage and collection systems. 8. "Sanitary sewer" means any pipe or other enclosed conduit that carries, among other substances, any water-carried wastes from the human body from residences, commercial buildings, industrial plants or institutions. 9. "Surface water" means the waters of all sources, flowing in streams, canyons, ravines or other natural channels, or in definite underground channels, whether perennial or intermittent, floodwater, wastewater or surplus water, and of lakes, ponds and springs on the surface. For the purposes of administering this title, surface water is deemed to include central Arizona project water. 10. "Watershed health uses" means water that is conserved in a natural watercourse and not otherwise used and that supports the attributes of watershed health for an individual watershed as prescribed in the report required by section 45-105, subsection B. END_STATUTE Sec. 4. Section 45-105, Arizona Revised Statutes, is amended to read: START_STATUTE45-105. Powers and duties of director A. The director may: 1. Formulate plans and develop programs for the practical and economical development, management, conservation and use of surface water, groundwater and the watersheds in this state, including the management of water quantity and quality. 2. Investigate works, plans or proposals pertaining to surface water and groundwater, including management of watersheds, and acquire, preserve, publish and disseminate related information the director deems advisable. 3. Collect and investigate information on and prepare and devise means and plans for the development, conservation and use of all waterways, watersheds, surface water, groundwater and groundwater basins in this state and of all related matters and subjects, including irrigation, drainage, water quality maintenance, regulation of flow, diversion of running streams adapted for development in cooperating with the United States or by this state independently, flood control, use of water power, prevention of soil waste and storage, conservation and development of water for every useful purpose. 4. Measure, survey and investigate the water resources of this state and their potential development and cooperate and contract with agencies of the United States for such purposes. 5. Acquire, hold and dispose of property, including land, rights-of-way, water and water rights, as necessary or convenient for the performance of the groundwater and water quality management functions of the department. 6. Acquire, other than by condemnation, construct, improve, maintain and operate early warning systems for flood control purposes and works for the recovery, storage, treatment and delivery of water. 7. Accept grants, gifts or donations of money or other property from any source, which may be used for any purpose consistent with this title. All property acquired by the director is public property and is subject to the same tax exemptions, rights and privileges granted to municipalities, public agencies and other public entities. 8. Enter into an interagency contract or agreement with any public agency pursuant to title 11, chapter 7, article 3 and contract, act jointly or cooperate with any person to carry out the purposes of this title. 9. Prosecute and defend all rights, claims and privileges of this state respecting interstate streams. 10. Initiate and participate in conferences, conventions or hearings, including congressional hearings, court hearings or hearings of other competent judicial or quasi-judicial departments, agencies or organizations, and negotiate and cooperate with agencies of the United States or of any state or government and represent this state concerning matters within the department's jurisdiction. 11. Apply for and hold permits and licenses from the United States or any agency of the United States for reservoirs, dam sites and rights-of-way. 12. Receive and review all reports, proposed contracts and agreements from and with the United States or any agencies, other states or governments or their representatives and recommend to the governor and the legislature action to be taken on such reports, proposed contracts and agreements. The director shall take action on such reports, if authorized by law, and review and coordinate the preparation of formal comments of this state on both the preliminary and final reports relating to water resource development of the United States army corps of engineers, the United States secretary of the interior and the United States secretary of agriculture, as provided for in the flood control act of 1944 (58 Stat. 887; 33 United States Code section 701-1). 13. Contract with any person for imported water or for the acquisition of water rights or rights to withdraw, divert or use surface water or groundwater as necessary for the performance of the groundwater management functions of the director prescribed by chapter 2 of this title. If water becomes available under any contract executed under this paragraph, the director may contract with any person for its delivery or exchange for any other water available. 14. Recommend to the administrative heads of agencies, boards and commissions of this state, and political subdivisions of this state, rules to promote and protect the rights and interests of this state and its inhabitants in any matter relating to the surface water and groundwater in this state. 15. Conduct feasibility studies and remedial investigations relating to groundwater quality and enter into contracts and cooperative agreements under section 104 of the comprehensive environmental response, compensation, and liability act of 1980 (P.L. 96-510) to conduct such studies and investigations. 16. Dispose informally by stipulation, agreed settlement, consent order or alternative means of dispute resolution, including arbitration, if the parties and director agree, or by default of any case in which a hearing before the director is required or allowed by law. 17. Cooperate and coordinate with the appropriate governmental entities in Mexico regarding water planning in areas near the border between Mexico and Arizona and for the exchange of relevant hydrological information. B. The director shall: 1. Exercise and perform all powers and duties vested in or imposed on the department and adopt and issue rules necessary to carry out the purposes of this title. 2. Administer all laws relating to groundwater, as provided in this title. 3. Be responsible for the supervision and control of reservoirs and dams of this state and, when deemed necessary, conduct investigations to determine whether the existing or anticipated condition of any dam or reservoir in this state is or may become a menace to life and property. 4. Coordinate and confer with and may contract with: (a) The Arizona power authority, the game and fish commission, the state land department, the Arizona outdoor recreation coordinating commission, the Arizona commerce authority, the department of health services, active management area water authorities or districts and political subdivisions of this state with respect to matters within their jurisdiction relating to surface water and groundwater and the development of state water plans. (b) The department of environmental quality with respect to title 49, chapter 2 for its assistance in the development of state water plans. (c) The department of environmental quality regarding water plans, water resource planning, water management, wells, water rights and permits, and other appropriate provisions of this title pertaining to remedial investigations, feasibility studies, site prioritization, selection of remedies and implementation of the water quality assurance revolving fund program pursuant to title 49, chapter 2, article 5. (d) The department of environmental quality regarding coordination of databases that are necessary for activities conducted pursuant to title 49, chapter 2, article 5. 5. Cooperate with the Arizona power authority in the performance of the duties and functions of the authority. 6. Maintain a permanent public depository for existing and future records of stream flow, groundwater levels and water quality and other data relating to surface water and groundwater. 7. Maintain a public docket of all matters before the department that may be subject to judicial review pursuant to this title. 8. Investigate and take appropriate action on any complaints alleging withdrawals, diversions, impoundments or uses of surface water or groundwater that may violate this title or the rules adopted pursuant to this title. 9. Adopt an official seal for the authentication of records, orders, rules and other official documents and actions. 10. Provide staff support to the Arizona water protection fund commission established by chapter 12 of this title. 11. Exercise and perform all powers and duties invested in the chairperson of the Arizona water banking authority commission as prescribed by chapter 14 of this title. 12. Provide staff support to the Arizona water banking authority established by chapter 14 of this title. 13. In the year following each regular general election, present information to the committees with jurisdiction over water issues in the house of representatives and the senate. A written report is not required but the presentation shall include information concerning the following: (a) The current status of the water supply in this state and any likely changes in that status. (b) Issues of regional and local drought effects, short-term and long-term drought management efforts and the adequacy of drought preparation throughout the state. (c) The status of current water conservation programs in this state. (d) The current state of each active management area and the level of progress toward management goals in each active management area. (e) Issues affecting management of the Colorado river and the reliability of this state's two million eight hundred thousand acre-foot allocation of Colorado river water, including the status of water supplies in and issues related to the Colorado river basin states and Mexico. (f) The status of any pending or likely litigation regarding surface water adjudications or other water-related litigation and the potential impacts on this state's water supplies. (g) The status of Indian water rights settlements and related negotiations that affect this state. (h) Other matters related to the reliability of this state's water supplies, the responsibilities of the department and the adequacy of the department's and other entities' resources to meet this state's water management needs. 14. Not later than December 1, 2023 and on or before December 1 of each year thereafter, prepare and issue a water supply and demand assessment for at least six of the fifty-one groundwater basins established pursuant to section 45-403. The director shall ensure that a water supply and demand assessment is completed for all groundwater basins and initial active management areas at least once every five years. The director may contract with outside entities to perform some or all of the assessments and those outside entities shall be identified in the assessment. 15. On or before December 31 every three years after the initial preliminary survey, issue a report that includes an assessment of the overall health of each watershed in this state. Any agency or political subdivision of this state that has information relevant to developing the survey and report prescribed by this paragraph, including the determinations, assessments and recommendations prescribed by this paragraph, shall cooperate with the director and shall timely provide information requested by the director. The assessment of the overall health of each watershed in this state shall be based on an evaluation of the following attributes of the watershed: (a) Hydrology. (b) Landscape condition. (c) Habitat condition. (d) Geomorphology. (e) Water quality. (f) Biological condition, including the biodiversity of PLANTS, animals and aquatic species. (g) Threats to or vulnerabilities of the watershed that impact the attributes prescribed by this paragraph. END_STATUTE Sec. 5. Section 45-151, Arizona Revised Statutes, is amended to read: START_STATUTE45-151. Right of appropriation; permitted uses; water rights in stockponds A. Any person, the this state, of Arizona INCLUDING the Arizona game and fish department, or a political subdivision thereof of this state may appropriate unappropriated water for domestic, municipal, irrigation, stock watering, water power, recreation, wildlife, including fish, nonrecoverable water storage pursuant to section 45-833.01, or mining uses or watershed health uses, for his personal use or for delivery to consumers. The person, the this state of Arizona or a political subdivision thereof of this state first appropriating the water shall have the better right. B. To effect the beneficial use, the person, the this state of Arizona or a political subdivision thereof of this state appropriating the water may construct and maintain reservoirs, storage facilities pursuant to chapter 3.1 of this title, dams, canals, ditches, flumes and other necessary waterways. C. A water right in a stockpond, certified pursuant to article 10 of this chapter, shall be recognized as if such water had been appropriated pursuant to this article. END_STATUTE Sec. 6. Section 45-152.01, Arizona Revised Statutes, is amended to read: START_STATUTE45-152.01. Instream flow applications; process; definition A. In addition to the information prescribed in section 45-152, any person, including the United States, this state, including the arizona game and fish department, a POLITICAL subdivision of this state or a municipality, who files an instream flow application after the effective date of this section August 2, 2012 shall comply with the following: 1. The applicant shall submit at least five years of streamflow measurement data to support the proposed beneficial use which shall be submitted at the time the application is filed. The director shall not accept for filing an instream flow application that is not accompanied by at least five years of continuous streamflow measurement data. The streamflow data submitted shall consist of gauged on-site measurements of available water flow from the area in which the claimed beneficial use occurs. 2. The instream flow application shall describe the proposed beneficial use and shall specify both of the following: (a) The amount of streamflow required for the proposed beneficial use. (b) The availability of the requested flows during claimed periods of beneficial use. B. Applications that are submitted after the effective date of this section August 2, 2012 shall be rejected if the application does not comply with this section. C. For the purposes of this section, "instream flow application" means an application for a permit to make an appropriation of water for purposes of watershed health, recreation or wildlife, including fish, in a specific stream reach without diverting the water from the stream. END_STATUTE Sec. 7. Section 45-172, Arizona Revised Statutes, is amended to read: START_STATUTE45-172. Transfer of water rights; application; limitations; required consent A. A water right may be severed from the land to which it is appurtenant or from the site of its use if for other than irrigation purposes and with the consent and approval of the owner of such right may be transferred for use for irrigation of agricultural lands or for municipal, watershed health, stock watering, power and mining purposes and to the state or its political subdivisions for use for recreation and wildlife purposes, including fish, without losing priority theretofore established, subject to the following limitations and conditions: 1. Except as otherwise provided in this section no such a severance or transfer shall not be made unless approved by the director, and the approval of the director shall prescribe the conditions of the approval. 2. Vested or existing rights to the use of water shall not be affected, infringed upon nor on or interfered with, and in no event shall the water diverted or used after the transfer of such rights shall not exceed the vested rights existing at the time of such severance and transfer, and the director shall by order so define and limit the amount of water to be diverted or used annually subsequent to such transfer. 3. The water rights sought to be transferred shall have been lawfully perfected under the laws of the territory or the this state of Arizona and shall not have thereafter been forfeited or abandoned. 4. No such A severance or transfer of water rights shall not be permitted or allowed from lands within the exterior boundaries of any irrigation district, agricultural improvement district or water users' association without first having obtained the written consent and approval of such irrigation district, agricultural improvement district or water users' association. 5. No A right to the use of water on or from any watershed or drainage area which that supplies or contributes water for the irrigation of lands within an irrigation district, agricultural improvement district or water users' association shall not be severed or transferred without the consent of the governing body of such irrigation district, agricultural improvement district or water users' association. All proposed applications for the severance and transfer of a right to use water of or from any watershed or drainage area which that supplies or contributes water for the irrigation of lands within any irrigation district, agricultural improvement district or water users' association shall be submitted to the governing body of such irrigation district, agricultural improvement district or water users' association prior to before the filing of such application with the director. Within forty-five days after the receipt of the application such governing body shall reject or approve the proposed application. The failure of such governing body to approve or reject the proposed application within forty-five days after receipt shall constitute approval of the proposed application by such governing body. No An application for the severance or transfer of a right to the use of water of or from any watershed or drainage area which that supplies or contributes water for the irrigation of lands within any irrigation district, agricultural improvement district or water users' association shall not be accepted for filing by the director unless accompanied by the written consent of the governing body of such irrigation district, agricultural improvement district or water users' association to the proposed application or by satisfactory evidence that such governing body failed to either accept or reject the proposed application within forty-five days after receipt by such governing body. 6. A severance and transfer of an irrigation water right appurtenant to lands within the boundaries of an irrigation district to other lands within the boundaries of the same irrigation district for agricultural use may be accomplished by the exclusion of lands to which a water right is appurtenant from within the boundaries of an irrigation district, and the inclusion in lieu of other lands within the boundaries of such irrigation district. Such severance and transfer of a water right shall require the consent of only the irrigation district within which the affected lands are situated and of the owners of the lands affected by the severance and transfer. No proceedings before nor or approval by the director shall be required to accomplish such severance and transfer. 7. An application for severance and transfer of a water right shall be filed with the director. The director shall give notice of the application by publication once a week for three successive weeks in a newspaper of general circulation in the county or counties in which the watershed or drainage area is located. The notice shall state that any interested person may file written objections to the proposed severance and transfer with the director within thirty days after the last publication of the notice. In appropriate cases, including cases in which an objection has been filed, an administrative hearing may be held before the director's decision on the application if the director deems a hearing necessary. B. Section 45-114, subsections A and B govern administrative proceedings, rehearing or review and judicial review of final decisions of the director under this section. END_STATUTE
7979
8080 Be it enacted by the Legislature of the State of Arizona:
8181
8282 Section 1. Section 17-231, Arizona Revised Statutes, is amended to read:
8383
8484 START_STATUTE17-231. General powers and duties of the commission
8585
8686 A. The commission shall:
8787
8888 1. Adopt rules and establish services it deems necessary to carry out the provisions and purposes of this title.
8989
9090 2. Establish broad policies and long-range programs for the management, preservation and harvest of wildlife.
9191
9292 3. Establish hunting, trapping and fishing rules and prescribe the manner and methods that may be used in taking wildlife, but the commission shall not limit or restrict the magazine capacity of any authorized firearm.
9393
9494 4. Be responsible for the enforcement of laws for the protection of wildlife.
9595
9696 5. Provide for the assembling and distribution of information to the public relating to wildlife and activities of the department.
9797
9898 6. Prescribe rules for the expenditure, by or under the control of the director, of all funds arising from appropriation, licenses, gifts or other sources.
9999
100100 7. Exercise such powers and duties necessary to carry out fully the provisions of this title and in general exercise powers and duties that relate to adopting and carrying out policies of the department and control of its financial affairs.
101101
102102 8. Prescribe procedures for use of department personnel, facilities, equipment, supplies and other resources in assisting search or rescue operations on request of the director of the division of emergency management.
103103
104104 9. 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.
105105
106106 B. The commission may:
107107
108108 1. Conduct investigations, inquiries or hearings in the performance of its powers and duties.
109109
110110 2. Establish game management units or refuges for the preservation and management of wildlife.
111111
112112 3. Construct and operate game farms, fish hatcheries, fishing lakes or other facilities for or relating to the preservation or propagation of wildlife.
113113
114114 4. Expend funds Spend monies to provide training in the safe handling and use of firearms and safe hunting practices.
115115
116116 5. Remove or permit allow to be removed from public or private waters fish which that hinder or prevent propagation of game or food fish and dispose of such fish in such manner as it may designate.
117117
118118 6. Purchase, sell or barter wildlife for the purpose of stocking public or private lands and waters and take at any time in any manner wildlife for research, propagation and restocking purposes or for use at a game farm or fish hatchery and declare wildlife salable when in the public interest or the interest of conservation.
119119
120120 7. Enter into agreements with the federal government, with other states or political subdivisions of the this state and with private organizations for the construction and operation of facilities and for management studies, measures or procedures for or relating to the preservation and propagation of wildlife and expend funds spend monies for carrying out such agreements.
121121
122122 8. Prescribe rules for the sale, trade, importation, exportation or possession of wildlife.
123123
124124 9. Expend Spend monies for the purpose of producing publications relating to wildlife and activities of the department for sale to the public and establish the price to be paid for annual subscriptions and single copies of such publications. All monies received from the sale of such publications shall be deposited in the game and fish publications revolving fund.
125125
126126 10. Contract with any person or entity to design and produce artwork on terms that, in the commission's judgment, will produce an original and valuable work of art relating to wildlife or wildlife habitat.
127127
128128 11. Sell or distribute the artwork authorized under paragraph 10 of this subsection on such terms and for such price as it deems acceptable.
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130130 12. Consider the adverse and beneficial short-term and long-term economic impacts on resource dependent communities, small businesses and the this state of Arizona, of policies and programs for the management, preservation and harvest of wildlife by holding a public hearing to receive and consider written comments and public testimony from interested persons.
131131
132132 13. Adopt rules relating to range operations at public shooting ranges operated by and under the jurisdiction of the commission, including the hours of operation, the fees for the use of the range, the regulation of groups and events, the operation of related range facilities, the type of firearms and ammunition that may be used at the range, the safe handling of firearms at the range, the required safety equipment for a person using the range, the sale of firearms, ammunition and shooting supplies at the range, and the authority of range officers to enforce these rules, to remove violators from the premises and to refuse entry for repeat violations.
133133
134134 14. Solicit and accept grants, gifts or donations of money or other property from any source, which may be used for any purpose consistent with this title.
135135
136136 15. acquire and lease surface water rights for watershed HEALTH uses and instream uses. For the purposes of this paragraph, "watershed Health uses" has the same meaning prescribed in section 45-101.
137137
138138 C. The commission shall confer and coordinate with the director of water resources with respect to the commission's activities, plans and negotiations relating to water development and use, restoration projects under the restoration acts pursuant to chapter 4, article 1 of this title, where water development and use are involved, the abatement of pollution injurious to wildlife and in the formulation of fish and wildlife aspects of the director of water resources' plans to develop and utilize use water resources of the state and shall have jurisdiction over fish and wildlife resources and fish and wildlife activities of projects constructed for the state under or pursuant to the jurisdiction of the director of water resources.
139139
140140 D. The commission may enter into one or more agreements with a multi-county water conservation district and other parties for participation in the lower Colorado river multispecies conservation program under section 48-3713.03, including the collection and payment of any monies authorized by law for the purposes of the lower Colorado river multispecies conservation program. END_STATUTE
141141
142142 Sec. 2. Section 17-298, Arizona Revised Statutes, is amended to read:
143143
144144 START_STATUTE17-298. Expenditures from fund; purpose and amounts; annual report
145145
146146 A. Monies received pursuant to section 5-572 shall be spent as follows:
147147
148148 1. Five percent on public access, including maintenance and operation expenses.
149149
150150 2. Sixty percent on the identification, inventory, acquisition, protection and management, including maintenance and operations, of property with sensitive habitat, watershed health uses and instream uses. At least twenty percent of the monies available under this paragraph shall be spent to acquire property with sensitive habitat used by endangered, threatened and candidate species. Not more than twenty percent of the monies available under this paragraph may be spent on the operation and maintenance of the acquired property, including the acquired property's infrastructure. The commission may dispose of any lands acquired for use as habitat by an endangered, threatened or candidate species under this paragraph when the species no longer qualifies as an endangered, threatened or candidate species. The Arizona game and fish commission shall dispose of the land in a manner consistent with the preservation of the species of concern. The disposal may include conservation easements and fee simple transfers with associated instruments of protection. The commission shall follow the guidelines established pursuant to section 37-803 relating to the disposition of real property by a state agency. In addition, disposal shall include a written agreement between the commission and the purchaser requiring the purchaser to incorporate management actions to ensure proper maintenance of the species of concern. Management actions may include maintenance of habitat, selective control of nonnative species, maintenance of genetic viability, monitoring of populations and habitat, coordinating conservation activities, funding conservation actions and assessing conservation progress. For the purposes of this paragraph, "watershed Health uses" has the same meaning prescribed in section 45-101.
151151
152152 3. Fifteen percent on habitat evaluation or habitat protection.
153153
154154 4. Fifteen percent on urban wildlife and urban wildlife habitat programs.
155155
156156 5. Five percent on environmental education.
157157
158158 B. All monies earned as interest on monies received pursuant to section 5-572 shall be spent only in the percentages and for the purposes described in subsection A of this section or for costs of administering the Arizona game and fish commission heritage fund in such amounts as determined by the Arizona game and fish commission.
159159
160160 C. On or before December 31, the commission shall submit its annual report to the president of the senate, the speaker of the house of representatives and the chairmen of the senate and house of representatives committees on natural resources and agriculture, or their successor committees, and shall provide a copy of this report to the secretary of state. The annual report shall include information on:
161161
162162 1. The amount of monies spent or encumbered in the fund during the preceding fiscal year and a summary of the projects, activities and expenditures relating to:
163163
164164 (a) Property acquisition, operation and maintenance.
165165
166166 (b) Identification, inventory, protection and management of sensitive habitat.
167167
168168 (c) Habitat evaluation and protection.
169169
170170 (d) Urban wildlife.
171171
172172 (e) Environmental education.
173173
174174 (f) Public access.
175175
176176 2. The number and location of parcels of property acquired during the preceding fiscal year.
177177
178178 3. For personal and real properties acquired with fund monies during the preceding fiscal year, the amount of property tax revenue paid to each taxing jurisdiction during the last full tax year prior to acquisition.
179179
180180 4. The amount of money spent from the fund during the preceding fiscal year for employee personal services.
181181
182182 5. The number of full-time employees employed in the preceding fiscal year in connection with property acquisition, including survey, appraisal and other related activities.
183183
184184 6. The total number of full-time employees employed in the preceding fiscal year for the programs listed in subsection A of this section.
185185
186186 7. A list of the grants awarded during the preceding fiscal year, including information on the recipients, purposes and amounts. END_STATUTE
187187
188188 Sec. 3. Section 45-101, Arizona Revised Statutes, is amended to read:
189189
190190 START_STATUTE45-101. Definitions
191191
192192 In this title, unless the context otherwise requires:
193193
194194 1. "Appropriator" means the person or persons initiating or perfecting the right to use appropriable water based on state law, or the person's successor or successors in interest.
195195
196196 2. "Department" means the department of water resources.
197197
198198 3. "Director" means the director of water resources, who is also the director of the department.
199199
200200 4. "Effluent" means water that has been collected in a sanitary sewer for subsequent treatment in a facility that is regulated pursuant to title 49, chapter 2. Such water remains effluent until it acquires the characteristics of groundwater or surface water.
201201
202202 5. "Groundwater" means water under the surface of the earth regardless of the geologic structure in which it is standing or moving. Groundwater does not include water flowing in underground streams with ascertainable beds and banks.
203203
204204 6. "Interstate stream" means any stream constituting or flowing along the exterior boundaries of this state, and any tributary originating in another state or foreign country and flowing into or through this state.
205205
206206 7. "Riparian area" means a geographically delineated area with distinct resource values, that is characterized by deep-rooted plant species that depend on having roots in the water table or its capillary zone and that occurs within or adjacent to a natural perennial or intermittent stream channel or within or adjacent to a lake, pond or marsh bed maintained primarily by natural water sources. Riparian area does not include areas in or adjacent to ephemeral stream channels, artificially created stockponds, man-made storage reservoirs constructed primarily for conservation or regulatory storage, municipal and industrial ponds or man-made water transportation, distribution, off-stream storage and collection systems.
207207
208208 8. "Sanitary sewer" means any pipe or other enclosed conduit that carries, among other substances, any water-carried wastes from the human body from residences, commercial buildings, industrial plants or institutions.
209209
210210 9. "Surface water" means the waters of all sources, flowing in streams, canyons, ravines or other natural channels, or in definite underground channels, whether perennial or intermittent, floodwater, wastewater or surplus water, and of lakes, ponds and springs on the surface. For the purposes of administering this title, surface water is deemed to include central Arizona project water.
211211
212212 10. "Watershed health uses" means water that is conserved in a natural watercourse and not otherwise used and that supports the attributes of watershed health for an individual watershed as prescribed in the report required by section 45-105, subsection B. END_STATUTE
213213
214214 Sec. 4. Section 45-105, Arizona Revised Statutes, is amended to read:
215215
216216 START_STATUTE45-105. Powers and duties of director
217217
218218 A. The director may:
219219
220220 1. Formulate plans and develop programs for the practical and economical development, management, conservation and use of surface water, groundwater and the watersheds in this state, including the management of water quantity and quality.
221221
222222 2. Investigate works, plans or proposals pertaining to surface water and groundwater, including management of watersheds, and acquire, preserve, publish and disseminate related information the director deems advisable.
223223
224224 3. Collect and investigate information on and prepare and devise means and plans for the development, conservation and use of all waterways, watersheds, surface water, groundwater and groundwater basins in this state and of all related matters and subjects, including irrigation, drainage, water quality maintenance, regulation of flow, diversion of running streams adapted for development in cooperating with the United States or by this state independently, flood control, use of water power, prevention of soil waste and storage, conservation and development of water for every useful purpose.
225225
226226 4. Measure, survey and investigate the water resources of this state and their potential development and cooperate and contract with agencies of the United States for such purposes.
227227
228228 5. Acquire, hold and dispose of property, including land, rights-of-way, water and water rights, as necessary or convenient for the performance of the groundwater and water quality management functions of the department.
229229
230230 6. Acquire, other than by condemnation, construct, improve, maintain and operate early warning systems for flood control purposes and works for the recovery, storage, treatment and delivery of water.
231231
232232 7. Accept grants, gifts or donations of money or other property from any source, which may be used for any purpose consistent with this title. All property acquired by the director is public property and is subject to the same tax exemptions, rights and privileges granted to municipalities, public agencies and other public entities.
233233
234234 8. Enter into an interagency contract or agreement with any public agency pursuant to title 11, chapter 7, article 3 and contract, act jointly or cooperate with any person to carry out the purposes of this title.
235235
236236 9. Prosecute and defend all rights, claims and privileges of this state respecting interstate streams.
237237
238238 10. Initiate and participate in conferences, conventions or hearings, including congressional hearings, court hearings or hearings of other competent judicial or quasi-judicial departments, agencies or organizations, and negotiate and cooperate with agencies of the United States or of any state or government and represent this state concerning matters within the department's jurisdiction.
239239
240240 11. Apply for and hold permits and licenses from the United States or any agency of the United States for reservoirs, dam sites and rights-of-way.
241241
242242 12. Receive and review all reports, proposed contracts and agreements from and with the United States or any agencies, other states or governments or their representatives and recommend to the governor and the legislature action to be taken on such reports, proposed contracts and agreements. The director shall take action on such reports, if authorized by law, and review and coordinate the preparation of formal comments of this state on both the preliminary and final reports relating to water resource development of the United States army corps of engineers, the United States secretary of the interior and the United States secretary of agriculture, as provided for in the flood control act of 1944 (58 Stat. 887; 33 United States Code section 701-1).
243243
244244 13. Contract with any person for imported water or for the acquisition of water rights or rights to withdraw, divert or use surface water or groundwater as necessary for the performance of the groundwater management functions of the director prescribed by chapter 2 of this title. If water becomes available under any contract executed under this paragraph, the director may contract with any person for its delivery or exchange for any other water available.
245245
246246 14. Recommend to the administrative heads of agencies, boards and commissions of this state, and political subdivisions of this state, rules to promote and protect the rights and interests of this state and its inhabitants in any matter relating to the surface water and groundwater in this state.
247247
248248 15. Conduct feasibility studies and remedial investigations relating to groundwater quality and enter into contracts and cooperative agreements under section 104 of the comprehensive environmental response, compensation, and liability act of 1980 (P.L. 96-510) to conduct such studies and investigations.
249249
250250 16. Dispose informally by stipulation, agreed settlement, consent order or alternative means of dispute resolution, including arbitration, if the parties and director agree, or by default of any case in which a hearing before the director is required or allowed by law.
251251
252252 17. Cooperate and coordinate with the appropriate governmental entities in Mexico regarding water planning in areas near the border between Mexico and Arizona and for the exchange of relevant hydrological information.
253253
254254 B. The director shall:
255255
256256 1. Exercise and perform all powers and duties vested in or imposed on the department and adopt and issue rules necessary to carry out the purposes of this title.
257257
258258 2. Administer all laws relating to groundwater, as provided in this title.
259259
260260 3. Be responsible for the supervision and control of reservoirs and dams of this state and, when deemed necessary, conduct investigations to determine whether the existing or anticipated condition of any dam or reservoir in this state is or may become a menace to life and property.
261261
262262 4. Coordinate and confer with and may contract with:
263263
264264 (a) The Arizona power authority, the game and fish commission, the state land department, the Arizona outdoor recreation coordinating commission, the Arizona commerce authority, the department of health services, active management area water authorities or districts and political subdivisions of this state with respect to matters within their jurisdiction relating to surface water and groundwater and the development of state water plans.
265265
266266 (b) The department of environmental quality with respect to title 49, chapter 2 for its assistance in the development of state water plans.
267267
268268 (c) The department of environmental quality regarding water plans, water resource planning, water management, wells, water rights and permits, and other appropriate provisions of this title pertaining to remedial investigations, feasibility studies, site prioritization, selection of remedies and implementation of the water quality assurance revolving fund program pursuant to title 49, chapter 2, article 5.
269269
270270 (d) The department of environmental quality regarding coordination of databases that are necessary for activities conducted pursuant to title 49, chapter 2, article 5.
271271
272272 5. Cooperate with the Arizona power authority in the performance of the duties and functions of the authority.
273273
274274 6. Maintain a permanent public depository for existing and future records of stream flow, groundwater levels and water quality and other data relating to surface water and groundwater.
275275
276276 7. Maintain a public docket of all matters before the department that may be subject to judicial review pursuant to this title.
277277
278278 8. Investigate and take appropriate action on any complaints alleging withdrawals, diversions, impoundments or uses of surface water or groundwater that may violate this title or the rules adopted pursuant to this title.
279279
280280 9. Adopt an official seal for the authentication of records, orders, rules and other official documents and actions.
281281
282282 10. Provide staff support to the Arizona water protection fund commission established by chapter 12 of this title.
283283
284284 11. Exercise and perform all powers and duties invested in the chairperson of the Arizona water banking authority commission as prescribed by chapter 14 of this title.
285285
286286 12. Provide staff support to the Arizona water banking authority established by chapter 14 of this title.
287287
288288 13. In the year following each regular general election, present information to the committees with jurisdiction over water issues in the house of representatives and the senate. A written report is not required but the presentation shall include information concerning the following:
289289
290290 (a) The current status of the water supply in this state and any likely changes in that status.
291291
292292 (b) Issues of regional and local drought effects, short-term and long-term drought management efforts and the adequacy of drought preparation throughout the state.
293293
294294 (c) The status of current water conservation programs in this state.
295295
296296 (d) The current state of each active management area and the level of progress toward management goals in each active management area.
297297
298298 (e) Issues affecting management of the Colorado river and the reliability of this state's two million eight hundred thousand acre-foot allocation of Colorado river water, including the status of water supplies in and issues related to the Colorado river basin states and Mexico.
299299
300300 (f) The status of any pending or likely litigation regarding surface water adjudications or other water-related litigation and the potential impacts on this state's water supplies.
301301
302302 (g) The status of Indian water rights settlements and related negotiations that affect this state.
303303
304304 (h) Other matters related to the reliability of this state's water supplies, the responsibilities of the department and the adequacy of the department's and other entities' resources to meet this state's water management needs.
305305
306306 14. Not later than December 1, 2023 and on or before December 1 of each year thereafter, prepare and issue a water supply and demand assessment for at least six of the fifty-one groundwater basins established pursuant to section 45-403. The director shall ensure that a water supply and demand assessment is completed for all groundwater basins and initial active management areas at least once every five years. The director may contract with outside entities to perform some or all of the assessments and those outside entities shall be identified in the assessment.
307307
308308 15. On or before December 31 every three years after the initial preliminary survey, issue a report that includes an assessment of the overall health of each watershed in this state. Any agency or political subdivision of this state that has information relevant to developing the survey and report prescribed by this paragraph, including the determinations, assessments and recommendations prescribed by this paragraph, shall cooperate with the director and shall timely provide information requested by the director. The assessment of the overall health of each watershed in this state shall be based on an evaluation of the following attributes of the watershed:
309309
310310 (a) Hydrology.
311311
312312 (b) Landscape condition.
313313
314314 (c) Habitat condition.
315315
316316 (d) Geomorphology.
317317
318318 (e) Water quality.
319319
320320 (f) Biological condition, including the biodiversity of PLANTS, animals and aquatic species.
321321
322322 (g) Threats to or vulnerabilities of the watershed that impact the attributes prescribed by this paragraph. END_STATUTE
323323
324324 Sec. 5. Section 45-151, Arizona Revised Statutes, is amended to read:
325325
326326 START_STATUTE45-151. Right of appropriation; permitted uses; water rights in stockponds
327327
328328 A. Any person, the this state, of Arizona INCLUDING the Arizona game and fish department, or a political subdivision thereof of this state may appropriate unappropriated water for domestic, municipal, irrigation, stock watering, water power, recreation, wildlife, including fish, nonrecoverable water storage pursuant to section 45-833.01, or mining uses or watershed health uses, for his personal use or for delivery to consumers. The person, the this state of Arizona or a political subdivision thereof of this state first appropriating the water shall have the better right.
329329
330330 B. To effect the beneficial use, the person, the this state of Arizona or a political subdivision thereof of this state appropriating the water may construct and maintain reservoirs, storage facilities pursuant to chapter 3.1 of this title, dams, canals, ditches, flumes and other necessary waterways.
331331
332332 C. A water right in a stockpond, certified pursuant to article 10 of this chapter, shall be recognized as if such water had been appropriated pursuant to this article. END_STATUTE
333333
334334 Sec. 6. Section 45-152.01, Arizona Revised Statutes, is amended to read:
335335
336336 START_STATUTE45-152.01. Instream flow applications; process; definition
337337
338338 A. In addition to the information prescribed in section 45-152, any person, including the United States, this state, including the arizona game and fish department, a POLITICAL subdivision of this state or a municipality, who files an instream flow application after the effective date of this section August 2, 2012 shall comply with the following:
339339
340340 1. The applicant shall submit at least five years of streamflow measurement data to support the proposed beneficial use which shall be submitted at the time the application is filed. The director shall not accept for filing an instream flow application that is not accompanied by at least five years of continuous streamflow measurement data. The streamflow data submitted shall consist of gauged on-site measurements of available water flow from the area in which the claimed beneficial use occurs.
341341
342342 2. The instream flow application shall describe the proposed beneficial use and shall specify both of the following:
343343
344344 (a) The amount of streamflow required for the proposed beneficial use.
345345
346346 (b) The availability of the requested flows during claimed periods of beneficial use.
347347
348348 B. Applications that are submitted after the effective date of this section August 2, 2012 shall be rejected if the application does not comply with this section.
349349
350350 C. For the purposes of this section, "instream flow application" means an application for a permit to make an appropriation of water for purposes of watershed health, recreation or wildlife, including fish, in a specific stream reach without diverting the water from the stream. END_STATUTE
351351
352352 Sec. 7. Section 45-172, Arizona Revised Statutes, is amended to read:
353353
354354 START_STATUTE45-172. Transfer of water rights; application; limitations; required consent
355355
356356 A. A water right may be severed from the land to which it is appurtenant or from the site of its use if for other than irrigation purposes and with the consent and approval of the owner of such right may be transferred for use for irrigation of agricultural lands or for municipal, watershed health, stock watering, power and mining purposes and to the state or its political subdivisions for use for recreation and wildlife purposes, including fish, without losing priority theretofore established, subject to the following limitations and conditions:
357357
358358 1. Except as otherwise provided in this section no such a severance or transfer shall not be made unless approved by the director, and the approval of the director shall prescribe the conditions of the approval.
359359
360360 2. Vested or existing rights to the use of water shall not be affected, infringed upon nor on or interfered with, and in no event shall the water diverted or used after the transfer of such rights shall not exceed the vested rights existing at the time of such severance and transfer, and the director shall by order so define and limit the amount of water to be diverted or used annually subsequent to such transfer.
361361
362362 3. The water rights sought to be transferred shall have been lawfully perfected under the laws of the territory or the this state of Arizona and shall not have thereafter been forfeited or abandoned.
363363
364364 4. No such A severance or transfer of water rights shall not be permitted or allowed from lands within the exterior boundaries of any irrigation district, agricultural improvement district or water users' association without first having obtained the written consent and approval of such irrigation district, agricultural improvement district or water users' association.
365365
366366 5. No A right to the use of water on or from any watershed or drainage area which that supplies or contributes water for the irrigation of lands within an irrigation district, agricultural improvement district or water users' association shall not be severed or transferred without the consent of the governing body of such irrigation district, agricultural improvement district or water users' association. All proposed applications for the severance and transfer of a right to use water of or from any watershed or drainage area which that supplies or contributes water for the irrigation of lands within any irrigation district, agricultural improvement district or water users' association shall be submitted to the governing body of such irrigation district, agricultural improvement district or water users' association prior to before the filing of such application with the director. Within forty-five days after the receipt of the application such governing body shall reject or approve the proposed application. The failure of such governing body to approve or reject the proposed application within forty-five days after receipt shall constitute approval of the proposed application by such governing body. No An application for the severance or transfer of a right to the use of water of or from any watershed or drainage area which that supplies or contributes water for the irrigation of lands within any irrigation district, agricultural improvement district or water users' association shall not be accepted for filing by the director unless accompanied by the written consent of the governing body of such irrigation district, agricultural improvement district or water users' association to the proposed application or by satisfactory evidence that such governing body failed to either accept or reject the proposed application within forty-five days after receipt by such governing body.
367367
368368 6. A severance and transfer of an irrigation water right appurtenant to lands within the boundaries of an irrigation district to other lands within the boundaries of the same irrigation district for agricultural use may be accomplished by the exclusion of lands to which a water right is appurtenant from within the boundaries of an irrigation district, and the inclusion in lieu of other lands within the boundaries of such irrigation district. Such severance and transfer of a water right shall require the consent of only the irrigation district within which the affected lands are situated and of the owners of the lands affected by the severance and transfer. No proceedings before nor or approval by the director shall be required to accomplish such severance and transfer.
369369
370370 7. An application for severance and transfer of a water right shall be filed with the director. The director shall give notice of the application by publication once a week for three successive weeks in a newspaper of general circulation in the county or counties in which the watershed or drainage area is located. The notice shall state that any interested person may file written objections to the proposed severance and transfer with the director within thirty days after the last publication of the notice. In appropriate cases, including cases in which an objection has been filed, an administrative hearing may be held before the director's decision on the application if the director deems a hearing necessary.
371371
372372 B. Section 45-114, subsections A and B govern administrative proceedings, rehearing or review and judicial review of final decisions of the director under this section. END_STATUTE