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

Section 1. Section 11-812, Arizona Revised Statutes, is amended to read:

START_STATUTE11-812. Restriction on regulation; exceptions; aggregate mining regulation; definitions

A. Nothing contained in Any ordinance authorized by this chapter shall may not:

1. Affect existing uses of property or the right to its continued use or the reasonable repair or alteration of the property for the purpose for which used at the time the ordinance affecting the property takes effect.

2. Prevent, restrict or otherwise regulate the use or occupation of land or improvements for railroad, mining, metallurgical, grazing or general agricultural purposes, if the tract concerned is five or more contiguous commercial acres. For the purposes of this paragraph:

(a) "General agricultural purposes" includes agritourism as defined in section 3-111, but does not include any of the following:

(i) Food establishments that are under the authority of the department of health services pursuant to section 36-136, subsection I and that are associated with an agritourism business.

(ii) Rodeo events that are open to the general public and that sell tickets for admission. For the purposes of this item, rodeo events do not include generally accepted agricultural practices associated with livestock and equine operations.

(iii) The cultivation of cannabis as defined in section 13-3401 or marijuana as defined in section 13-3401 or 36-2801.

(b) "Mining" has the same meaning prescribed in section 27-301.

3. Prevent, restrict or otherwise regulate the use or occupation of land or improvements for agricultural composting, if the tract is five or more contiguous commercial acres. An agricultural composting operation shall notify in writing the board of supervisors and the nearest fire department of the location of the composting operation. If the nearest fire department is located in a city, town or fire district where the agricultural composting is not located, the agricultural composting operation shall also notify in writing the fire district in which the operation is located. Agricultural composting is subject to sections 3-112 and 49-141. For the purposes of this paragraph, "agricultural composting" has the same meaning prescribed in section 9-462.01, subsection G.

4. Prevent, restrict or otherwise regulate the otherwise lawful discharge of a firearm or air gun or use of archery equipment on a private lot or parcel of land that is not open to the public on a commercial or membership basis.

5. Except in a county with five hundred thousand persons or more, prevent, restrict or otherwise regulate the use or occupation of land or improvements for the construction and operation of a small modular nuclear reactor, if the small modular nuclear reactor is colocated with a large industrial energy user that received all applicable zoning entitlements. For the purposes of this paragraph, "colocated with", "large industrial energy user" and "small modular nuclear reactor" have the same meanings adopted by the corporation commission pursuant to section 40-360.14.

B. A nonconforming business use within a district may expand if the expansion does not exceed one hundred per cent percent of the area of the original business.

C. For the purposes of subsection A, paragraph 2 of this section, mining does not include aggregate mining operations in an aggregate mining operations zoning district established pursuant to this section. The board of supervisors of any county with a population of more than two million persons shall designate and establish the boundaries of an aggregate mining operations zoning district on the petition of at least one hundred persons who reside within one-half mile of an existing aggregate mining operation. In addition, the board of supervisors of any county may establish, in its discretion and on the board's initiative, one or more aggregate mining operations zoning districts. Aggregate mining operations zoning districts may only be located in areas that are inventoried and mapped as areas of known reserves or in areas with existing aggregate mining operations. Subject to subsections E and F of this section, a county and the state mine inspector may jointly adopt, as internal administrative regulations, reasonable aggregate mining operations zoning district standards limited to permitted uses, procedures for approval of property development plans and site development standards for dust control, height regulations, setbacks, days and hours of operation, off-street parking, screening, noise, vibration and air pollution control, signs, roadway access lanes, arterial highway protection and property reclamation for which aggregate mining operations are not otherwise subject to federal, state or local regulation or a governmental contractual obligation. Regulations that are jointly adopted pursuant to this subsection by the county and the state mine inspector shall not prohibit the activities included in the definition of mine pursuant to section 27-301, paragraph 8 or duplicate, conflict with or be more stringent than applicable federal, state or local laws.

D. The board of supervisors of any county that establishes an aggregate mining operations zoning district shall appoint an aggregate mining operations recommendation committee for the district. The committee consists of not more than seven operators, or representatives of operators, of active aggregate mining operations in any district within the county and an equal number of private citizens, who are not operators, who are not employed by operators and who do not represent operators, residing within three miles of the boundaries of aggregate mining operations or a proposed aggregate mining operation in the district for which the committee is established. The initial members appointed to the committee shall be deemed the primary members, and the board of supervisors shall appoint not more than five alternate members who represent operators and shall appoint not more than five alternate members who are private citizens. Alternate members may serve at meetings of the committee when a primary member is unable to attend. An aggregate mining operator may serve on more than one committee in the same county. The board of supervisors shall determine the length of terms of members of the committee and shall stagger the initial appointments so that not all members' terms expire at the same time. Members of the committee who no longer qualify for membership as provided by this subsection are subject to removal and replacement by the board of supervisors. The committee shall elect a member who is an aggregate mining operator to serve as chairperson for the first year in which the committee is created. For each year thereafter, the chairperson shall be elected by the members of the committee with a member who is a private citizen and a member who is an aggregate mining operator serving as chairperson in alternate years. The committee is subject to the open meeting requirements of title 38, chapter 3, article 3.1.

E. Within ninety days after an aggregate mining operations recommendation committee is established, the committee shall notify all existing aggregate mining operators in the district of the application of this section and title 27, chapter 3, article 6 to the aggregate mining operation. In addition, the committee shall:

1. By a majority vote of all members make recommendations to the board of supervisors for aggregate mining zoning districts and administrative regulations as provided in this section. The board of supervisors may adopt or reject the recommendations but may not make any modifications to the recommendations unless the modification is approved by a majority of the members of the recommendation committee.

2. Serve as a forum for mediation of disputes between members of the public and aggregate mining owners or operators. If the committee is unable to resolve a dispute, the committee shall transmit the matter to the state mine inspector, with written findings and recommendations, for further action.

3. Hear written complaints filed with the state mine inspector regarding alleged material deviations from approved community notices for aggregate mining operations and make written recommendations to the state mine inspector pursuant to section 27-446.

F. Any administrative regulations adopted by a board of supervisors pursuant to this section are not effective until the regulations are approved by the state mine inspector. The state mine inspector may disapprove the administrative regulations adopted by the board of supervisors only if they duplicate, conflict with or are more stringent than applicable federal, state or local laws, rules or regulations. If the state mine inspector disapproves the administrative regulations, the state mine inspector must provide written reasons for the disapproval. The state mine inspector shall not make any modification to the administrative regulations as adopted by the board of supervisors unless the modification is approved by a majority of the members of the board of supervisors.

G. A person or entity is subject to this chapter if the use or occupation of land or improvements by the person or entity consists of or includes changing, remanufacturing or treating human sewage or sludge for distribution or resale. These activities are not exempt from this chapter under subsection A, paragraph 2 of this section.

H. A county shall not require as a condition for a permit or for any approval, or otherwise cause, an owner or possessor of property to waive the right to continue an existing nonconforming outdoor advertising use or structure without acquiring the use or structure by purchase or condemnation and paying just compensation unless the county, at its option, allows the use or structure to be relocated to a comparable site in the county with the same or a similar zoning classification, or to another site in the county acceptable to both the county and the owner of the use or structure, and the use or structure is relocated to the other site. The county shall pay for relocating the outdoor advertising use or structure including the cost of removing and constructing the new use or structure that is at least the same size and height. This subsection does not apply to county rezoning of property at the request of the property owner to a more intensive zoning district.

I. For the purposes of this section:

1. "Aggregate" has the same meaning prescribed in section 27-441.

2. "Aggregate mining" has the same meaning prescribed in section 27-441.

3. "Aggregate mining operation" means property that is owned, operated or managed by the same person for aggregate mining.

4. "Operators" means persons who are actively engaged in aggregate mining operations within the zoning district or proposed zoning district and who have given notice to the state mine inspector pursuant to section 27-303. END_STATUTE

Sec. 2. Section 40-360.03, Arizona Revised Statutes, is amended to read:

START_STATUTE40-360.03. Application for certificate of environmental compatibility before construction of facilities; electronic format; rules; exception

A. Except as provided in subsection subsections B and c of this section, every utility that plans to construct a plant or transmission line, or both, in this state shall first file with the commission an application for a certificate of environmental compatibility. The application shall be in a form prescribed by the commission and shall be accompanied by information with respect to the proposed type of facilities and description of the site, including the areas of jurisdiction affected and the estimated cost of the proposed facilities and site. The application shall also be accompanied by a receipt that evidences payment of the appropriate fee required by section 40-360.09. The commission shall promptly refer the application and accompanying information to the chairman of the committee for the committee's review and decision. The application and accompanying information may be submitted to the commission in an electronic format. The commission may adopt rules to accept electronic filings under this section and to ensure that proper notice is provided electronically to interested parties.

B. A utility may replace a conductor or wire on a transmission line or may replace an existing transmission line structure or structures with a new transmission line structure or structures without seeking a new certificate of environmental compatibility and without holding a hearing under this article if the replacement is on a transmission line that previously received a certificate of environmental compatibility or that was in use or authorized before August 13, 1971. All replacement conductors or structures shall comply with the terms and conditions of the applicable existing certificate of environmental compatibility.

C. A utility, after providing thirty days' written notice to the commission, may replace an existing thermal electric generating unit with a replacement small modular nuclear reactor or construct a new small modular nuclear reactor without seeking a new certificate of environmental compatibility and without holding a hearing under this article if the new or replacement small modular nuclear reactor is located on or immediately adjacent to the site of a plant that previously received a certificate of environmental compatibility or that was in use or authorized before august 13, 1971. END_STATUTE

Sec. 3. Section 40-360.07, Arizona Revised Statutes, is amended to read:

START_STATUTE40-360.07. Compliance by utility; commission order

A. No Except as provided in section 40-360.14, subsections B and C, a utility may not construct a plant or transmission line within this state until it has received a certificate of environmental compatibility from the committee with respect to the proposed site, affirmed and approved by an order of the commission which shall be issued not less than thirty days nor more than sixty days after the certificate is issued by the committee, except that within fifteen days after the committee has rendered its written decision any party to a certification proceeding may request a review of the committee's decision by the commission.

B. The grounds for review shall be stated in a written notice filed with the commission with a copy thereof served on the chairman of the committee. The committee shall transmit to the commission the complete record, including a certified transcript, and the review shall be conducted on the basis of the record. The commission may, at the request of any party, may require written briefs or oral argument and shall within sixty days from after the date the notice is filed either confirm, deny or modify any certificate granted by the committee, or in the event if the committee refused to grant a certificate, the commission may issue a certificate to the applicant. In arriving at its decision, the commission shall comply with the provisions of section 40-360.06 and shall balance, in the broad public interest, the need for an adequate, economical and reliable supply of electric power with the desire to minimize the effect thereof on the environment and ecology of this state.

C. The committee or any party to a decision by the commission pursuant to subsection B of this section may request the commission to reconsider its decision within thirty days after the decision is issued. A request for reconsideration made pursuant to this subsection shall set forth the grounds upon on which it is based and state the manner in which the party believes the commission unreasonably or unlawfully applied or failed to apply the criteria set forth in section 40-360.06. The decision of the commission is final with respect to all issues, subject only to judicial review as provided by law in the event of an appeal by a person having a legal right or interest that will be injuriously affected by the decision.END_STATUTE

Sec. 4. Title 40, chapter 2, article 6.2, Arizona Revised Statutes, is amended by adding section 40-360.14, to read:

START_STATUTE40-360.14. Exemption; modular reactors colocated with large industrial energy user; rules; applicability

A. Notwithstanding sections 40-360.03 and 40-360.07, a utility, after providing thirty days' written notice to the commission, may construct a new small modular nuclear reactor in this state without filing an application for or receiving a certificate of environmental COMPATIBILITY if the new small modular nuclear reactor is colocated with a large industrial energy user.

B. A new small modular reactor that is constructed pursuant to this section shall comply with all applicable federal, state and local laws and requirements.

C. The commission shall adopt rules to implement this section, which shall include the commission's definition for each of the following terms:

1. Colocated with. The commission's DEFINITION shall specify one or both of the following:

(a) tHE DISTANCE IN FEET OR PARCELS BETWEEN THE SITE OF a LARGE INDUSTRIAL ENERGY USER AND THE SITE OF a SMALL MODULAR NUCLEAR REACTOR.

(b) tHE QUALITY OR NATURE OF THE ELECTRICAL INTERCONNECTION BETWEEN THE LARGE INDUSTRIAL ENERGY USER AND THE SMALL MODULAR NUCLEAR REACTOR.

2. lARGE INDUSTRIAL ENERGY USER. The commission's DEFINITION:

(a) sHALL SPECIFY THE PEAK OR AVERAGE ANNUAL OR MONTHLY ENERGY DEMAND OF THE USER that is MEASURED IN MEGAWATTS OR MEGAWATT HOURS.

(b) mAY NOT DISCRIMINATE BETWEEN DIFFERENT:

(i) INDUSTRIES, sectors or end users, the oWNERS OR OPERATORS OF SUCH end USERS or the proposed locations of end users.

(ii) End users in any other capacity beyond the use of energy demand and other electrical-related operating needs or characteristics.

3. Small modular nuclear reactor. The commission's definition:

(a) shall establish a maximum eligible nameplate rating for each small modular nuclear reactor. for the purposes of this subdivision, the commission shall treat each separate nuclear generating unit and the nameplate rating associated with each separate nuclear generating unit as a SEPARATE small modular nuclear reactor, consistent with the definition of plant as defined in section 40-360. The maximum ELIGIBLE nameplate rating the commission establishes pursuant to this subdivision may not be less than one hundred megawatts.

(b) May discriminate between different nuclear reactor types or classifications or reactors that include or are otherwise MANUFACTURED with certain minimum built-in safety features or redundancies, if such discrimination is reasonable and consistent with the types or classifications that are adopted or recognized by the United States nuclear regulatory commission.

d. tHE COMMISSION MAY ADOPT DEFINITIONS FOR ANY OTHER TERMS THE COMMISSION DEEMS REASONABLE OR NECESSARY TO CARRY OUT THIS SECTION.

e. tHIS SECTION APPLIES ONLY IN A COUNTY WITH A POPULATION of less than FIVE HUNDRED THOUSAND persons.END_STATUTE