A. An agency inspector, auditor or regulator who enters any premises of a regulated person for the purpose of conducting an inspection or audit shall, unless otherwise provided by law:

1. 1. Present photo identification on entry of the premises.
2. 2. On initiation of the inspection or audit, state the purpose of the inspection or audit and the legal authority for conducting the inspection or audit.
3. 3. Disclose any applicable inspection or audit fees. Notwithstanding any other law, a regulated person being inspected or audited is responsible for only the direct and reasonable costs of the inspection or audit and is entitled to receive a detailed billing statement as described in paragraph 5, subdivision (e) of this subsection.
4. 4. Afford an opportunity to have an authorized on-site representative of the regulated person accompany the agency inspector, auditor or regulator on the premises, except during confidential interviews.

5. 5. Provide notice of the right to have on request:

   1. (a) Copies of any original documents taken by the agency during the inspection or audit if the agency is allowed by law to take original documents.
   2. (b) A split of any samples taken during the inspection if the split of any samples would not prohibit an analysis from being conducted or render an analysis inconclusive.
   3. (c) Copies of any analysis performed on samples taken during the inspection.
   4. (d) Copies of any documents to be relied on to determine compliance with licensure or regulatory requirements if the agency is otherwise allowed by law to do so.
   5. (e) A detailed billing statement that provides reasonable specificity of the inspection or audit fees imposed pursuant to paragraph 3 of this subsection and that cites the statute or rule that authorizes the fees being charged.
6. 6. Inform each person whose conversation with the agency inspector, auditor or regulator during the inspection or audit is tape recorded that the conversation is being tape recorded.

7. 7. Inform each person who is interviewed during the inspection or audit that:

   1. (a) Statements made by the person may be included in the inspection or audit report.
   2. (b) Participation in an interview is voluntary, unless the person is legally compelled to participate in the interview.
   3. (c) The person is allowed at least twenty-four hours to review and revise any written witness statement that is drafted by the agency inspector, auditor or regulator and on which the agency inspector, auditor or regulator requests the person's signature.
   4. (d) The agency inspector, auditor or regulator may not prohibit the regulated person from having an attorney or any other experts in their field present during the interview to represent or advise the regulated person.
8. 8. At the end of the inspection, offer to review, with an authorized representative of the regulated person, the findings of the inspection and what agency actions the regulated person can expect.

B. On initiation of an audit or an inspection of any premises of a regulated person, an agency inspector, auditor or regulator shall provide the following in writing:

1. 1. The rights described in subsection A of this section and section 41-1001.01, subsection C.
2. 2. The name and telephone number of a contact person who is available to answer questions regarding the inspection or audit.
3. 3. The due process rights relating to an appeal of a final decision of an agency based on the results of the inspection or audit, including the name and telephone number of a person to contact within the agency and any appropriate state government ombudsman.
4. 4. A statement that the agency inspector, auditor or regulator may not take any adverse action, treat the regulated person less favorably or draw any inference as a result of the regulated person's decision to be represented by an attorney or advised by any other experts in their field.
5. 5. A notice that if the information and documents provided to the agency inspector, auditor or regulator become a public record, the regulated person may redact trade secrets and proprietary and confidential information unless the information and documents are confidential pursuant to statute.
6. 6. The time limit or statute of limitations applicable to the right of the agency inspector, auditor or regulator to file a compliance action against the regulated person arising from the inspection or audit, which applies to both new and amended compliance actions.

D. An agency that conducts an inspection shall give a copy of the inspection report to the regulated person or on-site representative of the regulated person either:

1. 1. At the time of the inspection.
2. 2. Notwithstanding any other state law, within thirty working days after the inspection.
3. 3. As otherwise required by federal law.

E. The inspection report shall contain alleged deficiencies identified during an inspection. Unless otherwise provided by state or federal law, the agency shall provide the regulated person an opportunity to correct the alleged deficiencies unless the agency documents in writing as part of the inspection report that the alleged deficiencies are:

1. 1. Committed intentionally.
2. 2. Not correctable within a reasonable period of time as determined by the agency.
3. 3. Evidence of a pattern of noncompliance as demonstrated by alleged deficiencies previously identified in an inspection report or other written notice at the same premises.
4. 4. A significant risk to any person, the public health, safety or welfare or the environment.

K. For agencies with authority under title 49, if, as a result of an inspection or any other investigation, an agency alleges that a regulated person is not in compliance with licensure or other applicable regulatory requirements, the agency shall provide written notice of that allegation to the regulated person. The notice shall contain the following information:

1. 1. A citation to the statute, regulation, license or permit condition on which the allegation of deficiency is based, including the specific provisions in the statute, regulation, license or permit condition that are alleged to be violated.
2. 2. Identification of any documents relied on when determining the allegation of deficiency.
3. 3. An explanation stated with reasonable specificity of the regulatory and factual basis for the allegation of deficiency.
4. 4. Instructions for obtaining a timely opportunity to discuss the alleged deficiencies with the agency.

N. Except as otherwise provided in subsection L of this section, this section applies only to inspections necessary for the issuance of a license or to determine compliance with licensure or other regulatory requirements applicable to a licensee and audits pursuant to enforcement of title 23, chapters 2 and 4. This section does not apply:

1. 1. To criminal investigations, investigations under tribal state gaming compacts and undercover investigations that are generally or specifically authorized by law.
2. 2. If the agency inspector, auditor or regulator has reasonable suspicion to believe that the regulated person may be engaged in criminal activity.
3. 3. To the Arizona peace officer standards and training board established by section 41-1821.
4. 4. To certificates of convenience and necessity that are issued by the corporation commission pursuant to title 40, chapter 2.

P. Failure of an agency, board or commission employee to comply with this section:

1. 1. May subject the employee to disciplinary action or dismissal.
2. 2. Shall be considered by the judge and administrative law judge as grounds for reduction of any fine or civil penalty.

U. Except as otherwise prescribed by this section and notwithstanding any other law:

1. 1. This section applies to all state agencies that conduct inspections and audits.
2. 2. If a conflict arises between the rights afforded a regulated person pursuant to this section and the rights afforded a regulated person pursuant to another statute, this section governs.