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HB4102 • 2026

administrative procedures; revisions

HB4102 - administrative procedures; revisions

Children Energy
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Stephanie Stahl Hamilton
Last action
2026-02-17
Official status
House second read
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on how changes will be implemented, leaving some uncertainty about the exact nature of these revisions.

Revisions to Administrative Procedures

This bill revises laws related to administrative procedures, including definitions for terms and rules about public participation.

What This Bill Does

  • Changes definitions for terms used in administrative procedures, such as 'adult' and 'child'.
  • Amends sections of Title 41 that deal with state government procedures.
  • Revises specific sections related to alternative fuels and clean burning fuels.
  • Modifies rules about public participation and rulemaking processes.

Who It Names or Affects

  • Government agencies that make rules and regulations.
  • Individuals involved in public participation for administrative rulemaking.

Terms To Know

Alternative fuel
A type of fuel, such as electricity or natural gas, that meets certain environmental standards.
Clean burning fuel
Fuel that is designed to produce fewer harmful emissions when burned.

Limits and Unknowns

  • The bill does not specify an effective date.
  • Some sections of the bill amend or repeal existing laws, but do not provide details on how these changes will be implemented.

Bill History

  1. 2026-02-17 House

    House second read

  2. 2026-02-16 House

    House Rules: None

  3. 2026-02-16 House

    House Judiciary: None

  4. 2026-02-16 House

    House Government: None

  5. 2026-02-16 House

    House first read

Official Summary Text

HB4102 - administrative procedures; revisions

Current Bill Text

Read the full stored bill text
HB4102 - 572R - I Ver

REFERENCE TITLE:
administrative procedure
s; revisions

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 4102

Introduced by

Representative
Stahl Hamilton

AN
ACT

Amending sections 1-215, 31-445, 41-1001,
41-1005, 41-1006, 41-1011, 41-1012, 41-1013, 41-1021 and
41-1021.01, Arizona Revised Statutes; amending title 41, chapter 6, article 3,
Arizona Revised Statutes, by adding section 41-1021.03; amending section
41-1022, Arizona Revised Statutes; Repealing section 41-1023, Arizona
Revised Statutes; amending title 41, chapter 6, article 3, Arizona Revised
Statutes, by adding a new section 41-1023; amending TITLE 41, CHAPTER 6,
ARTICLE 3, ARIZONA REVISED STATUTES, by adding sections 41-1023.01 and
41-1023.02; Amending sections 41-1024, 41-1025, 41-1026, 41-1027, 41-1028,
41-1029, 41-1031, 41-1032, 41-1033, 41-1036, 41-1044 and 41-1097.01, Arizona
Revised Statutes; relating to administrative procedure.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 1-215, Arizona Revised
Statutes, is amended to read:

START_STATUTE
1-215.

Definitions

In the statutes and laws of this state, unless the context
otherwise requires:

1. "Action" includes any matter or
proceeding in a court, civil or criminal.

2. "Adopted rule" means a
final rule as defined in section 41-1001.

3.

2.
"Adult"
means a person who
has attained
is at least

eighteen years of age.

4.

3.
"Alternative
fuel" means:

(a) Electricity.

(b) Solar energy.

(c) Liquefied petroleum gas, natural gas, hydrogen
or a blend of hydrogen with liquefied petroleum or natural gas that complies
with any of the following:

(i) Is used in an engine that is certified to meet
at a minimum the United States environmental protection agency low emission
vehicle standard pursuant to 40 Code of Federal Regulations section 88.104-94
or 88.105-94.

(ii) Is used in an engine that is certified by the
engine modifier to meet the addendum to memorandum 1-A of the United
States environmental protection agency as printed in the federal register,
volume 62, number 207, October 27, 1997, pages 55635 through 55637.

(iii) Is used in an engine that is the subject of a
waiver for that specific engine application from the United States
environmental protection agency's memorandum 1-A addendum requirements
and that waiver is documented to the reasonable satisfaction of the director of
the department of environmental quality.

(d) Only for vehicles that use alcohol fuels before
August 21, 1998, alcohol fuels that contain not less than eighty-five
percent alcohol by volume.

(e) A combination of at least seventy percent
alternative fuel and not more than thirty percent petroleum based fuel that
operates in an engine that meets the United States environmental protection
agency low emission vehicle standard pursuant to 40 Code of Federal Regulations
section 88.104-94 or 88.105-94 and that is certified by the engine
manufacturer to consume at least seventy percent alternative fuel during normal
vehicle operations.

5.

4.
"Bribe"
means anything of value or advantage, present or prospective, asked, offered,
given, accepted or promised with a corrupt intent to influence, unlawfully, the
person to whom it is given in that person's action, vote or opinion, in any
public or official capacity.

6.

5.
"Child"
or "children"
as used in reference to age of persons

means
persons
a person
under
eighteen years of age.

7.

6.
"Clean burning fuel" means:

(a) An emulsion of
water-phased hydrocarbon fuel that contains not less than twenty percent
water by volume and that complies with any of the following:

(i) Is used in an engine that is certified to meet
at a minimum the United States environmental protection agency low emission
vehicle standard pursuant to 40 Code of Federal Regulations section 88.104-94
or 88.105-94.

(ii) Is used in an engine that is certified by the
engine modifier to meet the addendum to memorandum 1-A of the United
States environmental protection agency as printed in the federal register,
volume 62, number 207, October 27, 1997, pages 55635 through 55637.

(iii) Is used in an engine that is the subject of a
waiver for that specific engine application from the United States
environmental protection agency's memorandum 1-A addendum requirements
and that waiver is documented to the reasonable satisfaction of the director of
the department of environmental quality.

(b) A diesel fuel substitute that is produced from
nonpetroleum renewable resources if the qualifying volume of the nonpetroleum
renewable resources meets the standards for California diesel fuel as adopted
by the California air resources board pursuant to 13 California Code of
Regulations sections 2281 and 2282 in effect on January 1, 2000, the diesel
fuel substitute meets the registration requirement for fuels and additives
established by the United States environmental protection agency pursuant to
section 211 of the clean air act as defined in section 49-401.01 and the
use of the diesel fuel substitute complies with the requirements listed in 10
Code of Federal Regulations part 490, as printed in the federal register,
volume 64, number 96, May 19, 1999.

(c) A diesel fuel that complies with all of the
following:

(i) Contains a maximum of fifteen parts per million
by weight of sulfur.

(ii) Meets ASTM D975.

(iii) Meets the registration requirements for fuels
and additives established by the United States environmental protection agency
pursuant to section 211 of the clean air act as defined in section 49-401.01.

(iv) Is used in an engine that is equipped or has
been retrofitted with a device that has been certified by the California air
resources board diesel emission control strategy verification procedure, the
United States environmental protection agency voluntary diesel retrofit program
or the United States environmental protection agency verification protocol for
retrofit catalyst, particulate filter and engine modification control
technologies for highway and nonroad use diesel engines.

(d) A blend of unleaded gasoline that contains at
minimum eighty-five percent ethanol by volume or eighty-five
percent methanol by volume.

(e) Neat methanol.

(f) Neat ethanol.

8.

7.
"Corruptly"
means a wrongful design to acquire or cause some pecuniary or other advantage
to the person guilty of the act or omission referred to, or to some other
person.

9.

8.
"Daytime"
means the period
between
beginning at

sunrise and
ending at
sunset.

10.

9.
"Depose"
includes every manner of written statement under oath or affirmation.

11.

10.
"Federal
poverty guidelines" means the poverty guidelines as updated annually in
the federal register by the United States department of health and human
services.

12.

11.
"Grantee"
includes every person to whom an estate or interest in real property passes, in
or by a deed.

13.

12.
"Grantor"
includes every person from or by whom an estate or interest in real property
passes, in or by a deed.

14.

13.
"Includes"
or "including" means not limited to and is not a term of exclusion.

15.

14.
"Inhabitant"
means a resident of a city, town, village, district, county or precinct.

16.

15.
"Issue"
as used in connection with descent of estates includes all lawful, lineal
descendants of the ancestor.

17.

16.
"Knowingly":

(a) Means only a knowledge that the facts exist that
bring the act or omission within the provisions of the statute using such
word.�

(b) Does not require any knowledge of the
unlawfulness of the act or omission.

18.

17.
"Magistrate"
:

(
a
)
Means
an officer
having

that has the
power
to issue a warrant for the arrest of a person charged with a public offense
.
�
and

(
b
)
Includes
the chief justice and justices of the supreme court, judges of the superior
court, judges of the court of appeals, justices of the peace and judges of a
municipal court.

19.

18.
"Majority"
or "age of majority" as used in reference to the age of
persons
a person
means
at
least
eighteen years of age
or more
.

20.

19.
"Malice"
and "maliciously" mean a wish to vex, annoy or injure another person,
or an intent to do a wrongful act, established either by proof or presumption
of law.

21.

20.
"Minor"
means a person under eighteen years of age.

22.

21.
"Minor

children
child
" means
persons
a person
under eighteen years of
age.

23.

22.
"Month"
means a
gregorian
calendar month unless otherwise
expressed.

24.

23.
"Moral
turpitude" means an offense, whether a misdemeanor or felony, that is
related to extortion, burglary, larceny, bribery, embezzlement, robbery,
racketeering, money laundering, forgery, fraud, murder, voluntary manslaughter
or a sexual offense that requires the individual to register pursuant to
section 13-3821.

25.

24.
"Neglect",
"negligence", "negligent" and "negligently"
import a want of such attention to the nature or probable consequence of the
act or omission as a prudent man ordinarily bestows in acting in his own
concerns.

26.

25.
"Nighttime"
means the period
between
starting at

sunset and
ending at
sunrise.

27.

26.
"Oath"

includes
means either
an affirmation
or declaration.

28.

27.
"Peace
officers" means sheriffs of counties, constables, marshals, policemen of
cities and towns, commissioned personnel of the department of public safety,
personnel who are employed by the state department of corrections and the department
of juvenile corrections and who have received a certificate from the Arizona
peace officer standards and training board, peace officers who are appointed by
a multicounty water conservation district and who have received a certificate
from the Arizona peace officer standards and training board, police officers
who are appointed by community college district governing boards and who have
received a certificate from the Arizona peace officer standards and training
board, police officers who are appointed by the Arizona board of regents and
who have received a certificate from the Arizona peace officer standards and
training board, police officers who are appointed by the governing body of a
public airport pursuant to section 28-8426 and who have received a
certificate from the Arizona peace officer standards and training board, peace
officers who are appointed by a private postsecondary institution pursuant to
section 15-1897 and who have received a certificate from the Arizona
peace officer standards and training board and special agents from the office
of the attorney general, or of a county attorney, and who have received a
certificate from the Arizona peace officer standards and training board.

29.

28.
"Person"

includes
means a natural person,

a
corporation, company, partnership, firm, association or
society
, as well as a natural person
.� When the word
"person" is used to designate the party whose property may be the
subject of a criminal or public offense, the term includes the United States,
this state, or any territory, state or country, or any political subdivision of
this state that may lawfully own any property, or a public or private
corporation, or partnership or association.� When the word "person"
is used to designate the violator or offender of any law, it includes a
corporation, a partnership or any association of persons.

30.

29.
"Personal
property" includes money, goods, chattels, things in action and evidences
of debt.

31.

30.
"Population"
means the population according to

the most recent United
States decennial census.

32.

31.
"Process"
means a citation, writ or summons issued in the course of judicial proceedings.

33.

32.
"Property"
includes both real and personal property.

34.

33.
"Real
property" is coextensive with lands, tenements and hereditaments.

35.

34.
"Registered
mail" includes certified mail.

36.

35.
"Seal"
as used in reference to a paper issuing from a court or public office to which
the seal of such court or office is required to be affixed means an impression
of the seal on that paper, an impression of the seal affixed to that paper by a
wafer or wax, a stamped seal, a printed seal, a screened seal or a
computer generated

computer-generated
seal.

37.

36.
"Signature"
or "subscription" includes a mark, if a person cannot write, with the
person's name written near it and witnessed by a person who writes the person's
own name as witness.

38.

37.
"State"
:�
, as applied to the different parts of the
United States,

(
a
) means this
state and the states of the union.

(
b
)
Includes

the District of Columbia, this state and the
territories
, such as the commonwealth of puerto rico, guam, the united states
virgin islands, northern mariana islands, american SAMOA and the district of
columbia
.

39.

38.
"Testify"
includes every manner of oral statement under oath or affirmation.

40.

39.
"United
States" includes the District of Columbia and the territories.

41.

40.
"Vessel",
as used in reference to shipping, includes ships of all kinds, steamboats,
steamships, barges, canal boats and every structure adapted to navigation from
place to place for the transportation of persons or property.

42.

41.
"Wilfully"
means, with respect to conduct or to a circumstance described by a statute
defining an offense, that a person is aware or believes that the person's
conduct is of that nature or that the circumstance exists.

43.

42.
"Will"
includes codicils.

44.

43.
"Workers'
compensation" means workmen's compensation as used in article XVIII,
section 8, Constitution of Arizona.

45.

44.
"Writ" means an order or precept in
writing issued in the name of the state or by a court or judicial officer.

46.

45.
"Writing" includes printing.
END_STATUTE

Sec. 2. Section 31-445, Arizona Revised
Statutes, is amended to read:

START_STATUTE
31-445.

Publication of reasons for granting a commutation, pardon,
reprieve, stay or suspension of execution

When the governor grants a commutation, pardon, reprieve or
stay or suspends execution of sentence in a case where a sentence of death is
imposed,
he
the governor
shall
,
publish the commutation, pardon, reprieve
or stay or suspension of execution on the governor's website and notify the
media of the posting.
� Within ten days after granting the commutation,
pardon, reprieve or stay or suspension of execution,
the
governor shall prepare a statement disclosing the reasons for granting the
commutation, pardon, reprieve or stay or suspension of execution and

cause to be published
publish the statement

in bold type, in a newspaper of general circulation
, published
located
in the county where the conviction was had
, and shall file with the secretary of state for publication in
the Arizona administrative register, a statement setting forth his reasons for
granting the commutation, pardon, reprieve or for staying or suspending such
execution
.� A further reprieve shall not be granted except
upon

on
the same procedure.
END_STATUTE

Sec. 3. Section 41-1001, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1001.

Definitions

In this chapter, unless the context otherwise requires:

1. "Adopt a rule" MEANS A
RULE APPROVED BY A BOARD OR COMMISSION and may BE MADE, AMENDED, RENUMBERED OR
REPEALED UNDER this CHAPTER AS A FINAL RULE OR RULE MADE UNDER AN EXEMPTION TO
ALL OR PARTS OF this CHAPTER.

1.

2.
"Agency"
:

(
a
)
Means

any
A
board, commission, department,
officer or other administrative unit of this state, including the agency head
,
and one

the agency head's
designee
or
more members of the

any

agency
head
administration employee

or agency employees or other
persons
staff

directly or indirectly
purporting to act

acting
on behalf or under the authority of the agency head, whether
created under the Constitution of Arizona or by enactment of the
legislature.
Agency does not include the legislature,
the courts or the governor. Agency does not include a political
subdivision of this state or any of the administrative units of a political
subdivision, but does include any

(
b
) Includes:

(
i
) A

board, commission, department, officer or other administrative unit created or
appointed by joint or concerted action of an agency and one or more political
subdivisions of this state or any of
their

its
units.

(
ii
)
To
the extent an administrative unit purports to exercise authority subject to
this chapter, an administrative unit otherwise qualifying as an agency
must be treated as a separate agency
even if the administrative
unit is located within or subordinate to another agency.

(
c
) Does not
include the legislature, the courts or the governor, a political subdivision of
this state or any of the administrative units of a political subdivision of
this state.

3. "Agency certificate"
means a governing document prepared by an agency and signed by an agency head
or designee that accompanies a rulemaking notice package and lists the agency's
name, administrative code chapter number and heading and, if applicable, rule
subchapter number and heading, article, part and section, number and heading
and APPENDIX, exhibit, illustration table, number or letter and heading.

2.

4.
"Appealable
agency action" has the same meaning prescribed in section 41-1092.

3.

5.
"Audit"
means an
audit
examination
,
investigation or inspection pursuant to title 23, chapter 2 or 4.

6. "Clerical error":

(
a
) Means the
unintentional addition or ommission of a word, phrase or figure in a proposed
or final rule.

(
b
) Includes a
plausible mistake in the code codification outline, such as incorrectly
labeling a heading or section number.

4.

7.
"Code"
means the Arizona administrative code
, which

that
is published
by the secretary of state
pursuant
to section 41-1011.

8. "Codify" means the
process of collecting, arranging and publishing administrative rules
systematically in the arizona administrative code.

5.

9.
"Committee"
means the administrative rules oversight committee
established
by section 41-1046
.

6.

10.
"Contested
case" means any proceeding, including rate making, except rate making
pursuant to article XV, Constitution of Arizona, price fixing and licensing, in
which the legal rights, duties or privileges of a party are required or
permitted by law, other than this chapter, to be determined by an agency after
an opportunity for an administrative hearing.

7.

11.
"Council"
means the governor's regulatory review council
established by
section 41-1051
.

8.

12.
"Delegation
agreement"
:

(
a
)
Means
an agreement between an agency and a political subdivision that authorizes the
political subdivision to exercise functions, powers or duties conferred on the
delegating agency by a provision of law.
Delegation
agreement

(
b
)
Does
not include intergovernmental agreements entered into pursuant to title 11,
chapter 7, article 3.

13. "Docket opening" means
a notice prepared by an agency that announces its intent to consider and
initiate a rulemaking pursuant to section 41-1021.

9.

14.
"Emergency
rule" means a rule
prepared by an agency
that is
made
, AMENDED, repealed or RENUMBERED
pursuant to section
41-1026.

10.

15.
"Fee"
means a
monetary
charge prescribed by an agency for
an
a service, registration, license,

inspection
, permit or commission
or
for
obtaining a license
admission or entrance into a state
park
.

11.

16.
"Final
rule"
:

(
a
)
Means

any
a
rule
prepared
by an agency and
filed with the secretary of state
and
THAT is
made
, amended,
repealed or renumbered
pursuant to an exemption from this chapter in
section 41-1005
or any other STATUTE or law
,

or that is
made
,
amended, repealed or renumbered
pursuant to section 41-1026
,
and
approved by the council
pursuant to section 41-1052 or 41-1053 or approved by the attorney
general pursuant to section 41-1044.

(
b
)
For
purposes of judicial review,
final rule
includes expedited
rules
made, amended, repealed or renumbered
pursuant to
section 41-1027.

12.

17.
"General
permit" means a regulatory permit, license or agency authorization that is
for facilities, activities or practices in a class that are substantially
similar in nature and that is issued or granted by an agency to a qualified
applicant to conduct identified operations or activities if the applicant meets
the applicable requirements of the general permit, that requires less
information than an individual or traditional permit, license or authorization
and that does not require a public hearing.

13.

18.
"License"

includes
means
the whole or part of
any agency permit, certificate, approval, registration, charter or similar form
of permission required by law, but does not include a license required solely
for revenue purposes.

14.

19.
"Licensing"

includes
means
the agency process
respecting the grant, denial, renewal, revocation, suspension, annulment,
withdrawal, change, reduction, modification or amendment of a license,
including an existing permit, certificate, approval, registration, charter or
similar form of permission, approval or authorization obtained from an agency
by the holder of a license.

15.

20.
"Licensing
decision" means
any action by
an agency
action
to grant or deny any request for permission, approval or
authorization issued in response to any request from an applicant for a license
or to the holder of a license to exercise authority within the scope of the
license.

16.

21.
"Party"
means each person or agency named or admitted as a party or properly seeking
and entitled as of right to be admitted as a party.

17. "Person" means an
individual, partnership, corporation, association, governmental subdivision or
unit of a governmental subdivision, a public or private organization of any
character or another agency.

18.

22.
"Preamble"
means
:
an introduction to any
rulemaking notice prepared under this chapter or an exemption from this chapter
that includes the purpose, background and justification for a rule pursuant to
section 41-1036.

(a) For any rulemaking subject to this
chapter, a statement accompanying the rule that includes:

(i) Reference to the specific
statutory authority for the rule.

(ii) The name and address of agency
personnel with whom persons may communicate regarding the rule.

(iii) An explanation of the rule,
including the agency's reasons for initiating the rulemaking.

(iv) A reference to any study relevant
to the rule that the agency reviewed and either proposes to rely on in its
evaluation of or justification for the rule or proposes not to rely on in its
evaluation of or justification for the rule, where the public may obtain or
review each study, all data underlying each study and any analysis of each
study and other supporting material.

(v) The economic, small business and
consumer impact summary, or in the case of a proposed rule, a preliminary
summary and a solicitation of input on the accuracy of the summary.

(vi) A showing of good cause why the
rule is necessary to promote a statewide interest if the rule will diminish a
previous grant of authority of a political subdivision of this state.

(vii) Such other matters as are
prescribed by statute and that are applicable to the specific agency or to any
specific rule or class of rules.

(b) In addition to the information set
forth in subdivision (a) of this paragraph, for a proposed rule, the preamble
also shall include a list of all previous notices appearing in the register
addressing the proposed rule, a statement of the time, place and nature of the
proceedings for the making, amendment or repeal of the rule and where, when and
how persons may request an oral proceeding on the proposed rule if the notice
does not provide for one.

(c) In addition to the information set
forth in subdivision (a) of this paragraph, for an expedited rule, the preamble
also shall include a statement of the time, place and nature of the proceedings
for the making, amendment or repeal of the rule and an explanation of why
expedited proceedings are justified.

(d) For a final rule, except an
emergency rule, the preamble also shall include, in addition to the information
set forth in subdivision (a), the following information:

(i) A list of all previous notices
appearing in the register addressing the final rule.

(ii) A description of the changes
between the proposed rules, including supplemental notices and final rules.

(iii) A summary of the comments made
regarding the rule and the agency response to them.

(iv) A summary of the council's action
on the rule.

(v) A statement of the rule's
effective date.

(e) In addition to the information set
forth in subdivision (a) of this paragraph, for an emergency rule, the preamble
also shall include an explanation of the situation justifying the rule being
made as an emergency rule, the date of the attorney general's approval of the
rule and a statement of the emergency rule's effective date.

19.

23.
"Provision
of law" means the whole or a part of the federal or state constitution, or
of any federal or state statute, rule of court, executive order or rule of an
administrative agency.

24. "Public comment period"
means the number of calendar days in which an agency gives an interested person
the opportunity to participate in a subject or rule presented in a notice by
submitting data, views or arguments, either in writing or orally, when
applicable.

25. "PUBLISH" MEANS TO
FORMAT THE TEXT OF a RULE OR a LEGAL NOTICE FILED WITH THE SECRETARY OF STATE
AND MAKE THE NOTICES AVAILABLE FOR REVIEW IN THE REGISTER OR, WHEN APPLICABLE,
to CODIFY A RULE IN THE CODE.

20.

26.
"Register"
means the Arizona administrative register, which is:

(a) This state's official publication of rulemaking
notices
that are filed
and other notices

required under the law to be filed by an agency,
with the

office of
secretary of state.

(b) Published pursuant to section 41-1011.

27. "Receipt" means an
agency-prepared document filed with a notice that is evidence that the
secretary of state received the notice filing and is date stamped by the
secretary of state and returned to an agency as proof that the notice was
filed.

28. "Regular rulemaking":

(
a
) Means a
rulemaking made under the general requirements of this chapter.

(
b
) Includes a
notice of proposed rulemaking and any supplemental notices of proposed
rulemaking, and a notice of final rulemaking.

21.

29.
"Rule"
:

(
a
)
Means
an agency statement of general applicability that implements, interprets or
prescribes law or policy, or describes the procedure or practice requirements
of an agency.
Rule

(
b
)
Includes
prescribing fees or the amendment
to, renumbering of
or
repeal of a
prior
codified
rule
.

but

(
c
)
Does
not include
intraagency
interagency

memoranda that are not delegation agreements.

22.

30.
"Rulemaking"
:

(
a
)
Means
the process to make a new rule or amend, repeal or renumber a rule
under this chapter.

(
b
) Includes
making a rule or amending, repealing or renumbering a rule exempt from all or
parts of the requirements in this chapter
.

31. "Rulemaking activity"
means the time frame when an agency begins to consider proposing a rule as
outlined under this chapter until one of the following occurs:

(
a
) An agency
files a rulemaking notice for codification, under the requirements of this
chapter or certain exemptions from this chapter.

(
b
) An agency
terminates a rulemaking.

(
c
) An agency
lets its notice of rulemaking docket opening expire.

32. "rulemaking notice"
means an agency's written communication about its rulemaking activity that is
prepared by the agency and filed with the secretary of state for publishing in
the register and codification of a rule in the code.

33. "Rulemaking package":

(
a
) Means a
compilation of documents required for filing a rulemaking notice with the
secretary of state, including a receipt, an agency certificate, an attorney
general or council certificate, notice with a preamble and rules, an agency
request to proceed with a rulemaking and the governor's response with
permission to proceed with the rulemaking.

(
b
) Includes a
summary of the small business and economic impact statement.

34. "rulemaking proceeding"
means the time frame, in calendar days, in which an agency begins to consider
and initiate making, amending, renumbering or repealing a rule or proposing
these changes for public review and completing the rulemaking process as final,
expedited or emergency rules or terminating a rulemaking.

35. "Rulemaking record":

(
a
) Means the
current activity of all notices, receipts and certificates THAT are filed with
the secretary of state and that pertain to an agency's rulemaking.

(
b
) Includes
any rulemaking notice and information listed under section 41-1029.

23.

36.
"Small
business" means a concern, including its affiliates,
which

that
is independently owned and operated,
which

that
is not dominant in its field and
which

that
employs fewer than one hundred full-time
employees or
which

that
had gross
annual receipts of less than
four million dollars

$4,000,000
in its last fiscal year
.

and
for purposes of a specific rule, an agency may define small
business to include more persons if it finds that such a definition is
necessary to adapt the rule to the needs and problems of small businesses and
organizations.

37. "Substantive change"
means a word, phrase, number, symbol or fee that changes the meaning of or is a
significant modification to a rule. A substantive change to a rule requires an
agency to prepare and file a notice of supplemental proposed rulemaking for
public review with the secretary of state to be published in the register.

24.

38.
"Substantive
policy statement"
:

(
a
)
Means
a written expression
which

that

informs the general public of an agency's current approach to, or opinion of,
the requirements of the federal or state constitution,
a
federal
or state statute,
an
administrative rule or regulation,
or
a
final judgment of a court of competent jurisdiction,
including,
where

if
appropriate, the
agency's current practice, procedure or method of action based
upon

on
that approach or opinion
. A
substantive policy statement

and
is advisory
only.
A substantive policy statement

(
b
)
Does
not include internal procedural documents
which only

that
affect the internal procedures of the agency and
does

that do
not impose additional
requirements or penalties on regulated parties, confidential information or
rules made in accordance with this chapter.

39. "Typographical error":

(
a
) Means a
mistake in the typing process.

(
b
) Includes
the ommission of letters or transposing letters in a word, MISSPELLING a word
or using the wrong letter or number in the code codification scheme outline.
END_STATUTE

Sec. 4. Section 41-1005, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1005.

Exemptions

A. This chapter does not apply to any:

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

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

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

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

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

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

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

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

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

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

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

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

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

10. Fees prescribed by section 6-125.

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

12. Fees established under section 3-1086.

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

14. Rule or other matter relating to agency contracts.

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

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

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

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

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

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

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

22. Rules made by the state department of
corrections.

23. Fees prescribed pursuant to section 32-1527.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Prepare a notice
of proposed
exempt, exempt or final exempt rulemaking, as applicable,
and follow
formatting guidelines
and filing requirements
prescribed
by the secretary of state.

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

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

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

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

F. Unless otherwise required by law, articles 2, 3,
4 and 5 of this chapter do not apply to the state board of education, except
that the state board of education shall adopt policies or
adopt
rules
for the board and the institutions under its jurisdiction that provide, as
appropriate under the circumstances, for notice of and opportunity for comment
on the policies or rules proposed for adoption.� In order to implement or
change any rule, the state board of education shall provide at least two
opportunities for public comment.�
As a result of an internal
review, the state board of education may provide notification to comment on a
policy in a notice of public information or prepare and file a notice of
proposed rulemaking to be published in the register.� The state board of education
shall provide notification to comment and a deadline to comment on a policy or
rule on the state board of education's website.
The state
board of education shall consider the fiscal impact of any proposed rule
being considered
pursuant to this subsection.�
On
adoption by the state board of education, the state board of education shall
immediately file the notice of final rulemaking package with the secretary of
state.

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

END_STATUTE

Sec. 5. Section 41-1006, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1006.

State agency ombudsmen; duties; identification and publication

A. Each state agency shall
publish
annually in the register, in the state directory and in a telephone directory
for Maricopa county the name or names of those employees

submit to the secretary of state for publication

a notice
of agency ombudsman,
who
are

is
designated
by the agency
head
to assist members of the public or
regulated community
in seeking information or assistance from the
agency
about rules adopted under this chapter.� The
notice shall include the name and title of the employee and any contact
information
.

B.
In any written communication
between a state agency and a person, the
A
state
agency shall provide
, in any written CORRESPONDENCE,
the
name, telephone number and email address of the
employee who is
ombudsman
authorized
and able
to provide
information
about the communication
if the communication
does

any of the following:

1. Demands payment of a tax, fee, penalty, fine or
assessment.

2. Denies an application for a permit
,

or

license
,
registration, service or inspection or other AUTHORIZATION
that is
issued by the state agency.

3. Requests corrections, revisions or additional
information or materials needed for approval of any application for a permit,
registration,
license
, service or inspection

or other authorization that is issued by the state agency.

C. An
employee who is authorized and
able to provide information about any communication that is described in
subsection B of this section
ombudsman
shall reply
within five business days after the state agency receives
that
any
communication.
END_STATUTE

Sec. 6. Section 41-1011, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1011.

Administrative code and register

A. The secretary of state shall
prepare
and publish
be the official publisher of this state's
administrative rules and other legal filings as specified in this chapter to be
published in
the code and register.
� The secretary of
state shall arrange and correlate rules and other notice filings as necessary
when publishing the code and register.

B. The secretary of state shall prescribe a uniform
codification scheme and
numbering system and

uniform filing requirements. the secretary of state shall

have reasonable discretion to determine the form and style for rules filed with
and published by the office. The secretary of state shall refuse to
accept a rule notice or other notice filing if the notice or filing does not
comply with the secretary of state's prescribed filing requirements, numbering
system, form and style.�
The secretary of state may not alter
the sense or meaning or make a substantive change to a rule.

C. The secretary of state shall assign
titles and chapters to agencies and prepare, arrange and correlate rules and
other text as necessary when publishing the code and register. The
secretary of state may not alter the sense, meaning or effect of any rule but
may renumber rules and parts of rules, rearrange rules, change reference
numbers to agree with renumbered rules and parts of rules, substitute the
proper rule number for "the preceding rule" and similar terms, delete
figures if they are merely a repetition of written words, change capitalization
for the purpose of uniformity and correct manifest clerical or typographical
errors.� With the consent of the attorney general, the secretary of state may
remove from the code a provision of a rule that a court of final appeal
declares unconstitutional or otherwise invalid and a rule made by an agency
that is abolished if the rule is not transferred to a successor agency.� The
secretary of state shall remove a rule from the code when notified by the
governor's regulatory review council that the rule has expired pursuant to
section 41-1056, subsection J.

C. the secretary of state shall
assign a code title and chapter to an agency in this state. The secretary of
state shall do all of the following:

1. Maintain CONSISTENCY in the
CODIFICATION outline and appropriately label a rule or subsection of a rule.

2. Correct a code citation in rule
text to be consistent with renumbered and recodified rules or parts of rules.

3. REFERENCE the correct rule
citation for the phrase "the preceding rule" and similar TERMS.

4. Remove letters, figures or
numerals when they are a REPETITION of WRITTEN words.

5. Change CAPITALIZATION for the
purposes of uniformity.

6. Correct manifest CLERICAL or
typographical errors.

D. With the attorney general's
consent, the secretary of state shall remove any of the following from the
code:

1. A provision of a rule that a court
of final appeal declares UNCONSTITUTIONAL or otherwise invalid.

2. A rule made by an agency that is
repealed by the legislature if the authority to make, amend, repeal, renumber
or recodify the rule has not transferred to the SUCCESSOR agency.

E. When notified by the governor's
regulatory review council, the secretary of state shall remove a rule from the
CODE when a rule has expired pursuant to section 41-1056, subsection J.

F. The secretary of state shall adopt
rules under the provisions and requirements of this chapter.

END_STATUTE

Sec. 7. Section 41-1012, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1012.

Publication of administrative code; notification; posting

A.
the secretary of state shall
publish electronically in
the code the full text of each final,
expedited and emergency rule filed
with the secretary of state

and each exempt rule filed
with the secretary of state
by an agency or the attorney general
to be published pursuant
to a statutory exemption from the applicability of this chapter. The
secretary of state shall remove
each
from
the code an
expired rule as prescribed in section 41-1011,
subsection C
subsections D and E
.

B. The secretary of state shall
electronically
publish at least once every quarter a code supplement

prepare each calendar quarter rules Filed within the calendar quarter to be
published in the code. Rules shall be published by chapter on the secretary of
state's website with each chapter electronically authenticated
. Publication

and codification
of a rule by the secretary of state as
provided in this section constitutes prima facie evidence of
the

making,
the council or attorney general
approving

and filing
of
a final, emergency or
exempt rule pursuant to this chapter or a statutory exemption from
the applicability
some or all of the rulemaking
requirements
of this chapter.

C. The secretary of state shall offer an
e-mail

email
service for persons to
receive notification when a quarterly supplement has been published.� The
service shall include a list of chapters published and where the chapters are
posted.

D. The secretary of state shall publish the code
electronically for free.� The secretary of state shall establish a commercial
use fee
for the code
pursuant to section 39-121.03.�

The secretary of state shall honor any paper subscription in
place by the end of fiscal year 2017-2018 until the subscription expires.

END_STATUTE

Sec. 8. Section 41-1013, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1013.

Register

A. The secretary of state shall
digitally
authenticate and
electronically publish
the notices
listed under subsection B of this section in
the register at least once
each month

and include the contents listed
under subsection B of this section
for free
.� The
secretary of state shall publish
the
notices

that are filed with the secretary of state

filed by an agency
during the preceding thirty days.� The
secretary of state shall prepare and include in the
register
shall include
a table of contents and a cumulative index.

B. The register shall contain the following:

1. Notices of rulemaking docket
openings, including the subject matter of the rules under consideration.

2.

1.
Notices
of proposed rulemaking
and supplemental proposed rulemaking
pursuant to section 41-1022
.

3. Notices of supplemental proposed
rulemaking.

2. Notices of final rulemaking.

4.

3.
Notices
of proposed exempt rulemaking
and supplemental proposed exempt
rulemaking
for agencies that are exempt from
some or all
of
the requirements of
this
chapter
6
of this title
but that are required to publish the notice in the
register.

5. Notices of oral proceedings if the
oral proceeding was not listed in the notice of rulemaking docket opening as
provided in section 41-1021, subsection B, paragraph 5.

6.

4.
Notices
of final exempt rulemaking for agencies that are exempt from the requirements
of
this
chapter
6 of this title
.�
For the purposes of this paragraph, "final exempt rulemaking" means
rulemaking in which an agency received public comment on the rulemaking
regardless of whether the proposed rulemaking was published in the register or
elsewhere by the agency as required in the exemption.

7.

5.
Notices
of exempt rulemaking for agencies that have a onetime exemption from the
requirements of
this
chapter
6 of this
title
or that are exempt pursuant to section 41-1005.� For the
purposes of this paragraph, "exempt rulemaking" means a rulemaking in
which an agency
did
was
not
required to
publish a notice of proposed
exempt
rulemaking

in the register
and the agency was not required to
conduct
a
an oral proceeding or

public hearing or
receive
to accept

public comments.

8.

6.

Notices of
proposed
and final notices of
or supplemental proposed
expedited rulemaking
and
notices that an objection was received regarding a proposed expedited
rulemaking
pursuant to section 41-1027
.

7. Notices of final expedited
rulemaking pursuant to section 41-1027.

8. Notices of emergency and emergency
renewals pursuant to section 41-1026.

9. Notices of expiration of rules
pursuant to section 41-1052, subsection n.

10. Notices of a rulemaking docket
opening, including the subject matter of the rules under consideration pursuant
to section 41-1021.

11. Notices of an informal public
meeting on open rulemaking docket.

12. Notices of a formal advisory
committee pursuant to section 41-1021, subsection d.

13. Notices of oral proceeding on
proposed or supplemental proposed rulemaking pursuant to section 41-1023,
subsection c.

14. Notices of oral proceeding or
public MEETINGS on a notice of proposed or supplemental proposed exempt
rulemaking for an agency exempt from the requirements of this chapter, but are
required to publish the notice in the register.

15. Notices of termination of
rulemaking as provided for regular rulemaking pursuant to section 41-1024,
subsection b, paragraph 2, expedited rulemaking pursuant to section 41-1027,
subsection d and exempt rulemaking as provided in an agency's exemption.

16. Notices of recodification for
agencies that have a onetime requirement under the law to move the table of
contents and rules in one code chapter to a new or existing code chapter.

9.

17.
Notices
of an agency substantive policy statement
pursuant to section
41-1091
. The notice of a substantive policy statement shall
contain the
agency's
name
, the name of the
substantive policy statement, the agency's assigned number,

and

a
summary of the policy statement
, the agency's authority to make the policy, the agency's contact
information
and the
physical and
website
address
addresses
where
the
full text of the document is available, if practicable
a
person may review the statement in its entirety
.

10. Notices of intent to increase
state museum fees pursuant to section 15-1631.

11.

18.
Notices

of actions taken
prepared
by the
governor's regulatory review council
, including notices of
summary on council action, notices of decisions of review pursuant to section
41-1033 and section 41-1056, subsection j, notices of council deadlines
and notices of council meeting schedules
.

12.

19.
Notices
of an agency guidance document or revisions to a guidance document.� This
notice shall contain the
agency's
name
and
, the name of the document, the agency's assigned number, the
effective and publication date of the document and, if applicable, the revision
date,
a summary of the
guidance
document
and
, the agency contact
information
and the physical and website addresses
where a person may view
the document in its entirety.

20. Notices of a proposed delegation
agreement, a public hearing on the proposed delegation agreement, the agency's
written summary to public comments on the proposed delegation agreement, the
final delegation agreement, an emergency and extension of emergency agreement
and a termination of emergency agreement pursuant to section 41-1081.

13.

21.
Notices
of each agency ombudsman pursuant to section 41-1006.

14.

22.
Notices
of public information that pertain to rulemaking
and legal
notices.

15. Deadlines of the governor's
regulatory review council.

C. All notices listed in subsection B
of this section, except the notices under subsection B, paragraphs 1, 5, 9, 10,
11, 12, 13, 14 and 15 of this section, must include a preamble and the full
text of the rule being proposed, amended, renumbered or repealed.

D.

C.
The register shall be published electronically for free.
� The
secretary of state shall establish a commercial-use fee
for
use of the register
pursuant to section 39-121.03.�
Any
paper subscription in place at the end of fiscal year 2016-2017 shall be
honored until the subscription expires.

D. The secretary of STATE shall
create templates for the notices listed in this section for an agency.

E. For the purposes of this section,
full
text
publication
in the register
of
a rulemaking notice
includes
its PREAMBLE, table of
contents and
new, amended, renumbered, repealed and existing language
that an agency deems necessary for the proper understanding of a rule notice.
Rules that are undergoing extensive revision may be reprinted in whole.
Existing rule language that is not required for understanding shall be omitted
and marked "no change".
END_STATUTE

F. AT THE DISCRETION OF AN AGENCY,
EXISTING CODIFIED SUBSECTIONS OF A RULE MAY BE:

1. OMITTED AND MARKED as "NO
CHANGE" FOR BREVITY IF THE OMISSION DOES NOT AFFECT THE MEANING OF A
PROPOSED RULE.

2. Included in whole with rules
UNDERGOING extensive revisions.

G. FOR THE PURPOSES OF THIS SECTION,
A LEGAL NOTICE IS A WRITTEN DOCUMENT that INFORMS THE PUBLIC AND STAKEHOLDERS
OF AGREEMENTS, POLICY OR OTHER MATTERS REQUIRED TO BE PUBLISHED IN THE REGISTER
UNDER THE ADMINISTRATIVE PROCEDURE ACT OR LEGISLATIVE ENACTMENT NOT LISTED AS A
RULEMAKING NOTICE UNDER SUBSECTION B OF THIS SECTION.

Sec. 9. Section 41-1021, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1021.

Public rulemaking docket; notice

A. Each agency shall establish and
maintain a current, public rule making docket for each pending rule making
proceeding. A rule making proceeding is pending from the time the
agency begins to consider proposing the rule under section 41-1022 until
any one of the following occurs:

1. The time the rule making proceeding
is terminated by the agency indicating in the rule making docket that the
agency is no longer actively considering proposing the rule.

2. One year after the notice of rule
making docket opening is published in the register if the agency has not filed
a notice of the proposed rule making with the secretary of state pursuant to
section 41-1022.

3. The rule becomes effective.

4. One year after the notice of the
proposed rule making is published in the register if the agency has not
submitted the rule to the council for review and approval.

5. Publication of a notice of
termination.

B. For each rule making proceeding,
the docket shall indicate all of the following:

1. The subject matter of the proposed
rule.

2. A citation to all published notices
relating to the proceeding.

3. The name and address of agency
personnel with whom persons may communicate regarding the rule.

4. Where written submissions on the
proposed rule may be inspected.

5. The time during which written
submissions may be made and the time and place where oral comments may be made.

6. Where a copy of the economic, small
business and consumer impact statement and the minutes of the pertinent council
meeting may be inspected.

7. The current status of the proposed
rule.

8. Any known timetable for agency
decisions or other action in the proceeding.

9. The date the rule was sent to the
council.

10. The date of the rule's filing and
publication.

11. The date the rule was approved by
the council.

12. When the rule will become
effective.

A. unless exempt from this chapter or
preparing a notice of expedited rulemaking pursuant to section 41-1027, each
agency shall announce its rulemaking intentions by opening a docket and shall
prepare and file a notice of rulemaking docket opening with the secretary of
state before each pending rulemaking proceeding. An agency shall
follow the formatting guidelines and use a template prescribed by the secretary
of state when preparing the notice.

B. A rulemaking proceeding does all
of the following:

1. Begins with the publication of the
notice of rulemaking docket opening in the register. For the purposes of a
notice of proposed expedited rulemaking, it begins on the date of the
publication of the notice in the register.

2. Expires exactly three hundred
sixty-five days from the register publication date specified under paragraph 1
of this subsection if the agency has not filed a notice of proposed rulemaking
with the secretary of state pursuant to section 41-1022.

3. Ends when a notice of final, final
expedited or exempt rulemaking is approved by the council or attorney general.

4. Expires exactly three hundred
sixty-five days after the register issue date of the publication of a notice of
proposed rulemaking or supplemental proposed rulemaking if the agency has not
submitted a notice of final rulemaking to the council or attorney general, as
applicable, for review and approval.

5. tERMINATES when an agency prepares
a notice of termination and files the notice with the secretary of state for
publication in the register.� The termination of the proceeding is effective on
the date that the agency files the notice.

C. except
as provided in subsection A of this section, An agency shall maintain a
rulemaking docket for each rulemaking proceeding.

D. the
notice of docket OPENING shall include all of the following:

1. The notice title, "notice of
rulemaking docket opening".

2. The agency name.

3. The code title number and its
heading.

4. The code chapter number and its
heading.

5. If applicable, the subchapter
letter and heading.

6. If known, the article number
heading.

7. If known, the part number and
heading.

8. If known, the section number and
heading

9. The subject matter of the new rule
Or rules under consideration to be proposed and, if known, the section numbers,
and the section numbers of a codified rule or rules being reviewed to be
amended, repealed or renumbered.

10. If the notice of proposed
rulemaking is filed with the notice of docket opening, the register citation to
the notice of proposed rulemaking.

11. the name of the agency ombudsman
who can answer questions about the notice and the ombudsman's title, division
and, if applicable, subdivision, address, telephone number, email and agency
website.

12. If an agency solicits comments on
the subject matter provided in the docket, information on the comment period
and how a person shall submit comments to the agency.

13. If an agency schedules an
informal public meeting on notice of rulemaking docket opening, the date, time
and place of the informal public meeting on the notice.� The informal public
meeting shall include time for questions and answers about the docket and time
for the public to comment orally.

14. If known, a summary of its
rulemaking objectives with deadlines for its decisions.

C.
e.
The
agency shall provide public notice of
the establishment of a rule
making

establishing a rulemaking
docket by causing
a notice of docket opening to be published in the register, including the
information set forth in subsection
B

d
, paragraphs
1, 2, 3, 5 and 8

9,
10, 11 and 12
of this section.

D.

f.
An
agency may appoint formal advisory committees to comment, before publication of
a notice of proposed
rule making
rulemaking

under section 41-1022, on the subject matter of a possible
rule
making

rulemaking
under active consideration
within the agency. The membership of these committees shall be
published at the time of formation and annually thereafter in the
register. Members of these committees are not eligible to receive
compensation except as otherwise provided by law.
END_STATUTE

Sec. 10. Section 41-1021.01, Arizona Revised Statutes, is amended to read:

START_STATUTE
41-1021.01.

Permissive examples

A.
An agency may include a
diagram, example, table, chart or formula in a
rule,

preamble, economic impact, small business and consumer impact statement or
concise explanatory statement to the extent that it assists in making the
document understandable by the persons affected by the rule.

B. An agency may include
supplementary material, including an APPENDIX, illustration, exhibit or table
in its chapter. An agency shall make the supplementary material as its own
rule, with a number or letter and heading assigned to follow the code
codification scheme. The supplementary material shall be placed at the end of a
chapter, subchapter, article, part or section, as applicable.

END_STATUTE

Sec. 11. Title 41, chapter 6, article 3,
Arizona Revised Statutes, is amended by adding section 41-1021.03, to read:

START_STATUTE
41-1021.03.

Rulemaking advisory committee

A. notwithstanding any other law, An
agency may appoint a formal advisory committee to report on the subject matter
of a docket opening for guidance in preparing a notice of proposed rulemaking.�
The agency shall appoint committee before filing a notice of proposed
rulemaking for publication pursuant to section 41-1022. If multiple subjects
are provided on the docket, the agency may appoint additional advisory
committees with members who have expertise in the subject area.� The agency
shall name each committee.

B. The purpose of a committee is to
evaluate the agency's objectives as stated in the docket opening and to
complete a study by a deadline established by the agency.

C. Committee members shall be
appointed by the director of the agency and serve at the pleasure of the
director.� Members are not eligible to receive compensation to serve except as
otherwise provided by law.

D. An agency shall announce the
establishment of a committee by preparing a notice of formal advisory committee
and shall file the notice with the secretary of state to be published in the
register. The notice of formal advisory committee MUST include:

1. the name of the agency.

2. the subject matter on which the
committee is to comment and, if known, the specific rule or rule section
numbers and the section headings.

3. the register issue in which the
referenced docket opening was published.

4. the committee's name.

5. the committee members' names, the
title or specialty area of each member and the name of the committee
chairperson.

6. the date the committee was
established.

7. committee contact information.

8. the deadline established for the
study to be completed pursuant to subsection b of this section.

E. an agency, on the change of a
committee member, may file a notice as specified under subsection d of this
section and include the previous member's name and the name of the new member.

F. an agency may terminate a formal
advisory committee at any time.� The agency shall file a notice that the
committee was terminated with the secretary of state to be published in the
register.� The notice must include:

1. the agency's name.

2. the committee's name.

3. a citation to the register issue
of any notices related to the committee.

4. the date that the committee
released the report to the director of the agency and, if the committee did not
complete the report, the reasons why.

5. the date the committee was
terminated.

G. an agency shall prepare a summary
of the committee report and include the findings in the preamble of the notice
of proposed rulemaking. The agency shall post the committee report on the
agency's website for public review.
END_STATUTE

Sec. 12. Section 41-1022, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1022.

Notice of proposed rulemaking; contents of notice

A. An agency shall prepare a notice of proposed
rulemaking to make, amend, renumber or repeal a rule. The agency shall follow
formatting guidelines
and use a template
prescribed by
the secretary of state
in the preparation of
when preparing
the notice. The agency shall file
the notice with the secretary of state. The notice shall include all
of the following:

1. The preamble
, as prescribed by
section 41-1036
.

2. The code chapter

and
number and heading, if applicable, the
subchapter number and heading,

the
article
number and heading and, if APPLICABLE, the part letter and heading

in which the rule is being proposed.

3. The
new
proposed
section number and heading
or current rule section number
and heading
.

4. The exact wording of the rule, including the full
text of a new rule and any amendment to, renumbering of or repeal of a
current
codified
rule.
� An
agency shall follow procedures outlined under section 41-1013, subsection E
when formatting a rule section.

B. The agency shall file the notice
for publication in the register with an agency certificate, receipt and summary
of the preliminary economic, small business and consumer impact statement, if
applicable.

B.

C.
The
secretary of state shall publish the notice in the register pursuant to section
41-1013.
� The secretary of state may not publish the full
text of the small business and economic impact statement.� The agency shall
make the full statement available to the public on request.

C. When the agency files the notice,
the agency shall notify by first class mail, fax or e-mail each person who has
requested notification of the proposed rulemaking and each person who has
requested notification of all proposed rulemakings. An agency may
provide the notification prescribed in this subsection in a periodic agency
newsletter. An agency may purge its list of persons requesting
notification of proposed rulemakings once each year

D. After the notice is published, the
agency shall notify each person who has requested notification To review
proposed rules pursuant to section 41-1023. The notification shall include the
register publication date and the issue and page number in which the notice was
published
.

D.

E.
An
agency shall allow for and accept
a written
public
comment on the proposed rulemaking as
provided in the agency's
preamble and as
prescribed in section 41-1023, subsection
B. If the proposed rulemaking is exempt from the rulemaking
requirements, the agency shall allow for and accept public comment as provided
under the exemption.

E.

f.
If,
as a result of public comments or internal review, an agency determines that a
proposed rule requires a substantial change pursuant to section 41-1025,
the agency shall prepare a notice of supplemental rulemaking that contains the
change in the proposed rule.
When preparing a notice of
supplemental proposed rulemaking, an agency shall consider and respond to the
written submissions, the oral submissions or any memorandum summarizing oral
submissions and the economic, small business and consumer impact statement
regarding the rule.
The agency shall provide for additional public
comment pursuant to section 41-1023 and file the notice with the
secretary of state.� The secretary of state shall publish the notice in the
register pursuant to section 41-1013.
END_STATUTE

Sec. 13.
Repeal

Section 41-1023, Arizona Revised
Statutes, is repealed.

Sec. 14. Title 41, chapter 6, article 3,
Arizona Revised Statutes, is amended by adding a new section 41-1023, to read:

START_STATUTE
41-1023.

Public participation; rulemaking

A. An agency shall maintain a list of
people and stakeholders interested in agency rulemaking.� The agency shall
create and maintain the notification list as long as a rulemaking record is
open.� The agency may remove the list once a rulemaking record is closed or
continue to maintain the list as a public service to notify persons about all
agency rulemakings.

B. A
person shall be allowed to:

1. Be
notified by first class mail, fax, email or electronic newsletter or any
combination of these contacting methods when an agency proceeds with a
rulemaking.

2. Comment in writing on any proposed
notice published in the register pursuant to section 41-1023.01 or published
elsewhere if provided for under a rulemaking exemption.

C. A person may do any of the
FOLLOWING:

1. Request an oral proceeding if one
is not already scheduled on any proposed notice published in the register
pursuant to section 41-1023.02 or published elsewhere, such as an
agency's website or in a newspaper of general circulation, if provided for
under an exemption.

2. Petition an agency to make a new
rule or amend, repeal or renumber a rule codified in the code pursuant to
section 41-1033.

3. Petition the council to request a
review of a final rule as prescribed in section 41-1030.

4. Petition the council to request a
review of whether an existing agency practice or substantive policy statement
constitutes a rule pursuant to section 41-1030.
END_STATUTE

Sec. 15. Title 41, chapter 6, article 3,
Arizona Revised Statutes, is amended by adding sections 41-1023.01 and 41-1023.02,
to read:

START_STATUTE
41-1023.01.

Public participation written statement

A. An agency shall allow a person to
respond in writing to a rulemaking notice published under this chapter or
exempted from some or all of the requirements of this chapter as provided by
law.

B. A person shall be given at least
thirty days after the date of publication of the notice in the register to
comment in writing.� During the thirty-day period an agency may choose to
provide a person additional days to respond in writing under subsection d of
this section.

C. An agency shall provide
information in the notice preamble on how a person may comment in writing,
where and how to submit the comment and the last day the agency will accept the
written comment.

D. If, as a result of continued
public interest or internal review, the agency extends the public comment
period, Notice of the extension of the public comment period shall be provided
in a notice of public information filed with the secretary of state.� The
agency shall notify those interested in the rulemaking prescribed under section
41-1023 of the extension of the comment period.

E. A person responding under
subsection a of this section shall provide a comment on the rule, which may
include an argument for or against the rule and, if applicable, data supporting
the person's argument.� A person shall submit the written statement on or
before the agency's stated deadline.

F. An agency shall adequately respond
in writing to written comments provided by a person under this section.�
Responses shall be included in the preamble of the final notice.� The agency
may directly respond to the commenter by mail or email about its review of and
response to a comment.
END_STATUTE

START_STATUTE
41-1023.02.

Public participation; oral proceeding

A. An agency shall schedule and
conduct an oral proceeding pursuant to this section whether chosen by the
agency or requested by a person.

B. An agency may choose to schedule
an oral proceeding and include information about the proceeding in the preamble
for a notice prepared under this chapter to adopt a rule.� An agency scheduling
a proceeding under this section shall allow any person to submit comments in
writing pursuant to section 41-1023.01.

C. An agency shall refer to the
publishing deadlines in the register before scheduling a date for an oral
proceeding.� An agency shall schedule an oral proceeding at least thirty days
after the notice is published in the register to provide an opportunity for the
public to review the notice and prepare for the proceeding.

D. An agency shall choose and include
the date, time and location of the oral proceeding to allow a reasonable
opportunity for a person to participate, and shall include contact information
in the notice preamble.

E. An agency may schedule more than
one oral proceeding.

F. A person may provide written
comments pursuant to section 41-1023.01 at an oral proceeding without
speaking.

G. As a result of an internal review,
an agency may choose not to schedule an oral proceeding when preparing a notice
under this chapter.� If an agency chooses not to conduct an oral proceeding it
shall still provide and allow the public to comment in writing pursuant to
section 41-1023.01.

H. When an agency chooses not to
schedule an oral proceeding, the agency shall allow a person to request an oral
proceeding at least thirty days after the publication date of the notice. An
agency shall provide information on how a person may request an oral proceeding
in the notice preamble.� A person shall SUBMIT the request to agency as
specified in the preamble.

I. If a person requests an oral
proceeding to be conducted by the agency, the agency shall determine a date,
location and time for the proceeding that allows a reasonable opportunity for a
person to participate.

J. An agency shall prepare and file a
notice of oral proceeding with the secretary of state to include all of the
following:

1. The name of the agency.

2. Code information, including, if
applicable, the title and heading, chapter title and heading, subchapter title
and heading, article and heading, part and heading and a list of affected
articles, parts or sections and corresponding rulemaking actions.

3. A list of citations to all notices
published in the register as part of the notice rulemaking record.

4. The date, time and location of the
oral proceeding.

5. Contact information of the agency
ombudsman who can answer questions about the proceeding or listed notices
already published in the register.

K. An agency shall contact directly
the person who requested to schedule the oral proceeding and let the person
know the information provided under this section.

L. As a result of continued public
interest or internal agency review, an agency may schedule additional oral
proceedings and provide Notice. An agency shall notify those
interested in the rulemaking pursuant to section 41-1023 of the additional oral
proceedings.

M. An agency may adopt rules on how
to conduct oral proceedings pursuant to this section.� The rules may include
provisions that prevent undue repetition at a proceeding.

N. The director of the agency, or the
director's designee, shall conduct an oral proceeding.� Any division of the
agency assigned by the director THAT conducts an oral proceeding on behalf of
the director shall prepare a memorandum for consideration by the agency that
summarizes the oral comments made at the oral proceeding.
END_STATUTE

Sec. 16. Section 41-1024, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1024.

Time and manner of rulemaking

A. An agency
may

shall
not submit a rule to the council
or the attorney
general
until
the public comment period and
the
rule making

rulemaking
record
is
are
closed.

B. Within one hundred twenty days after the close of
the record on the proposed
rule making

rulemaking or the supplemental proposed rulemaking
, an agency shall take
one of the following actions:

1. Submit the rule to the council
pursuant
to section 41-1052
or, if the rule is exempt pursuant to section 41-1057,
to the attorney general.

2. Terminate the proceeding by

preparing a notice of termination of rulemaking and filing it with the
secretary of state for
publication
of a notice to that
effect
in the register.

C.
Before submitting a rule to the
council or the attorney general,
An agency shall
consider
adequately respond in the preamble of the notice to
the
written
submissions, the oral submissions

comments and if an oral proceeding was conducted, oral comments,
or any
memorandum summarizing
the comments received at the
oral
submissions
proceeding
and
comments
received on
the
rule's
economic, small business
and consumer impact statement
regarding the rule or information
in the preamble
.

D. Within the scope of its delegated authority, an
agency may use its own experience, technical competence, specialized knowledge
and judgment in the making of a rule.

E. Unless exempted by section 41-1005 or 41-1057
or unless the rule is an emergency rule made pursuant to section 41-1026,
if the agency chooses to make the rule, the agency shall submit a rule package
to the council and to the committee.
The rule package
shall include:

1. The preamble.

2. The exact words of the rule,
including existing language and any deletions.

3. The economic, small business and
consumer impact statement.

F. If the rule is exempt pursuant to section 41-1005,
the agency shall
PREPARE and
file
it
the notice
as
a final
an
exempt
rule with the secretary of state.

G.
If the rule is
an agency that is
exempt from council approval
,

pursuant to section 41-1057
, the agency
shall submit
the rule package
set forth in subsection E of this section

to the attorney general for approval pursuant to section 41-1044.

H. An agency shall not file a final rule with the
secretary of state without
prior
first
RECEIVING
approval from the council, unless the final rule is exempted
pursuant to section 41-1005 or 41-1057 or the rule is an emergency
rule made pursuant to section 41-1026 or an expedited rule made
pursuant to section 41-1027.
END_STATUTE

Sec. 17. Section 41-1025, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1025.

Variance between rule and published notice of proposed rule;
substantive change

A. An agency
may

shall
not submit a rule to the council that is substantially different
from the
proposed
rule
contained

submitted
in the notice of proposed
rule making
rulemaking
or a
notice of
supplemental
notice
rulemaking
filed with the secretary
of state pursuant to section 41-1022. However, an agency may
choose to
terminate a
rule making
rulemaking
proceeding and commence a new
rule
making
rulemaking or an amending, repealing or
renumbering
proceeding for the purpose of making a substantially
different rule.

B. In determining whether a rule is substantially
different from the published proposed rule on which it is required to be based,
all of the following must be considered:

1. The extent to which all persons affected by the
rule should have understood that the published proposed rule would affect their
interests.

2. The extent to which the subject matter of the
rule or the issues determined by that rule are different from the subject
matter or issues involved in the published proposed rule.

3. The extent to which the effects of the rule
differ from the effects of the published proposed rule if it had been made
instead.
END_STATUTE

Sec. 18. Section 41-1026, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1026.

Emergency rulemaking

A.
An agency shall conduct emergency
rulemaking pursuant to this section.�
If an agency makes a finding that
a rule is necessary as an emergency measure, the rule may be made, amended
,

or
repealed

as an emergency measure,
or renumbered

in a notice of emergency rulemaking
without the notice
being
prescribed by sections 41-1021 and 41-1022
and prior review by the council
.
, if the
rule is first approved by the attorney general and filed with the secretary of
state. The attorney general may not approve the making, amendment or
repeal of a rule as an emergency measure if the emergency situation is created
due to the agency's delay or inaction and the emergency situation could have
been averted by timely compliance with the notice and public participation provisions
of this chapter, unless
The
agency shall prepare the
notice in compliance with this chapter, including receiving approval from the
governor's office to proceed with the rulemaking and providing the notice to
the attorney general for approval.� when preparing the notice, the
agency

submits
shall submit
substantial
evidence that the rule is necessary as an emergency measure to do any of the
following:

1. Protect the public health, safety or welfare.

2. Comply with
deadlines in amendments to an agency's governing law or federal programs.

3.
comply with a federal law or
avoid

a
violation of federal law
,

rule
or regulation or
other

a
state law.

4. Avoid an imminent budget reduction.

5. Avoid serious prejudice to the public interest or
the interest of the parties concerned.

B. Within sixty days after receipt
of
the notice
, the attorney general shall review the
demonstration
agency's substantial evidence
of emergency and the
emergency
rule
in accordance
to ensure it complies
with the standards prescribed in section
41-1044.
� The attorney general may not approve an
emergency rule if the emergency situation was created due to the agency's delay
or inaction and the emergency situation could have been averted by timely
compliance with a regular proposed rulemaking notice and the public
participation provisions of this chapter.

C. If the

emergency
is in accordance
complies
with the
standards in section 41-1044, the attorney general shall create a
certificate of approval and file the
rule

notice of emergency rulemaking
with the secretary of
state. The secretary of state shall publish the
rule
notice of emergency rulemaking
in the register as provided in
section 41-1013 and publish the rule in the code.
� If the
emergency does not comply with the standards PURSUANT to section 41-1044, the
attorney general shall return the notice to the agency stating the reason or
reasons of noncompliance.

D.
A rule made, amended or repealed
pursuant to this section
a notice of emergency rulemaking

is valid for one hundred eighty days
after the filing of the rule
starting on the date the notice was filed
with the secretary
of state.� The
emergency may be renewed

agency may renew the EMERGENCY
for one
more
additional
one hundred eighty-day period if all of the
following requirements are met:

1. The agency determines that the emergency
situation still exists
pursuant to subsection A of this section
.

2. The agency follows the procedures
prescribed in this section.

3.

2.

before the initial one hundred eighty-day period expires,
the
agency
files
prepares
a notice of
emergency rulemaking RENEWAL and files
the renewal
of the emergency
with the attorney general
before
the expiration of the preceding one hundred eighty-day period
for review and approval
.

4.

3.
The
agency
makes the rule as a proposed rule or has issued an
alternative proposed rule
proposes to make, amend, repeal
or renumber the emergency rule under the regular rulemaking process

pursuant to section 41-1022.

5. The agency receives approval of the
renewal from the attorney general before the expiration of the preceding one
hundred eighty-day period.

E. The attorney general shall follow
the procedures pursuant to subsections b and c of this section when reviewing a
renewal notice.� The notice of emergency rulemaking renewal is effective as
provided under subsection D of this section.

6.

F.

The attorney general creates a certificate of approval and files the
rule with the secretary of state.
� The secretary of state shall publish
the renewal of the emergency rule in the register as provided in section 41-1013
and publish the rule in the code.

E.

G.

If an agency initiates
a
final
rule
that is made
pursuant to this chapter
And the
rule is approved by the council, the rule made under the regular rulemaking
process
shall repeal an emergency rule made, amended
,

or
repealed
or renumbered
if the
emergency is still effective within the one hundred eighty-day period.

F.

H.

if a final rule was not made pursuant to subsection G of this section,

on expiration of the one hundred eighty-day period, the secretary of
state shall remove the emergency rule from the code
Chapter in
the next code supplement and restore the rule that was codified before the
emergency
.� If a rule
has not been made pursuant to
subsection E of this section, the rule in place

heading
was labeled as "renumbered" or "reserved"
before the
emergency
is restored
was enacted, the rule
section becomes reserved
.
END_STATUTE

Sec. 19. Section 41-1027, Arizona Revised Statutes, is amended to read:

START_STATUTE
41-1027.

Expedited rulemaking

A. An agency
may
shall
conduct expedited rulemaking
pursuant to this section
.� The agency shall receive approval
from the governor's office to proceed with the rulemaking. Expedited rulemaking
may be conducted
if the rulemaking does not increase the cost of
regulatory compliance, increase a fee or reduce procedural rights of persons
regulated and does one or more of the following:

1. Amends or repeals rules made obsolete by repeal
or supersession of an agency's statutory authority.

2. Amends or repeals rules for which the statute on
which the rule is authorized has been declared unconstitutional by a court with
jurisdiction, there is a final judgment and no statute has been enacted to
replace the unconstitutional statute.

3. Corrects typographical errors,
makes
updates an
address or
amends a
name
changes
or division of a state or federal agency

or clarifies language of a rule without changing its
effect
meaning
.

4. Adopts or incorporates by reference without
material change federal statutes or regulations pursuant to section 41-1028,
statutes of this state or rules of other agencies of this state.

5. Reduces or consolidates steps, procedures or
processes in the rules.

6. Amends or repeals rules that are outdated,
redundant or otherwise no longer necessary for the operation of state
government.

7. Implements, without material change, a course of
action that is proposed in a five-year review report approved by the
council pursuant to section 41-1056 within one hundred eighty days
of

after
the date that the agency files
the proposed expedited rulemaking with the secretary of state.

8.
Adopts, without material change,
If legislation provides the authority to move
rules of another
agency of this state that has been or imminently will be consolidated
into the
to another
agency
,
the agency shall recodify the rules without material change, other than
amending citation references to sections within a chapter to the other agency's
chapter in a notice of recodification
.

B. An agency shall
deliver
prepare
a notice of proposed expedited rulemaking
And shall specify in the notice preamble how the proposed expedited
rulemaking qualifies to be initiated under the standards listed under
subsection a of this section and the exact wording of the rule, including the
full text of a new rule and any amendment to, renumbering of or repeal of a
codified rule.� the agency shall deliver the notice of proposed expedited
rulemaking
to the governor, the president of the senate, the speaker of
the house of representatives, the committee and the council.
The notice shall contain the name, address and telephone number of the
agency contact person and the exact wording of the proposed expedited
rulemaking and indicate how the proposed expedited rulemaking achieves the
purpose prescribed in subsection A of this section.

C. On delivery of the notice required in subsection
B of this section, the agency shall file the notice of proposed expedited
rulemaking with the secretary of state for publication in the
next
state administrative
register. The agency and the council
shall post the notice of proposed expedited rulemaking on their respective
websites
and shall allow any person to provide written comment
for at least thirty days after posting the notice
.� For
at least thirty days after posting the notice, a person may submit a written
statement, including an argument for or against, data supporting the argument
and comment on the notice
. The agency shall adequately
respond in writing to the comments on the proposed expedited rulemaking.

D. An agency may
not submit a final
expedited rule to the council that
prepare a notice of
final EXPEDITED rulemaking and determine if the notice
is substantially
different from the proposed rule contained in the notice of proposed expedited
rulemaking
Under the criteria prescribed in section 41-1025,
subsection b. An agency may not submit a notice of final expedited rulemaking
to the council that has a substantial change
.
However, an

The
agency may
do either of the following:

1.
Terminate an expedited
rulemaking proceeding and commence a new rulemaking proceeding for the purpose
of making a substantially different rule.�
An agency shall use
the criteria prescribed in section 41-1025, subsection B for determining
whether a final expedited rule is substantially different from the proposed
expedited rule.

2. Prepare a notice of supplemental
proposed expedited rulemaking under this section.

E.
After adequately addressing, in
writing, any written objections, an

if an agency
determines there are no substantial changes between the notice of proposed
expedited rulemaking and the notice of final expedited rulemaking,

the
agency shall
file

receive approval from the governor's office to proceed with the notice.� On
approval from the governor, the agency shall submit to the council the final
notice with
a request for approval
with the council
.�
The request shall
contain
INCLUDE

the notice
of final expedited rulemaking
and the agency's
responses to any written comments. The council may require a
representative of an agency whose
final
expedited
rulemaking is under
examination
review

to attend a council meeting and answer questions.� The council may
communicate to the agency its comments
require
the agency to respond in writing to the council's comments or testimony

on the expedited rulemaking within the scope of subsection A of this section
and require the agency to respond to its comments or testimony in
writing
.�
while the final notice is under review by the
council,
a person may submit written comments to the council that are
within the scope of subsection A of this section.

F.
Before an agency files a notice of
final expedited rulemaking with the secretary of state,
The council
shall approve
any
the final

expedited rulemaking
. The council shall not approve
the rule unless
if all of the following apply
:

1. The rule satisfies the criteria for expedited
rulemaking pursuant to subsection A of this section.

2. The rule is clear, concise and understandable.

3. The rule is not illegal, inconsistent with
legislative intent or beyond the agency's statutory authority.

4. The agency
, in writing,

adequately addressed the
written
comments on the
notice of
proposed
rule

rulemaking
and any
supplementary proposal
notice of supplemental proposed expedited rulemaking
.

5. If applicable, the permitting requirements comply
with section 41-1037.

6. The
final expediated
rule
is
does
not
include
a

substantial
substantive
change
, considered as a whole,
from the proposed rule and any
supplementary
proposal
proposed rule
.

7. The rule imposes the least burden and costs to
persons regulated by the rule.

G. On receipt of council approval, the agency shall
file a notice of final expedited rulemaking and the council's certificate of
approval with the secretary of state.
The secretary of state
shall publish the notice in the register and codify the rules in the code.

H. The
expedited rulemaking becomes
effective immediately on the filing of
notice of final expedited
rulemaking
and the council's certificate of APPROVAL Is
immediately effective on the date that it is filed with the secretary of state
.

END_STATUTE

Sec. 20. Section 41-1028, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1028.

Incorporation by reference

A.
An agency shall incorporate by
reference materials in rule pursuant to this section.� An agency may not amend
in rule a part of a code, standard, rule or regulation or a nationally
recognized organization or association's material in a rule if it violates
copyright standards.� As a result of an internal review,
an agency may
incorporate by reference in its rules
, and without publishing the
incorporated matter in full,
all or any part of a code, standard, rule
or regulation of an agency of the United States or of this state or a
nationally recognized organization or association
, if
incorporation of its text in agency rules would be unduly cumbersome, expensive
or otherwise inexpedient
.

B.
The reference in the agency rules
shall fully identify the incorporated matter by location, date and otherwise
and shall state that the rule
An agency shall INCORPorATE
materials in RULE by the name of the INCORPORATED matter and publisher
information, including an address and, if applicable, the publisher's website
address and publication or RELEASE date.� An agency shall include this statement
following the incorporated by reference materials in rule, "This
incorporated material
does not include any later amendments or editions
of the incorporated matter
"
.

C. An agency
may

shall
incorporate by reference such matter in its rules only if the
agency, organization or association originally issuing that matter makes copies
of it readily available
to the public
for
public

inspection
,

and
reproduction
or purchase
.

D.
The rules
an
agency
shall state
in rule
where
copies
a person may review a copy
of the incorporated matter
are available
either
from the agency
issuing
adopting
the rule
,

and
from another state agency or

from the agency of the United States
or this state or the
organization or association
originally issuing the matter.

E. An agency
may

shall
incorporate later amendments or editions of the
incorporated
matter only after compliance
reference material codified
in rule

by complying
with the
rule
making
requirements of this
chapter

section
.
END_STATUTE

Sec. 21. Section 41-1029, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1029.

Agency rulemaking record

A. An agency shall maintain an official
rule making
rulemaking
record for each
rule it proposes
by publication in the register of a notice of
proposed rule making and each final rule filed in the office of the secretary
of state. The record and matter

to make as new
or to amend, renumber, repeal or recodify. The agency shall make
available for public inspection materials that are included in a rule and that
are
incorporated by reference
must be available for public
inspection
.

B. The agency
rule making
rulemaking
record shall contain all of the following:

1. A copy of the notice initially
filed in the office of the secretary of state.

2. Copies of all publications in the
register with respect to the rule or the proceeding on which the rule is based.

3. Copies of any portions of the
agency's rule making docket containing entries relating to the rule or the
proceeding on which the rule is based.

4. All written petitions, requests,
submissions and comments received by the agency and all other written materials
considered or prepared by the agency in connection with the rule or the
proceeding on which the rule is based.

5. Any official transcript of oral
presentations made in the proceeding on which the rule is based, or if not
transcribed, any tape recording or stenographic record of those presentations,
and any memorandum prepared by a presiding official summarizing the contents of
those presentations.

1. A LIST OF ALL NOTICES FILED WITH
THE SECRETARY OF STATE, including THE DATE OF FILING AND the DATE WHEN A NOTICE
WAS PUBLISHED IN THE REGISTER OR, IF APPLICABLE TO AN EXEMPTION, WHEN AND WHERE
A NOTICE WAS PUBLISHED ON the AGENCY'S WEBSITE OR in a NEWSPAPER OF GENERAL
CIRCULATION.

2. A DATE-STAMPED COPY OF AN
AGENCY RECEIPT.

3. A DATE-STAMPED COPY OF AN
AGENCY CERTIFICATE, if APPLICABLE.

4. A COPY OF AN APPROVAL CERTIFICATE
SIGNED BY the COUNCIL OR ATTORNEY GENERAL, if APPLICABLE.

5. A COPY OF AN AGENCY'S WRITTEN
REQUEST TO THE GOVERNOR FOR PERMISSION TO PROCEED WITH THE RULEMAKING AND A
COPY OF GOVERNOR'S APPROVAL TO PROCEED WITH THE RULEMAKING.

6. Copies of all Notices pursuant to
this chapter that pertain to the rules being issued and, if applicable, a
notice preamble and economic, small business and consumer impact statement
referred to as a rulemaking package. This includes a notice of docket opening,
notice of formal advisory committee, notice of informal meeting on docket
opening and notice of oral proceeding.

7. a copy of any written comments
received and the agency's response to the comments.

8. A copy of a written request for an
oral proceeding on a rulemaking notice.

9. a copy of an official transcript,
recording or stenographic record of an oral proceeding conducted by the agency
about the notice and a list of people in attendance.

10. A copy of any presentation given
at an oral proceeding.

11. A copy of meeting minutes and
discussion of a board's or commission's adoption of a rule at a public meeting
before presenting a rulemaking notice to the council for final review.

6.
12.
A
copy of
all

the notice and
materials
submitted to the council
, including the economic, small business
and consumer impact statement
and the minutes of the council meeting at
which the rule was reviewed.

7. A copy of the final rule and
preamble.

8.
13. a
copy of the
information
requested
regarding the
experience, technical competence, specialized knowledge and judgment of
an

the
agency if the agency relies on
section 41-1024, subsection D in the making of a rule and
a

if a public
request
is

was
made
to review the information
.

14. If the agency relies on section
41-1024, subsection d in the issuance of a rule, the agency shall include the
information regarding the experience, technical competence and specialized
knowledge with the rulemaking record.� The agency shall make this information
available to the public on request.

15. A copy of a written petition
presented by a person under section 41-1033, the agency's response to the
petition and whether the agency decided to make a new rule or to amend, repeal
or renumber a rule under the petitioner's request.

C. On judicial review, the record required by this
section constitutes the official agency
rule making
rulemaking
record with respect to a rule. Except as
provided in section 41-1036 or otherwise required by a provision of law,
the agency
rule making

rulemaking
record
need not constitute the exclusive basis for agency action on that rule or for
judicial review of that rule.
END_STATUTE

Sec. 22. Section 41-1031, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1031.

Filing rules and preamble with secretary of state; permanent
record

A. Following the filing of a rule made
pursuant to an exemption to this chapter or following approval and filing of a
rule and preamble and an economic, small business and consumer impact statement
by the council as provided in article 5 of this chapter or by the attorney
general as provided in article 4 of this chapter, the secretary of state shall
affix to each rule document, preamble and economic, small business and consumer
impact statement the time and date of filing.
�

A. An agency shall file with a
rulemaking notice all of the following:

1. A receipt.

2. if applicable, the agency
certificate.

3. if applicable, a council
certificate or attorney general certificate.

4. Notice to include a preamble and
rules.

5. if applicable, a summary of the
economic, small business and consumer impact statement.

6. Other correspondence related to
the rulemaking.

B. An agency shall file with a legal
notice a receipt and the notice.

C. The attorney general shall file a
notice as required pursuant to section 41-1044.

D. When a notice is filed with the
secretary of state under this chapter, the secretary of state shall date and
time stamp the documents listed under subsections a, b and c of this section.
�
A rule is not final until the secretary of state affixes the time and date of
filing to the rule document as provided in this section.

B.

E.
The
secretary of state shall keep a permanent record of
rules,
preambles and economic, small business and consumer impact statements filed
with the office
notices and documents filed under this
chapter
.
END_STATUTE

Sec. 23. Section 41-1032, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1032.

Effective date of rules

A. A
final
rule filed
by an agency with the secretary of state
pursuant to section 41-1031
becomes effective sixty days after
a certified

original and two copies of the rule and preamble
are filed in the office of the secretary of state and the time and date are
affixed as provided in section 41-1031, unless the rule making agency
includes
the approved notice and documents listed under
section 41-1031, subsection a

are date and time stamped.�
On internal review, if an agency determines the rule necessitates an immediate
effective date, the agency shall

include
in the
notice
preamble
information

justification
that demonstrates that the rule needs to be effective
immediately on filing
in the office of
with

the secretary of state
and the time and date are affixed
as provided in section 41-1031
.� A rule
may
shall
only be effective immediately for any of the following
reasons:

1. To preserve the public peace, health or safety.

2. To avoid a violation of federal law or regulation
or state law, if the need for an immediate effective date is not created due to
the agency's delay or inaction.

3. To comply with deadlines in amendments to an
agency's governing statute or federal programs, if the need for an immediate
effective date is not created due to the agency's delay or inaction.

4. To provide a benefit to the public and a penalty
is not associated with a violation of the rule.

5. To adopt a rule that is less stringent than the
rule that is currently in effect and that does not have an impact on the public
health, safety, welfare or environment, or that does not affect the public
involvement and public participation process.

B.
Notwithstanding subsection A of
this section, a rule making agency may specify an effective date
O
n internal review, if an agency determines the rule necessitates a
delayed effective date, the agency shall include in the notice preamble
justification that demonstrates the rule needs to be effective
more than
sixty days after the filing of the rule
in the office of the
with the
secretary of state
if the agency
determines

and shall specify the date.� The agency shall
determine
that good cause exists for and the public interest will not be
harmed by the later date.

C. This section does not affect the validity of an
existing
codified
rule until the
new or
amended
newly made or the amended, repealed or renumbered

rule that is filed with the secretary of state is effective pursuant to this
section.

D. The council shall approve or deny
an immediate or delayed effective date on the council's certificate of
approval.

END_STATUTE

Sec. 24. Section 41-1033, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1033.

Petition for a rule or review of an agency practice, substantive
policy statement, final rule or unduly burdensome licensing requirement; notice

A. Any person may petition an agency to do
either of
the following:

1. Make
,
a
new rule and
amend
,

or
repeal
or RENUMBER
a final rule.

2. Review an existing agency practice or substantive
policy statement that the petitioner alleges to constitute a rule.

B. The petitioner shall state on the
petition the rulemaking to review or the agency practice or substantive policy
statement to consider revising, repealing or making into a rule.

B.

C.
An
agency shall prescribe the form of the petition and the procedures for the
petition's submission, consideration and disposition.�
The person
shall state on the petition the rulemaking to review or the agency practice or
substantive policy statement to consider revising, repealing or making into a
rule.

C.

D.
Not later than sixty days after
submission
receipt
of the petition, the agency shall either:

1. Reject the
petition and state
its

the agency's

reasons in writing for rejection to the petitioner.

2. Initiate rulemaking proceedings in accordance
with this chapter.

3. If otherwise lawful, make
, amend,
repeal or renumber
a rule
under this chapter, an
exemption to this chapter or an exemption to certain provisions of this chapter
.

D.

E.
The
agency's response to the petition is open to public inspection.

E.

F.
If
an agency rejects a petition pursuant to subsection
C
D
of this section, the petitioner has thirty days
after the date of the written rejection
to appeal to the
council to review whether the existing agency practice or substantive policy
statement constitutes a rule. The petitioner's appeal
may
shall
not be more than five double-spaced pages.
The council shall prescribe the form of the petition, including font
and font size and the procedures for the petition's submission.

F.

G.
A
person may petition the council to request a review of a final rule based on
the person's belief that the final rule does not meet the requirements
prescribed in section 41-1030. A petition submitted under this
subsection
may
shall
not be more
than five double-spaced pages.

G.

H.
A
person may petition the council to request a review of an existing agency
practice, substantive policy statement, final rule or regulatory licensing
requirement that the petitioner alleges is not specifically authorized by
statute, exceeds the agency's statutory authority, is unduly burdensome or is
not demonstrated to be necessary to specifically fulfill a public health,
safety or welfare concern. On receipt of a
properly

submitted petition pursuant to this section, the council shall review the existing
agency practice, substantive policy statement, final rule or regulatory
licensing requirement as prescribed by this section. A petition
submitted under this subsection
may
shall

not be more than five double-spaced pages.
The council
shall prescribe the form of the petition, including font and font size and the
procedures for the petition's submission.
This subsection
does not apply to an individual or institution that is subject to title 36,
chapter 4, article 10 or chapter 20.

H.

I.
If
the council receives information that alleges an existing agency practice or
substantive policy statement may constitute a rule, that a final rule does not
meet the requirements prescribed in section 41-1030 or that an existing
agency practice, substantive policy statement, final rule or regulatory
licensing requirement exceeds the agency's statutory authority, is not
specifically authorized by statute or does not meet the guidelines prescribed
in subsection
G
H
of this
section, or if the council receives an appeal under subsection
E
F
of this section, and at least three council members request
of the chairperson that the matter be heard in a public meeting:

1. Within ninety days after receiving the third
council member's request, the council shall determine whether any of the
following applies:

(a) The agency practice or substantive policy
statement constitutes a rule.

(b) The final rule meets the requirements prescribed
in section 41-1030.

(c) An existing agency practice, substantive policy
statement, final rule or regulatory licensing requirement exceeds the agency's
statutory authority, is not specifically authorized by statute or
meets
does not meet
the guidelines
prescribed in subsection
G
H

of this section.

2. Within ten days after receiving the third council
member's request, the council shall notify the agency that the matter has been
or will be placed on the council's agenda for consideration on the merits.

3. Not later than thirty days after receiving notice
from the council, the agency shall submit a statement of not more than five
double-spaced pages to the council that addresses whether any of the
following applies:

(a) The existing agency practice or substantive
policy statement constitutes a rule.

(b) The final rule meets the requirements prescribed
in section 41-1030.

(c) An existing agency practice, substantive policy
statement, final rule or regulatory licensing requirement exceeds the agency's
statutory authority, is not specifically authorized by statute or meets the
guidelines prescribed in subsection
G

H
of this section.

I.

J.
At
the hearing, the council shall allocate the petitioner and the agency an equal
amount of time for oral comments
,
not including any time
spent answering questions raised by council members.
before
the meeting is scheduled,
the council may also allocate time for
members of

the public who have an interest in the
issue to provide
oral comments
and may include public
comment information on the meeting agenda
.

J.

K.
For
the purposes of subsection
H
I

of this section, the council meeting shall not be scheduled until the
expiration of the agency response period prescribed in subsection
H
I
, paragraph 3 of this section.

K.

L.
An
agency practice, substantive policy statement, final rule or regulatory
licensing requirement considered by the council pursuant to this section shall
remain in effect while under consideration of the council. If the
council determines that the agency practice, substantive policy statement or
regulatory licensing requirement exceeds the agency's statutory authority, is
not authorized by statute or constitutes a rule or that the final rule does not
meet the requirements prescribed in section 41-1030, the practice, policy
statement, rule or regulatory licensing requirement shall be void.� If the
council determines that the existing agency practice, substantive policy
statement, final rule or regulatory licensing requirement is unduly burdensome
or is not demonstrated to be necessary to specifically fulfill a public health,
safety or welfare concern, the council shall modify, revise or declare void any
such existing agency practice, substantive policy statement, final rule or
regulatory licensing requirement. If an agency decides to further
pursue a practice, substantive policy statement or regulatory licensing
requirement that has been declared void or has been modified or revised by the
council, the agency
may
shall
do so
only pursuant to a new rulemaking.

L.

M.
A
council decision
pursuant to this section
shall be made by
a majority of the council members who are present and voting on the
issue. Notwithstanding any other law, the council
may
shall
not base any decision concerning an agency's compliance
with the requirements of section 41-1030 in issuing a final rule or
substantive policy statement on whether any party or person commented on the
rulemaking or substantive policy statement.

M.

N.
A
decision by the council
pursuant to this section
is not
subject to judicial review, except that, in addition to the procedure
prescribed in this section or in lieu of the procedure prescribed in this
section, a person may seek declaratory relief pursuant to section 41-1034.

N.

O.
Each
agency
, the council
and the secretary of state shall post
prominently on their websites notice of
an individual's
a person's
right to petition the council for review pursuant
to this section.
END_STATUTE

Sec. 25. Section 41-1036, Arizona Revised Statutes, is amended to read:

START_STATUTE
41-1036.

Preamble; justifications for rulemaking

A.
Only
the reasons contained in the preamble may be used by any party as
justifications for
the
making
of
the
rule in any proceeding in which its validity is at issue.

B. A preamble must contain all of the
following:

1. The date the governor gave the
agency permission to proceed with the rulemaking pursuant to section 41-1039.

2. A list of articles, parts and
sections affected and corresponding rulemaking actions.

3. Citations to the agency's
rulemaking authority, including the agency's authorizing statutes and
implementing statutes.

4. A list of citations to all notices
of the rulemaking record published in the register.

5. The agency's objective and
expected outcome of the rulemaking, including the agency's explanation and the
justification to initiate the rulemaking.

6. The contact information of the
person who can answer questions about the notice, including the person's name,
title, agency division or subdivision, telephone number, email and agency
website.

7. If applicable, a reference of the
agency's review of an internal study, analysis, data or report that the agency
either proposes to support the evaluation of or justification for the rule, or
an external study, analysis, data, report or agency's expertise that will be
used to justify the rule.� the agency shall include where the public may obtain
or review each study, analysis, data or report and its supporting argument for
or against the use of the study, analysis, data or report.

8. good cause, shown by the agency,
regarding the reason the rule is necessary to promote a statewide interest or
if the rule will diminish a previous grant of authority of a political
subdivision of this state.

9. if applicable, a preliminary or
final summary of the economic, small business and consumer impact statement and
where the economic, small business and consumer impact statement may be viewed
in its entirety.

10. The contact information of the
person who can answer questions about the economic impact statement, including
the person's name, title, agency division or subdivision, telephone number,
email and agency website.

11. A list of materials incorporated
by reference and its location in the rules pursuant to section 41-1028.

12. any other matters and information
as prescribed by statute that is applicable to the specific agency or to any
specific rule or class of rules.

B. An agency subject to council
review shall respond in the preamble to the following questions pursuant to
sections 41-1052 and 41-1055:

1. Whether the rule requires a permit
and whether a general permit is used and if not, the reasons why a general
permit is not used.

2. Whether a federal law is
applicable to the subject of the rule and whether the rule is more stringent
than federal law and if so, the citation to the statutory authority to exceed
the requirements of federal law.

3. Whether a person submitted an
analysis to the agency that compares the rule's impact on the competitiveness
of business in this state to the impact on business in other states.

C. In addition to the contents
required in a preamble pursuant to this section, for a notice of proposed or
supplemental proposed rulemaking, a preamble must also include:

1. Information on oral proceedings
pursuant to section 41-1023.02.

2. A description and list of any
typographical or clerical error or other change or variance between the
proposed and supplemental proposed rulemaking.

D. In addition to the contents
required in a preamble pursuant to this section, for a notice of final
rulemaking, a preamble must also include:

1. The effective date of the rule
pursuant to section 41-1032.

2. A description and list of any
typographical or clerical error or other change or variance between the
proposed or supplemental proposed rulemaking and the final rulemaking.

3. A summary of the public or
stakeholder comments made about the rulemaking, the agency response to the
comments and whether the agency implemented any change to a rule because of a
comment or comments.

4. A summary of the public or
stakeholder comments made about the economic, small business and consumer
impact statement, the agency response to the comments and whether the agency
implemented any change to a rule because of a comment or comments.

E. In addition to the contents
required in a preamble pursuant to this section, for a notice of emergency
rulemaking or notice of emergency rulemaking renewal, a preamble must also
include:

1. An agency statement THAT justifies
the emergency rulemaking.

2. The effective date of the rule.

3. The date the attorney general
approved the rule.

4. For an emergency rulemaking
renewal, a description and list of any typographical or clerical error or other
change or variance between the notice of emergency rulemaking and notice of
emergency rulemaking renewal.

F. In addition to the contents
required in a preamble pursuant to this section, for a notice of proposed
exempt rulemaking, a preamble must also include:

1. The citation to the agency's
exemption as provided in a statute or temporary law.

2. If required under the agency's
exemption, information on oral proceedings outlined pursuant to section
41-1023.02 or as outlined under statute.

3. whether the rule was previously
made as an emergency rule.

G. In addition to the contents
required in a preamble pursuant to this section, for a notice of final exempt
rulemaking, a preamble must also include:

1. The effective date of the rule as
provided in the agency's exemption.

2. A description and list of any
typographical or clerical error or other change or variance between the
proposed exempt or supplemental proposed exempt rulemaking and the final exempt
rulemaking.

END_STATUTE

Sec. 26. Section 41-1044, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1044.

Attorney general review of certain exempt rules

A. The attorney general shall review rules that are
exempt pursuant to section 41-1057
And other statutes that
provide specific exemptions to this chapter
.

B. Within sixty days after receiving
an agency's filing of a notice of exempt rulemaking or notice of final exempt
rulemaking, the attorney general shall either approve in whole, approve in part
and disapprove in part or disapprove in whole, the exempt rule.

B.

C.

Rules that are exempt pursuant to section 41-1057 shall not be
filed with the secretary of state unless
The attorney general

approves the rule as
shall
review and approve a rule exempted pursuant to section 41-1057 under the
following standards
:

1.
To form
is
the rule legal and binding
.

2.
is the rule
clear, concise
and understandable.

3.
Within the power of
does
the agency
have the authority
to
make
, amend, renumber or repeal the rule as an exempt rule

and
is the rule being issued
within the enacted legislative
standards.

4.
has the rule been
made
, amended, renumbered or REPEALED
in compliance with the
appropriate
statutory
procedures.

5. has the rule been made, amended,
renumbered or repealed in compliance with secretary of state's standards.

C.

D.
The
attorney general shall not approve
a

an exempt
rule with an immediate effective date unless the attorney
general determines
that the rule complies with

an agency has demonstrated the need for an immediate effective date
under the standards listed pursuant to
section 41-1032
, subsection A
.
� The attorney general shall not
approve AN EXEMPT rule with A delayed effective date unless the attorney
general determines an agency has demonstrated the need for a delayed effective
date under the standards listed pursuant to section 41-1032, subsection B.

D.

E.
Within
sixty days
of receipt of

after receiving
the
rule
, if
the attorney general
shall endorse
the attorney general's approval on the rule package. After approval,
Determines the exempt rule complies with the standards listed
pursuant to subsection c of this section, the attorney general shall create a
certificate of approval and notify the agency of approval.
The attorney
general shall file the
rule
rulemaking

package with the secretary of state.

E.

F
. If
the attorney general determines that the
exempt
rule does
not comply with
subsection B
the standards
listed under subsection C
of this section, the attorney general shall
endorse the attorney general's
create a
certificate of
disapproval
of the rule on the rule package
,
state the reasons for the disapproval and within sixty days after receipt of
the rule return the rule package to the agency that
made
submitted
the
rule

rulemaking package
.

G. If the attorney general approves
certain rulemaking sections in whole or in part, the attorney general shall
specify the disapproval of the whole section or part of section on the attorney
general certificate.

END_STATUTE

Sec. 27. Section 41-1097.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1097.01.

Filing and publication of exempt rules; definition

A. An agency shall file exempt rules
with the secretary of state pursuant to this section and other statutory
procedures.

A.

B.
The
secretary of state shall prescribe a uniform
codification
scheme,
numbering system and
uniform filing REQUIREMENTS
for exempt rules.� the secretary of state shall
have reasonable
discretion to determine the form and style for exempt rules filed with and
published by the secretary of state's office.� The secretary of state shall
refuse to accept a notice of exempt rulemaking if the notice or
filing
rulemaking package
does not comply with the secretary of
state's prescribed filing requirements, numbering system, form and style.�
The secretary of state shall not alter the sense or meaning or make a
substantive change to an exempt rule.

B.

C.

If
An agency
files a notice of exempt rulemaking,
the secretary of state shall publish the notice in the register
shall PREPARE notice of exempt rulemaking
pursuant to the
exemption requirements prescribed in statute or session law
And
the filing requirements and form and style of rules prescribed under subsection
b of this section.� The notice must include a preamble as defined in section
41-1001. The secretary of state shall provide a notice of exempt rulemaking
template to an agency for filing purposes.� An agency shall file the notice
with the secretary of state
.

D. An agency shall maintain the
rulemaking record of an exempt rulemaking as defined in section 41-1001.

C.

E.

All exempt rules shall be codified and published

the secretary of state shall publish the notice in the register and codify the
rule
in the code only as prescribed in statute or session law.

F. The office of the secretary of
state may correct a clerical error and a typographical error as defined in
section 41-1001 in an exempt rulemaking filed under this section.

G. For the purposes of this section,
"Rulemaking package" has the same meaning prescribed in SECTION
41-1001.

END_STATUTE

Sec. 28.
Conforming legislation

The legislative council staff shall
prepare proposed legislation conforming the Arizona Revised Statutes to the
provisions of this act for consideration in the fifty-eighth legislature,
first regular session.