HB4102 - 572R

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

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

START_STATUTE1-215. 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:

(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.

(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_STATUTE31-445. 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_STATUTE41-1001. 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

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.

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_STATUTE41-1005. Exemptions

A. This chapter does not apply to any:

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

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

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

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

(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_STATUTE41-1006. 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_STATUTE41-1011. 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_STATUTE41-1012. 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_STATUTE41-1013. 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_STATUTE41-1021. 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_STATUTE41-1021.01. 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_STATUTE41-1021.03. 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_STATUTE41-1022. 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_STATUTE41-1023. 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_STATUTE41-1023.01. 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_STATUTE41-1023.02. 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_STATUTE41-1024. 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_STATUTE41-1025. 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_STATUTE41-1026. 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_STATUTE41-1027. 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_STATUTE41-1028. 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_STATUTE41-1029. 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_STATUTE41-1031. 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_STATUTE41-1032. 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 On 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_STATUTE41-1033. 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_STATUTE41-1036. 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_STATUTE41-1044. 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_STATUTE41-1097.01. 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.