SECTION 1. Sections 42-35-3 and 42-35-4.1 of the General Laws in Chapter 42-35 entitled "Administrative Procedures" are hereby amended to read as follows:

42-35-3. Procedures for adoption of rules. -- (a) Prior to the adoption, amendment, or repeal of any rule the agency shall:

(1) Give at least thirty (30) days notice of its intended action. The notice shall include a statement of either the terms or substance of the intended action or a description of the subjects and issues involved, and of the time when, the place where, and the manner in which interested persons may present their views thereon. The notice shall be mailed to all persons who have made timely request of the agency for advance notice of its rule-making proceedings, and published in a newspaper or newspapers having aggregate general circulation throughout the state, provided, however, that if the action is limited in its applicability to a particular area, then the publication may be in a newspaper having general circulation in the area. Copies of proposed rules shall be available at the agency and by mail to any member of the public upon request.

(2) Afford all interested persons reasonable opportunity to submit data, views, or arguments, orally or in writing. In the case of rules, opportunity for oral hearing must be granted if requested by twenty-five (25) persons, or by a governmental subdivision or agency, or by an association having not less than twenty-five (25) members. The agency shall consider fully all written and oral submissions respecting the proposed rule. Upon adoption of a rule, the agency, if requested to do so by an interested person, either prior to adoption or within thirty (30) days thereafter, shall issue a concise statement of the principal reasons for and against its adoption, incorporating therein its reasons for overruling the considerations urged against its adoption.

(3) Demonstrate the need for the adoption, amendment, or repeal of any rule in the record of the rulemaking proceeding. The agency shall demonstrate that there is no alternative approach among the alternatives considered during the rulemaking proceeding which would be as effective and less burdensome to affected private persons as another regulation. This standard requires that an agency proposing to adopt any new regulation must identify any other state regulation which is overlapped or duplicated by the proposed regulation and justify any overlap or duplication.

(4) Determine whether such action would have a significant adverse economic impact on small business or any city or town. If a significant adverse economic impact on small business or any city or town may result from the proposed action, the notice of proposed action shall identify the types of small businesses that would be affected and the kind of adverse economic impact on small business that may result, or the adverse fiscal impact on cities and towns which may result and shall request comments on proposals as to how the proposed action can be changed so that the adverse economic impact on small business or cities and towns can be minimized or eliminated.

(5) Ensure that any proposed additions, deletions or other amendments to the rules and regulations be clearly marked. or otherwise indicated by compiler's notes. An agency's lawful promulgation of amendments to an existing rule shall be deemed to supersede and repeal the previous enactments of that rule, provided that the public notice required under subsection (a)(1) herein indicated such an intent.

(b) If an agency finds that an imminent peril to the public health, safety, or welfare requires adoption of a rule upon less than thirty (30) days' notice, and states in writing its reasons for that finding, it may proceed without prior notice or hearing or upon any abbreviated notice and hearing that it finds practicable, to adopt an emergency rule. The rule so adopted may be effective for a period of not longer than one hundred twenty (120) days renewable once for a period not exceeding ninety (90) days, but the adoption of an identical rule under subsections (a)(1) and (a)(2) is not precluded.

(c) No rule hereafter adopted is valid unless adopted in substantial compliance with this section, but no contest of any rule on the ground of noncompliance with the procedural requirements of this section may be commenced after two (2) years from its effective date.

42-35-4.1. Refiling of rules and regulations. -- (a) Each agency shall, on or before January 2, 2002, according to a schedule specified by the secretary of state, file with the secretary of state a certified copy of all its lawfully adopted rules which are in force on the date of the filing.

(b) All filed rules shall be submitted in a format specified by the secretary of state as directed by section 42-35-3.1.

(c) Each agency shall give notice thirty (30) days prior to refiling any rule or regulation in order to comply with this section. Each agency shall also give notice thirty (30) days prior to that agency's due date for refiling of which rules and regulations it shall not be refiling. The notices shall include a statement of the intended action and a description of the subjects and issues involved. The notice shall be mailed to all persons who have made timely request of the agency for advance notice of its rule-making proceedings, and published in a newspaper or newspapers having aggregate general circulation throughout the state. Copies of rules which are not to be refiled shall be available at the agency and by mail to any member of the public upon request. In addition, notice of that action shall be submitted to the governor.

(d) The rules and regulations listed for non-refiling under subsection (c) of this section shall be repealed pursuant to this section only in accordance with the provisions of section 42-35-3(a).

(e) Agency compliance with this section shall be coordinated in accordance with a schedule established by the secretary of state for agency refiling of rules.

(f) When refiling rules and regulations, agencies may change the format of existing rules without any rule-making action by the agency in order to comply with the format for filing specified by the secretary of state so long as there is no substantive change to the rule.

(g) Any rule lawfully promulgated prior to July 3, 2001 shall remain in full force and effect until:

(1) The rule should expire before July 3, 2001 pursuant to its own terms and provisions; or

(2) The rule is repealed by the lawful act of the agency, in conformity with this chapter; or

(3) The rule is invalidated by an act of the legislature or the force and effect of another law.

(h) Commencing in September 2002, and every five (5) years in September thereafter, the secretary of state shall prepare a public list of all adopted rules and regulations which have not been refiled or repealed in accordance with this section or section 42-35-4.2. The secretary of state shall forward copies of the list to the various state departments and agencies responsible for the rules and regulations. Each agency or department shall review the list and repeal, in accordance with section 42-35-3(a) all rules and regulations that are no longer operative. If the agency takes no action on a rule contained in the secretary of state's list, the rule shall remain lawfully promulgated.

SECTION 2. This act shall take effect forty-five days after passage.