It is enacted by the General Assembly as follows:

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

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

(1) Give at least twenty (20) 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 {ADD or any city or town ADD} . If a significant adverse economic impact on small business {ADD or any city or town ADD} 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, {ADD or the adverse fiscal impact on cities and towns which may result ADD} and shall request comments on proposals as to how the proposed action can be changed so that the adverse economic impact on small business {ADD or cities and towns ADD} 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.

(b) If an agency finds that an imminent peril to the public health, safety or welfare requires adoption of a rule upon less than twenty (20) 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.

SECTION 2. This act shall take effect upon passage.