Amend CSHB 425 by striking all below the enacting clause and 
substituting the following:
	SECTION 1.  Section 2001.032, Government Code, is amended to 
read as follows:
	Sec. 2001.032.  LEGISLATIVE REVIEW AND NOTIFICATION.  (a)  
In the process of developing new rules and before the state agency 
gives notice of its intention of adopting a rule under Sections 
2001.023 and 2001.024, the agency shall research the legislative 
history of the law and prepare a legislative history document on the 
bill or amendment that authorizes a state agency to adopt the rule. 
To effectively research and prepare a legislative history document, 
the state agency must:
		(1)  confirm the names of the primary author and 
sponsor of the legislation or amendment that authorizes the state 
agency to adopt the rule with the chief clerk of the house of 
representatives, the secretary of the senate, or an automated 
information system operated by the Texas Legislative Council or 
some other reliable information service;
		(2)  determine whether a statement or discussion of 
legislative intent was entered into the journals of the senate or 
house of representatives in connection with legislation that became 
law and that added, amended, or clearly affected the law under which 
the rule would be adopted;
		(3)  verify the standing of each legislative author or 
sponsor identified in subsection (a)(1) as to their current 
membership in the legislature;
		(4)  assemble the information gathered under 
subsections (1), (2), and (3) of section (a) into a legislative 
history document to be used by the state agency during the 
deliberative process of developing new rules.
	(b)  In this section, a reference to the law under which a 
rule is or would be adopted includes a reference to the law that 
authorizes a state agency to adopt the rule and to the law that the 
rule would implement or enforce.
	(c)  Before a state agency gives notice of its intention to 
adopt a rule under Sections 2001.023 and 2001.024, the agency shall 
establish an internal review process to ensure that the proposed 
rule is consistent with the legislative history in enacting or 
otherwise affecting the law under which the rule would be adopted.
	(d)  Before a state agency gives notice of its intention to 
adopt a rule under Sections 2001.023 and 2001.024, the agency shall 
inform the primary author and sponsor of legislation that became 
law and that added, amended, or clearly affected the law under which 
the rule would be adopted, if the primary author or sponsor is still 
a member of the legislature, that the adoption of a rule related to 
the member's legislation is being considered.
	(e)  Concurrently with the agency's filing of the notice with 
the secretary of state, the state agency shall deliver a copy of the 
notice of the proposed rule required by Sections 2001.023 and 
2001.024 to the primary author and sponsor as described in the 
legislative history if the primary author or sponsor is still a 
member of the legislature.
	(f)  Not later than the seventh day before the date the state 
agency considers the rule for final adoption, the agency shall 
deliver to the primary author and sponsor a copy of the rule as 
proposed for final adoption if the text of the rule differs from the 
text of the proposed rule published under Section 2001.024 and if 
the author or sponsor is still a member of the legislature. The 
state agency also shall notify the primary author and sponsor in a 
timely manner of the time and place of a public hearing held in 
connection with the contemplated rulemaking if the primary author 
or sponsor is still a member of the legislature;
	(g)  The state agency shall deliver a copy of an emergency 
rule adopted under Section 2001.034 and the written reasons for its 
adoption to the primary author and sponsor as determined by the 
legislative history with respect to the law under which the 
emergency rule was adopted concurrently with the agency's filing of 
the rule and the reasons for its adoption with the secretary of 
state. If the state agency gives an abbreviated notice or conducts a 
hearing in connection with the adoption of the emergency rule, the 
agency shall also promptly furnish the primary author and sponsor 
with a copy of the notice and shall timely inform the primary author 
and sponsor of the time and place of the hearing.
	(h)  Failure to provide notice under this section does not 
invalidate an action taken or rule adopted.  [Each house of the 
legislature by rule shall establish a process under which the 
presiding officer of each house refers each proposed state agency 
rule to the appropriate standing committee for review before the 
rule is adopted.
	[(b)  A state agency shall deliver to the lieutenant governor 
and the speaker of the house of representatives a copy of the notice 
of a proposed rule when the agency files notice with the secretary 
of state under Section 2001.023.
	[(c)  On the vote of a majority of its members, a standing 
committee may send to a state agency a statement supporting or 
opposing adoption of a proposed rule.]
	SECTION 2.  Section 2001.024(a), Government Code, is amended 
to read as follows:
	(a)  The notice of a proposed rule must include:                               
		(1)  a brief explanation of the proposed rule;                                
		(2)  the text of the proposed rule, except any portion 
omitted under Section 2002.014, prepared in a manner to indicate 
any words to be added or deleted from the current text;
		(3)  a statement of the statutory or other authority 
under which the rule is proposed to be adopted, including:
			(A)  a concise explanation of the particular 
statutory or other provisions under which the rule is proposed;
			(B)  the section or article of the code affected;                            
			(C)  a certification that the proposed rule has 
been reviewed by legal counsel and found to be within the state 
agency's authority to adopt;
			(D)  a copy of the legislative history developed 
and used by the agency during the proposal process;
		(4)  a fiscal note showing the name and title of the 
officer or employee responsible for preparing or approving the note 
and stating for each year of the first five years that the rule will 
be in effect:
			(A)  the additional estimated cost to the state 
and to local governments expected as a result of enforcing or 
administering the rule;
			(B)  the estimated reductions in costs to the 
state and to local governments as a result of enforcing or 
administering the rule;
			(C)  the estimated loss or increase in revenue to 
the state or to local governments as a result of enforcing or 
administering the rule; and
			(D)  if applicable, that enforcing or 
administering the rule does not have foreseeable implications 
relating to cost or revenues of the state or local governments;
		(5)  a note about public benefits and costs showing the 
name and title of the officer or employee responsible for preparing 
or approving the note and stating for each year of the first five 
years that the rule will be in effect:
			(A)  the public benefits expected as a result of 
adoption of the proposed rule; and
			(B)  the probable economic cost to persons 
required to comply with the rule;
		(6)  the local employment impact statement prepared 
under Section 2001.022, if required;
		(7)  a request for comments on the proposed rule from 
any interested person; and
		(8)  any other statement required by law.                                     
	SECTION 3.  Section 2001.033, Government Code, is amended to 
read as follows:
	Sec. 2001.033.  STATE AGENCY ORDER ADOPTING RULE.  (a)  A 
state agency order finally adopting a rule must include:
		(1)  a reasoned justification for the rule as adopted 
consisting solely of: 
			(A)  a summary of comments received from parties 
and of any written comments received from members of the 
legislature interested in the rule that shows the names of 
interested groups or associations offering comment on the rule and 
of members of the legislature offering written comment on the rule 
and whether they were for or against its adoption;
			(B)  a summary of the factual basis for the rule as 
adopted which demonstrates a rational connection between the 
factual basis for the rule and the rule as adopted; and
			(C)  the reasons why the agency disagrees with 
party submissions and proposals and with any written comments or 
proposals offered by a member of the legislature;
		(2)  a concise restatement of the particular statutory 
provisions under which the rule is adopted and of how the agency 
interprets the provisions as authorizing or requiring the rule; and
		(3)  a certification that the rule, as adopted, has 
been reviewed by legal counsel and found to be:
			(A)  a valid exercise of the agency's legal 
authority; and   
			(B)  consistent with the intent of the legislature 
in enacting or otherwise affecting the law under which the rule is 
adopted, as described by Section 2001.032(a).
	(b)  Nothing in this section shall be construed to require 
additional analysis of alternatives not adopted by an agency beyond 
that required by Subsection (a)(1)(C) [Subdivision (1)(C)] or to 
require the reasoned justification to be stated separately from the 
statements required in Subsection (a)(1) [Subdivision (1)].
	SECTION 4.  The change in law made by this Act applies only 
in relation to:  
		(1)  a state agency rule for which notice of the rule as 
proposed is first published in the Texas Register under Sections 
2001.023 and 2001.024, Government Code, on or after October 1, 
2003; or
		(2)  an emergency rule adopted on or after September 
15, 2003.              
	SECTION 5.  This Act takes effect September 1, 2003.