By:  Christian, Miller, Homer, Eissler, Isett,                    H.B. No. 426
 
    et al.                                                                   


A BILL TO BE ENTITLED

AN ACT

relating to the adoption of state agency rules that impose certain 
costs on local governments or persons.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 2001, Government Code, is 
amended by adding Section 2001.041 to read as follows:
	Sec. 2001.041.  RULES IMPOSING COSTS ON LOCAL GOVERNMENTS OR 
PERSONS.  (a) Except as provided by this section, a state agency may 
not adopt a rule for which notice given under Sections 2001.023 and 
2001.024 includes:
		(1)  a fiscal note estimating additional costs to local 
governments as a result of enforcing or administering the rule; or
		(2)  a note stating probable economic costs to persons 
required to comply with the rule.
	(b)  A state agency may adopt a rule for which the notice 
estimating the costs described by Subsection (a) is given if:
		(1)  the legislature by law expressly authorizes the 
adoption of the rule with those costs; or
		(2)  adoption of the rule is required for compliance 
with a federal law or regulation and the state agency adopting the 
rule is authorized to interpret the meaning of the applicable 
federal law or regulation and to implement the federal law or 
regulation.
	(c)  A state agency adopting a rule as authorized by 
Subsection (b)(2) may only adopt a rule that meets, but does not 
exceed, the federal requirements.
	(d)  A state agency order finally adopting a rule for which 
notice of the costs described by Subsection (a) is given must 
include a reference to the law  or regulation authorizing the 
adoption of the rule with those costs.
	(e)  For the purposes of this section, the term "adoption of 
a rule" includes the adoption of a revision of a rule.
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies only to a rule or a revision of a rule that is proposed by a 
state agency and for which notice is given under Section 2001.023, 
Government Code, on or after December 1, 2003.