REVIEW BY DIVISION.

(a) The division shall conduct a thorough, independent review of each proposed rule submitted under Section 57.105 to determine:

(1) if the effect of the proposed rule on market competition is consistent with state policy as established by the applicable state agency's governing statute; and

(2) whether the proposed rule promotes a clearly articulated and affirmatively expressed policy as established by the legislature to displace competition with government action.

(b) In conducting the review, the division may:

(1) request information from the state agency;

(2) require the state agency to conduct an analysis of possible implications of the rule;

(3) solicit public comments; or

(4) hold public hearings.

(c) The division shall complete the review not later than the 90th day after the date the proposed rule is submitted under Section 57.105.

(d) After review, the division shall:

(1) approve the proposed rule; or

(2) reject the proposed rule and return the rule to the state agency with instructions for revising the rule to be consistent with applicable state policy.

(e) A state agency may not finally adopt or implement a proposed rule required to be submitted for review under this subchapter unless the division has approved the rule under this section.

(f) The division shall, for each proposed rule submitted under this subchapter, provide to the state agency and make available to the public an explanation of the division's reasons for approving or rejecting the rule, including a discussion of the division's determination regarding the consistency of the rule with applicable state policy.

(g) The division may initiate a review of a proposed rule that was not submitted for review under this subchapter if the division has reason to believe that the proposed rule may have an anticompetitive market effect. A state agency may not finally adopt or implement a proposed rule for which the division has initiated a review under this subsection unless the division approves the rule in accordance with this section.

(h) When conducting a review of a proposed rule or deciding whether to initiate a review, the division shall only consider evidence or communications that are:

(1) submitted to the division in writing from an identified person or entity and made available to the public;

(2) submitted in a public hearing; or

(3) generally known to the public.