The Texas Real Estate Commission (TREC) adopts on an emergency basis new rules to Chapter 533 concerning Practice and Procedure. The new rules are as follows: §533.1 concerning definitions of terms found in the chapter; §533.2 concerning the purpose and scope of the chapter; §533.3 concerning filling and notice procedures in a contested case; §533.4 concerning failure to answer, failure to attend a hearing and default; §533.5 concerning the adjudicative hearing record; §533.36 concerning filing of exceptions and replies; §533.7 concerning proposals for decisions; §533.8 concerning final orders, motions for rehearing, and emergency orders; §533.20 concerning informal proceedings; §533.30 concerning alternative dispute resolution (ADR) policy; §533.31 concerning referral of contested matters for alternative dispute resolution procedures; §533.32 concerning appointment of a mediator; §533.33 concerning qualifications of mediators; §533.34 concerning commencement of alternative dispute resolution; §533.35 concerning stipulations; §533.36 concerning agreements; §533.37 concerning confidentiality and §533.40 concerning negotiated rulemaking.

The new rules are adopted on an emergency basis to comply with new legislation that transfers the functions of TREC's administrative law judge to the State Office of Administrative Hearings and provides for a negotiated rulemaking process. The legislation included revisions to Texas Occupations Code Chapters 1101 and 1102 enacted during the 80th Legislative Session, Regular Session, by Senate Bill 914 and House Bill 1530. The effective date of SB 914 and HB 1530 is September 1, 2007. The adoption of the new rules permits TREC to comply with the effective date required by both bills.

The emergency rules are adopted under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of the Act to insure compliance with the provisions of the Act.

The statutes affected by this emergency adoption are Texas Occupations Code, Chapters 1101 and 1102, and Senate Bill 914, and House Bill 1530, 80th Legislature, R.S. No other statute, code or article is affected by the adopted amendments.