The Texas Real Estate Commission (TREC) proposes 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 filing 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; §533.6, concerning filing of exceptions and replies; §533.7, concerning proposals for decision; §533.8, concerning final order, 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 ADR procedures; §533.32, concerning appointment of a mediator; §533.33, concerning qualifications of mediators; §533.34, concerning commencement of ADR; §533.35, concerning stipulations; §533.36 concerning agreements; §533.37, concerning confidentiality and §533.40, concerning negotiated rulemaking.

The new rules were adopted on an emergency basis on August 6, 2007, and published in the August 24, 2007, issue of the Texas Register (32 TexReg 5235).

The new rules are necessary in order to comply with legislation enacted during the 80th Legislative Session which transferred the functions of TREC's administrative law judge to the State Office of Administrative Hearings and which provided for a negotiated rulemaking process. Senate Bill 914 and House Bill 1530, each of which became effective September 1, 2007, included revisions to Texas Occupations Code, Chapters 1101, 1102, and 1303.

Loretta R. DeHay, General Counsel, has determined that for each year of the first five years that the rules are in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the rules, nor is there any anticipated impact on local or state employment.

Ms. DeHay also has determined that for each year of the first five years the rules as proposed are in effect the public benefit anticipated as a result of the proposed rules will be the consistent, fair and efficient administration of contested cases hearings through objective and well defined procedures and conduct of the rulemaking process with ample provision for public participation by interested parties and those directly affected by rule proposals and that there is no probable economic cost to persons required to comply with the rules. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the rules.

Comments on the proposal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The new rules are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102, and §1303.05, which authorizes the Commission to adopt and enforce rules necessary to administer Chapter 1303.

The statutes affected by the new rules are Texas Occupations Code, Chapters 1101, 1102, and 1303. No other statute, code, or article is affected by the proposed new rules.