The Texas Real Estate Commission (TREC) adopts amendments to §533.4 concerning Failure to Answer, Failure to Attend Hearing and Default; §533.7 concerning Proposals for Decision; and §533.8 concerning Final Orders, Motions for Rehearing, and Emergency Orders. Section 533.4 is adopted with changes to the proposed text as published in the September 7, 2012, issue of the Texas Register (37 TexReg 7041) and will be republished. Section 533.7 and §533.8 are adopted without changes and will not be republished.

The difference between §533.4(d) as adopted and as proposed is the deletion of the phrase "contained in the petition" because agency practice is such that factual allegations may be filed with SOAH using various document titles not just petitions.

The revision to §533.4 as adopted does not change the nature or scope so much that it could be deemed a different rule. The rule as adopted does not affect individuals other than those contemplated by the rule as proposed. The rule as adopted does not impose more onerous requirements than the proposed rule.

The amendments to §533.4 address situations in which a respondent fails to answer after receiving a notice of alleged violation or fails to attend a hearing. Failure to answer or attend a hearing will result in a default order against the respondent where findings of fact and conclusions of law set out in the notice of violation will be considered as admissions. If a case is dismissed from SOAH, the commission will be required to enter a default order against the respondent. If SOAH enters a default proposal for decision, the allegations filed with SOAH will be considered admissions.

The amendments to §533.7 clarify that while the commission welcomes SOAH judge recommendations regarding sanctions, the commission is responsible for imposing disciplinary action or assessing administrative penalties.

The amendments to §533.8 require the commission to explain why the commission did not follow the SOAH judge recommendations regarding disciplinary action or administrative penalties. Amendments to subsection (f) describe the requirements for filing a motion for rehearing. Amendments to subsection (g) address situations in which new evidence may be presented in a case.

The reasoned justification for the rules is consistency among sections in Chapter 533 and clarification of the commission's role in imposing disciplinary action and administration penalties.

No comments were received on the rules as proposed.

The amendments are adopted 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 to establish standards of conduct and ethics for its licensees to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The statutes affected by this adoption are Texas Occupations Code, Chapters 1101 and 1102. No other statute, code or article is affected by the amendments.