The Texas Real Estate Commission proposes amendments to §533.1, concerning Definitions; §533.2, concerning Purpose and Scope; §533.3, concerning Filing and Notice; §533.4, concerning Failure to Answer, Failure to Attend 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 Orders, Motions for Rehearing, and Emergency Orders; §533.33, concerning Qualifications of Mediators; §533.35, concerning Stipulations; §533.36, concerning Agreements; and §533.40, concerning Negotiated Rulemaking. TREC proposes the repeal of §533.20, concerning Informal Proceedings; §533.30, concerning Alternative Dispute Resolution Policy; §533.31, concerning Referral of Contested Matter for Alternative Dispute Resolution Procedures; §533.34, concerning Commencement of ADR. TREC also proposes new §533.20, concerning ADR Policy; §533.21, concerning Negotiated Settlement; §533.25, concerning Informal Proceedings; and §533.30, concerning Staff Mediation.

The proposed amendment to §533.1 clarifies terminology, corrects a grammatical error, and removes unnecessary definitions.

The proposed amendment to §533.2 restates the purpose and scope of the section more succinctly into one subsection and deletes the discussion regarding State Office of Administrative Hearings (SOAH) jurisdiction, which was edited and moved to §533.3(f).

The proposed amendment to §533.3 moves a reworded §533.4(b) to §533.3(a) as a more logical location for that provision; reorganizes and edits the rest of the section to better reflect current procedures; notes in general where the Administrative Procedures Act and SOAH's procedural rules are applicable; and clarifies and simplifies the rule for greater understanding.

The proposed amendment to §533.4 provides clarity and consistency by restructuring, renumbering, streamlining wording, and correcting terminology. Subsection (b) was moved to §533.3(a) as a more logical location for that provision.

The proposed amendment to §533.5 retitles the section for better clarity; modifies subsection (a) to more closely track SOAH's rule 1 TAC §155.407 and provides for shared costs when an administrative law judge requires a transcript; corrects grammar; and streamlines wording to better clarity.

The proposed amendment to §533.6 clarifies where an exception or reply is filed and the text is amended for consistency of terminology.

The proposed amendments to §533.7 and §533.8 retitle, restructure, modify and expand these sections to better reflect current TREC procedures and provide greater clarity. Section 533.8(a), (b), (c), and (k) were moved to §533.7 and rewritten.

The proposed amendments to Subchapter C, concerning Alternative Dispute Resolution, retitle, restructure, renumber, modify and expand §533.20 and §§533.30 - 533.37 to better reflect current TREC procedures and provide greater clarity.

The proposed amendment to §533.40 corrects terminology and rule citations.

Kerri Lewis, General Counsel, has determined that for the first five-year period the proposal is in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the amended and new sections. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the amended and new sections. There is no anticipated economic cost to persons who are required to comply with the proposal.

Ms. Lewis also has determined that for each year of the first five years the proposal is in effect, the public benefit anticipated as a result of enforcing the amended and new sections will be better understanding of practice and procedure provisions for contested cases and consistency of terminology throughout TREC rules.

Comments on the proposal may be submitted to Kerri Lewis, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188 or via email to general.counsel@trec.texas.gov. The deadline for comments is 30 days after publication in the Texas Register.

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

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