The Texas Real Estate Commission (TREC) adopts amendments to §533.1, concerning Definitions; §533.2, concerning Purpose and Scope; §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; 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; and new §533.20, concerning ADR Policy; §533.21, concerning Negotiated Settlement; §533.25, concerning Informal Proceedings; and §533.30, concerning Staff Mediation. The amendments, repeal, and new sections are adopted without changes to the proposal as published in the March 7, 2014, issue of the Texas Register (39 TexReg 1628). Substantive changes were made to the proposed amendments to §533.3, concerning Filing and Notice, and §533.4, concerning Failure to Answer, Failure to Attend Hearing and Default, and those sections are reproposed by the Commission in this issue of the Texas Register.

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

The 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 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 for better clarity.

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

The 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 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 amendment to §533.40 corrects terminology and rule citations.

The reasoned justification for the amendments, repeal, and new sections is to have a better understanding of practice and procedure provisions for contested cases and consistency of terminology throughout TREC's rules.

No comments were received from the public on the proposal.

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 those chapters.

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