1. (a) If a respondent fails to respond to a complaint by the deadline set by Section 571.1242 or fails to appear for a formal hearing, the commission may, upon notice and hearing, proceed on a default basis.

2. (b) A default proceeding under this section requires adequate proof of the following:

   1. (1) the notice of hearing to the respondent stated that the allegations listed in the notice could be deemed admitted and that the relief sought in the notice of hearing might be granted by default against the party that fails to appear at the hearing;
   2. (2) the notice of hearing satisfies the requirements of sections 2001.051 and 2001.052 of the Government Code; and

   3. (3) the notice of hearing was:

      1. (A) received by the defaulting party; or
      2. (B) sent by regular mail or by certified mail, restricted delivery, return receipt requested, to the party's last known address as shown by the commission's records.
3. (c) In the absence of adequate proof to support a default, the presiding officer shall continue the hearing and direct commission staff to provide adequate notice of hearing. If adequate notice is unable to be provided, the commission may dismiss the complaint.
4. (d) Upon receiving the required showing of proof to support a default, the commission may by vote deem admitted the allegations in the notice of hearing and issue a default decision.

5. (e) A respondent may file a motion to set aside a default decision under this section.

   1. (1) A motion to set aside a default decision under this section shall set forth the grounds for reinstatement or rehearing and must be supported by affidavit of the movant or their attorney that:

      1. (A) the respondent had no notice of the hearing;
      2. (B) the respondent had no notice of the consequences for failure to appear; or
      3. (C) although the respondent had notice, its failure to appear was not intentional or the result of conscious indifference, but due to reasonable mistake or accident that can be supported by adequate proof; and
      4. (D) a statement of whether the motion is opposed.
   2. (2) Whether or not the motion is opposed, the presiding officer may rule on the motion without setting a hearing or may set a hearing to consider the motion. If the presiding officer finds good cause for the respondent's failure to appear or file a response to a complaint, the presiding officer shall vacate the default and reset the case for a hearing. The presiding officer may also present the motion to set aside the default decision for a vote of the commission at the next meeting of the commission after the motion was filed. A motion to set aside a default decision is denied by operation of law if not ruled on by the presiding officer or by vote of the commission at the next regular meeting of the commission after the motion was filed.
   3. (3) A motion to set aside a default decision must be filed not later than the 14th day after the respondent received the default decision.

   4. (4) A default decision is final:

      1. (A) if a motion to set aside the default decision is not filed on time, on the expiration of the period for filing a motion to set aside the default decision;
      2. (B) if a motion to set aside the default decision is timely filed, on the date the commission denies the motion.

Source Note:The provisions of this §12.93 adopted to be effective October 27, 2024, 49 TexReg 8574; amended to be effective July 3, 2025, 50 TexReg 3733.