1. (a) If the respondent fails to file a response to the notice or the response fails to comply with the requirements in §349.330, the matter will be considered as a default case.

2. (b) In a case of default, the respondent will be deemed to have:

   1. (1) admitted the factual allegations in the notice that respondent did not deny;
   2. (2) waived the opportunity to show compliance with the law;
   3. (3) waived the opportunity for a hearing on the matter; and
   4. (4) waived objection to the certification action recommended in the notice.
3. (c) The executive director may recommend that the Board enter a default order based upon the allegations set out in the notice provided in §349.320 of this chapter and impose the certification action recommended in that notice.

4. (d) Upon consideration of the case, the Board may:

   1. (1) enter a default order and impose the recommended certification action;
   2. (2) enter a default order and impose a certification action that is less than what was recommended;
   3. (3) refuse to enter a default order and instruct staff to reissue the notice with different allegations and/or different recommended certification action;
   4. (4) instruct staff to dismiss the matter and close the file with no certification action; or
   5. (5) order the matter set for hearing before SOAH.
5. (e) A motion for rehearing that requests the Board vacate its default order under this section shall be granted if the respondent proves by a preponderance of the evidence that the failure to answer the formal charges was not intentional or the result of conscious indifference but instead was due to accident or mistake, provided that the respondent has a meritorious defense to the factual allegations contained in the formal charges and the granting thereof will not cause delay or otherwise create a hardship for the Board.

Source Note:The provisions of this §349.340 adopted to be effective September 1, 2025, 50 TexReg 2616.