Current through Register Vol. 30, No. 38, September 20, 2024
A. A parent may
appeal to the Board any administrative decision the Department makes pursuant
to A.R.S. Title 15, Chapter 19, Article 1, including determinations of
allowable expenses, removal from the Program or enrollment
eligibility.
B. Stay
1. Pending the resolution of an appeal during
which an account is suspended, a parent may request a stay on the account
suspension.
a. Included in the request for a
hearing filed pursuant to
R7-2-1511(F), a
parent may file a request to the Board to stay an account suspension. Such
request shall be in writing and shall address the matters stated in the
Department's notice in
R7-2-1511(E).
b. The Department may file a response to the
parent's request to stay the suspension of the account. Such response shall be
filed with the Board within five business days of receipt of the parent's
request to stay the suspension. Such response shall be in writing and shall
address the matters stated in the parent's request.
c. Within 10 business days after receipt of
the Department's response, the executive director of the Board or the executive
director's designee shall make a written determination to either:
i. Proceed with suspension of the account,
or
ii. Stay all or part of the
suspension of the account if there is a reasonable probability that the appeal
will be upheld or that the stay is in the best interest of the State. If a stay
is issued, the Department may not withhold funding or contract renewal for the
account holder on account of the appealed administrative decision during the
stay unless directed by the Board to do so.
d. The executive director or the executive
director's designee shall provide the parent and the Department with a written
copy of the stay determination including the basis for the
determination.
C. Notwithstanding any other Section, the
Department may, with the agreement of the account holder on the resolution,
informally resolve a disputed administrative action at any time without a
formal appeal pursuant to this Article.
D. The Department, on its website and in the
parent handbook, shall provide information on the Board's appeals
process.
E. The Department shall
provide parents with written notice of an appealable action taken by the
Department. Such written notice shall inform the parents of his/her right to
request a hearing on the action and shall include the following:
1. The statute or rule that is alleged to
have been violated or on which the action is based;
2. Identify, with reasonable particularity,
the nature of any alleged violation or action;
3. Include a description of the parent's
right to request a hearing on the appealable agency action; and
4. Include a description of the parent's
right to request an informal settlement conference.
F. Within 30 days after being served with
notice of an appealable action, a parent may file a request for a hearing. The
notice must be in writing and shall state the following:
1. The identity of the party requesting the
hearing,
2. The mailing address of
the party requesting the hearing,
3. The agency that rendered the decision
related to the appealable action,
4. Identification of the action being
appealed,
5. A concise statement of
the reasons for the request for hearing,
6. A copy of the administrative decision
issued by the Department, and
7.
Any other information or documentation requested by the Board applicable to the
appeal process.
G. If
good cause is submitted, the Board may accept a request for a hearing that is
not filed in a timely manner. Such request must be made in writing and state
the basis for not filing the request on time.
H. If a parent requests a hearing pursuant to
R7-2-1511(F) and includes all of the items listed in
R7-2-1511(F)(1) through
(7), the Board shall schedule a
hearing.
I. The Board shall provide
all parties with a written notice at least 20 days prior to the date set for
the hearing. The notice shall include:
1. A
statement of the time, place and nature of the hearing;
2. A statement of the legal authority and
jurisdiction under which the hearing is to be held;
3. A reference to the particular sections of
the statutes and rules involved; and
4. A short and plain statement of the matters
asserted. If a party is unable to state the matters in detail at the time the
notice is served, the initial notice may be limited to a statement of the
issues involved. Thereafter upon application a more definite and detailed
statement shall be furnished.
J. All notices shall be served via personal
delivery or certified mail, return receipt requested or by any other method
reasonably calculated to effect actual notice on the agency and all parties to
the action at each party's last address of record.
K. A hearing on the appealable action shall
be held after a complete appeal is filed and may be advanced or delayed on the
agreement of the parties or on a showing of good cause.
L. Informal Settlement Conference
1. A parent may request an informal
settlement conference be held with the Department. The request shall be in
writing and shall be filed with the Department, and a copy provided to the
Board, no later than 10 days after the Board provides notice that the appeal is
complete. The Department shall hold an informal settlement conference within
seven days after receiving the request. The Department shall notify the Board
of the result of the informal settlement conference within five days of the
conclusion of the informal settlement conference or prior to the hearing date,
whichever is first. The request for an informal settlement conference does not
alter the date the hearing is to be held.
2. If an informal settlement conference is
held, a person with the authority to act on behalf of the Department must
represent the Department at the conference. The Department representative shall
notify the parent in writing that statements, either written or oral, made at
the conference, including a written document, created or expressed solely for
the purpose of settlement negotiations are inadmissible in any subsequent
administrative hearing.
M. Informal disposition may be made by
stipulation, agreed settlement, consent order or default.
N. Hearing Process
1. All hearings shall be conducted before a
hearing officer pursuant to this Section.
2. The parties to the appealable agency
action have the right to be represented by legal counsel or to proceed without
counsel, to submit evidence and to cross-examine witnesses.
a. Pursuant to A.R.S. §
15-2403(E), a
parent may designate a representative, not necessarily an attorney, before any
hearing held pursuant to this Section. Any designated representative who is not
an attorney admitted to practice may not charge for any services rendered in
connection with such a hearing.
b.
The fact that a representative participated in the hearing or assisted the
account holder is not grounds for reversing any administrative decision or
order if the evidence supporting the decision or order is substantial, reliable
and probative.
3. The
Board shall schedule a prehearing conference on request of any party. A
prehearing conference may be held for the following purposes:
a. Clarify or limit procedural, legal or
factual issues;
b. Consider
amendments to any pleading;
c.
Identify and exchange lists of witnesses and exhibits intended to be introduced
at the hearing;
d. Obtain
stipulations or rulings regarding testimony, exhibits, facts or law;
e. Schedule deadlines, hearing dates and
locations if not previously set; or
f. Allow the parties opportunity to discuss
settlement.
4. The record
in a contested case shall include:
a. All
pleadings, motions and interlocutory rulings.
b. Evidence received or considered.
c. A statement of matters officially
noticed.
d. Objections and offers
of proof and rulings thereon.
e.
Proposed findings of fact and conclusions of law and exceptions
thereto.
f. Any decision, opinion,
recommendation or report of the hearing officer.
g. All staff memoranda, other than privileged
communications, or data submitted to the hearing officer in connection with its
consideration of the case.
5. Findings of fact shall be based
exclusively on the evidence and on matters officially noticed.
6. A participant of record shall not
communicate, either directly or indirectly, with the Hearing Officer about any
substantive issue in a pending matter unless:
a. All participants of record are
present;
b. Communication is during
a scheduled proceeding, where an absent participant of record fails to appeal
after proper notice; or
c.
Communication is by written motion with copies to all participants of
record.
7. The Hearing
Officer may postpone, continue, or cancel a hearing for good cause upon the
written request of either party. The participant of record must establish good
cause for the written request.
8.
For good cause shown, the hearing officer may grant continuances and extensions
of time for filing notices or other documents.
9. The Hearing Officer may direct a party to
submit additional memorandum or information within a reasonable period of time.
The Hearing Officer shall grant the opposing party a reasonable period of time
to respond to the additional memorandum or information.
10. Upon written request, any party may
request an opportunity to compare a document copy with the original. The
Hearing Officer may grant the request if the record establishes good
cause.
O. Conduct of
Hearing
1. All hearings shall be recorded. The
Board shall secure either a court reporter or an electronic means of producing
a clear and accurate record of the proceeding.
2. A hearing may be conducted in an informal
manner and without adherence to the rules of evidence required in judicial
proceedings. Neither the manner of conducting the hearing nor the failure to
adhere to the rules of evidence required in judicial proceedings shall be
grounds for reversing any administrative decision or order if the evidence
supporting the decision or order is substantial, reliable and
probative.
3. The parties may
submit proposed findings of fact and conclusions of law prior to the hearing.
The hearing officer may require that the parties submit proposed findings of
fact and conclusions of law prior to the hearing or at the close of
evidence.
4. All interested parties
shall be ready and present with all witnesses and documents at the time and
place specified in the notice of hearing and shall be prepared at such time to
dispose of all issues and questions involved in the appeal. An interested party
shall arrange for the presence of that party's witnesses at a
hearing.
5. If a party fails to
appear at a hearing, the hearing body may proceed with the presentation of the
evidence of the appearing party.
6.
The Hearing Officer conducting the hearing may close the hearing to other than
interested parties to the extent necessary to protect the interests and rights
of the interested parties, within the requirements of A.R.S. §§
38-431.01, and
38-431.03.
7. The Hearing Officer may conduct all or
part of the hearing by telephone other electronic means, as long as each party
has an opportunity to participate in the entire proceeding as it takes
place.
8. Conduct at any hearing
that is disruptive or shows contempt for the proceeding shall be grounds for
exclusion from further participation.
P. Evidence
1. All witnesses shall testify under oath or
affirmation. The hearing officer shall administer oaths and
affirmations.
2. The hearing
officer shall afford interested parties an opportunity either to present oral
or documentary evidence, or both, and to conduct such cross-examination as may
be required for a full and fair disclosure of the facts. The hearing officer
may limit the time of oral argument.
3. The hearing officer may choose to admit
evidence, a witness' deposition, or a witness' affidavit and determine
evidentiary weight of all submitted evidence. The party taking a witness'
deposition or affidavit shall bear all deposition-related or affidavit-related
costs. The hearing officer shall make rulings necessary to prevent
argumentative, repetitive, or irrelevant questioning, to exclude evidence the
hearing officer determines to be irrelevant, immaterial or unduly repetitious,
and to expedite the examination to the extent consistent with the disclosure of
all relevant testimony and information.
Q. Stipulations. Parties to any contested
case may stipulate, in writing, agreement upon any matter involved in the
proceeding. If approved by the hearing officer, agreement on matters of
procedure shall be binding upon the parties to the stipulation. No substantive
matter agreed to by the parties shall be binding upon the Board unless
incorporated into the decision of the Board.
R. Final Administrative Decision
1. The hearing officer shall issue a written
recommendation within 20 days after the hearing is concluded. The written
recommendation shall contain a concise explanation of the reasons supporting
the recommendation, including the findings of fact and conclusions of
law.
2. The hearing officer shall
serve a copy of the recommendation on the Board. On request of the Board, the
hearing officer shall also transmit to the Board the record of the hearing as
described in A.R.S. §
12-904.
3. At one of the following two regularly
scheduled meetings of the Board after the hearing officer sends a copy of the
recommendation to the Board, the Board may review the recommendation and
accept, reject or modify it.
a. If the Board
declines to review the hearing officer's recommendation, the Board shall serve
a copy of the recommendation on all parties.
b. If the Board rejects or modifies the
recommendation, the Board shall serve on all parties, a copy of the hearing
officer's recommendation with the rejection or modification and a written
justification setting forth the reasons for the rejection or modification of
each finding of fact or conclusion of law.
4. The Board shall provide all parties with
at least 20 days written notice of the date, time and location of the public
meeting at which the Board will consider the hearing officer's
recommendation.
S.
Rehearing and review of decisions
1. A party
may file a motion for rehearing or review within 10 days after service of the
final administrative decision. The motion shall be in writing and state the
basis upon which the rehearing or review is requested. The motion shall be
filed with the Board and a copy provided to the opposing party. When a motion
of rehearing is based on new evidence, the new evidence shall be served to the
Board with the written motion.
2.
The opposing party may file a response to the motion for rehearing within 15
days after the date the motion for rehearing is filed. The response shall be in
writing and address the basis upon which the rehearing or review is requested.
The motion shall be filed with the Board and a copy provide to the moving
party.
3. A rehearing of a final
administrative decision by the Board may be granted for any of the following
causes materially affecting the moving party's rights:
a. Except as provided for in
R7-2-1511(O)(2),
irregularity in the administrative proceedings of the hearing, or abuse of
discretion, whereby the moving party was deprived of a fair hearing;
b. Misconduct of the hearing officer;
or
c. Newly discovered materials
which could not with reasonable diligence have been discovered and produced at
the hearing.
4. The filed
motion shall be considered at one of the following two regularly scheduled
meetings of the Board.
5. Service is complete
on personal service or five days after the date the final administrative
decision is mailed to the party's last known address.
6.
After a hearing has been held and a final administrative decision has been
entered a party is not required to file a motion for rehearing or review of the
decision in order to exhaust the party's administrative remedies.