(b) The board shall proceed as follows:

1. (1) Notice.

   1. (A) The board and/or director shall notify interested parties of the noncompliance.
   2. (B) This notice shall contain the name and address of the licensee whose bond has been collected and how to file a proper claim.
   3. (C) The notice may be served by certified mail and/or by publishing once a week for two (2) consecutive weeks in a newspaper that has a statewide circulation;

2. (2) Claims.

   1. (A) Claims must be filed within ninety (90) days following the notice date.
   2. (B) Claims must include the name and address of the claiming party, an itemized list of the amounts claimed, and any information or documentation required by the board; and

3. (3) Awards.

   1. (A)

(i) At the expiration of ninety (90) days, the board shall hold a hearing to determine the amount, if any, to be awarded on the claims.

1. (ii) Notice of the hearing shall be given to all who filed timely claims.

   1. (iii) At the hearing, the board:

(b) (b) Shall either approve or deny the claims.

1. (B) In the event that the bond is insufficient to pay all the approved claims, disbursement shall be made on a pro rata basis.

   1. (C) In the event that a bond surplus arises, the funds may be returned to the bonding company, at the discretion of the board.