(b) Definitions. As used in this section:

1. (1) "Act" means the Randolph-Sheppard Act Amendments of 1974, Title II of Pub. L. No. 93-516;
2. (2) "Party" or "parties" means one (1) or both, as the context indicates, of the complainant blind vendor and the Division of State Services for the Blind;
3. (3) "Regulations" means the regulations at 34 C.F.R. § 395.1 et seq.; and
4. (4) "Secretary" means the United States Secretary of Education.

(c) Communications.

1. (1) All communications, including originals and copies of required notices, pleadings, motions, petitions, and briefs, in connection with and related to the arbitration, between the parties, between a party and the Secretary of the Department of Education, between a party and the arbitration panel, between the parties or the arbitration panel and the arbitration clerk or the Division for the Blind and Visually Impaired of the Rehabilitation Services Administration of the United States Department of Education, shall be in writing transmitted by registered or certified mail, return receipt requested.

2. (2)

   1. (A) A copy of the complaint shall be sent by the blind vendor to the Division of State Services for the Blind.
   2. (B) Thereafter, all communications and sufficient copies thereof will be transmitted to the arbitration clerk in the Division for the Blind and Visually Impaired who will:

(i) Maintain the official docket of the arbitration proceeding; and

1. (ii) Transmit promptly the original or the copies to the parties and the arbitration panel, as may be appropriate, and, as may be necessary, to the Division for the Blind and Visually Impaired.

   1. (d) Complaint by blind vendor.
2. (1) If a blind vendor, after he or she has been provided a full evidentiary hearing by the Division of State Services for the Blind as provided in Section 5(a) of the Randolph-Sheppard Act and 34 C.F.R. § 395.6(e) and § 395.13(a), is dissatisfied with any action taken or decision rendered as a result of such hearing, he or she may file a written complaint with the United States Secretary of Education.

3. (2) The complaint shall set forth:

   1. (A) The action or actions arising from the operation or administration of the Vending Facility Program by the Division of State Services for the Blind that constituted the basis for the request by the blind vendor for a full evidentiary hearing;
   2. (B) The date and place of the full evidentiary hearing;
   3. (C) The decision rendered as a result of the hearing;
   4. (D) Any action taken as a result of the hearing;
   5. (E) The specific part or parts of the decision rendered as a result of the hearing with which the blind vendor is dissatisfied and the reasons for such dissatisfaction;
   6. (F) The specific action or actions taken as a result of the hearing with which the blind vendor is dissatisfied and the reasons for such dissatisfaction; and
   7. (G) A statement of the relief that the blind vendor is seeking to obtain from the Division of State Services for the Blind.
4. (3) Any written decision rendered as a result of the full evidentiary hearing shall be attached to the complaint as an exhibit.

(e) Arbitration clerk.

1. (1) Upon receipt of the complaint by the United States Secretary of Education, it will be forwarded promptly to the designated arbitration clerk in the Division for the Blind and Visually Impaired.
2. (2) Within seven (7) days of receipt by the arbitration clerk, the complaint will be docketed and its receipt acknowledged to the blind vendor and the Division of State Services for the Blind.

(f) Review and disposition of complaint.

1. (1) After the complaint has been docketed, it will be reviewed by the Division for the Blind and Visually Impaired.

2. (2) No later than thirty (30) days after acknowledgment of the complaint, the parties will be notified of the results of the review as follows:

   1. (A) If the complaint alleges sufficient relevant and material facts that, if proved, would entitle the blind vendor to any of the relief sought and if any of the relief sought is within the authority of the arbitration panel to grant, the parties will be notified that an ad hoc arbitration panel will be convened;

   2. (B) If the complaint fails to allege sufficient relevant and material facts that, if proved, would entitle the blind vendor to any of the relief sought or if none of the relief sought is within the authority of the arbitration panel to grant, the blind vendor will:

      1. (i) Be so notified in writing together with a statement of the reasons therefor; and
      2. (ii) Be given an opportunity to amend the complaint within fifteen (15) days from the date of the notice;
   3. (C) If the blind vendor does not file a timely amendment to the complaint, the parties will be notified in writing that the complaint is dismissed;

   4. (D)

      1. (i) If the blind vendor files a timely amendment to the complaint, the parties will be notified of the sufficiency of the amended complaint expeditiously (normally not to exceed fifteen (15) days) after receipt of the amendment.
      2. (ii) If it is determined that the amended complaint alleges sufficient relevant and material facts and that any of the relief sought is within the authority of the arbitration panel to grant, the notice will inform the parties that an ad hoc arbitration panel will be convened.
      3. (iii) If it is determined that the amended complaint fails to allege sufficient relevant and material facts or that none of the relief sought is within the power of the arbitration panel to grant, the notice will inform the parties that the complaint is dismissed;
   5. (E) If the complaint does not allege facts that indicate dissatisfaction with all or part of the decision rendered as a result of a full evidentiary hearing, the notice will inform the parties that the complaint is dismissed;

   6. (F) If it is determined that the complaint is specious or that it has been filed solely for the purpose of harassment, the notice will:

      1. (i) Inform the parties that the complaint is dismissed; and
      2. (ii) Contain a statement of the reasons for the conclusion reached and the action taken;

   7. (G)

      1. (i) If for the purpose of any decision under this section the Division for the Blind and Visually Impaired deems it necessary to obtain information in addition to that at hand, such information will be requested through the arbitration clerk from the parties.
      2. (ii) The request will state a reasonable period for the furnishing of the information, and the determination will be made no later than fifteen (15) days after its receipt; and
   8. (H) If the complaint is dismissed for any of the reasons set forth in subdivision (f)(2)(C) of this section, subdivision (f)(2)(E) of this section, or subdivision (f)(2)(F) of this section, such dismissal shall constitute a final agency action.

(g) Designation of arbitration panel.

1. (1)

   1. (A) Within fifteen (15) days from the date of the notice informing the parties that an arbitration panel will be convened, each party shall designate one (1) panel member and promptly notify the arbitration clerk of the designation, including the name and address of the designee.
   2. (B) Within thirty (30) days from the date of the notice, the two (2) panel members designated by the parties or by the United States Secretary of Education under subdivision (g)(2) of this section shall designate as the third member of the panel a person who is not an employee of the Division of State Services for the Blind, Arkansas Rehabilitation Services, or the Department of Human Services shall serve as panel chairperson.
2. (2) If the United States Secretary of Education, through the arbitration clerk, is not notified promptly by the parties of the timely designation of the panel members, and by the panel chairperson of his or her timely designation as such by the panel members, the United States Secretary of Education will make such designation or designations on behalf of the parties or the first two (2) panel designees.

(h) Answer to complaint.

1. (1) Within thirty (30) days from the date of the notice informing the parties that an arbitration panel will be convened, the Division of State Services for the Blind may file an answer to the complaint with the arbitration clerk.
2. (2) Failure to file an answer will not be deemed an admission of the allegations in the complaint, nor result in the default of the Division of State Services for the Blind.

3. (3) The issues for arbitration and the positions of the parties thereon may be identified at the prearbitration conference.

   1. (i) Notice of arbitration and prearbitration conference.

4. (1)

   1. (A) The arbitration panel, after consulting with the parties, shall schedule a reasonable date, time, and place for the arbitration, which shall not be later than forty-five (45) days after the designation of the panel chairperson.
   2. (B) The panel chairperson shall notify the parties and the arbitration clerk of the date, time, and place of the arbitration at least thirty (30) days prior to the time scheduled.

5. (2)

   1. (A) The arbitration panel shall schedule a prearbitration conference with the parties to settle or simplify the issues between the parties and to encourage them to resolve the issues in whole or in part.
   2. (B) If the panel so requires, stipulations or proposed exhibits shall be exchanged at the prearbitration conference or otherwise prior to the arbitration.
   3. (C) The panel chairperson shall give the parties and the arbitration clerk reasonable notice of the date, time, and place of the prearbitration conference.

(j) Conduct of the arbitration.

1. (1) The panel chairperson shall preside over the arbitration.

2. (2) The arbitration panel shall be responsible for the order, conduct, and decorum of the proceeding and shall have the authority to take all appropriate steps necessary to ensure an orderly, expeditious, and fair arbitration, including, but not limited to, the following:

   1. (A) To change the date, time, and place of the arbitration upon due notice to the parties and the arbitration clerk, including the authority to continue the proceeding in whole or in part;
   2. (B) To consider matters that may aid in the expeditious disposition of the arbitration;
   3. (C) To regulate participation of the parties and require them to state their position with respect to the issues in the arbitration;
   4. (D) To administer oaths and affirmations;
   5. (E) To rule on motions and other procedural items;
   6. (F) To regulate the course of the arbitration and conduct of counsel therein;
   7. (G) To examine witnesses;
   8. (H) To receive, rule on, exclude, or limit evidence;
   9. (I) To fix the time for filing motions, petitions, briefs, or other items in matters pending before it; and
   10. (J) To make a final agency decision for purposes of Chapter 7 of Title V, United States Code.

3. (3) The arbitration panel does not have the authority to compel by subpoena the production of:

   1. (A) Witnesses;
   2. (B) Papers; or
   3. (C) Other evidence.

(k) Rights of parties. The parties may:

1. (1) Appear by counsel or other authorized representatives in all arbitration proceedings;
2. (2) Agree to stipulations as to facts that will be made a part of the record;
3. (3) Make brief opening statements at the arbitration, which shall be limited to describing the party's position and what it intends to prove;
4. (4) Present relevant and material evidence on the issues in the arbitration;
5. (5) Present witnesses who will testify under oath or affirmation and who then must be available for cross-examination by the other party;
6. (6) Present oral arguments at the arbitration; and

7. (7) Submit written briefs, proposed findings of fact, and proposed conclusions of law after the close of the presentation of evidence in the arbitration.

   1. (l) Rules of evidence.
8. (1) Technical rules of evidence shall not apply to the arbitration, but rules or principles designed to ensure production of the most credible evidence available and to subject testimony to test by cross-examination shall be applied by the panel chairperson.
9. (2) A witness may be cross-examined on any matter material to the proceeding without regard to the scope of his or her direct examination.
10. (3) The panel chairperson may exclude irrelevant, immaterial, or unduly repetitious evidence.

11. (4) All documents and other evidence offered or taken for the record shall be open to examination by the parties, and opportunity shall be given to refute facts and arguments advanced on either side of the issues.

    1. (m) Depositions.
12. (1) If the panel chairperson determines that the interest of justice would be served, he or she may authorize the taking of depositions only if all parties are afforded an opportunity to participate in the taking of the depositions.
13. (2) If the Division of State Services for the Blind requested the deposition, it shall arrange at its expense for a transcript of the deposition and shall, upon request of the blind vendor, furnish such party with a copy of the transcript.
14. (3) If the blind vendor requested the deposition, the arbitration clerk will arrange for the services of the reporter and for paying for such services, including the costs of the transcript and necessary copies.

(n) Unsponsored written material.

1. (1) Letters expressing views or urging action and other unsponsored written material regarding matters in issue in a hearing will be placed in the correspondence section of the docket of the arbitration.
2. (2) These data are not deemed part of the evidence or record in the arbitration.

(o) Official transcript and record.

1. (1)

   1. (A) The arbitration clerk will designate the official reporter for all arbitration proceedings, including the taking of depositions at the request of the blind vendor pursuant to subsection (m) of this section.
   2. (B) Copies of transcripts may be obtained by the Division of State Services for the Blind and the public at rates not to exceed the maximum rates fixed by the contract between the arbitration clerk and the reporter.
   3. (C) The blind vendor may obtain through the arbitration clerk a copy of the transcript to be charged as a cost of the arbitration pursuant to subsection (q) of this section.
   4. (D) Upon notice to the parties, the panel chairperson may authorize corrections to the transcript that involve matters of substance.

2. (2)

   1. (A) The transcripts of testimony, including transcripts of depositions introduced as evidence, and any pleadings, motions, stipulations, exhibits, briefs, and rulings by the panel:

      1. (i) Shall be filed with the arbitration clerk; and
      2. (ii) Except for the correspondence section of the docket, shall constitute the exclusive record for decision.
   2. (B) If, however, a panel ruling or decision rests on official notice of a material fact not appearing in evidence in the record, the parties are entitled, on timely request, to an opportunity to show the contrary.

(p) Arbitration briefs and decision.

1. (1)

   1. (A) The panel chairperson shall fix the time for filing briefs by the parties following the conclusion of the taking of evidence in the arbitration proceeding, and, if permitted, reply briefs.
   2. (B) The briefs may contain proposed findings of fact and conclusions of law.
2. (2) The arbitration panel shall render its decision within thirty (30) days after the expiration of the time for filing briefs as fixed pursuant to subdivision (p)(1) of this section.

3. (3)

   1. (A) The decision of the arbitration panel shall be in writing and contain a statement of the rationale, including findings of fact and conclusions of law, upon which it is based.
   2. (B) It shall be filed promptly with the arbitration clerk, who shall serve it promptly on the parties.
4. (4) The decision of the arbitration panel is final and binding on the parties except as provided in subdivision (p)(5) of this section.

5. (5) The decision of the arbitration panel is:

   1. (A) The final agency action on the matters adjudicated by it; and
   2. (B) Subject to appeal and review as such pursuant to Chapter 7, Title V, United States Code.
6. (6) The decision of the arbitration panel is a matter of public record and will be published in the Federal Register by the United States Secretary of Education through the arbitration clerk.

(q) Costs of arbitration. The United States Secretary of Education will pay the reasonable costs of arbitration proceedings hereunder, which may include:

1. (1) The salaries of panel members, not to exceed that of GS-18 if they are not otherwise employed by the state or federal governments;
2. (2) Travel expenses and per diem costs for panel members, if not otherwise paid for from federal funds;
3. (3) The costs of the services of the official reporter and the official transcripts under contract with the arbitration clerk, not to exceed the reasonable costs for such services in the locality in which performed and furnished;

4. (4) Travel expenses and per diem costs for witnesses unavailable at the locality of the arbitration proceeding and whose testimony is:

   1. (A) Deemed reasonably necessary by one (1) of the parties; and
   2. (B) Approved by the arbitration chairperson; and
5. (5) If the blind vendor is unable to obtain the services of counsel without cost either through a local or state legal services program or through an interested association or organization, reasonable fees for legal services not to exceed one hundred dollars ($100) per day and required travel expenses without written approval of the arbitration clerk.