1. (a) The following rules shall apply to adjudicative hearings before the State Banking Board and/or the Bank Commissioner.
2. (b) Public hearing at commissioner’s discretion. The commissioner at his or her discretion, regardless of whether any formal protest or letters of opposition were filed, may hold a hearing on an application.

3. (c) Decision maker.

   1. (1) Matters before the board.

      1. (A) When an adjudicative hearing is conducted before the board, the chair of the board will conduct the hearing.
      2. (B) The board, collectively, will act as the decision maker.

   2. (2) Matters before the commissioner.

      1. (A) When an adjudicative hearing does not involve the board, the commissioner reserves the right to act as decision maker or have a decision maker appointed.
      2. (B) In the event the commissioner decides to act as the decision maker, but is unable to conduct the hearing, a deputy commissioner will conduct the hearing.
      3. (C) In the event the commissioner decides to have a decision maker appointed, a list of five (5) potential decision makers will accompany the notice of the hearing sent to the parties entitled to notice by mail.
      4. (D) This list will be compiled by the commissioner.
      5. (E) All parties will receive the same list of five (5) potential decision makers.
      6. (F) Two (2) potential decision makers are to be chosen from the list and communicated by facsimile or hand delivery to the commissioner within two (2) business days of receipt.
      7. (G) The commissioner may authorize an employee of the State Bank Department to be served in the event of hand delivery.
      8. (H) The commissioner will then choose a decision maker to conduct the hearing from those potential decision makers submitted by the parties receiving notice by mail.
      9. (I) The commissioner will choose a decision maker from those submitted, even if not all parties submit decision makers.
      10. (J) If no parties submit potential decision makers to the commissioner, the commissioner will choose a decision maker from the original list sent with the notice.

4. (d) Hearing procedures. For the purpose of the actual hearing, the following rules will govern:

   1. (1) The decision maker may rule on motions, require briefs, and issue such orders as will ensure the orderly conduct of the proceedings;
   2. (2) All objections must be made in a timely manner and stated on the record;
   3. (3) Subject to terms and conditions prescribed by the Arkansas Administrative Procedure Act, Arkansas Code § 25-15-201 et seq., parties have the right to introduce evidence on issues of material fact, cross-examine witnesses as necessary for a full and true disclosure of the facts, present evidence in rebuttal, and, upon request of the decision maker, may submit briefs and engage in oral argument;
   4. (4) The decision maker is charged with maintaining the decorum of the hearing and may refuse to admit, or may expel, anyone whose conduct is disorderly; and
   5. (5) The hearing will be held in accordance with the Arkansas Administrative Procedure Act.

5. (e) Order of proceedings. The decision maker will conduct the hearing in the following manner:

   1. (1) The decision maker will give an opening statement, briefly describing the nature of the proceedings;
   2. (2) The parties are to be given the opportunity to present opening statements;
   3. (3) The parties will be allowed to present their case in the sequence determined by the decision maker;

   4. (4)

      1. (A) Each witness must be sworn or affirmed by the decision maker, or the court reporter, and be subject to examination and cross-examination as well as questioning by the decision maker.
      2. (B) The decision maker may limit questioning in a manner consistent with the law; and
   5. (5) When all parties and witnesses have been heard, parties may be given the opportunity to present final arguments.

6. (f) Court reporter.

   1. (1) In the event of a hearing before the board and/or the commissioner, the department will arrange for a court reporter to be present for the hearing.

   2. (2) The applicant will be responsible for paying:

      1. (A) The costs of the court reporter appearing at the hearing; and
      2. (B) For copies of the transcript.
   3. (3) The applicant will provide a copy of the transcript, free of charge, to the department.

7. (g) Order of decision maker.

   1. (1) The decision maker will issue:

      1. (A) An oral ruling at the conclusion of the hearing; or
      2. (B) A letter opinion within a reasonable time after the conclusion of the hearing.
   2. (2) The prevailing party will then have ten (10) days from the date of the oral ruling or letter opinion to prepare and submit a written order to the commissioner and the opposing party or parties.
   3. (3) Upon receipt of the written order by the commission, the opposing party or parties will then have ten (10) days to object to the form or precedent.

8. (h) Expiration of approval.

   1. (1) The decision maker’s order approving an application shall expire eighteen (18) months from the date of the approval.
   2. (2) Upon written request, the commissioner may approve an extension of the eighteen (18) months.

Codification Notes: This section was promulgated as Section 46-406.2 of the State Bank Department Rules prior to codification into the Code of Arkansas Rules. This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Reference A.C.A. § 23-46-406)"