- (a) Any retailer or applicant aggrieved (aggrieved party) by an administrative decision by the Director of the Office of the Arkansas Lottery may appeal that decision.
- (b) Time for filing. The aggrieved party must file a notice of appeal within twenty (20) days of the decision by sending a notice of appeal to both the director and the Office of the Arkansas Lottery staff attorney at the Office of the Arkansas Lottery main office.
- (c) The director, or a hearing officer designated by him or her, shall have the exclusive authority to decide all appeals.
- (d) After submittal of a timely appeal and prior to issuance of a written decision, the aggrieved party shall be afforded an opportunity to discuss with the director the issues giving rise to the appeal.
(e)
- (1) If the appeal is not resolved by mutual agreement, the director or hearing officer shall issue a written decision within thirty (30) calendar days after the appeal was filed.
- (2) The decision shall include a statement of the director’s or hearing officer’s decision, with supporting rationale.
- (3) If the director or hearing officer fails to issue a decision within this time limit, the aggrieved party may proceed as if the director or hearing officer had issued an adverse decision.
(f) The director or hearing officer shall furnish a copy of the decision to the aggrieved party by certified mail, return receipt requested, or by any other method that provides written evidence of delivery, such as:
- (1) Hand delivery by courier;
- (2) Express mail; or
- (3) Overnight express courier.
- (g) In lieu of a written decision, the director may, in his or her sole discretion, within thirty (30) calendar days after the appeal is filed, give written notice to the aggrieved party that the protest shall be resolved by a hearing conducted by the director or hearing officer.
(h)
- (1) All hearings conducted under this section shall be conducted by the director or by a hearing officer designated by the director.
- (2) The decision as to whether the director or a hearing officer will conduct the hearing shall be in the sole discretion of the director.
- (3) The hearing officer’s actions, decisions, and orders shall be deemed to be on behalf of the director and effective as though taken by the director, subject to the appeals procedures as hereinafter provided.
(i)
- (1) If the director determines under subsection (g) of this section that a hearing will be used to resolve an appeal, the hearing shall be held within thirty (30) calendar days following the director’s determination.
- (2) A notice which will set forth the time, date, and location of the hearing will be sent to the party or parties at least seven (7) calendar days before the date set for such hearing.
(j) In connection with the hearing, the director or hearing officer may:
- (1) Conduct the hearing in an informal manner without formal rules of evidence or procedure;
- (2) Require each party to state, either orally or in writing, its position concerning the factual and legal issues involved in the hearing;
- (3) Require each party to produce for examination those relevant witnesses and documents under its control;
- (4) Rule on motions and other procedural items pending before him or her, including without limitation the methods, scope, and extent of discovery available to the parties;
- (5) Regulate the course of the hearing and conduct of the participants, including the imposition of reasonable time limits; and
- (6) Establish time limits for submission of motions or memoranda.
(k)
- (1) The hearing shall be conducted before a court reporter.
- (2) The aggrieved party shall procure, at his or her own cost and own initiative, the court reporting services (including the preparation of the transcript) for such hearing.
- (3) The original transcript of any such proceedings shall be submitted to the director or hearing officer as soon as the transcript is available, and in no event later than thirty (30) calendar days following the conclusion of the hearing, and shall be made a part of the record.
- (l) Any party may appear and be represented with or without counsel at the hearing.
(m)
- (1) If a hearing officer conducts the hearing, he or she shall make a written recommendation containing the hearing officer’s ruling in the form of a proposed decision to the director within thirty (30) calendar days after receiving an original transcript of the hearing.
- (2) If a proposed decision is received by the director, he or she must render a decision in writing and deliver the decision to the parties within thirty (30) calendar days after receiving the proposed decision from the hearing officer.
(n) If the director receives a recommendation in a proposed decision from a hearing officer, he or she may:
- (1) Accept, modify, or reject the hearing officer’s recommendation in whole or in part;
- (2) Return the matter to the hearing officer with instruction;
- (3) Make any other appropriate disposition; or
- (4) Issue a "no action" response.
- (o) If the director issues a "no action" response, then the determination in the proposed decision of the hearing officer will be deemed to be accepted by the director.
(p)
- (1) If the director conducts the hearing, a decision must be rendered and delivered to the petitioner within thirty (30) calendar days after receiving the original transcript of the hearing.
(2) The decision or any proposed decision made by either a hearing officer or the director shall be sent to the aggrieved party by certified mail, return receipt requested, or any other method by which a written business record of delivery is kept, such as:
- (A) Hand delivery;
- (B) Express mail; or
- (C) Overnight carrier.
- (q) A party aggrieved by a decision of the Office of the Arkansas Lottery may appeal that decision to the Pulaski County Circuit Court.
(r) The circuit court shall hear appeals from administrative orders of the Office of the Arkansas Lottery, based upon the record of the proceedings before the Office of the Arkansas Lottery, may reverse the administrative order of the Office of the Arkansas Lottery only if the person appealing the administrative order proves the administrative order to be:
- (1) Clearly erroneous;
- (2) Procured by fraud;
- (3) A result of substantial misconduct by the Office of the Arkansas Lottery; or
(4) Contrary to:
- (A) The United States Constitution;
- (B) The Arkansas Constitution; or
- (C) This part.
- (s) The circuit court may remand an appeal to the Office of the Arkansas Lottery to conduct further hearings.
(t) If upon the motion of the Office of the Arkansas Lottery the circuit court finds the appeal to have been frivolous, the costs of appeal and defense shall include without limitation the following expenses of the office resulting from institution of the appeal:
- (1) Court costs;
- (2) Bond;
- (3) Legal fees; and
- (4) Loss of income.
- (u) An appeal may be made from the circuit court to the appropriate appellate court, as provided by law.
- (v) This section provides the exclusive procedure for a retailer or applicant appealing an administrative decision of the director.