(b) Factors for consideration. A prospective offeror may be debarred from consideration for award of office contracts if:

1. (1)

   1. (A) The prospective offeror has committed a violation of a material contract provision.
   2. (B) A violation may include but is not limited to a failure to perform the terms of a contract or an unsatisfactory performance in accordance with the terms of the contract.
   3. (C) However, a failure to perform or unsatisfactory performance caused by acts beyond the control of the contractor may not be considered to be a basis for debarment;
2. (2) The prospective offeror has been convicted of a criminal offense resulting from obtaining or attempting to obtain a public or private contract or subcontract or resulting from the performance of such contract or subcontract;
3. (3) The prospective offeror has been convicted under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty that currently, seriously, and directly affects the prospective offeror’s responsibility as a contractor or that the office determines may affect the honesty, fairness, integrity, or security of the office or any lottery games;
4. (4) The prospective offeror has been convicted under state or federal antitrust statutes; or
5. (5) The prospective offeror does not carry workers’ compensation or unemployment insurance as required by statute.

(f) Limited participation.

1. (1) The office may allow a debarred person to participate in a competitive process and contracts on a limited basis during the debarment period upon written determination by the Director of the Office of the Arkansas Lottery that participation is advantageous to the office.
2. (2) The determination shall specify the factors on which it is based and define the extent of the limits imposed.

(g) Decision.

1. (1)

   1. (A) The director shall issue a written decision to debar a prospective offeror under this part.
   2. (B) The decision must:

(i) State the reasons for the debarment; and

1. (ii) Inform the debarred prospective offeror of the appeal rights of the prospective offeror under subsection (h) of this section.
2. (2) The office shall send a copy of the decision immediately to the debarred prospective offeror by certified mail, return receipt requested, or by personal service.

(h) Appeal.

1. (1) The procedure for appeal from the office’s debarment of a prospective offeror under this part shall be in accordance with this subsection.
2. (2) Upon receipt of a notice from the office of a decision to debar under this part, a prospective offeror that wishes to appeal the decision shall, within three (3) business days after receipt of the decision, notify the director that the prospective offeror appeals the decision and requests a hearing as provided in this subsection.

3. (3)

   1. (A) Upon receipt of the prospective offeror’s notice of appeal and request for hearing, the director shall promptly notify the prospective offeror appealing of the time and place of the hearing.
   2. (B) The director shall conduct the hearing and decide the appeal within thirty (30) days after receiving the notice from the prospective offeror.
   3. (C) The director shall set forth in writing the reasons for the hearing decision.

4. (4) At the hearing, the director shall consider de novo:

   1. (A) The notice of debarment;
   2. (B) The reasons listed in subsection (b) of this section on which the office based the debarment; and
   3. (C) Any evidence provided by the office and the prospective offeror.
5. (5) The decision of the director is final and may only be appealed pursuant to the procedures set forth in 23 CAR § 372-408.