1. A. Informal Review

   1. 1. VR is responsible for resolving an informal review request.
   2. 2. The RSA Ombudsman shall notify the supervisor of the VR Staff who made the decision in dispute that an informal review has been requested within five calendar days of receipt of the informal review request.

   3. 3. The supervisor of the VR Staff who made the decision in dispute shall:

      1. a. Contact the Appellant to obtain further information about the issue and reason for the request for informal review;
      2. b. Conduct an informal review of the decision in dispute by reviewing the issue, information provided by the Appellant, case record documentation, and applicable laws, regulations, and policies to determine how to resolve the issue in dispute;
      3. c. Notify the Appellant in writing of the informal review decision, notification of Appeal rights, and Client Assistance Program information within 20 calendar days from the date the request for Appeal was received by the RSA Ombudsman; and
      4. d. Provide the RSA Ombudsman with a copy of the informal review decision letter.

   4. 4. The informal review decision shall be a written, comprehensive statement by the supervisor that includes:

      1. a. A statement of the issue involved;
      2. b. A clear and complete statement of fact as supported by evidence presented at the informal review;
      3. c. A reference to all laws, regulations, and policies on which the decision is based;
      4. d. A concise statement of the conclusion drawn, and the basis for such conclusions; and
      5. e. A clear statement of the action to be taken to implement the decision.
   5. 5. The Appellant shall have 20 calendar days from the date of the written decision letter to request a Mediation or Hearing.

2. B. Mediation

   1. 1. Participation in Mediation is voluntary for both the Appellant and VR.
   2. 2. VR is responsible for resolving a Mediation request in conjunction with the Arizona State Attorney General’s Office, Civil Rights Division.
   3. 3. The RSA Ombudsman shall contact the Arizona State Attorney General’s Office, Civil Rights Division to request a Mediation with a Qualified and Impartial Mediator.

   4. 4. The RSA Ombudsman shall contact all Parties involved, including the Arizona State Attorney General’s Office, Civil Rights Division, VR Staff who made the decision being appealed and the VR Staff’s supervisor, Appellant, and Authorized Representative to schedule an appointment to conduct Mediation.

      1. a. A VR representative with the authority to approve and agree to the outcome of Mediation shall be present at all Mediations.
      2. b. Discussions that occur during the Mediation process shall be confidential and shall not be used as evidence in any subsequent Hearing or civil proceeding.
   5. 5. An Appellant may choose to voluntarily withdraw the request for Mediation if a resolution is obtained prior to the date of the Mediation. The Appellant shall contact the RSA Ombudsman to voluntarily withdraw the request for Mediation.
   6. 6. If Mediation results in an agreement that resolves the issues, the Parties shall document the agreement in writing, sign the document, and all Parties shall receive a copy of the signed agreement.

   7. 7. If Mediation does not result in an agreement or if the Appellant, without notice, fails to appear at a scheduled Mediation, the Qualified and Impartial Mediator shall close the Mediation request and submit a notice to the Appellant and VR that the Mediation was closed.

      1. a. The Appellant may contact the RSA Ombudsman or the Qualified and Impartial Mediator to request to reschedule the Mediation within 20 calendar days of the date of the originally scheduled Mediation; or
      2. b. The Appellant may contact the RSA Ombudsman or the Office of Appeals to request within 20 calendar days of the date of the originally scheduled Mediation to schedule a Hearing.
   8. 8. If an Appellant does not request to reschedule a Mediation or request to schedule a Hearing within 20 calendar days after an agreement is not reached in Mediation or failing to appear at a scheduled Mediation, the Qualified and Impartial Mediator shall notify VR indicating the Mediation has been closed.

3. C. Hearing

   1. 1. General provisions.

      1. a. The Hearing Officer shall rely on applicable federal and state laws to conduct the Hearing within 60 calendar days of the date the Office of Appeals received the Appeal and review and resolve the issue in dispute. These rules shall be interpreted and administered to secure the just, speedy, and intended purpose of VR.
      2. b. Unless precluded by another provision of law, a person may waive any right conferred on that person or group by this Article.

   2. 2. Withdrawal of Hearing.

      1. a. An Appellant may withdraw an Appeal by submitting a written request to withdraw to the RSA Ombudsman or the Office of Appeals at any time before the Hearing Officer issues a decision.
      2. b. The Office of Appeals shall accept a withdrawal and dismiss the Appeal upon receipt of a request to withdraw an Appeal made in the manner provided in subsection (C)(2)(a) only if the Hearing Officer accepts the withdrawal and finds that the withdrawal has been voluntarily and knowingly requested.
      3. c. Withdrawal of an Appeal is effective as soon as the withdrawal is processed by the Office of Appeals, but no later than 10 calendar days after receipt of the withdrawal.

   3. 3. Effect of the decision.

      1. a. The Hearing Officer shall issue a Hearing decision within 30 calendar days of the completion of the Hearing.
      2. b. If the Hearing Officer issues a decision that Reverses VR’s decision, VR shall not take the action.
      3. c. If the Hearing Officer Remands the case to VR, the Remand shall include instructions from the Hearing Officer. VR shall comply with the instructions of the Hearing Officer.

   4. 4. Review of decision by the Director.

      1. a. If either the RSA Administrator or Appellant disagrees with the decision of the Hearing Officer, either Party may file a request for review of the Hearing Officer’s decision by the Director by submitting a written request to the Office of Appeals within 20 calendar days of the mailing date of the Hearing Officer’s decision.
      2. b. The written request for review of a Hearing Officer’s decision shall contain the Party’s name, contact information, and a statement regarding the legal bases for the review.
      3. c. The Office of Appeals shall notify all involved Parties within five calendar days of receipt that a request for review of the Hearing Officer’s decision has been filed.
      4. d. If an Appellant or RSA Administrator files a request for review of the Hearing Officer’s decision, the other Party may submit a written response to the request for review of the Hearing decision to the Office of Appeals.

      5. e. The Director shall, within 30 calendar days of receipt of the request for review of the Hearing Officer’s decision:

         1. i. Overturn the Hearing Officer’s decision, or any part of the decision, only when the Director concludes that the decision of the Hearing Officer, based on Clear and Convincing Evidence, is erroneous based on the approved VR services portion of the State Plan; 29 U.S.C. 723; 29 U.S.C. 721(a); federal or state regulations; and policies that are consistent with federal and state requirements and request a new Hearing.
         2. ii. Affirm the Hearing Officer’s decision; or iii. Issue a written decision that contains a modified finding and the grounds upon which the decision is based and shall be considered the final decision of the Department.
      6. f. The Department shall provide a copy of the decision that includes an explanation of a Party’s right for judicial review of the decision as described under 34 CFR 361.57(i) to each Party.
      7. g. The Party requesting a review of the Hearing Officer’s decision may voluntarily withdraw the request for review at any time before the Director issues a decision by making a request by telephone or in writing to the RSA Ombudsman or Office of Appeals.

Historical Note

New Section made by final rulemaking at 31 A.A.R. 3921 (October 3, 2025), effective November 2, 2025 (Supp. 25-3).