41-4038. Rehearing

A. Any party may apply for a rehearing by filing with the director a motion pursuant to chapter 6, article 10 of this title.

B. The filing of a motion for rehearing shall suspend the operation of the administrative law judge's action, except for an action which upholds a cease and desist order, and permits the licensee or the person who was issued a citation to continue to do business pending denial or granting of the petition. If the motion is granted, the administrative law judge's action is suspended pending the decision of the director upon the rehearing.

C. In the order granting or denying a rehearing, the director shall include a statement of the particular grounds and reasons for the director's action on the petition and shall promptly mail a copy of the order to the parties who have appeared in support of or in opposition to the petition for rehearing. If a rehearing is granted, the administrative law judge shall set the matter for further hearing on due notice to the parties. After submission of the matter upon rehearing, the administrative law judge shall render a decision in writing and give notice of the decision in the same manner as of a decision rendered upon an original hearing.

D. A rehearing may be granted for any of the following reasons materially affecting the moving party's rights:

1. Irregularity in the proceedings before the director, or any order or abuse of discretion which deprived the moving party of a fair hearing.

2. Misconduct by the director, the director's employees or the administrative law judge.

3. Accident or surprise that could not have been prevented by ordinary prudence.

4. Newly discovered material evidence that could not with reasonable diligence have been discovered and produced at the original hearing.

5. Excessive or insufficient penalties.

6. Error in the admission or rejection of evidence or other errors of law occurring at the hearing.

7. That the decision is not justified by the evidence or is contrary to law.

E. If an order denying a rehearing or a decision given upon a rehearing results in immediate suspension or revocation of a license, then operation of such order or decision shall be suspended until ten days after service of notice of the suspension or revocation.

F. In a rehearing pursuant to this section, a corporation may be represented by a corporate officer or employee who is not a member of the state bar if:

1. The corporation has specifically authorized the officer or employee to represent it.

2. The representation is not the officer's or employee's primary duty to the corporation but is secondary or incidental to the officer's or employee's duties relating to the management or operation of the corporation.