Ark. Code Ann. § 26-36-310: Hearing procedure

(a) If a claimant agency receives written application of the debtor's intention to contest at hearing the claim upon which the intended setoff is based, it shall grant a hearing according to procedures established under the Arkansas Administrative Procedure Act, § 25-15-201 et seq. Additionally, it shall be determined at the hearing whether the claimed sum asserted as due and owing is correct, and if not, an adjustment to the claim shall be made.

(b) Pending final determination at hearing of the validity of the debt asserted by the claimant agency, no action shall be taken in furtherance of collection through the setoff procedure allowed under this subchapter.

(c) No issues may be considered at the hearing which have been previously litigated.