(1) The director shall have the authority to determine whether any dog has engaged in the behaviors specified in section 4.435. This determination shall be based upon an investigation that includes observation of the dog’s behavior by the animal regulation authority employees or by other witnesses who personally observed the behavior, sign a written statement attesting to the observed behavior and agree to provide testimony regarding the dog’s behavior, if necessary. The determination may also be based on evidence that the dog’s owner was fined or the dog was classified or registered in another state, county or city because the dog engaged in the behaviors specified in section 4.435.

(2) The director shall give the dog’s owner written notice by certified mail or personal service containing a description of the dog’s specific behavior, classification as a potentially dangerous dog and the additional restrictions applicable to that dog by reason of its classification. If the owner denies that the behavior in question occurred, the owner may appeal the director’s decision to the hearings official within 10 days of the date the notice was received by the owner by certified mail or the owner was personally served.

(3) The hearings official shall hold a public hearing on any appeal from the director’s decision to classify a dog as potentially dangerous. The owner and any other persons having relevant evidence concerning the dog’s behavior as specified in section 4.435 shall be allowed to present testimony. The hearings official shall issue an order containing the hearings official’s determination, which shall be final. The hearings official’s order may include requirements that the dog’s owner pay restitution to the victim, that the dog undergo training, or any other requirement that the hearings official deems reasonable under the circumstances.

(4) Once the owner has received notice of the dog’s classification as a Level 1 to Level 4 potentially dangerous dog pursuant to subsection 4.440(2), the owner shall comply with the restrictions specified in the notice, within ten days, unless the owner appeals it to the hearings official. If the director’s decision is upheld on appeal, the dog’s owner shall be liable for the cost of the dog’s impoundment.

(5) If the director finds that a dog has engaged in Level 5 behavior, the dog shall be impounded pending completion of all appeals. If the director’s decision is upheld on appeal, the dog’s owner shall be liable for the cost of the dog’s impoundment.