(1) The department shall transmit to the board all records that are pertinent to the appeal. The board will consider such records or portions of those records as the board deems appropriate. The board will not consider any new evidence introduced at the board hearing unless good cause is shown that it was unavailable at the lower level appeal hearing. As soon as possible after the hearing, the board will decide whether to reverse, modify or affirm the decision of the appeals referee. Written notice of the board's action will be mailed to all interested parties.

(2) In making its determination, the board will consider arguments as to whether the referee erred in either law or fact as well as any new evidence pursuant to subsection (1) .