(a) A hearing of mental competency shall be conducted within 60 days after the initial court order for evaluation. At least ten days' prior written notice of the hearing shall be transmitted to the child, any parent, guardian, or other legal custodian of the child, any guardian ad litem for the child, the attorney representing the child, and the attorney representing the state. Ten days' prior written notice of the hearing shall be served on the district attorney, for all mental competency proceedings in which the district attorney, or a member of the district attorney's staff, may participate. The hearing may be continued by the court for good cause shown.

(b) At the hearing of mental competency, the attorney representing the child and the attorney representing the state shall have the right to:

(1) Present evidence;

(2) Call and examine witnesses;

(3) Cross-examine witnesses; and

(4) Present arguments.

The qualified examiner appointed by the court shall be considered the court's witness and shall be subject to cross-examination by both the attorney representing the child and the attorney representing the state.

(c) The court's findings of fact shall be based on any evaluations of the child's mental condition conducted by qualified examiners appointed by the court and any evaluations of the child's mental condition conducted by independent evaluators hired by the parties. The burden of proving that the child is not mentally competent shall be on the child. The standard of proof necessary for proving mental incompetency shall be a preponderance of the evidence. Copies of the court's findings shall be transmitted to the same parties to whom notice of the hearing was provided within ten days following the issuance of those findings.

(d) If the court finds that the child is mentally competent, the proceedings which have been suspended shall be resumed and the time limits under Article 1 of this chapter for adjudication and disposition of the petition shall begin to run from the date of the order finding the child mentally competent.

(e) If the court finds that the child is not mentally competent, the child may be adjudicated dependent by the court. If the court determines that a child alleged to have committed an act which is a misdemeanor if committed by an adult or an unruly act is not mentally competent, and the child is adjudicated dependent, the court may dismiss the petition without prejudice. A child who is thus found not to be mentally competent shall not be subject to discretionary transfer to superior court, adjudication, disposition, or modification of disposition as long as such mental incompetency exists. At the time the child is adjudicated dependent upon the court, the court shall appoint a guardian ad litem to represent the best interests of the child if a guardian ad litem has not been appointed previously.