[Code of Federal Regulations]
[Title 7, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR3.29]

[Page 267-268]
 
                          TITLE 7--AGRICULTURE
 
PART 3_DEBT MANAGEMENT--Table of Contents
 
                        Subpart B_Debt Collection
 
Sec. 3.29  Hearings and reviews.

    (a) A debtor who receives a Notice of Intent to Collect by 
Administrative Offset may request a hearing or documentary review of the 
agency's determination that the debt exists and the propriety of 
administrative offset. Any debtor who wishes to do this must submit a 
written explanation of why the debtor disagrees and seeks review. The 
request must be received by the creditor agency within 20 calendar days 
of the date the notice was delivered to the debtor.
    (b) In response, the creditor agency must notify the debtor in 
writing whether the review will be by documentary review or by hearing. 
If the debtor requests a hearing, and the creditor agency decides to 
conduct a documentary review, the agency must notify the debtor of the 
reason why a hearing will not be granted. The agency must also advise 
the debtor of the procedures to be used in reviewing the documentary 
record, or of the date, location and procedures to be used if review is 
by a hearing.
    (c) Unless otherwise arranged by mutual agreement between the debtor 
and the agency, evidenced in writing, any documentary review or hearing 
will be conducted not less than 10 calendar days and no more than 45 
calendar days after receipt of the request for review.
    (d) Unless otherwise arranged by mutual agreement between the debtor 
and the agency, evidenced in writing, a documentary review or hearing 
will be based on agency records plus other relevant documentary evidence 
which may be submitted by the debtor within 10 calendar days after the 
request for review is received.
    (e)(1) Hearings will be as informal as possible, and will be 
conducted by a reviewing officer in a fair and expeditious manner. The 
reviewing officer need not use the formal rules of evidence with regard 
to the admissibility of evidence or the use of evidence once admitted. 
However, clearly irrelevant material should not be admitted, whether or 
not any party objects. Any party to the hearing may offer exhibits, such 
as copies of financial records, telephone memoranda, or agreements, 
provided the opposing party is notified at least 5 days before the 
hearing.
    (2) Debtors may represent themselves or may be represented at their 
own expense by an attorney or other person.
    (3) The substance of all significant matters discussed at the 
hearing must be recorded. No official record or transcript of the 
hearing need be created, but if a debtor requested that a transcript be 
made, it will be at the debtor's expense.
    (f)(1) Within no more than 30 calendar days after the hearing or the 
documentary review, the reviewing officer will issue a written decision 
to the debtor and the agency, including the supporting rationale for the 
decision. The deadline for issuance of the decision may be extended by 
the reviewing officer for good cause for no more than 30 calendar days, 
and beyond the 30 calendar days extension only with the consent of the 
debtor. The decision need not be lengthy or formal in style, but must 
address the

[[Page 268]]

substantive issues. The decision should address any significant 
procedural matter which was in dispute before or during the hearing or 
documentary review.
    (2) The reviewing officer's decision constitutes final agency action 
as to the following issues:
    (i) All issues of fact relating to the basis of the debt (including 
the existence of the debt and the propriety of administrative offset), 
in cases where the debtor previously had not been afforded due process; 
and
    (ii) The existence of the debt and the propriety of administrative 
offset, in cases where the debtor previously had been afforded due 
process as to issues of fact relating to the basis of the debt.
    (g) The reviewing officer will promptly distribute copies of the 
decision to the Assistant Secretary for Administration, USDA and to the 
debtor and the debtor's representative.

[50 FR 7722, Feb. 26, 1985, as amended at 55 FR 38662, Sept. 20, 1990]