[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR105-57.005]

[Page 435-436]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
              CHAPTER 105--GENERAL SERVICES ADMINISTRATION
 
PART 105-57_ADMINISTRATION WAGE GARNISHMENT--Table of Contents
 
Sec. 105-57.005  Hearing.

    (a) GSA will provide a hearing, which at the hearing official's 
option may be oral or written, if within fifteen (15) business days of 
submission of the notice by GSA, the debtor submits a signed and dated 
written request for a hearing, to the official named in the notice, 
concerning the existence and/or amount of the debt, and/or the terms of 
the repayment schedule (for repayment schedules established other than 
by written agreement under Sec. 105-57.004(b)(2) of this part). A copy 
of the request for a hearing must also be sent to the GSA Board of 
Contract Appeals (GSBCA) at the address indicated in paragraph (b)(2) of 
this section.
    (b) Types of hearing or review. (1) For purposes of this section, 
whenever GSA is required to afford a debtor a hearing, the hearing 
official will provide the debtor with a reasonable opportunity for an 
oral hearing when he/she determines that the issues in dispute cannot be 
resolved by review of the documentary evidence, for example, when the 
validity of the claim turns on the issue of credibility or veracity.
    (2) If the hearing official determines that an oral hearing is 
appropriate, he/she will establish the time and location of the hearing. 
An oral hearing may, at the debtor's option, be conducted either in-
person or by telephone conference. In-person hearings will be conducted 
in the hearing official's office located at GSA Central Office, 1800 F 
St., NW., Washington, DC 20405, or at another location designated by the 
hearing official. All personal and travel expenses incurred by the 
debtor in connection with an in-person hearing will be borne by the 
debtor. All telephonic charges incurred during a hearing will be the 
responsibility of GSA.
    (3) The debtor may represent himself or herself or may be 
represented by another person of his or her choice at the hearing. GSA 
will not compensate the debtor for representation expenses, including 
hourly fees for attorneys, travel expenses, or costs for reproducing 
documents.
    (4) In those cases when an oral hearing is not required by this 
section, the hearing official will nevertheless conduct a ``paper 
hearing'', that is, the hearing official will decide the issues in 
dispute based upon a review of the written record. The hearing official 
will establish a reasonable deadline for the submission of evidence.
    (c) Subject to paragraph (k) of this section, if the debtor's 
written request is received by GSA on or before the 15th business day 
after the submission of the notice described in Sec. 105-57.004(a)

[[Page 436]]

of this part, the Agency will not issue a withholding order under Sec. 
105-57.006 of this part until the debtor has been provided the requested 
hearing and a decision in accordance with paragraphs (h) and (i) of this 
section has been rendered.
    (d) If the debtor's written request for a hearing is received by GSA 
after the 15th business day following the mailing of the notice 
described in Sec. 105-57.004(a) of this part, GSA may consider the 
request timely filed and provide a hearing if the debtor can show that 
the delay was because of circumstances beyond his or her control. 
However, GSA will not delay issuance of a withholding order unless the 
Agency determines that the delay in filing the request was caused by 
factors over which the debtor had no control, or GSA receives 
information that the Agency believes justifies a delay or cancellation 
of the withholding order.
    (e) After the debtor requests a hearing, the hearing official will 
notify the debtor of--
    (1) The date and time of a telephonic hearing;
    (2) The date, time, and location of an in-person oral hearing; or
    (3) The deadline for the submission of evidence for a written 
hearing.
    (f) Burden of proof. (1) GSA will have the burden of establishing 
the existence and/or amount of the debt.
    (2) Thereafter, if the debtor disputes the existence and/or amount 
of the debt, the debtor must prove by a preponderance of the evidence 
that no debt exists or that the amount of the debt is incorrect. In 
addition, the debtor may present evidence that the terms of the 
repayment schedule are unlawful, would cause a financial hardship to the 
debtor, or that collection of the debt may not be pursued due to 
operation of law.
    (g) The hearing official will arrange and maintain a written 
transcript of any hearing provided under this section. The transcript 
will be made available to either party in the event of an appeal under 
the Administrative Procedure Act, 5 U.S.C. 701 through 706. All charges 
associated with the taking of the transcript will be the responsibility 
of GSA. A hearing is not required to be a formal evidentiary-type 
hearing; however, witnesses who testify in oral hearings will do so 
under oath or affirmation.
    (h) The hearing official will issue a written opinion stating his or 
her decision, as soon as practicable, but not later than sixty (60) days 
after the date on which the request for such hearing was received by 
GSA. If the hearing official is unable to provide the debtor with a 
hearing and render a decision within 60 days after the receipt of the 
request for such hearing--
    (1) GSA will not issue a withholding order until the hearing is held 
and a decision rendered; or
    (2) If GSA had previously issued a withholding order to the debtor's 
employer, the Agency will suspend the withholding order beginning on the 
61st day after the receipt of the hearing request and continuing until a 
hearing is held and a decision is rendered.
    (i) The written decision will include--
    (1) A summary of the facts presented;
    (2) The hearing official's findings, analysis and conclusions; and
    (3) The terms of any repayment schedules, if applicable.
    (j) The hearing official's decision will be the final Agency action 
for the purposes of judicial review under the Administrative Procedure 
Act (5 U.S.C. 701 et seq.).
    (k) In the absence of good cause shown, a debtor who fails to appear 
at a hearing scheduled pursuant to paragraph (e) of this section, or to 
provide written submissions within the time set by the hearing official, 
will be deemed to have waived his or her right to appear and present 
evidence.