Mich. Admin. Code R. 400.3178 - Intentional program violation; disqualification; recoupment

Rule 28.

(1) If, in the course of an overissuance investigation, the department determines that an intentional program violation occurred, then the person accused of the violation shall be notified of all of the following:

(a) The allegation.

(b) A potential penalty.

(c) The right to meet with department representatives to discuss the allegation.

(2) The department shall conduct an administrative hearing to determine if an overissuance occurred due to intentional program violation, unless either of the following provisions applies:

(a) The person accused of the violation waives his or her right to the hearing by signing a recoupment and disqualification agreement.

(b) The individual has been convicted of the fraudulent receipt of benefits under section 60 of 1939 PA 280, MCL 400.60, or any other criminal fraud statute.

(3) If a person accused of an intentional program violation has agreed to and signed a recoupment and disqualification agreement, then the person does not have recourse to further administrative appeal.

(4) A person accused of an intentional program violation may request a hearing to contest the computation of the benefit reduction amount, but not the overissuance amount.

(5) The department may conduct an intentional program violation hearing without the person accused of the violation or his or her authorized representative present if the hearing notice that was sent to the person is not returned by the post office as undeliverable.

(6) Any administrative hearing initiated by the department under this rule shall be conducted pursuant to notice served on the accused person not later than 6 years after the overissuance occurred.

(7) If the department does not establish that an overpayment was the result of an intentional program violation, then the department shall recoup the overpayment as department or client error.

(8) A person who is determined, in an administrative disqualification hearing, to have committed an intentional program violation, who pleads guilty to an intentional program violation, who waives his or her legal right to an administrative disqualification hearing regarding an allegation of intentional program violation, or who is convicted of criminal fraud based on the fraudulent receipt of benefits shall be disqualified by reducing the monthly benefit level by the amount deemed to meet the individual's monthly needs for the following periods:

(a) A period of 1 year for a first offense.

(b) A period of 2 years for a second offense.

(c) Permanently for a third or subsequent offense.

(9) For current or former state disability assistance recipients, the department shall impose a disqualification penalty for an intentional program violation within 5 days of the receipt of a decision that an intentional program violation occurred.

Notes

Mich. Admin. Code R. 400.3178

1998-2000 AACS; 2015 MR 6, Eff. March 24, 2015