DEPARTMENT OF HEALTH AND HUMAN SERVICES  
ECONOMIC STABILITY ADMINISTRATION  
STATE DISABILITY ASSISTANCE PROGRAM  
(By authority conferred on the department of human services by section 6 of 1939 PA  
280, MCL 400.6.)  
R 400.3151 Definitions.  
Rule 1. As used in these rules:  
(a) “Administrative hearing” means the impartial review by an administrative law  
judge of a department decision that a client believes is illegal or unsatisfactory. Both the  
client and the department may present evidence in support of their respective positions.  
(b) "Administrative recoupment” means a process by which a group’s benefits are  
reduced to make payments on an overissuance.  
(c) "Agency errors" means overissuances caused from incorrect actions by the  
department.  
(d) "Application" means a signed and dated statement on a form prescribed by the  
department that a person wishes to receive state disability assistance.  
(e) "Application filing date" means the date an application with minimum required  
information is received by the department.  
(f) "Authorized representative" means a person who is not less than 18 years of  
age and who applies for assistance on behalf of a client or otherwise acts on a  
client's behalf, or both. The person may be, but is not limited to, a guardian, spouse, or  
relative outside the group.  
(g) “Available date” means the date an assistance benefit was issued.  
(h) “Client” means a person applying for, currently receiving program benefits,  
inquiring about benefits, or is part of the program group.  
(i) "Client error" means the department has taken all actions required under normal  
processing procedures but the client has given incorrect or incomplete information or  
failed to meet other requirements which impact the amount of program benefits and the  
error has not been determined as intentional. An overissuance that results from  
department action being discontinued due to a client's administrative hearing request is  
client error if a client withdraws his or her request, fails to show for the  
administrative hearing, or the department's action is upheld at the hearing.  
(j) "Collateral contact" means contact with an information source other than the  
client through written correspondence, a telephone interview, or an in-person interview.  
(k) "Crediting" means returning the warrant amount to treasury.  
(l) “Department” means the Michigan department of human services.  
(m) "Disqualification" means a department penalty action for a person who is  
ineligible for program benefits because an eligibility factor has not been met or because  
the person refuses or fails to cooperate in meeting an eligibility factor.  
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(n) "Domiciliary care" means a type of care given to residents in a special living  
arrangement whose principal need is supervision and who are generally able to perform  
the basic activities of daily living, such as eating, bathing, and dressing.  
(o) "Group" means the state disability assistance group.  
(p) “Head of household” means the person who is customarily responsible for the  
verbal and written communication between the eligible group and the department and in  
whose name program benefits are generated and received.  
(q) "Institution" means an establishment that furnishes food, shelter, and some  
treatment or services to more than 3 people who are unrelated to the proprietor.  
(r) "Intentional program violation" means an action that occurs when a client or  
authorized representative intentionally withholds or misrepresents information for the  
purpose of obtaining benefits for which he or she would not otherwise be eligible. An  
overissuance becomes an intentional program violation if a client or client's authorized  
representative is found to be responsible for an intentional program violation by a court,  
or as a result of an administrative hearing, or has signed a disqualification agreement.  
(s) "Mandatory vendoring" means an agency payment of assistance amounts,  
without client request, directly to the client's landlord, mortgage holder, or land contract  
holder and to the providers of the client's home heating and electricity services.  
(t) "Monthly payment amount" means the amount of assistance paid to a group  
after deductions for vendoring and any department recoupment.  
(u) "Overissuance" means that a group receives more benefits than it is eligible to  
receive.  
(v) "Overissuance period” means the time period during which the overissuance  
occurred  
(w) "Overissuance type" means the reason an overissuance occurred. Types of  
overissuances are agency error, client error, and client intentional program violation.  
(x) "Pay period" means the first through the fifteenth of the month or the sixteenth  
through the end of the month.  
(y) "Personal care" means assistance that is provided to a person who needs help in  
performing personal daily activities, such as cooking, eating, grooming, shopping, and  
taking medication.  
(z) "Potential benefits" means any of the following benefits:  
(i) Retirement, survivors, and disability insurance.  
(ii) Worker's compensation benefits.  
(iii) Veterans administration benefits.  
(iv) Railroad retirement benefits.  
(v) Pension payments.  
(vi) Disability or retirement benefits.  
(vii) Earned but unpaid wages.  
(viii) Strike pay.  
(ix) Vacation pay.  
(x) Supplemental security income.  
(xi) Family independence program benefits.  
(xii) Other than state-funded, needs-based programs, any other financial benefits for  
which potential eligibility exists and which may reduce the state disability assistance  
program benefit.  
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(aa) "Program group" means those persons living together whose income and  
assets must be counted in determining eligibility for state disability assistance.  
(bb) "Provider" means a person or agency that furnishes services to a client.  
(cc) "Reapplication" means an application for state disability assistance after a  
previous case has been closed.  
(dd) "Recoupment" means the process by which the department recovers an  
overissuance of program benefits.  
(ee) "Redetermination" means a review of continuing eligibility for state disability  
assistance.  
(ff) "Redirecting" means routing a warrant to a different address.  
(gg) "Reinstatement" means restoring a closed assistance case to active status  
without a new application/redetermination form.  
(hh) "Repayment" means an action by a client to pay back benefits received.  
(ii) "Restricted payments" means mandatory payment made to a person other than  
the client in the form of vendor payments or third-party payments due to a third-party  
resource disqualification or money mismanagement.  
(jj) "Returned warrants" means uncashed warrants received by the local department  
office or treasury.  
(kk) "Special living arrangement" means any of the following:  
(A) An adult foster care facility.  
(B) A county infirmary.  
(C) A substance abuse treatment center.  
(D) A home for the aged.  
(E) A long-term care facility.  
(F) A hospital.  
(ll) "State disability assistance group" means the members of a program group who  
receive state disability assistance.  
(mm) "Stop payment" means a department directive to treasury to not honor a  
warrant.  
(nn) "Third-party payments" mean an agency payment of a client’s entire  
assistance benefit, without client request, to an agency or person outside the eligible  
group for management of the assistance on behalf of the group.  
(oo) "Third-party resource" means a person, entity, or program that is, or might be,  
liable to pay all or part of a group member's medical expenses.  
(pp) "Treasury" means the Michigan department of treasury.  
(qq) "Underissuance" means that a group receives less cash assistance than it is  
eligible to receive.  
(rr) "Verification" means documentation or action taken that provides evidence  
establishing the accuracy of a client's verbal or written statements.  
(ss) "Voluntary vendoring" means a payment system whereby, at the group’s  
request, the department sends part of the group’s cash assistance directly to the provider  
for payment of the group’s shelter, heat, or electricity.  
(tt) "Warrant date" means the date shown on a warrant .For regular client and  
vendor warrants, the warrant date is the expected date of delivery. For replacement  
warrants, the warrant date is the date the warrant was mailed.  
History: 1998-2000 AACS; 2015 AACS.  
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R 400.3152 Group composition.  
Rule 2. (1) If an individual requests state disability assistance, then the following  
persons are in the program group and, if eligible, in the state disability assistance group:  
(a) The individual who requests assistance.  
(b) The individual's spouse, if the spouse is living in the home with the individual.  
(2) State disability assistance is limited to needy persons who are 18 years or  
older and to emancipated minors who meet all eligibility criteria.  
History: 1998-2000 AACS.  
R 400.3153 Temporary absence from home.  
Rule 3. (1) A person is temporarily absent from the home if all of the following  
provisions apply:  
(a) The person's location is known.  
(b) There is a definite plan for the person's return.  
(c) The person lived with the group before the absence.  
(d) The absence has lasted, or is expected to last, 30 calendar days or less.  
(2) The 30-calendar-day provision in subrule (1)(d) of this rule does not apply if  
the absence is due to hospitalization, training, or education.  
(3) A person who meets the criteria for being temporarily absent specified in  
subrules (1) and (2) of this rule is considered to be living in the home and continues to  
receive assistance.  
History: 1998-2000 AACS.  
R 400.3154 Institutional status; eligibility for state disability assistance.  
Rule 4. (1) A person who is in an institution for more than 30 calendar days is not  
eligible for state disability assistance.  
(2) If a person is placed in an institution, it is presumed that he or she will remain  
there more than 30 calendar days unless a shorter stay is verified.  
(3) Notwithstanding subrules (1) and (2) of this rule, a person in any of the  
following institutions may be eligible for state disability assistance if all other eligibility  
criteria are met:  
(a) A home for the aged.  
(b) A county infirmary.  
(c) An adult foster care home.  
(d) A substance abuse treatment center.  
(e) A department of corrections contract facility for probationers.  
(f) A technical institute and rehabilitation center operated by Michigan  
rehabilitation services.  
History: 1998-2000 AACS.  
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R 400.3155 Applications for assistance.  
Rule 5. (1) Any person, regardless of age, may apply for assistance for himself or  
herself. With the group's permission, a person who is 18 years of age or older may be  
authorized to represent and apply on behalf of the group.  
(2) An applicant may submit an application in person, by mail, telephone, or  
electronically. The department must receive the original, signed application before  
benefits are approved.  
(3) A person shall complete a department application form when first applying for  
assistance benefits and when eligibility is redetermined.  
(4) If an application contains the minimum information established by the  
department, including the signature of the client or authorized representative, the  
department must accept and register the application as soon as it is filed.  
(5) Upon receipt of an incomplete application, department staff shall give or send a  
client an appropriate form that identifies the information needed to render the application  
complete and shall specify a due date by which the information must be provided.  
Eligibility must be denied, or an ongoing assistance case must be terminated, if an  
application remains incomplete. An incomplete application is valid through the last day  
of the month after the month of denial or termination and may be updated during that  
period.  
(6) As part of the application and redetermination process, the department may  
conduct an official, confidential interview with a client, another responsible applicant  
group member, or an authorized representative. An interview must be conducted in a  
department local office during normal weekday office hours or by telephone.  
History: 1998-2000 AACS; 2015 AACS; 2022 MR 12, Eff. June 29, 2022.  
R 400.3156 Verification of eligibility factors.  
Rule 6. (1) A group shall provide the department with verification of the factors  
that affect the initial and continued eligibility of the group or its individual members  
in the state disability assistance program, including information obtained by data  
exchanges.  
(2) The department shall provide a client with a written notice of the factors that  
must be verified and the due date for submitting verification to the local office of the  
department.  
(3) Department staff may visit a group's home to verify eligibility information or to  
conduct other department business. A group shall cooperate with department home  
visits.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3157 Determination of eligibility and assistance amount.  
Rule 7. The department shall determine the eligibility of each person in a program  
group and the amount of assistance for which the group qualifies.  
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History: 1998-2000 AACS; 2015 AACS.  
R 400.3158 Beginning of assistance benefits.  
Rule 8. The department shall begin assistance benefits not earlier than the half-  
month pay period after the pay period that includes the application filing date and not  
later than the pay period in which the application becomes 30 calendar days old, if the  
group is eligible for that pay period. If the application becomes 30 calendar days old  
and the group has not met eligibility requirements, the department shall begin assistance  
benefits for the pay period in which all eligibility requirements are met.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3159 Client responsibility to cooperate with department; effect of failure  
to cooperate.  
Rule 9. (1) A client shall cooperate with department staff in determining initial and  
ongoing eligibility and benefit levels. Cooperation includes all of the following:  
(a) Answering completely and truthfully all questions on department forms and  
during interviews.  
(b) Taking all actions within the client’s ability to verify factors concerning the  
client's eligibility.  
(c) Cooperating with department staff during quality control reviews.  
(d) Reporting accurate information that potentially affects eligibility or benefit  
amount within 10 calendar days after the information is known to the client.  
(2) Failure to cooperate with the department in any matter of eligibility will result  
in denial of the assistance application or case closure, member disqualification, or  
benefit level reduction.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3160 Eligibility; citizenship and alien status.  
Rule 10. (1) To be eligible for assistance benefits, a person shall be either of the  
following:  
(a) A citizen of the United States.  
(b) An alien qualified to receive supplemental security income as provided under  
title IV, section 402 of Public Law 104-193, 8 U.S.C. §1612.  
(2) An alien who is qualified as specified in subrule (1)(b) of this rule shall verify  
the qualification. An alien who is unable to provide verification or who refuses  
to cooperate with the department in obtaining verification is ineligible for assistance  
benefits.  
(3) Subrule (1)(b) of this rule notwithstanding, a refugee or asylee who loses  
eligibility for the federal supplemental security income program by virtue of exceeding  
the maximum time limit for eligibility as delineated in Public Law 104-193 and who  
otherwise meets the eligibility criteria for the state disability assistance program shall be  
eligible to receive benefits under the state disability assistance program.  
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History: 1998-2000 AACS; 2015 AACS.  
R 400.3161 Mandatory vendoring or third-party payments.  
Rule 11. (1) If the department determines that a grantee's negligence has  
resulted in the mismanagement of funds and has endangered the health or safety of a  
group member, then, subject to subrule (2) of this rule, the department shall initiate  
mandatory vendoring or third-party payments.  
(2) The department's decision to initiate third-party payments or mandatory  
vendoring shall be based on the seriousness of the client endangerment, the availability  
of a competent third-party payee, and the qualification of shelter providers.  
(3) Mandatory vendoring shall be limited to the monthly combined shelter, heat,  
and utility expenses. A client shall receive a minimum $2.00 monthly payment amount  
after vendoring and other required deductions from the payment standard.  
(4) A group in restricted payment status has the right to department review of the  
need to continue mandatory vendoring or third-party payments at least once every 6  
months.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3162 Voluntary vendoring.  
Rule 12. (1) A group may request voluntary vendoring at any time by completing a  
department vendor payment form.  
(2) As part of a voluntary vendoring request, a group that has heat and electricity  
obligations shall request vendor payments for both services unless vendoring both  
would leave a monthly payment amount of less than $2.00. The department or a  
utility company shall establish vendored amounts for heat and electricity based on the  
assistance payment standard.  
(3) A group may specify any monthly shelter amount that is not less than $2.00 to  
be vendored if vendoring would leave a monthly payment amount of at least $2.00.  
(4) The department shall cease voluntary vendor payments as soon as  
administratively feasible when requested in writing by a client.  
(5) The department shall not authorize voluntary vendor payments for rent under  
any of the following circumstances:  
(a) The local housing authority notifies the department that the dwelling fails to  
meet the housing code or that the landlord has failed to cooperate with housing code  
policies and procedures. In this situation, the department shall discontinue ongoing  
vendoring within 5 workdays if administratively feasible.  
(b) The landlord has not cooperated with the department or a utility company in  
the installation of energy conservation measures that were determined necessary to  
reduce energy consumption. In this situation, the department shall discontinue ongoing  
vendoring within 5 workdays if administratively feasible.  
(c) Title to the rental property reverts to this state or local municipality for  
nonpayment of property taxes.  
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History: 1998-2000 AACS; 2015 AACS.  
R 400.3163 Special living arrangements.  
Rule 13. (1) A client who resides in an adult foster care facility, county  
infirmary, or home for the aged may be eligible for a client incidental allowance  
and for provider payment.  
(2) A client who resides in a substance abuse treatment center, long-term care  
facility, or hospital may be eligible for a client incidental allowance, but is not eligible for  
provider payment.  
(3) A special living arrangement facility must be licensed in order to receive  
payment.  
(4) The department must determine a client's level of care to be either  
domiciliary care or personal care before provider payment may be authorized.  
(5) Provider payment for a special living arrangement may begin up to 10 calendar  
days before the application filing date for an eligible client who was residing in a facility  
10 days before the date of application.  
(6) Subject to subrule (5) of this rule, per diem provider payment eligibility  
begins the day an eligible client enters a special living arrangement facility and ends  
the day the client becomes ineligible for assistance or the day before the date of  
discharge, whichever is earlier.  
(7) If a client's failure to report timely, complete, and accurate information  
results in an overpayment for special living arrangement care, then the department shall  
recover the amount overpaid from the client.  
(8) If a provider of special living arrangement care is overpaid as a result of  
incorrect provider billing or level of care authorization, then the department shall recover  
the amount overpaid from the provider.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3164 Changes in group's circumstances.  
Rule 14. (1) A group shall report a change in circumstance within 10 days of the  
change.  
(2) The department shall act on changes that continue for at least 1 month beyond  
the month in which the change was reported.  
(3) A group member addition or change in income that results in a benefit increase  
must affect the benefit level for the month after the month the change occurred, if the  
addition or change is timely reported. If a group member addition or change in income  
that results in a benefit increase is reported late, then the effective month of the increase  
is the month after the month the change is reported and verified.  
(4) A change other than the changes specified in subrule (3) of this rule must affect  
the first full benefit month that begins not later than 10 days after the change is reported.  
The department may affect the first full benefit month that begins earlier than 10 days  
after the change is reported, if administratively possible. A benefit month is the calendar  
month for which assistance is paid. Assistance may be paid for 1/2 of the benefit month  
or for a full benefit month, depending upon a group's eligibility for payment.  
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(5) A change that results in case closure may affect the month in which the change  
occurred.  
(6) If a change in a group's assets results in exceeding the asset standard  
established by the department, then the group is ineligible for benefits for 1 month or  
for as long as the assets exceed the standard, whichever is longer. In this situation, the  
month in which assistance is closed is either the month following the month in which the  
group obtained the asset or, if administratively feasible, the second month following the  
month in which the group obtained the assets.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3165 Determination of eligibility and benefit levels; use of data base  
exchange.  
Rule 15. The department shall use information available through data base  
matching to determine eligibility and benefit levels for clients.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3166 Social security numbers; client verification or cooperation in  
obtaining number.  
Rule 16. A client shall verify his or her social security number or cooperate in  
obtaining a social security number to be eligible to receive benefits.  
History: 1998-2000 AACS.  
R 400.3167 Rescinded.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3168 Returned warrants.  
Rule 18. (1) A returned warrant may be rewritten by the department if a group was  
eligible for cash assistance during the period covered by the original warrant.  
(2) A group is presumed to be ineligible for cash assistance under any of the  
following circumstances:  
(a) The post office returned a client warrant to the treasury as undeliverable  
and there has been no contact from the group regarding the warrant.  
(b) A warrant remains uncashed for more than 30 calendar days and there has been  
no contact from the client regarding the warrant.  
(c) A client fails to contact the department by the disposition deadline for a warrant  
returned or delivered to the local department office.  
(3) A representative of a group who picks up a client warrant shall present the  
group's signed statement authorizing the representative to pick up the warrant.  
History: 1998-2000 AACS; 2015 AACS.  
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R 400.3169 Replacement policies for warrants.  
Rule 19. (1) If a group reports an unendorsed warrant lost, stolen, not received, or  
destroyed, then the group may have the warrant replaced if all of the following criteria, as  
appropriate, are met:  
(a) The group completes a stop payment/replacement request affidavit. For stolen  
warrants, a group shall file a police report, unless replacement of the warrant is made  
after recovery of the warrant amount.  
(b) A client or provider shall contact the post office to verify delivery of a warrant  
that was issued but not received. If delivery is verified, then the warrant is considered  
lost. If delivery cannot be verified, then the warrant is considered not received.  
(c) For warrants considered not received, a client or provider shall complete a stop  
payment/replacement request affidavit.  
(d) Under any of the following circumstances, a warrant shall be replaced only  
after recovery of the original warrant amount:  
(i) Replacement is requested more than 30 calendar days after the warrant date.  
(ii) The client has previously requested a replacement after cashing the original  
warrant.  
(iii) A police report was not filed on a stolen warrant.  
(iv) The case is closed or closure is pending.  
(v) The warrant to be replaced is a replacement warrant or a vendor warrant.  
(2) If a warrant is cashed by a recipient of cash assistance, then the department  
shall not take action on a request to stop payment on the cashed warrant and a  
replacement warrant will not be issued.  
(3) A warrant that is lost or stolen after endorsement shall be replaced only if the  
warrant is later returned or voided.  
(4) If a replacement warrant is issued for a warrant that was cashed and the client  
claims that the warrant copy signature is not his or hers, then the client shall sign an  
affidavit that the signature is not the client's signature.  
(5) If a replacement warrant is issued for a warrant that was cashed and the client  
fails to keep an appointment to view the warrant, refuses to sign the affidavit, or admits  
endorsing both the original and replacement warrants, then the department shall  
recover the overissuance from the group.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3170 Supplemental benefits policy for cash assistance.  
Rule 20. (1) Supplemental benefits, also referred to as a supplement, are issued to  
correct an underissuance.  
(2) A supplement is offset by overissuances for which collection actions have not  
yet begun. The department shall subtract the amount of the overissuance from the  
amount of the supplement, up to the amount of the supplement.  
(3) The department shall issue a supplement promptly when verification of the  
need for a supplement is received by the department or when the department has  
knowledge of the need for a supplement.  
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(4) A supplement is issued back to the month following the month that  
verification, if required, shows the need began, but not earlier than the month  
following the month that the group reported the change which resulted in the need for a  
supplement.  
(5) The department shall not issue a supplement for a period before the effective  
date for program eligibility.  
(6) The department shall give a group adequate notice that a supplement has been  
authorized or denied.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3171 Identity verification requirement.  
Rule 21. A grantee shall verify his or her identity in order to receive benefits.  
History: 1998-2000 AACS; 2015 AACS.  
400.3172 Pursuit of potential benefits as condition of eligibility.  
Rule 22. (1) As a condition of eligibility, a client shall apply for potential  
benefits for which the group or a member of the group may be eligible.  
(2) A client shall take action to make the entire potential benefit amount available to  
the group.  
(3) A group that would otherwise be eligible for the family independence program  
(FIP) except for the group's failure to meet or comply with  
requirement is not eligible for the state disability assistance program.  
a
FIP eligibility  
History: 1998-2000 AACS.  
R 400.3173 Penalties for failure to pursue potential benefits; verification  
requirements.  
Rule 23. (1) If a group refuses to pursue a potential benefit, then the group is  
ineligible for state disability assistance.  
(2) If a client or other group members act to restrict the amount of a potential  
benefit that is available to the group, then the group is ineligible for state disability  
assistance.  
(3) The department shall accept a client's statement that he or she has applied for a  
benefit or that he or she is not eligible for a benefit, unless the statement is unclear,  
inconsistent, or in conflict with other information.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3174 Concurrent receipt of benefits prohibited.  
Rule 24. (1) A client may not receive state disability assistance benefits and  
refugee matching grant payments for the same period.  
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(2) A client may not receive state disability assistance benefits for the same period  
in which he or she received benefits from any of the following:  
(a) The family independence program.  
(b) Another state's cash assistance program that is either state-funded or funded  
under title IV-A of the social security act of 1962, 42 U.S.C. §601 et seq.  
(c) The refugee assistance program.  
(d) The repatriate assistance program.  
History: 1998-2000 AACS.  
R 400.3175 Residence.  
Rule 25. (1) For purposes of the state disability assistance program, a resident of  
this state is a person who is living in this state voluntarily with the intention of making  
his or her home in this state and not for a temporary purpose and who is not receiving  
assistance from another state.  
(2) The continued absence of a recipient from this state, unless the absence is  
temporary or an intent to return is established, shall constitute abandonment by the  
recipient of residence in this state.  
History: 1998-2000 AACS.  
R 400.3176 Repayment agreements.  
Rule 26. (1) As a condition of eligibility, a client is required to sign an agreement  
to repay state disability assistance benefits issued during the period in which the client is  
pursuing a financial benefit for which he or she may be eligible.  
(2) If a client refuses to sign a repay agreement when required, then the group is  
ineligible for benefits.  
History: 1998-2000 AACS.  
R 400.3177 Benefit overissuance determination and recoupment.  
Rule 27. (1) A benefit overissuance period starts with the first pay period that  
the benefit issuance exceeds the benefit amount allowed. The overissuance period  
ends with the pay period immediately before the pay period when the benefit amount  
is corrected.  
(2) A benefit amount that a group receives includes all of the following:  
(a) Regular, supplemental, and duplicate warrants.  
(b) Vendor payments.  
(c) The amount of any benefit reduction used to repay previous  
overissuances.  
History: 1998-2000 AACS.  
R 400.3178 Intentional program violation; disqualification; recoupment.  
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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.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3179 Benefit overissuance; collection and repayment actions.  
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Rule 29. (1) The department shall employ administrative recoupment processes to  
recoup all benefit overissuances from active or inactive state disability assistance groups  
by cash repayment or benefit reduction.  
(2) The department shall seek recoupment of benefit overissuances from any adult  
who was a group member when the overissuance occurred.  
(3) The department shall recoup overissuances on active state disability assistance  
cases through benefit reduction, unless cash payments are ordered by a court.  
(4) If an overissuance is not paid in full during the timely notice period, then the  
department shall reduce state disability assistance warrants by a percentage of the  
payment standard as follows:  
(a) The department and client error overissuances are recouped at a 5% reduction  
of the payment standard.  
(b) Intentional program violation overissuances are recouped at a 10% reduction of  
the payment standard.  
(5) An overissuance repayment amount shall be adjusted to maintain a minimum  
$2.00 cash benefit to the client.  
(6) If a court orders cash repayment of an overissuance and the active state  
disability assistance client does not make regular cash payments, then the department  
shall change the collection method to benefit reduction.  
(7) A local department office may pursue, through probate court claim action,  
collection from the estate of a person who dies and has an overissuance balance.  
(8) A payment received as restitution under the terms of a person's probation  
reduces the balance owed, but completing the probation period or performing a  
requirement of probation does not reduce the amount owed in excess of the actual  
dollar amount paid toward the balance owed.  
History: 1998-2000 AACS; 2015 AACS.  
R 400.3180 Recission.  
Rule 30. R400.1121 of the Michigan Administrative Code, appearing on pages 850  
and 851 of the 1993 Annual Supplement to the 1979 Michigan Administrative Code, is  
rescinded.  
History: 1998-2000 AACS.  
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