Section R. 400.3130 - Intentional program violation; disqualification and recoupmentRule 30.
(1) If an over issuance investigation finds that an intentional program violation occurred, then the accused individual shall be notified of the allegation, the potential penalty, and the right to meet with department representatives to discuss the allegation.(2) The department shall conduct an administrative hearing to determine if an over issuance occurred due to an intentional program violation, unless either of the following provisions applies:(a) The person waives his or her right to the hearing by signing a recoupment and disqualification agreement.(b) The person was convicted of fraudulent receipt of benefits under section 60 of 1939 PA 280, MCL 400.60, or any other criminal fraud statute.(3) If an person has agreed to and signed the recoupment and disqualification agreement, then no further administrative appeal is available.(4) An individual may request a hearing to contest the computation of the benefit reduction amount, but not the over issuance amount.(5) The department shall conduct an intentional program violation hearing with or without the person or authorized representative present if the hearing notice is not returned by the post office as undeliverable.(6) Overpayments for which an intentional program violation is not established shall be recouped as department or client error.(7) In an administrative disqualification hearing, an individual who is determined 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) One year for a first offense.(b) Two years for a second offense.(c) Permanently for a third or subsequent offense.Mich. Admin. Code R. 400.3130