Section R. 400.3131 - Benefit over issuance collection and repayment actionsRule 31.
(1) The department shall seek recoupment of benefit over issuances from active or inactive family independence program groups through administrative recoupment processes. Repayment shall be in cash or through benefit reduction.(2) The department shall seek recoupment of benefit over issuances from any adult who was a group member when the over issuance occurred.(3) If the overpaid family independence program group did not include an eligible or disqualified adult at the time of the over issuance, then a collection action will not be initiated unless the debt was established through court action or by obtaining a signed repayment agreement.(4) The department shall recoup over issuances to active family independence program groups through benefit reduction, unless cash payments are ordered by a court.(5) If an over issuance is not paid in full during the notice period, then the family independence program warrants will be reduced by a percentage of the payment standard as follows: (a) Agency and client error over issuances are recouped at a 5% reduction of the payment standard.(b) Intentional program violation over issuances are recouped at a 10% reduction of the payment standard.(6) A repayment amount is adjusted to maintain a minimum $2.00 cash benefit to the client.(7) If a court orders cash repayment and the active family independence program client does not make regular cash payments, then the department shall change the collection method to benefit reduction.(8) A local department office may pursue collection from an estate of a deceased who had an over issuance balance through probate court claim action.(9) Any payments received as restitution under the terms of probation will reduce the balance owed, but the completion of the probation period or the performance of a requirement of probation does not reduce the amount owed in excess of the actual dollar amount paid toward the balance owed.Mich. Admin. Code R. 400.3131