DEPARTMENT OF HEALTH AND HUMAN SERVICES

ECONOMIC STABILITY ADMINISTRATION

FAMILY INDEPENDENCE PROGRAM

Filed with the secretary of state on

These rules take effect immediately upon after filing with the secretary of state unless adopted under section 33, 44, or 45a(9) of the administrative procedures act of 1969, 1969 PA 306, MCL 24.233, 24.244, or 24.245a.  Rules adopted under these sections become effective 7 days after filing with the secretary of state.

(By authority conferred on the department of health and human services by section 6

of the social welfare act, 1939 PA 280, MCL 400.6)

R 400.3101 and R 400.3104 of the Michigan Administrative Code are amended, as follows:

R 400.3101  Definitions.

  Rule 1. (1) As used in these rules:

   (a) "Administrative recoupment" means a process by which a group's benefits

are reduced to make payments on an over issuance.

(b) "Agency errors" means over issuances caused from incorrect actions by the

department.

   (cb) "Application" means an application for the family independence program.

   (dc) "Application filing date" means the date the department receives a signed

application document that contains the minimum required information.

   (ed) "Authorized representative" means a person an individual who is not less than 18 years of age and who applies for assistance on behalf of a client or who otherwise acts on a client's

behalf, or both. The person individual may be, but is not limited to being, a guardian, spouse, or

relative outside the group.

(f) “Available/warrant date” means the date that a regular assistance benefit or

warrant was issued.

   (ge)"Client error" means over issuances that are caused due to the action or inaction

of a client or authorized representative. An over issuance resulting from a department

action being deleted due to a client's hearing request is client error if the client withdraws

his or her the request, fails to appear for the hearing, or the department is upheld in the

hearing decision.

   (hf) "Collection actions" means the department processes initiated to maximize the

recovery of over issued benefits.

(i) "Crediting" means returning the benefit issuance amount to the state treasury.

   (jg) "Department” means the Michigan department of health and human services.

   (kh) “Disqualification" means a department penalty action which is assessed for

noncompliance with a family independence program requirement and which results in the

ineligibility of the noncompliant individual. person.

(i) “EBT” means electronic benefit transfer.

   (lj) "Eligible child" means a child who is part of a group that receives assistance

under the family independence program.

(k) “FIP” means family independence program.

   (ml) "Immunizations" means all immunizations recommended by the department. of

community health.

   (nm) "Institution" means an establishment that furnishes food, shelter, and some

medical treatment or services to more than 3 individuals people who are unrelated to the proprietor of the establishment.

   (on) "Intentional program violation" means the intentional withholding or

misrepresenting of information by a client or authorized representative for the purpose of

obtaining benefits that he or she the client or authorized representative would not otherwise be eligible for. Over issuances become intentional program violations if the client or client's authorized representative is found responsible for an intentional program violation by a court, as a result of an administrative hearing, or due to signing an agreement form.

   (po) "Mandatory vendoring" means department payment of assistance amounts,

without client request, directly to the client's landlord, mortgage holder, land contract

holder, and or the providers of the client's home heating and electricity services.

   (qp) "Minimum wage" means the lesser of the federal or state minimum wage.

   (rq) "Monthly payment amount" means the amount of assistance paid to the group

after deductions for vendoring and any department recoupment.

(s) "Nonstriker" means a person to whom all of the following conditions apply:

(i) Is locked out of the workplace by the employer.

(ii) Is not part of the bargaining unit on a strike.

(iii) Is in fear of reprisal if he or she crosses a picket line.

   (tr) "Over issuance" means an issuance of more benefits than a client is eligible to

receive.

   (us) "Over issuance period” means the time period during which an over issuance

occurs.

(v) "Over issuance type" means the reason an over issuance occurred. Department

error, client error, and client intentional program violation are the types of over issuance.

   (wt) "Pay period" means the half of the month from the first of the month to through

the fifteenth of the month or from the sixteenth of the month to through the end of the month.

(u) “Payment standard” means the maximum monthly amount for the approved ongoing monthly certified group size.

   (xv) "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) Unemployment compensation benefits.

    (vi) Child support payments.

    (vii) Pension payments.

    (viii) Disability or retirement benefits.

    (ix) Earned but unpaid wages.

    (x) Strike pay.

    (xi) Vacation pay.

    (xii) Supplemental unemployment benefits.

    (xiii) Supplemental security income.

    (xiv) Any other Other financial benefits for which potential eligibility exists and which

may reduce the family independence program benefit, other than state-funded, needs

based programs.

(y) "Reapplication" means an application for family independence program benefits

after a previous case has been closed.

   (w) “RCA” means refugee cash assistance.

   (zx) "Recoupment" means a department action to identify and recover a benefit over

issuance.

   (aay) "Redetermination" means a review of continuing eligibility for the family

independence program.

(bbcc) "Redirecting" means routing a warrant to a different address.

   (ccz) "Reinstatement" means restoring a closed assistance case to active status

without a new application/redetermination form.

   (ddaa) "Repayment" means an action by the client to pay back benefits received.

   (eebb) "Restricted payments" means the meeting of client shelter, heat, and utilities

obligations through mandatory vendoring or third-party payments.

   (ffcc) "Returned warrants" means uncashed warrants received by the local department

office or treasury.

(dd) “SDA” means state disability assistance.

   (ggee) "Stop payment" means a department directive to treasury to not honor a

warrant.

   (hhff) "Striker" means a person an individual who is involved in any of the following situations:

    (i) An employee strike.

    (ii) A concerted work stoppage, including a stoppage when a collective bargaining

agreement expires.

    (iii) A work slowdown.

    (iv) Interruption of work activities or employment operations.

   (iigg) "Third-party payments" means department payment of the client’s entire

assistance benefit, without client request, to an agency or person individual outside the eligible

group for management of the assistance on behalf of the group.

   (jjhh) "Third-party resource" means an individual, person, entity, or program that is, or might be, liable to pay all or part of a group member's medical expenses.

   (kkii) "Treasury" means the Michigan department of treasury.

   (lljj) "Under issuance" means that a group has received less cash assistance than it is

eligible to receive.

   (mmkk) "Verification" means documentation or other evidence to establish the

accuracy of the client's verbal or written statements.

   (nnll) "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

of shelter, heat, or electricity.

 (mm) “Warrant” means a written order to pay that instructs a federal, state, or county government treasurer to pay the warrant holder on demand or after a specific date.

   (oonn) "Warrant date" means the date shown on the 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 that the warrant was is mailed by the department.

  (2) Terms defined in the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b,

have the same meaning when used in these rules.

R 400.3104 Replacement policies for warrants reported lost, stolen, not received, or destroyed

 and EBT thefts.

  Rule 4. (1) A group is eligible for replacement of unendorsed warrants reported lost, stolen, not received, or destroyed if 1 or more of the following conditions are complied with:

   (a) The group completes a stop payment or /replacement request affidavit.   For a stolen warrant, a group shall file a police report, unless replacement of the warrant is made after recovery of the warrant amount.

   (b) A group client or provider shall contacts 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 to be a warrant that is not received.

(c) For a warrants that is considered not received, a group client or provider shall completes a stop payment or /replacement request affidavit. not earlier than the day after the fourth mail delivery day after the warrant date.

   (d) Under any of the following circumstances, a warrant shall must 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 group client has previously requested a replacement after cashing the original warrant.

    (iii) The group did not file A 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 the cash assistance case, then a request for stop payment will not be taken the department shall not take action on a request to stop payment on the cashed warrant and a replacement warrant will must not be issued.

  (3) A warrant that is lost or stolen after endorsement shall must be replaced only if the warrant is later returned or voided., or both.

  (4) The following provisions apply to a replacement warrant that is issued for a warrant which was cashed:  (a) If a replacement warrant is issued for a warrant that was cashed and If a client claims that the warrant copy signature is not his or her that individual’s signature, then the client shall sign an affidavit that the signature is not the client's signature to that effect.

  (b5) 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 over issuance from the group.

(6) A group currently receiving ongoing FIP, RCA, or SDA may receive a replacement of its FIP, RCA, or SDA that was fraudulently removed from its EBT account.  Both of the following conditions apply to a fraudulent removal from an EBT account:

   (a) A group is only eligible to receive this payment 1 time in a 12-month period.

   (b) Replacement funds can only be approved up to 4 times the payment standard  or the amount that was fraudulently removed, whichever is less.