(1) When the department obtains information that leads the department to believe that a claimant made a false statement or representation or failed to disclose a material fact in order to obtain or increase benefits, the department conducts an investigation and sends the claimant a notice detailing the information obtained during the investigation. The notice provides the claimant ten days in which to respond to the information. If, after the claimant's response is received or the allotted time for response, including any extension of time granted by the department for good cause, has expired, the department determines that the claimant made a false statement or representation or failed to disclose a material fact in order to obtain or increase benefits, irrespective of whether or not benefits were obtained or increased as the result of the false statement or representation or failure to disclose a material fact, the claimant is sent written notification of that determination and of the number of weeks of disqualification, if any, imposed pursuant to 39-51-3201 (1) (a) , MCA. The claimant may appeal the determination either as to the finding that the claimant made a false statement or representation or failed to disclose a material fact in order to obtain or increase benefits or as to the number of weeks of disqualification imposed, or both.

(2) (a) A claimant will be determined to have made a false statement or representation knowing it to be false in order to obtain or increase benefits only upon a finding supported by a preponderance of the evidence that:

(i) the claimant personally made the statement or representation in question;

(ii) the claimant knew or should have known that the statement or representation was false; and

(iii) the statement or representation was made in connection with the claimant's claim for benefits and was material to a determination of the claimant's benefit entitlement.

(b) Any determination, redetermination, or decision finding that a claimant made a false statement or representation knowing it to be false in order to obtain or increase benefits must specifically cite the evidence in support of each conclusion reached under (2) (a) (i) , (ii) , and (iii) .

(3) (a) A claimant will be determined to have knowingly failed to disclose a material fact in order to obtain or increase benefits only upon a finding supported by a preponderance of the evidence that:

(i) the claimant had knowledge of or should have had knowledge of the fact in question;

(ii) the fact in question was material to a determination of the claimant's benefit entitlement;

(iii) the claimant failed to disclose the fact in question; and

(iv) the claimant knew or should have known that the fact in question was required to be disclosed to the department for the proper administration of the claim.

(b) Any determination, redetermination, or decision finding that a claimant knowingly failed to disclose a material fact in order to obtain or increase benefits must specifically cite the evidence in support of each conclusion reached under (3) (a) (i) , (ii) , and (iii) .

(4) The number of weeks of disqualification imposed pursuant to 39-51-3201 (1) (a) , MCA, is determined as follows:

(a) for each week relative to which a claimant has been determined to have made a false statement or representation, as provided in (2) , or failed to disclose a material fact, as provided in (3) , not involving a separation from work, two weeks of disqualification are imposed;

(b) for each week relative to which a claimant has been determined to have made a false statement or representation, as provided in (2) , or failed to disclose a material fact, as provided in (3) , involving a separation from work, 13 weeks of disqualification are imposed; and

(c) an additional four weeks of disqualification are imposed for each determination, redetermination, or decision, dated within three years of the date of the department's determination under (4) (a) or (b) , that imposed a disqualification for any number of weeks pursuant to 39-51-3201 (1) (a) , MCA.

(5) A week is counted as a week of disqualification for the purposes of 39-51-3201 (1) (a) , MCA, only if:

(a) the claimant has filed a biweekly claim for the week;

(b) the claimant is otherwise eligible for and qualified to receive benefits for the week;

(c) the week has not been used to satisfy the waiting period requirement imposed by 39-51-2104 (1) (c) , MCA; and

(d) the maximum benefit amount for the benefit year in which the week begins, as determined in accordance with 39-51-2204 , MCA, has not been exhausted.