On motion duly made and supported, the Commission added Item G-7, Voluntary Work Schedule Adjustment Plan, to the Agenda.

Whereas, Rich demonstrated commitment and dedication throughout his career as a public servant, gaining the respect and admiration of his colleagues, and

Whereas, Rich demonstrated extensive knowledge of the Department of Civil Service and state government and imparted that knowledge with diligence and creativity, and

Whereas, Rich in his capacities as Administrative Officer, Chief Budget Officer, Representative on the Michigan Administrative Information Network Governing Board, Construction Manager for the Capitol Commons Center, Project Manager for the establishment of the Personnel PayRoll and Information System, Assistant to the State Personnel Director, and many other capacities, continuously accepted new challenges head on and with fortitude, and

Whereas, Rich in his capacity as Project Director of the Human Resource Management Network (HRMN) system provided exemplary and invaluable leadership in its vision, development, and implementation, and

Whereas, Rich in his retirement, can pursue his "second career" in private industry as a consultant, and

Whereas, Rich will be able to spend more time with his wife, Carol, and can further indulge in his love of sailing (now cruising instead of racing), designing and building wood furniture, and home building and remodeling, be it therefore

Resolved, that the Michigan Civil Service Commission does hereby extend to Rich Huneke its heartfelt appreciation for his dedicated efforts and many accomplishments during his years of service; and be it further

Resolved, that the Commission extends to Rich its warmest wishes for much health and happiness throughout his retirement.

On motion duly made and supported, the Commission approved the retirement resolution.

The Commission received the following report from John F. Lopez, State Personnel Director.

I am pleased to inform you that Ms. Susan Zurvalec accepted her reappointment as a member and the chairperson of the Employment Relations Board. Ms. Zurvalec's appointment expires April 30, 2006.

Civil Service Commission Rules require me to report on the establishment or abolition of positions in the unclassified service. Since the last commission meeting, I approved the following requests:

I received a January 3, 2003 request from the Department of Attorney General to establish an unclassified position to serve as Director of External Affairs. This request was approved on January 6, 2003.

I received a December 30, 2002 and a January 17, 2003 request from the Department of Consumer and Industry Services to establish unclassified Deputy Director positions. These requests were approved on January 3, 2003 and January 22, 2003, respectively.

I received a January 29, 2003 request from the Department of Corrections to establish an unclassified position. The position serves as the Deputy Director for Field Operations Administration. The unclassified Prison Build Program position was abolished. This request was approved on February 3, 2003.

I received a January 2, 2003 request from the Department of Environmental Quality to establish an unclassified position to serve as the Senior Policy Advisor to the Director. In addition, I received a January 21, 2003 request to establish an unclassified position to serve as the Deputy Director. The unclassified Special Assistant to the Director for Southeast Michigan position was abolished. These requests were approved on January 3, 2003 and January 22, 2003, respectively.

I received a March 20, 2003 request from the Department of Information Technology to establish an unclassified position to serve as the Director of Strategic Policy. This request was approved on March 21, 2003.

I received a March 20, 2003 request from the Department of Management and Budget to establish two unclassified positions to serve as Communications Director and Legislative Liaison for the State Budget Office. The Special Assistant to the Department Director and Communications Representative positions were abolished. This request was approved on March 21, 2003.

I received a February 6, 2003 and a March 4, 2003 request from the Department of Natural Resources to establish unclassified positions to serve as the Environmental Policy Advisor and the Conservation Policy Advisor. The unclassified Special Assistant to the Director/Project Coordination and the Administrative Services Deputy positions were abolished. These requests were approved on February 7, 2003 and March 20, 2003, respectively.

I received a December 30, 2002 request from the Department of State Police to establish an unclassified position to serve as Executive Advisor to the Executive Division Commander. This request was approved on January 3, 2003.

I received a January 17, 2003 request from the Department of Transportation to establish an unclassified Chief Deputy Director position. This request was approved on January 22, 2003.

I received a March 5, 2003 request from the Department of Treasury to establish an unclassified position to serve as the Deputy State Treasurer for State and Local Finance. The Deputy Treasurer for Education Policy position was abolished. This request was approved on March 13, 2003.

Civil Service Commission Rules require that I report to the Commission on the promulgation of regulations, which are issued to implement commission rules.

Since the last commission meeting, the following regulations have been created or revised and reissued:

Regulation 3.02 Student Assistants in the Classified Service - Effective: 12-23-02. Summary: The regulation was revised to specify that Student Assistants are considered state employees for examination and employment opportunity purposes. The regulation also clarifies a long-standing practice that students hired as unclassified Special Personal Services (SPS) employees are not governed by Regulation 3.02.

Regulation 3.07 Appointments and Job Changes - Effective: 12-17-02. Summary: Amended to reference changes made to Regulation 3.02.

Regulation 3.10 Promotion or Lateral Job Change Within a Department of Current Employee Under Hiring Restriction Conditions - Effective: 12-17-02. Summary: For purposes of maintaining employment targets, active classified state employee was defined to include limited-term employees. Previously, limited-term employees were not included in a department's "head count."

Regulation 5.02 Premium Payment of Overtime, On-call Compensation, and Callback Compensation - Effective: 2-25-03. Summary: To clarify the intent of language regarding work schedule changes, revisions make clear that work schedules may require temporary changes to meet operational needs. In addition, time frames for posting or notification of work schedules and changes to work schedules have been modified from 48 to 96 hours. Revisions also update the maximum overtime rate for ineligible employees who are granted exception approval to receive overtime compensation during fiscal year 2003.

Regulation 5.07 Performance-Pay and IT Bonus Programs - Effective: 2-25-03. Summary: Revised to (1) update civil service rule references for conversion of a performance-pay schedule to a step schedule and grievance procedures and (2) language regarding other conditions applicable for attorneys for pay performance awards was changed from attorneys to Senior Attorneys and Attorney Specialists only, as Attorney Administrators are now covered under Group 4 standards.

Regulation 5.17 Electronic Funds Transfer - Effective: 1-19-03. Summary: Provides the standards and procedures necessary to assist appointing authorities in ensuring employees hired after October 1, 2002 are paid by direct deposit via EFT.

Regulation 5.18 Group Insurance Plan Complaints - Effective: 2-12-03. Summary: Establishes procedures for employees to appeal decisions regarding coverage, exclusion, and cost issues pertaining to group insurance plans.

The Commission received a report on the Office of Compliance from Joseph Slivensky, Director, Bureau of Training, Leadership, and Compliance, and Anne Harrington, Manager of the Office of Compliance. Mr. Slivensky briefly discussed changes that have occurred in the Office of Compliance as a result of the Department's move from being a regulatory agent to being a service provider, HRMN's delegation of transactions to the agency human resource offices, and changes in technology. Mr. Slivensky asked that Ms. Harrington discuss details of the activities of the office.

Ms. Harrington described "real-time" audits conducted for various types of personnel transaction and provided an overview of FY 02 Office activities. She then discussed new audit processes for limited term appointments, electronic funds transfers, CS-138 review< and military pay adjustments.

D. Daniel McLellan, General Counsel, briefed the Commission on the Letter of Understanding between the Michigan State Employees Association, the Department of Community Health and Office of State Employer, regarding recall lists for Northville Regional Psychiatric Hospital employees in the Labor and Trades Unit and the Safety and Regulatory Unit. The State Personnel Director, with the consent of the Civil Service Commission Chairperson, granted interim approval of this Letter of Understanding on January 21, 2003.

On motion duly made and supported, the Commission confirmed the interim approval of the Letter of Understanding between the Michigan State Employees Association, the Department of Community Health and Office of State Employer.

D. Daniel McLellan indicated that staff has reviewed the Letter of Understanding between the UAW, Local 6000 and the Michigan State Police and recommends its approval.

On motion duly made and supported, the Commission approved the Letter of Understanding between the UAW, Local 6000 and the Michigan State Police regarding Article 15, overtime.

The State Personnel Director, with the consent of the Commission Chairperson, issued Appointing Authority Letter CS-6993, Interim Amendments to Rule 5-11: Group Insurance Plans, on January 27, 2003. Mr. McLellan noted that the interim amendments conform the text of Rule 5-11(e) to the transfer of the group insurance plans to the Department of Civil Service, and provide for administration of the group insurance plans by the Department of Civil Service and the State Personnel Director.

On motion duly made and supported, the Commission approved the interim amendment to Rule 5-11: Group Insurance Plans.

D. Daniel McLellan briefed the Commission on the proposed amendments to Rule 1-9, Excepted and Exempt Positions, circulated in Appointing Authority Letter CS-6996, on February 27, 2003. The proposal provides a reciprocal arrangement with the Department of Management and Budget, which would give the State Personnel Director the opportunity to authorize an employee coming into the classified service to transfer annual and sick leave balances from their unclassified job, to the same extent that DMB permits classified employees moving into the unclassified service to transfer their leave balances.

On motion duly made and supported, the Commission approved the amendments to Civil Service Rule 1-9 (Excepted and Exempt Positions) circulated for comment on February 27, 2003 in CS-6996 (Rev A), effective immediately.

D. Daniel McLellan reviewed the proposed amendments to Rules 2-8, 2-9, 2-15, and 9-1, regarding Ethical Standards and Conduct. The proposed amendments strengthen the ethics rules, and consolidate the concepts of conflict of interest, disclosure of interest and contacts, and supplemental employment into a new rule, "Ethical Standards and Conduct." The proposed amendments were circulated in Appointing Authority Letter CS-6996 on February 27, 2003. Staff proposed further amendments in Revision B, dated March 17, 2003.

In response to a question from Commissioner Pitz, Anne Harrington indicated that the Office of Compliance does review supplemental employment and disclosures during on-site audits. Commissioner Hunter commented that there must be notice to the departments regarding the changes, and an opportunity to educate department directors regarding the new standards. Mr. McLellan indicated staff has been working with Human Resource Directors on this issue, and regulations will spell out the requirements. Mr. McLellan noted that the appointing authorities will give annual notice of the requirements to their employees.

On motion duly made and supported, the Commission approved the amendments (Revision B, dated March 17, 2003) to Civil Service Rule 2-8 (Conflict of Interest), Rule 2-9 (Disclosure of Interest and Contacts), Rule 2-15 (Supplemental Employment), and Rule 9-1 (Definitions), effective immediately

Mr. McLellan stated that the proposed amendments to Rule 3-3, Appointments and Job Changes clarify that an employee can voluntarily take a demotion.

On motion duly made and supported, the Commission approved the amendments to Civil Service Rule 3-3, Appointments and Job Changes, circulated for comment on February 27, 2003 (CS-6997, Rev A), effective immediately.

D. Daniel McLellan briefed the Commission on the requested modification of the Voluntary Work Schedule Adjustment Plan. Mr. McLellan noted that the State Employer negotiated the Voluntary Work Schedule Adjustment Plan (VWSAP) for exclusively represented employees during their most recent negotiations. OSE asked that the Commission extend the plan indefinitely for nonexclusively represented employees, as one approach to reducing the cost of state employment. Plan A of the VWSAP permits an employee to reduce his or her work schedule from one to sixteen hours per bi-weekly pay period without reduction in benefits and leave accruals. Plan C permits employees to take unpaid leaves of absence, without a break in service, for up to 3 months.

On motion duly made and supported, the Commission unanimously approved Resolution G-7: