|
Appointing
Authority Letter Reference:
CS-6959
|
Effective Date:
October 11, 2001
|
Index Reference:
Disbursements for Personal Services
|
Regulation Number:
7.01
|
|
Issuing Bureau:
Personal
Services Review
|
Rule Reference:
7 (Disbursements for Personal Services)
|
Replaces:
Reg.
7.01
(CS-6943, May 1, 2001)
|
|
Subject:
DISBURSEMENTS
FOR PERSONAL SERVICES OUTSIDE THE CLASSIFIED SERVICE
|
1. PURPOSE
Chapter
7 of the Civil Service Rules [Disbursements for Personal Services]
establishes the basic standards and procedures for an appointing authority
to request approval from the department of civil service to make disbursements
for personal services performed by persons outside the classified work
force. This regulation establishes supplementary standards, guidelines,
and procedures approved by the state personnel director to implement Chapter
7. The guidelines in this regulation have been issued by the state personnel
director to provide authoritative, useful, and consistent guidance to
the department of civil service, appointing authorities, and others in
implementing Chapter 7 of the Civil Service Rules. A guideline may be
relied upon for guidance if it applies to the facts of a particular request.
2. CIVIL
SERVICE COMMISSION RULE REFERENCE
7-1.1 Requirements
An
appointing authority shall not make or authorize disbursements for personal
services outside the classified service until the provisions of article
11, section 5, of the constitution and the civil service rules and regulations
have been complied with in every particular.
7-1.2 Disapproval
by State Personnel Director
If
an appointing authority makes or authorizes disbursements for personal
services outside the classified service in violation of article 11, section
5, of the constitution or an applicable civil service rule or regulation,
the state personnel director may disapprove any further disbursements
by written order. If an appointing authority fails or refuses to comply
with an order of the director, the director is authorized to take all
appropriate action, including filing a civil action, to compel compliance
with the disapproval order.
7-2.1 Civil
Service Review or Approval not Required
An
appointing authority is not required to seek or obtain civil service approval
for any of the following disbursements outside the classified service:
(a) Not
personal services. Disbursements that are not for personal services.
(b) Exempt
and excepted employees. Disbursements to persons occupying positions
the classified service by article 11, section 5, of the constitution,
or exempted by the state personnel director under rule 1-9.2 [Exempt
Positions].
(c) Mixed
disbursements. Disbursements for personal services that are included
with other disbursements if (1) the predominant purpose of the mixed
disbursements is not for personal services and (2) the personal services
are logically or practically related to the predominant purpose of the
mixed disbursements.
(d) Grants.Disbursements
of grants.
(e) Federal
law. Disbursements under federal law if the use of the classified
service is not an option.
(f) Intergovernmental
disbursements. Disbursements to any of the following governments
or their political subdivisions:
(1) One
or more of the states of the United States.
(2) The
United States.
(3) Canada.
(g) Intragovernmental
disbursements. Disbursements to any of the following public bodies:
(1) An
agency of the executive, judicial, or legislative branch of the state
of Michigan.
(2) A
political subdivision of the state of Michigan, including, but not
limited to, a county, township, city, village, or district.
(3) Any
governmental body created by agreement of any two or more counties,
townships, cities, villages, or districts, as authorized by law.
(4) A
nonprofit community board, agency, or corporation created under local,
state, or federal law to exercise a governmental function.
(5) A
public university, public college, public community college, or other
public school.
(h) Court
ordered disbursements. Disbursements made pursuant to a court order
requiring disbursements for personal services, if the court retains
jurisdiction of the matter or the matter is subject to further court
review.
7-2.2 Complaints
A
complaint that an appointing authority has made or authorized disbursements
for personal services in violation of article 11, section 5, of the constitution
or a civil service rule or regulation must be filed with the state personnel
director under the procedures authorized in rule 7-9.
Except
as provided in rule 7-2, an appointing authority may make or authorize
disbursements for personal services outside the classified service only
if the personal services meet one or more of the following standards:
(a) Standard
A. The personal services are temporary, intermittent, or irregular.
(b) Standard
B. The personal services are (1) so specialized, technical, peculiar,
or unique that they are not recognized as normal to the classified service
or (2) the appointing authority is unable to recruit enough qualified
candidates willing to accept a classified position.
(c) Standard
C. The personal services involve (1) the use of equipment, materials,
or facilities not reasonably available to the agency at the time and
place required and (2) the estimated cost to the agency in procuring
such equipment or materials and establishing the needed positions would
be disproportionate to the contract cost.
(d) Standard
D. The personal services would be obtained at substantial savings
over the proposed period of disbursements when compared with having
the same personal services performed by the classified work force. The
personal services do not meet this standard if, despite the savings
over the proposed period of disbursements, substantial savings would
not likely be realized over the long term. Savings are "substantial"
if the average annual savings over the proposed period of disbursements
are equal to or greater than the minimum required savings computed using
the table below:
|
|
Col.
1
Projected
Average Annual Disbursements
|
Col.
2
Minimum
RequiredAverage
Annual Savings
|
|
From:
|
To:
|
Must
Equal: |
|
$
1
|
$
25,000
|
25
% of avg. annual cost
|
|
25,001
|
50,000
|
20
% (minimum $6,250)
|
|
50,001
|
100,000
|
15
% (minimum $10,000)
|
|
100,001
|
200,000
|
12.5%
(minimum $15,000)
|
|
200,001
|
500,000
|
10
% (minimum $25,000)
|
|
500,001
|
1,000,000
|
Minimum
$50,000
|
|
1,000,001
|
And
above
|
5
% of avg. annual cost
|
B. Disbursements
to Special Personal Services (SPS) Employees
1. Required
Procedures for Hiring SPS Employees
An
agency shall not hire or make disbursements for personal services to a
special personal services (SPS) employee unless the department of civil
service has approved the disbursements in advance. This means that
an agency must either file a request under rule 7-4 or have already obtained
preauthorized approval under rule 7-7.
(a) Standards.
The personal services meet Standard A or Standard B in rule 7-3.
(b) Procedures.
The disbursements for personal services have been approved under the
request procedures in rule 7-6 or preauthorized under rule 7-7.
An
appointing authority may make disbursements for personal services to an
independent contractor under the following conditions:
(a) Standards.
The personal services meet one or more of the standards in rule 7-3.
(b) Procedures.
The disbursements for personal services have been approved under the
request procedures in rule 7-6 or preauthorized under rule 7-7.
7-6.1 Procedure
An
appointing authority may submit to the department of civil service a request
for approval to make disbursements for personal services outside the classified
service. Civil service staff shall (1) receive and evaluate the request,
(2) receive and evaluate information submitted by other interested parties,
and (3) issue a written technical decision. The staff shall approve
the request, with or without conditions, or shall deny the request.
7-6.2 Approval
Civil
service approval of a request to make disbursements for personal
services outside the classified service must include the following:
(a) The
maximum aggregate dollar amount the appointing authority is authorized
to disburse for the requested personal services during the approved
period.
(b) The
specific personal services that the appointing authority is authorized
to purchase outside the classified service with approved disbursements.
(c) The
period during which the appointing authority is authorized to make approved
disbursements.
(d) Any
other requirement, condition, or restriction on the disbursements necessary
to ensure that the appointing authority complies with article 11, section
5, of the constitution and the civil service rules and regulations.
7-6.3 Effective
Date of Staff Decision
(a) One
interested party. If the appointing authority is the only interested
party participating in the staff review, the technical decision is effective
upon its issuance, unless a later date is specified in the technical
decision.
(b) Two
or more interested parties.
(1) Effective
date. If more than one interested party participates in the staff
review, the technical decision is effective 14 calendar days after
the date the technical decision is issued, unless a different date
is specified in the technical decision or the state personnel director
issues a stay.
(2) Request
for stay. An interested party intending to appeal the technical
decision may file a request that the state personnel director stay
the effective date of the decision pending appeal. The request for
a stay must be received by the director within 10 calendar days after
the date the technical decision is issued. The director may stay the
effective date of the technical decision pending a technical appeal
if the director determines that (1) it is unlikely that the request
meets any of the standards for approval and (2) a stay is in
the best interest of the classified service.
7-6.4 Complaint
Regarding Technical Decision
An
interested party who participated at the staff review may file a technical
disbursement complaint as provided in rule 8-3 [Technical Complaints].
The technical complaint must be received by the department of civil service
and all other interested parties within 14 calendar days after the date
the technical disbursement decision is issued.
7-6.5 Compliance
An
appointing authority shall comply with all requirements, conditions, and
restrictions established in the civil service approval of a request to
make or authorize disbursements for personal services outside the classified
service. By way of example only, an appointing authority is prohibited
from doing any of the following:
(a) Disbursing
funds in excess of the approved maximum aggregate dollar amount.
(b) Disbursing
funds for personal services other than approved personal services.
(c) Disbursing
funds for personal services performed outside the period approved for
the disbursements.
(d) Failing
to comply with any requirement, condition, or restriction established
in the civil service approval.
7-7.1 Publication
of List
The
department of civil service shall establish and publish a list of personal
services deemed to meet one or more of the standards of rule 7-3
without further review.
7-7.2 Use
of Preauthorized Approval
An
appointing authority may make or authorize disbursements for any preauthorized
personal services without submitting a request or obtaining prior written
approval of the department of civil service under rule 7-6. When making
or authorizing disbursements for preauthorized personal services, the
appointing authority shall comply with all requirements, conditions, and
restrictions established by the department of civil service for the use
of the list of the preauthorized personal services.
7-7.3 Reporting
As
a condition of using the preauthorized list, the appointing authority
shall report all disbursements for preauthorized personal services as
required by statute and the civil service regulations.
7-7.4 Additions
to Preauthorized List
An
appointing authority seeking to add personal services to the list of preauthorized
personal services may file a request with the department of civil service
under the procedures authorized in rule 7-6. Civil service approval of
a request to add personal services to the list of preauthorized personal
services must include the following:
(a) A
description of the particular type of personal services being added
to the list of preauthorized personal services.
(b) The
standard in rule 7-3 that the added personal services is deemed to satisfy.
(c) Any
other requirement, condition, or restriction on the use of the preauthorization
necessary to ensure that the appointing authority complies with article
11, section 5, of the constitution and the civil service rules and regulations.
7-7.5 Complaints
or Appeals
Any
complaint regarding the use of the preauthorized approval process or any
disbursements for personal services made or authorized under the preauthorized
approval process must be brought under the procedures authorized in rule
7-9. Any complaint regarding a technical decision to add personal services
to the preauthorized list must be brought by an interested party under
the technical appeal procedures in rule 8-3 [Technical Complaints].
An
appointing authority may authorize or make disbursements for personal
services outside the classified service without prior civil service approval
when an emergency occurs. The emergency personal services must not continue
beyond 28 calendar days without approval of the department of civil service.
The department may approve continuation of emergency services for an additional
period not to exceed 28 calendar days.
7-9.1 Investigation
by State Personnel Director
(a) Complaint
required. Any person who alleges that an appointing authority has
made or authorized disbursements for personal services outside the classified
service in violation of article 11, section 5, of the constitution or
a civil service rule or regulation must file a complaint with the state
personnel director and serve a copy on the appointing authority and
the state employer.
(b) Examples
of violations. Alleged violations for which a complaint must be
filed include, but are not limited to, the following:
(1) The
appointing authority has made or authorized disbursements for personal
services outside the classified service in violation of article 11,
section 5, of the constitution.
(2) The
appointing authority has made or authorized disbursements for personal
services outside the classified service without obtaining approval
required by the civil service rules or regulations.
(3) The
appointing authority has made or authorized any of the following disbursements
for personal services outside the classified service:
(A) Disbursements
in excess of the maximum aggregate dollar amount approved by civil
service.
(B) Disbursements
for personal services other than those approved by civil service.
(C) Disbursements
for personal services performed outside the period approved by civil
service.
(D) Disbursements
that do not comply with a requirement, condition, or restriction
established in the civil service approval.
(4) The
appointing authority obtained civil service approval by fraud, material
misrepresentation, or failure to disclose material facts.
(5) The
appointing authority made or authorized improper preauthorized disbursements
for personal services.
(6) The
appointing authority failed to report disbursements for personal services
as required by law, including the civil service rules and regulations.
(7) The
appointing authority failed to document adequately its compliance
with the civil service rules and regulations.
7-9.2 Action
by State Personnel Director
After
reviewing the complaint, the state personnel director may act on the complaint
or may appoint a person to conduct an inquiry and make a recommendation
for action to the director. If the director finds that an appointing authority
has made or authorized disbursements for personal services outside the
classified service contrary to article 11, section 5, of the constitution
or a civil service rule or regulation, the director may disapprove disbursements
for personal services or take other appropriate action to ensure compliance
with the constitution and the civil service rules and regulations.
7-9.3 Appeal
of Director's Determination
A
determination of the state personnel director under rule 7-9 is final
unless a party to the inquiry files an application for leave to appeal
to the civil service commission under rule 8-7 within 28 calendar days
after the date the director's determination is issued.
The
department of civil service shall periodically audit appointing authorities
to ensure that they are complying with article 11, section 5, of the constitution
and the civil service rules and regulations governing disbursements for
personal services outside the classified service. If the state personnel
director determines that an appointing authority has not substantially
complied with article 11, section 5, of the constitution or the rules
and regulations, the state personnel director may (1) require the
appointing authority to file a written request and obtain prior written
approval from the department of civil service for all disbursements for
personal services outside the classified service and (2) take such other
action as will reasonably ensure that the appointing authority complies
with article 11, section 5, of the constitution and the rules and regulations
in the future.
Every
contract by a state agency that authorizes disbursements for personal
services outside the classified service must contain a provision that
the state is obligated to comply with article 11, section 5, of the constitution
and applicable civil service rules and regulations. The provision must
also give notice that, notwithstanding any other provision of the contract
to the contrary, the state personnel director is authorized to disapprove
contractual disbursements for personal services if the director determines
that the contract or the disbursements violate article 11, section 5,
of the constitution or applicable civil service rules and regulations.
The failure of an appointing authority to require such a provision in
a contract does not limit or restrict the authority of the civil service
commission and the director to disapprove disbursements for personal services
outside the classified service.
Approval
by the department of civil service under this chapter does not relieve
an appointing authority of an obligation under any other law or non-civil
service rule or regulation that may apply to a contract. Approval by the
department of civil service under this chapter does not constitute approval
of any contract or agreement by the state of Michigan under which an appointing
authority makes or authorizes approved disbursements for personal services
outside the classified service.
3. DEFINITIONS
A. Civil
Service Commission Rule Definitions
1. Contractor
means an independent contractor or special personal services employee
who enters into a contract with a state agency to provide personal services.
2. Disbursements
for personal services outside the classified service means
disbursements of appropriated funds by a state agency for the personal
services of a person who is not a classified employee of the state.
3. Grant
means a congressional or legislative appropriation that is passed through
a state agency directly to, and for the benefit of, the recipient of
the grant.
4. Independent
contractor means an individual contractor or an employee of a contractor
who provides personal services and who is not an employee of the state
of Michigan.
5. Party
means any of the following persons or organizations:
(d) Party,
in a review of a technical disbursement decision, means any of the
following:
(1) The
appointing authority that files a request under rule 7-6 or 7-7
regarding disbursements for personal services.
(2) An
exclusive representative of a classified employee with a direct
interest in the technical disbursement decision.
(3) A
nonexclusively represented classified employee with a direct interest
in the technical disbursement decision.
(4) A
limited recognition organization appearing on behalf of a classified
employee with a direct interest in the technical disbursement decision.
(5) The
office of the state employer.
(6) Any
other person or organization with a demonstrable special interest
in the technical disbursement decision who (1) petitions to participate
in the civil service staff review and (2) is authorized by the department
of civil service to participate in the review.
(f) Party,
in an inquiry about a complaint filed with the state personnel director
under rule 7-9, means any of the following:
(1) The
person filing the complaint.
(2) The
appointing authority that made or authorized the questioned disbursements.
(3) The
office of the state employer.
(4) Any
other person or organization with a demonstrable special interest
in the complaint who (1) petitions the state personnel director
to participate in the inquiry and (2) is authorized by the director
to participate in the inquiry.
6. Personal
services means work performed for the direct benefit of the
state by an individual for compensation.
7. Request
means a request submitted by an appointing authority to the department
of civil service under rule 7-6 [Prior Written Approval by Civil
Service Staff], for approval to make disbursements for personal
services to a person who is not a classified state employee, or under
rule 7-7 [Preauthorized Approval], to add personal services
to the preauthorized list.
8. Technical
decision includes each of the following individual decisions:
(a) Technical
classification decision means a civil service staff decision classifying
a position in the classified service.
(b) Technical
qualification decision means a civil service staff decision determining
the qualifications and fitness of a candidate for a position in the
classified service.
(c) Technical
disbursement decision means a civil service staff decision authorized
under rule 7-6 or 7-7 regarding disbursements for personal services.
(d) Technical
appointment decision means (1) a decision of an appointing authority
appointing a candidate to a position in the classified service or
(2) a decision of civil service staff certifying or revoking an appointment
to a position in the classified service.
B. Additional
Definitions Used in This Regulation
1. Combined
Personal Services Request means a request by an appointing authority
that combines two or more distinct personal services in a single request.
2. Emergency
Service means a situation where personal services are required
to immediately remedy and diminish the consequences of an unforeseen
need. The emergency must be of such a nature that disbursements are
required in less time than can be accomplished through normal review
processes.
4. STANDARDS
A. Disbursements
for Personal Services Outside the Classified Service
1. Standard
A
a. Guidelines
for Standard A
(1) Guideline
A-1: Examples of temporary, intermittent, or irregular personal services
include:
(A) Personal
services that are needed so sporadically, randomly, or intermittently
that the need for such personal services cannot be reliably predicted.
(B) Services
for which the need is so temporary or limited that it is not practical
to use the classified service.
(2) Guideline
A-2: Sunset within 36 Months. Temporary full-time personal services
may be approved under these standards if funding or the need for the
personal services will not continue beyond 36 months. For purposes of
this analysis, the appointing authority must provide particularized
proof that the specific funding, or the need for the personal services
to be provided, are limited to no more than 36 months. For example,
a specific program with a sunset provision within 36 months may meet
this standard. Approval under this guideline is limited to services
that are intended to be limited duration, temporary personal services
that meet a particularized, limited-duration need. This guideline does
not authorize approval of (1) renewal of a request previously approved
under this guideline, (2) a request based on general uncertainty
about future funding, or (3) a request for personal services which
are likely to be provided indefinitely even though the funding is limited
to less than 36 months.
2. Standard
B
a. Guidelines
for Standard B.
(1) Guideline
B-1: Examples of Uncommon Personal Include:
(A) Personal
services for which it is extremely difficult to recruit candidates
willing to accept a classified position.
(B) Personal
services that require expertise outside the normal scope of the classified
service.
(C) Personal
services that are specialized or rare.
(D) Personal
services that reasonably require the provider to be outside the classified
work force, such as expert testimony, independent audit services,
and dispute-resolution and arbitration services.
(E) Personal
services that are necessary because they are integrated with the purchase
of proprietary commodities and cannot be segregated from the primary
commodities.
(2) Guideline
B-2: Personal Services Not Classified. These standards include personal
services not typically provided by the classified service and recognizes
that the classified service cannot reasonably include all possible personal
services in its classification scheme. The absence of the personal services
from the classification scheme may provide some justification for a
request under these standards.
3. Standard
C
a. Guidelines
for Standard C
(1) Guideline
C-1: Costs. An analysis of "cost" under Standard C includes,
but is not necessarily limited to, simple dollar cost comparisons. An
analysis under this standard may consider such qualitative factors as
(1) the time and effort required to create and manage needed classified
positions, (2) the impact of the new personal services on the agency
mission, and (3) the likelihood of the personal services continuing
into the future, or the like. If it is determined that the costs of
the goods exceeds the costs of associated personal services, the department
of civil service lacks jurisdiction over the request and shall so specify
in its technical decision.
4. Standard
D
a. Guidelines
for Standard D
(1) Guideline
D-1: Wage and Benefit Standards. The state personnel director shall
periodically develop and publish on the department of civil service
web site and in written form the civil service Guide for Calculating
Standard Cost Savings. The guide shall provide standardized formulas
and other electronic processes to assist in identifying and documenting
costs associated with contracting for personal services in comparison
to costs of utilizing the classified service.
The state personnel
director shall also publish standardized rates that establish minimum
thresholds to be applied in the preparation of a Standard D cost analysis.
The information may include, but is not limited to, salary and wages,
fringe benefits, group insurance, inflation, indirect costs, unemployment
insurance, workers' compensation insurance, retirement, fringe
benefits, FICA costs, contract monitoring costs, and the like.
(2) Guideline
D-2: Content of Cost Savings Submission. Appointing authorities must
adhere to the methods and guidelines provided in the civil service Guide
for Calculating Standard Cost Savings when submitting requests under
Standard D.
5. Table
of Permissible Uses of Standards
This
table summarizes the permissible uses of each of the two procedures available
for approving contracts for personal services.
To
find if an appointing authority can use a particular procedure to approve
a particular type of contract, go to the cell at the intersection of the
procedure (major column), type of contractor (minor column), and standard
(row). If the cell contains "OK," the particular procedure
may be used to obtain approval. If the cell contains "N/A,"
the procedure is not available for use.
| |
Prior
Approval
Required
Rule
7-6
|
Preauthorized
Approval
Rule
7-7
|
|
Standards
Under
Rule 7-3
|
Hire
an
SPS
Employee
|
Hire
an Independent
Contractor
|
Hire
an
SPS
Employee
|
Hire
an Independent
Contractor
|
|
Standard
A
(Temporary Services)
|
OK
|
OK
|
OK
|
OK
|
|
Standard
B
(Unique Services)
|
OK
|
OK
|
OK
|
OK
|
|
Standard
C
(Lack of Equipment)
|
N/A
|
OK
|
N/A
|
OK
|
|
Standard
D
(Cost Savings)
|
N/A
|
OK
|
N/A
|
OK
|
B. Disbursements
to Special Personal Services (SPS) Employees
1. Required
Procedures for Hiring SPS Employees
An
agency shall not hire or make disbursements for personal services to a
special personal services (SPS) employee unless the department of civil
service has approved the disbursements in advance. This means that
an agency must either file a request under rule 7-4 or have already obtained
preauthorized approval under rule 7-7.
2. Standards
and Guidelines for Hiring SPS Employees
a. An
SPS employee may only be hired if the personal services meet either Standard
A or Standard B in rule 7-3. An agency may not hire an SPS employee under
Standard C or Standard D.
(1) SPS
Guideline 1: Cost Savings and SPS Employees. Cost savings may be considered
in evaluating submissions under both Standard A and Standard B. However,
the cost savings tests under Standard C and Standard D are not applicable
to SPS employees. Therefore, civil service will not approve the hiring
of an SPS employee solely on the basis that it is less expensive
to hire an SPS employee than a classified employee.
(2) SPS
Guideline 2: Hiring Freeze and SPS Employees. The governor and appointing
authorities occasionally impose hiring freezes, budget limitations,
head count limitations, and other restrictions on hiring classified
employees as mechanisms to control costs. Since cost savings alone are
insufficient justification for hiring SPS employees, civil service will
not approve the hiring of an SPS employee solely for the reason
that there is a hiring freeze, budget limitation, head count limitation,
or other management-imposed limitation on hiring classified employees.
In such cases, independent contractors may be used if the contract meets
one or more of the standards in rule 7-3.
C. Disbursements
to Independent Contractors
Disbursements
for personal services to an independent contractor may be made only subsequent
to the civil service staff determination that the agency's request
meets one or more of the four standards in rule 7-3.
D. Prior
WRITTEN Approval BY CIVIL SERVICE STAFF
1. Submission
of Request by Appointing Authority
a. Unless
otherwise authorized, an appointing authority shall submit a request to
the department of civil service and receive approval before it authorizes
or makes a disbursement for personal services outside the classified service.
The request shall include the following:
(1) A
completed form CS-138 that provides the proposed beginning and ending
dates of the requested services, a detailed description of the requested
personal services, the total dollar amount of the disbursement request,
and all other required information.
(2) An
analysis that identifies the standard(s) in rule 7-3 upon which the
appointing authority relies and a justification that details the relationship
between the personal services and the standard(s).
(3) Any
additional information to be considered by civil service staff reviewing
the request.
(4) Certification
that each appropriate labor organization has been notified if required
by a collective bargaining agreement. If a labor organization is required
to be notified by a collective bargaining agreement or otherwise, the
notice must be accompanied by a copy of the CS-138 and all supporting
documentation submitted to the department of civil service. The requesting
appointing authority shall certify that it has given written notice
to the appropriate labor organization in accordance with provisions
contained in the collective bargaining agreement and shall retain a
copy of the signed transmittal.
(5) The
numbers and classifications of state classified employees who will or
may be terminated, laid off, demoted, or bumped as a result of the implementation
of the contract for personal services.
(6) Certification
that notification has been provided to nonexclusively represented employees
whose positions will be abolished as a result of the contract for personal
services.
2. Civil
Service Staff Standards for Review
a. Civil
service staff shall review all requests to disburse funds for personal
services in accordance with the standards in civil service rule 7-3. The
civil service staff shall:
(1) Record
receipt of the request and all appearances filed by interested parties.
A written appearance by an interested party must be filed with civil
service and the appointing authority within 7 calendar days after the
date the request is filed with civil service.
(2) Review
the request for sufficiency of documentation and request any necessary
additional information from the appointing authority within 7 calendar
days of the receipt of the request.
(3) Review
all timely and pertinent information presented by the appointing authority
and other interested parties.
(4) Conduct
interviews or conferences necessary to adequately evaluate and act upon
the request.
(5) Approve
or disapprove the request after receipt of all information necessary
to complete the review.
(6) If
the request is approved, specify any conditions or limitations on the
approval to ensure compliance by the appointing authority.
(7) Provide
written notice of the staff decision to the appointing authority and
to all other interested parties.
3. Evaluating
a Request for Combined Personal Services
a. If
an appointing authority files a request that includes two or more distinct
personal services, the civil service staff shall evaluate the request
pursuant to the procedure in this section.
(1) The
appointing authority shall demonstrate that the individual services
in the request (1) have been combined for valid business reasons or
(2) have some practical and reasonable nexus that warrants considering
the services together in the request.
(2) If
civil service staff determines that one or more services have been improperly
combined in a single request, the staff shall treat those services as
separate and distinct requests and shall issue separate decisions as
to those services.
(3) When
the civil service staff considers combined services in a request, the
request shall be approved if the staff determines either of the following:
(A) One
of the dominant or critical services in the combined request meets
one or more of the standards in rule 7-3.
(B) The
combined services, evaluated as a whole, meet one or more of the standards
in rule 7-3.
4. Effective
Date of Staff Decision
The
effective date of the staff decision shall be in accordance with civil
service rule 7-6.3
5. Complaint
Regarding Technical Decision
Complaints
regarding staff decisions must be made in accordance with civil service
rule 7-6.4.
E. Preauthorized
Services
1. Preauthorized
List of Services
The
department of civil service shall develop and publish on its web site
and in written form a list of services that are preauthorized to appointing
authorities and therefore do not require additional civil service review
and approval prior to making disbursements. The decision of the department
of civil service is final and no appeal is authorized.
2. Conditions
The
department of civil service may impose reasonable conditions and requirements
on the use of preauthorized services to ensure compliance with civil service
commission rules. The department of civil service may restrict the use
of particular preauthorized services to specific appointing authorities
or may preauthorize services on a statewide basis. If a service is preauthorized
with conditions, it is the responsibility of the appointing authority
to ensure that the conditions have been complied with in every particular
before authorizing or making disbursements for the personal services.
3. Alteration
of List
The
department of civil service may add to, remove, or modify the preauthorized
personal services list at any time and shall give written notice of any
additions, deletions, or modifications to each affected appointing authority.
4. Effect
of Deletion from List
Deletion
of specific personal services from the preauthorized list shall not affect
any existing contract properly entered into by an appointing authority
before the deletion. However, an appointing authority may not renew or
extend a contract for services deleted from the preauthorized list without
first obtaining approval under rule 7-6 or 7-7.
5. Inquiry
and Limitations
The
department of civil service expressly reserves the right to require an
individual review of services provided under preauthorized authority when
there is a question as to the applicability and validity of the use of
the preauthorized service. The department may require an appointing authority
to justify its use of the preauthorized personal services in a specific
instance. The department may issue an order in writing to an appointing
authority modifying, restricting or revoking the future use of the preauthorized
service if the department determines that the appointing authority has
improperly used the preauthorized service.
6. Review
of Preauthorized Disbursements
Any
person who objects to an agency's use of a preauthorized personal
service may file a complaint with the state personnel director under rule
7-9. The director shall review the complaint and order an inquiry if there
is a meritorious basis to the complaint. In addition to any other action
permitted under rule 7-9, if the director determines that the preauthorized
personal services do not meet the standards for preauthorization, the
director may order that the list of preauthorized personal services be
amended appropriately.
7. Complaint
Regarding Use of Preauthorized Approval Process
Any
complaint regarding the use of the preauthorized approval process must
be submitted in accordance with civil service rule 7-9.
8. Appeal
of Director's Decision
Any
appeal of the state personnel director's decision must be submitted
in accordance with civil service rule 7-9.3.
F. Audit
and Compliance
The
appointing authority shall maintain sufficient documentation in support
of its disbursements and shall timely report its expenditures to ensure
that disbursements for personal service outside the classified service
have been made in accordance with civil service rules and regulations.
The department of civil service will periodically conduct on-line audits
of disbursements to ensure compliance with the rules and regulations.
G. Requirement
to Report Contracts
The
legislature, in 1984 PA 431, MCLA §18.1281, requires the department of
civil service to file various reports related to contracts for personal
services. Since the department of civil service only authorizes disbursements
and does not review contracts, appointing authorities must report contract
information to the department of civil service for transmittal to the
legislature. Also, the department of civil service requires, as a condition
of the use of the preauthorized-services list, that an appointing authority
report all contracts initiated or renewed under these procedures during
a reporting period. For preauthorized services, the preauthorized-services
list establishes the reporting period and any additional reporting requirements.
If an appointing authority fails to report a personal service contract,
the state personnel director may make a finding and take action against
the appointing authority, as permitted in rule 7-9.
5. PROCEDURES
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Responsibility
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Action
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Appointing Authority
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- Submits CS-138
via ADPICS for review by civil service staff and provides notice
to labor organizations in accordance with applicable collective
bargaining agreements.
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Civil Service
Staff
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Reviews all
information provided the appointing authority and any interested
parties to determine if the request meets one or more of the standards
in rule 7-3.
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If adequate
information has been provided, writes decision in accordance with
procedure in this regulation. If information is insufficient to
make a determination, requests additional information from appointing
authority.
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Civil Service
Staff
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Notifies appointing
authority and any interested parties of staff decision.
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Informs interested
parties of their rights to file a complaint regarding the technical
decision and associated filing limitations.
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CONTACT
Questions
regarding this regulation should be directed to the, Department of Civil Service,
P.O. Box 30002, 400 South Pine Street, Lansing, Michigan 48909,
(517) 241-8552.
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NOTE: Regulations are issued by the State Personnel Director under authority granted in the State of Michigan Constitution and the Michigan Civil Service Commission Rules. Regulations that implement Commission Rules are subordinate to those Rules.
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