EXECUTIVE ORDER No. 1996 - 5
CIVIL SERVICE COMMISSION - DEPARTMENT OF CIVIL SERVICE- DEPARTMENT OF TREASURY-
DEPARTMENT OF MANAGEMENT AND BUDGET-EXECUTIVE REORGANIZATION
WHEREAS, Article V, Section 2, of the Constitution of the
State of Michigan of 1963 empowers the Governor to make changes in the organization of the
Executive Branch or in the assignment of functions among its units which he considers
necessary for efficient administration; and
WHEREAS, Article XI, Section 5, of the Constitution of the
State of Michigan of 1963 vests in the Michigan Civil Service Commission, inter alia,
plenary authority to fix rates of compensation for all classes of positions, to make rules
and regulations covering all personnel transactions, and to regulate all conditions of
employment in the state classified service; and
WHEREAS, the Civil Service Commission, as provided in
Article XI, Section 5, of the Constitution of the State of Michigan of 1963, and in Act
No. 306 of the Public Acts of 1976, being Section 38.1151 of the Michigan Compiled Laws,
has authorized the Department of Civil Service to implement and administer (1) the State
of Michigan Deferred Compensation Plan I under Section 457 of the Internal Revenue Code
and (2) the Michigan State Employees Deferred Compensation Plan II under Section 401(k) of
the Internal Revenue Service Code (collectively, the "Deferred Compensation
Plans" or "Plans"); and
WHEREAS, through Act No. 96 of the Public Acts of 1996,
which amends Act No. 306 to transfer the administration and investment of the Deferred
Compensation Plans from the Department of Civil Service to the State Treasurer and which
also withdraws as of October 1, 1996 all authority with respect to the Deferred
Compensation Plans from the Department of Civil Service, the Legislature has declared that
the Deferred Compensation Plans can be more effectively administered by the State
Treasurer; and
WHEREAS, it is most beneficial to the participants in the
Deferred Compensation Plans if the State Treasurer performs all statutory duties relative
to the Deferred Compensation Plans, including determining the purpose, eligibility
requirements, membership and qualifications for the Plans, along with the administrative,
investment or fiduciary functions relative to the Plans; and WHEREAS, the Department of
Civil Service established, implemented and administers a Suggestion Awards Program as
provided in Act No. 325 of the Public Acts of 1978, as amended, being Sections 38.1161 et
seq., of the Michigan Compiled Laws; and
WHEREAS, the Civil Service Commission has authorized the
Department of Civil Service, under the direction of the State Personnel Director, to
implement and administer additional employee benefit programs providing for the following
services:
a. a health screening program for employees and retirees;
b. group insurance plans for medical, dental, vision,
disability and life benefits;
c. a health awareness program;
d. an employee service program for employees and their
families; and
e. disability management coordination (collectively, the
"Employee Benefit Programs").
WHEREAS, the Suggestion Awards Program and the Employee
Benefit Programs may be more effectively and efficiently administered and coordinated
within the Department of Management and Budget.
NOW, THEREFORE, I, John Engler, Governor of the State of
Michigan, pursuant to the powers vested in me by the Constitution of the State of Michigan
of 1963 and the laws of the State of Michigan, do hereby order the following:
I. DEPARTMENT OF TREASURY
1. All the authority, powers, duties, functions, and
responsibilities set forth in Act No. 306 of the Public Acts of 1976, as amended, are
hereby transferred to the State Treasurer by a Type II transfer, as defined by Section 3
of Act No. 380 of the Public Acts of 1965, as amended, being Section 16.103 of the
Michigan Compiled Laws.
2. All records, personnel, property, and funds of the
Deferred Compensation Plans used, held, employed, available to or to be made available to
the activities, powers, duties, functions and responsibilities transferred to the State
Treasurer by this Order are hereby transferred to the Department of Treasury.
3. All rules, orders, contracts, investment contracts
(including Guaranteed Investment Contracts), investment guidelines, and other agreements
relating to the Deferred Compensation Plans lawfully adopted prior to the effective date
of this Order shall continue to be effective until revised, amended or repealed.
4. The Department of Management and Budget shall determine
and authorize the most efficient manner possible for handling financial transactions and
records in the state's financial management system for the remainder of the fiscal year.
5. The State Treasurer, in cooperation with the State
Personnel Director, shall provide executive direction and supervision for the
implementation of the transfer. The State Treasurer shall administer the assigned
functions in such ways as to promote efficient administration and shall make internal
organizational changes as may be administratively necessary to complete the realignment of
responsibilities prescribed by this Order.
6. Nothing herein shall diminish or limit in any manner the
authority of the Civil Service Commission to exercise any authority granted to it under
Article XI, Section 5, of the Constitution of the State of Michigan of 1963. No authority,
powers, duties, functions, responsibilities, property, records, personnel, or funds held
by the Civil Service Commission solely under its plenary authority granted by Article XI,
Section 5, of the Constitution of the State of Michigan of 1963 shall be transferred
without the approval of the Civil Service Commission.
II. DEPARTMENT OF MANAGEMENT AND BUDGET
1. All the powers, duties, functions, and responsibilities
of the Department of Civil Service related to the Employee Benefit Programs are hereby
transferred from the Department of Civil Service to the Director of the Department of
Management and Budget by a Type II transfer, as defined by Section 3 of Act No. 380 of the
Public Acts of 1965, as amended, being Section 16.103 of the Michigan Compiled Laws.
2. All the powers, duties, functions, and responsibilities
of the Department of Civil Service related to the Suggestion Awards Program set forth in
Act No. 325 of the Public Acts of 1978, as amended, being Sections 38.1161 et seq., of the
Michigan Compiled Laws, are hereby transferred from the Department of Civil Service to the
Director of the Department of Management and Budget by a Type II transfer, as defined by
Section 3 of Act No. 380 of the Public Acts of 1965, as amended, being Section 16.103 of
the Michigan Compiled Laws.
3. All records, personnel, property, and funds of the
Suggestion Awards Program and the Employee Benefit Programs used, held, employed,
available to or to be made available to the Department of Civil Service for the powers,
duties, functions and responsibilities transferred to the Director of the Department of
Management and Budget by this Order are hereby transferred to the Department of Management
and Budget.
4. All rules, orders, contracts, agreements or other
obligations relating to the Suggestion Awards Program and the Employee Benefit Programs
lawfully adopted prior to the effective date of this Order shall continue to be effective
until revised, amended or repealed.
5. The Department of Management and Budget shall determine
and authorize the most efficient manner possible for handling financial transactions and
records in the state's financial management system for the remainder of the fiscal year.
6. The Director of the Department of Management and Budget,
in cooperation with the State Personnel Director, shall provide executive direction and
supervision for the implementation of the transfer. The Director of the Department of
Management and Budget shall administer the assigned functions in such ways as to promote
efficient administration and shall make internal organizational changes as may be
administratively necessary to complete the realignment of responsibilities prescribed by
this Order. The Director may, in his discretion, assign any functions transferred by
Section II of this Order to the Office of the State Employer.
7. Nothing herein shall diminish or limit in any manner the
ability of the Civil Service Commission to exercise any authority granted to it under
Article XI, Section 5, of the Constitution of the State of Michigan of 1963. No authority,
powers, duties, functions, responsibilities, property, records, personnel, or funds held
by the Civil Service Commission solely under its plenary authority granted by Article XI,
Section 5, of the Constitution of the State of Michigan of 1963 shall be transferred
without the approval of the Civil Service Commission.
In fulfillment of the requirement of Article V, Section 2,
of the Constitution of the State of Michigan of 1963, the provisions of this Executive
Order shall become effective sixty (60) days from the filing of this Order.
Given under my hand and the Great Seal of the State of
Michigan this ________ day of May, in the Year of our Lord, One Thousand Nine Hundred
Ninety-Six.
_______________________________
GOVERNOR
BY THE GOVERNOR:
_______________________________
SECRETARY OF STATE
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