DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY

MICHIGAN REHABILITATION SERVICES

VOCATIONAL REHABILITATION

Filed with the secretary of state on

These rules become effective immediately 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 director of the department of labor and economic opportunity by sections 2a and 2b of the proprietary schools act, 1943 PA 148, MCL 395.102a and 395.102b, and sections 3, 4, and 6 of the rehabilitation act of 1964, 1964 PA 232, MCL 395.83, 395.84, and 395.86; Executive Reorganization Order Nos. 1999-1, 2003-1, 2012-5, and 2019-3, MCL 408.40, 445.2011, 445.2033, and 125.1998; and in accord with the workforce innovation and opportunity act, Public Law 113-128)

R 395.51, R 395.53, R 395.54, R 395.60, R 395.61, R 395.62, R 395.75, R 395.76, R 395.78, and R 395.81 of the Michigan Administrative Code are  amended, and R 395.89, R 395.90, and R 395.91 are added, as follows:

PART 1. ELIGIBILITY FOR REHABILITATION SERVICE

R 395.51  Definitions.

  Rule 1.  As used in these rules:

  (a) “Clear and convincing evidence” means there is a high degree of certainty that the individual is incapable of benefiting from services in terms of an employment outcome that MRS concludes, with a high degree of certainty, that an individual is incapable of benefitting from services in terms of an employment outcome. The clear and convincing standard constitutes the highest standard used in civil law and is to be individually applied on a case-by-case basis. The term clear means unequivocal. For example, the use of an intelligence test result alone would not constitute clear and convincing evidence. Clear and convincing evidence might include a description of assessments, including situational assessments and supported employment assessments, from service providers who have concluded that they would be unable to meet the individual's needs due to the severity of the individual's disability. The demonstration of clear and convincing evidence must include, if appropriate, a functional assessment of skill development activities, with any necessary supports, including assistive technology, in real life settings.

  (b) The “Client Assistance Program” or the “CAP” means the program under the rehabilitation act of 1973, 29 USC 732. The CAP provides assistance in informing and advising all applicants and individuals eligible for vocational rehabilitation services of all available benefits under the rehabilitation act of 1973, 29 USC 701 to 7961. Upon On request of such applicants or eligible individuals, the CAP assists and advocates for such the applicants or eligible individuals in their relationships with projects, programs, and services provided under the rehabilitation act of 1973, 29 USC 701 to 7961, including assistance and advocacy in pursuing legal, administrative, or other appropriate remedies to ensure the protection of the rights of such the individuals under the rehabilitation act of 1973, 29 USC 701 to 7961, and to facilitate access to the services funded under the rehabilitation act of 1973, 29 USC 701 to 7961, through individual and systemic advocacy.

  (c) “Comparable services and benefits” means services and benefits, not including awards and scholarships based on merit, that are provided or paid for, in whole, or in part, by other federal, state, or local public agencies, by health insurance, or by employee benefits that are available to the individual at the time needed to ensure the progress of the individual toward achieving the employment outcome in the individual’s IPE and that are commensurate to the services the individual would otherwise receive from MRS.

  (d) “Competitive integrated employment” means work that complies with the following:

   (i) Is performed on a full-time or part-time basis, including self-employment, and for which an individual is compensated at a rate that includes all of the following:

    (A) Is not less than the higher of the rate specified in section 6(a)(1) of the fair labor standards act of 1938, 29 USC 206, or the rate required under the applicable state or local minimum wage law for the place of employment.

    (B) Is not less than the customary rate paid by the employer for the same or similar work performed by other employees who are not individuals with disabilities and who are similarly situated in similar occupations by the same employer and who have similar training, experience, and skills.

    (C) In the case of an individual who is self-employed, yields an income that is comparable to the income received by other individuals who are not individuals with disabilities and who are self-employed in similar occupations or on similar tasks and who have similar training, experience, and skills.

    (D) Is eligible for the level of benefits provided to other employees.

   (ii) Is at a location where the employee with a disability interacts for the purpose of performing the duties of the position with other individuals, for example, other employees, customers, and vendors, who are not individuals with disabilities, not including supervisory personnel or individuals who are providing services to such employee, to the same extent that employees who are not individuals with disabilities and who are in comparable positions interact with these individuals.

   (iii) Presents, as appropriate, opportunities for advancement that are similar to those for other employees who are not individuals with disabilities and who have similar positions.

  (e) “Cost of attendance” means the total amount it will cost a student to attend school in a year. 

(f) “Customized employment” means competitive integrated employment (CIE), for an individual with a significant disability or most significant disability, that meets all the following:

(i) Is based on an individualized determination of the unique strengths, needs, and interests of the individual with a significant disability.

(ii) Is designed to meet the specific abilities of the individual with a significant disability or most significant disability and the business needs of the employer.

(iii) Is carried out through flexible strategies, such as job exploration by the individual, and working with an employer to facilitate placement, including all of the following:

(A) Customizing a job description based on current employer needs or on previously unidentified and unmet employer needs.

(B) Developing a set of job duties, a work schedule and job arrangement, and specifics of supervision, including performance evaluation and review, and determining a job location.

(C) Using a professional representative chosen by the individual, or if elected self-representation, to work with an employer to facilitate placement.

(D) Providing services and supports at the job location.

(f)(g) “Employment outcome” means, with respect to the individual, entering, advancing in, or retaining full-time, or, if appropriate, part-time competitive integrated employment, including customized employment, self-employment, telecommuting, or business ownership, or supported employment that is consistent with an individual’s strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice.

(g)(h) “Individualized plan for employment” or “IPE” means an individualized plan for employment as described in R 395.67 to R 395.71.

(h)(i) “Michigan Rehabilitation Services or “MRS” means the part of a network of vocational rehabilitation programs across the United States authorized by the rehabilitation act of 1973, 29 USC 701 to 7961.

(i)(j) “Part-time employment” means employment that is permanently assigned to an employee that is less than 30 hours of work per week.

(j)(k) “Post-employment services” means one or more vocational rehabilitation services that are provided subsequent to the achievement of an employment outcome and that are necessary for an individual to maintain, regain, or advance in employment, consistent with the individual’s unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice.”

(k)(l) “Pre-employment transition services” or “Pre-ETS” means the required activities and authorized activities specified in 34 CFR 361.48(a)(2) and (3).

(l)(m) “Rehabilitation technology” means the systematic application of technologies, engineering methodologies, or scientific principles to meet the needs of and address the barriers confronted by individuals with disabilities.

(m)(n) “Substantial impediment to employment” means that a physical or mental impairment hinders an individual from preparing for, entering into, engaging in, advancing in, or retaining employment consistent with the individual’s abilities and capabilities.

(n)(o) “Vocational rehabilitation services” or “VRS” means those services, if provided to an individual, listed in 34 CFR 361.48, and, if provided for the benefit of groups of individuals, those services listed in 34 CFR 361.49.

R 395.53  Purpose.

  Rule 3.  (1) MRS shall assess, plan, develop, and provide vocational rehabilitation services for eligible individuals with disabilities, consistent with their unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice, to prepare for and engage in competitive integrated employment and achieve economic self-sufficiency.

  (2) MRS shall make available Pre-ETS statewide to all students with disabilities, regardless of whether the student has applied or been determined eligible for vocational rehabilitation services.

  (3) MRS shall engage with employers to increase job opportunities for individuals with disabilities.

  (4) MRS provides services in accordance with the provisions of an IPE. Each IPE must be designed to achieve a specific employment outcome that is selected by the customer individual consistent with the customer’s individual’s unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice. Each IPE must include a description of the specific vocational rehabilitation services needed to achieve the employment outcome. Services provided must be needed to achieve the customer’s individual’s employment outcome, available, of sufficient quality, and must be provided at the least cost, and of sufficient quality, to meet the individual’s rehabilitation needs consistent with 2 CFR 200.403 to 200.405. 

R 395.54  General requirements.

  Rule 4.  (1) MRS shall not discriminate on the basis of race, religion, age, national origin, color, height, weight, marital status, sex, sexual orientation, gender identity or expression, political beliefs, disability, participant status in a workforce innovation and opportunity act-funded program, or discriminate against certain non-citizens as defined by section 188 of the workforce innovation Workforce Innovation and opportunity act Opportunity Act, 29 USC 3248.

  (2) MRS shall not impose, as part of determining an individual’s eligibility for vocational rehabilitation services, a duration of residence requirement that excludes any applicant who is legally present in this state. 

  (3) Throughout the individual’s rehabilitation program, every opportunity must be provided to the individual to make informed choices regarding the rehabilitation process.  MRS shall maintain documentation of opportunities for making informed choices in the individual’s case record.

  (4) MRS shall establish and maintain a case record for each individual and recipient of vocational rehabilitation services, which includes data necessary to comply with MRS and federal Rehabilitation Services Administration requirements.

  (5) MRS shall make administrative decisions about the district and office boundaries in which individuals are served. Individuals do not have a right to select the office or district in which they are served or the counselor who will serve serves them.

  (6) Individuals are served in geographic MRS districts and offices according to their residence.  Individuals who change their residence may have the option to have their cases transferred, with supervisory approval, to the district or office to which they have moved. 

  (7) Individuals have the right to appeal the denial of a request to change counselors within an office. 

  (8) Case service expenditures, whether assessment or IPE services, require written authorization by MRS before or simultaneously with the initiation of the service.  Retroactive authorizations are allowed within the current and previous fiscal year if the individual receiving MRS services customer made reasonable efforts to ensure MRS was able to provide the service and failure to authorize payment for services is due to MRS error or delay.

  (9) Goods and services must be provided subject to the statewide availability of funds. Each IPE must be developed and implemented in a manner that gives the individual the opportunity to exercise informed choice in selecting the vocational rehabilitation services needed to achieve the employment outcome, including the settings in which services are will be provided, and the entity or entities that will provide the vocational rehabilitation services.

  (10) When appropriate, the MRS counselor shall provide the referral necessary to support the individual with disabilities in securing needed services from other agencies and organizations.

  (11) The MRS counselor shall inform each individual of the right to obtain a review of determinations made by MRS that affect the provision of vocational rehabilitation services, including the right to pursue mediation and provide applicants and eligible individuals with notice of the availability of the CAP to assist the applicant or recipient during mediation sessions or impartial due process hearings.

R 395.60  Time frame for eligibility determination.

  Rule 10.  (1) MRS shall make an eligibility determination for MRS services no later than 60 days from after the date of application unless the individual is notified in writing of either of the following: 

   (a) That the eligibility period is being extended because exceptional and unforeseen circumstances beyond control of the MRS counselor preclude the MRS counselor from completing the determination within the prescribed time frame, and the individual agrees that a specific extension of time is warranted.

   (b) When extended assessment through an extended evaluation plan or trial work experiences are necessary to determine if the individual is capable of benefiting, in terms of an employment outcome, from vocational rehabilitation services. Trial work experiences are only conducted when the MRS counselor has serious doubt about the individual’s ability to benefit from MRS services to achieve an employment outcome.

  (2) Extending the eligibility determination period as described in R 395.64 is not applicable to supplemental security income recipients or social security disability insurance beneficiaries seeking MRS services pursuant to the federal requirements under 34 CFR 361.42(a)(3)(B)(ii).  The MRS counselor shall make an eligibility determination for recipients of social security disability benefits no later than 60 days from after the date of application.

   (3) The only exception to this federal requirement is when the case record is moved to Trial Work Experiences (TWE) or Extended Evaluation (EE) within 60 days of the date of application. Trial work or further evaluation under an extended evaluation plan is only done when the MRS counselor has serious doubt about the individual’s ability to benefit from MRS services to achieve an employment outcome.

R 395.61  Extended eligibility determinations assessment; extended evaluation plan and

  trial work experiences.

  Rule 11.  (1) Before an individual with a significant disability can be determined to be incapable of benefiting from services in terms of an employment outcome, MRS shall provide an extended trial work experience assessment.

  (2) The presumption of employability continues during the extended trial work experiences assessment and may be refuted only if MRS demonstrates by clear and convincing evidence that the individual cannot benefit from services in terms of an employment outcome.

  (3) During the extended trial work experience assessment, MRS shall explore the individual's abilities, capabilities, and capacity to perform in work situations in the most integrated settings through the use of trial work experiences with appropriate supports except under limited circumstances when an individual cannot or is not ready to take advantage of such experiences. These circumstances include individuals who are medically unstable and require treatment to achieve stability and individuals whose disabilities are not treatable, remediable, or who are near death.

  (4) Trial work experiences shall must be of sufficient variety and over a sufficient period of time, and with appropriate supports, so that a MRS counselor may determine the eligibility of the individual or to determine the existence of clear and convincing evidence that the individual is incapable of benefiting in terms of an employment outcome from vocational rehabilitation services due to the severity of the individual's disability.

  (5) A MRS counselor shall develop a written extended assessment trial work experience plan that includes identification of the services necessary to determine eligibility and the nature and scope of services required to achieve an employment outcome.

  (6) An individual, or his or her representative, shall be a full and active participant in the development of his or her extended assessment trial work experience plan and in the selection of services and service providers and shall sign and be provided a copy of the written document.

  (7) A MRS counselor shall regularly and routinely evaluate the progress of individuals in trial work experiences toward achieving the eligibility determinations assessment outcomes.

  (8) A MRS counselor can make shall terminate the extended assessment at any time an eligibility determination at any time during a trial work experience can be made, or after 12 months, unless substantial need for additional time is documented.

R 395.62  Presumption of eligibility for recipients of social security disability benefits.

   Rule 12.  (1) All of the following apply to individuals who are recipients of social security disability benefits, based on a disability:

   (a) Considered to be an individual with a significant disability.

   (b) Presumed to be eligible for vocational rehabilitation services, provided the individual intends to achieve an employment outcome consistent with the unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice of the individual, unless the vocational rehabilitation counselor can demonstrate, by clear and convincing evidence, that the individual is incapable of benefiting due to the severity of the disability of the individual.

   (c) Once an individual has been informed of the employment nature of the program, the completion of a MRS application for services shall must be considered as intent to achieve an employment outcome.

  (2)  For an individual desiring to enter the workforce who are is entitled to benefits under title II or XVI of the social security act, 42 U.S.C. 401 to 434 and 1381 to 1383fet seq, on the basis of a disability or blindness, the designated state unit shall provide to that individual general information on additional supports and assistance for individuals with disabilities desiring to enter the workforce, including assistance with benefits planning.

  (3) The MRS counselor shall make an eligibility determination for recipients of social security disability benefits no later than 60 days from after the date of application unless the individual’s ability to benefit is in question and the case is moved to extended assessment a trial work experience plan is developed.

R 395.75  Post-secondary education and vocational training financial needs test.

  Rule 25.  (1) College or vocational training may be provided as an IPE-related service when an individual requires new knowledge and skills to achieve an employment goal consistent with the individual’s abilities, capabilities, and informed choice.

  (2) Individuals shall make maximum effort to secure grant assistance in whole or in part from other sources to pay for post-secondary training.  Counselors shall inform individuals considering post-secondary education that they must the individuals shall make timely annual application for post-secondary financial aid.

  (3) MRS shall not provide financial assistance for any item covered in the cost of training attendance if the individual, or individual’s family as applicable, fails to make maximum effort to apply for, or refuses to accept, federal, state, institutional, and other grants, need-based scholarships, or tuition waivers for which they may be eligible.

  (4) Financial support for college or vocational training shall must be consistent with MRS’ policy of purchasing the service that meets the individual’s vocational rehabilitation needs at least cost to MRS.

  (5) MRS shall impose a financial needs test for the student’s cost of attendance of training at a post-secondary educational institution.  The financial needs test utilized shall must be the federally established needs test using the Free Application for Federal Student Aid (FAFSA) or its equivalent, as required by the post-secondary institution, to determine student eligibility for state and federal financial aid.

  (6) MRS shall not replace the expected family contribution, as determined by the post-secondary institution’s financial aid officer using the federal student aid report, in contributing toward the individual’s cost of attendance at a post-secondary institution. 

  (7) MRS shall not replace insurance benefits received, wholly or in part, as a settlement of liability for vocational rehabilitation services, in contributing toward the individual’s cost of attendance at a post-secondary institution.

  (8) MRS may provide maximum financial support toward an individual’s cost of college or vocational training during the academic year of $3,500.00 and $1,200.00 for the summer semester. MRS may consider an exception to the maximum when other forms of student aid are excluded due to disability-related factors. MRS shall periodically adjust the maximum financial support figures in accordance with increases in the cost of living.

  (9) Individuals who are eligible for social security benefits under Title II and Title XVI of the social security act, 42 USC 401 to 434 and 1381 to 1383f, shall be exempted from financial need test requirements.

  (10) MRS customers Individuals attending Michigan Career and Technical Institute are exempt from financial need test requirements and financial aid limitations for the cost of attendance.

R 395.76  Rates of payment.

  Rule 26. (1) MRS shall maintain a fee schedule for select vocational rehabilitation services. The fee schedule is a complete list of established rates of payment used to authorize and pay for specified services.

(2) The methodology for determining established rates of payment listed on the fee schedule must be made public and consider the costs, administrative burden, personnel of vendors, and utilize peer state research.

(2)(3) The MRS fee schedule for vocational rehabilitation services is not absolute and MRS shall allow exceptions to the fee schedule so that individual needs can be addressed. The MRS fee schedule for vocational rehabilitation services must not be so low as to effectively deny an individual a necessary service.

(3)(4) MRS shall authorize for services not listed on the fee schedule at the least cost to MRS that will ensure sufficient quality of services to meet the individual’s vocational rehabilitation need. 

(4)(5) MRS shall not place an absolute dollar limit on specific service categories or on the total services provided to an individual. 

(5)(6) MRS is not responsible for the cost of out-of-state services in excess of the cost of in-state services if either service would meet the individual’s vocational rehabilitation needs. 

R 395.78  Case closure; severity of disability.

  Rule 28.  (1) A MRS counselor shall not close a case due to the severity of the individual's disability except when on the basis of clear and convincing evidence, and or after a trial work experience a period of extended assessment or rehabilitation services have been provided, MRS determines that an employment outcome cannot be achieved.

  (2) The individual, or parent or guardian as appropriate, shall be provided an opportunity to discuss an ineligibility decision before the individual's case is closed due to ineligibility.

  (3) A MRS counselor shall prepare a certificate of ineligibility signed and dated by the MRS counselor for case closures due to ineligibility.

  (4) Before closing a case non-rehabilitated for reasons of ineligibility due to severity of disability, the MRS counselor shall ensure that as part of the test of clear and convincing evidence, accommodation services and assistive technology would not enable the individual to become employed.

R 395.81  Rehabilitation case closure; supported employment.

  Rule 31.  (1) The MRS counselor shall close rehabilitated in supported employment under any of the following circumstances:

   (a) The employment represents competitive employment in an integrated setting.

   (b) The individual is working towards competitive employment and is in an integrated work setting.

      (c) The individual is part of a work group of not more than 8 employees with disabilities and regularly interacts with individuals who do not have disabilities, including the general public, while performing job duties.

  (2) There The third party identified in the IPE shall be confirmation of confirm extended support services after case closure by the third party identified in the IPE before a case is closed in supported employment.

R 395.89  Ability to serve all eligible individuals; order of selection for services.

Rule 39.  (1) MRS shall have the ability to provide the full range of services listed in 34 CFR 361.48, as appropriate, to all eligible individuals or, in the event that vocational rehabilitation services cannot be provided to all eligible individuals in this state who apply for the services, include in the vocational rehabilitation services portion of the unified or combined state plan the order to be followed in selecting eligible individuals to be provided vocational rehabilitation services.

(2) The ability of MRS to provide the full range of vocational rehabilitation services to all eligible individuals must be supported by a determination that satisfies the requirements of subrules (1) to (3) of this rule and a determination that, on the basis of MRS's projected fiscal and personnel resources and its assessment of the rehabilitation needs of individuals with significant disabilities within this state, MRS can complete all of the following:

(a) Continue to provide services to all individuals currently receiving services.

(b) Provide assessment services to all individuals expected to apply for services in the next fiscal year.

(c) Provide services to all individuals who are expected to be determined eligible in the next fiscal year; and

(d) Meet all program requirements.

(3) If MRS is unable to provide the full range of vocational rehabilitation services to all eligible individuals in this state who apply for the services, the vocational rehabilitation services portion of the unified or combined state plan must address all of the following:

(a) Show the order to be followed in selecting eligible individuals to be provided vocational rehabilitation services.

(b) Provide a justification for the order of selection.

(c) Identify service and outcome goals and the time within which the goals may be achieved for individuals in each priority category within the order, as required under 34 CFR 361.29(c)(5).

(d) Ensure both of the following:

(i) In accordance with criteria established by the MRS for the order of selection, individuals with the most significant disabilities are selected first for the provision of vocational rehabilitation services.

(ii) Individuals who do not meet the order of selection criteria have access to services provided through the information and referral system established under 34 CFR 361.37.

(e) State whether MRS elects to serve, in its discretion, eligible individuals, whether or not the individuals are receiving vocational rehabilitation services under the order of selection, who require specific services or equipment to maintain employment, notwithstanding the assurance provided pursuant to subdivision (d)(i) of this subrule.

(4) For MRS to determine, for the current fiscal year and the preceding fiscal year, that it is able to provide the full range of services, as appropriate, to all eligible individuals, MRS, during the current fiscal and preceding fiscal year, shall have  completed all of the following:

(a) Provided assessment services to all applicants and the full range of services, as appropriate, to all eligible individuals.

(b) Made referral forms widely available throughout this state.

(c) Conducted outreach efforts to identify and serve individuals with disabilities who have been unserved or underserved by the vocational rehabilitation system.

(d) Not delayed, through waiting lists or other means, determinations of eligibility, the development of individualized plans for employment for individuals determined eligible for vocational rehabilitation services, or the provision of services for eligible individuals for whom individualized plans for employment have been developed.

(5) For MRS to determine that it is unable to provide the full range of services to all eligible individuals during the current or preceding fiscal year or when MRS has not met the requirements in subrule (4)(a) of this rule, the determination that MRS is able to provide the full range of vocational rehabilitation services to all eligible individuals in the next fiscal year must be based on all of the following:

(a) A demonstration that circumstances have changed that will allow MRS to meet the requirements of subrule (3) of this rule in the next fiscal year, including all of the following:

(i) An estimate of the number of and projected costs of serving, in the next fiscal year, individuals with existing individualized plans for employment.

(ii) The projected number of individuals with disabilities who will apply for services and be determined eligible in the next fiscal year and the projected costs of serving those individuals.

(iii) The projected costs of administering the program in the next fiscal year, including, but not limited to, costs of staff salaries and benefits, outreach activities, and required statewide studies.

(iv) The projected revenues and projected number of qualified personnel for the program in the next fiscal year.

(b) Comparable data, as relevant, for the current or preceding fiscal year, or for both years, of costs and an explanation of any projected increases or decreases in these costs and resources.

(c) A determination that the projected revenues and the projected number of qualified personnel for the program in the next fiscal year are adequate to cover costs to ensure the provision of the full range of services, as appropriate, to all eligible individuals.

(6) MRS shall determine, before the beginning of each fiscal year, whether to establish and implement an order of selection and adhere to the following requirements:

(a) If MRS determines that it does not need to establish an order of selection, it must reevaluate this determination whenever circumstances change during the course of a fiscal year, such as a decrease in its fiscal or personnel resources or an increase in its program costs, and indicate that it may no longer be able to provide the full range of services, as appropriate, to all eligible individuals.

(b) If MRS establishes an order of selection, but determines that it does not need to implement that order at the beginning of the fiscal year, it shall continue to meet the requirements of subrule (3) of this rule, or it must implement the order of selection by closing 1 or more priority categories.

(7) An order of selection must be based on a refinement of the 3 criteria in the definition of an individual with a significant disability in 34 CFR 361.5(c)(30).

(8) Other factors, that are not based on a refinement of the 3 criteria in the definition of an individual with a significant disability in 34 CFR 361.5(c)(30, cannot be used in determining order of selection of eligible individuals, including any of the following:

(a) Any duration of residency requirement, provided the individual is present in this state.

(b) Type of disability.

(c) Age, sex, race, color, or national origin.

(d) Source of referral.

(e) Type of expected employment outcome.

(f) The need for specific services, except those services provided in accordance with 34 CFR 361.36(a)(3)(v), or anticipated cost of services required by an individual.

(g) The income level of an individual or an individual's family.

(9) In administering the order of selection, MRS must abide by the following:

(a) Implement the order of selection on a statewide basis.

(b) Notify all eligible individuals of the priority categories in MRS’s order of selection, their assignment to a particular category, and their right to appeal their category assignment.

(c) Continue to provide services to any recipient who has begun to receive services, irrespective of the severity of the individual's disability, as follows:

(i) MRS shall continue to provide pre-employment transition services to students with disabilities who were receiving the services before being determined eligible for vocational rehabilitation services.

(ii) MRS shall continue to provide an eligible individual all needed services listed on the individualized plan for employment if the individual had begun receiving the services before the effective date of the MRS’s order of selection.

(d) Ensure that its funding arrangements for providing services under the vocational rehabilitation services portion of the unified or combined state plan, including third-party arrangements and awards under the establishment authority, are consistent with the order of selection. If any funding arrangements are inconsistent with the order of selection, MRS shall renegotiate these funding arrangements so that they are consistent with the order of selection.

(10) MRS shall consult with the Michigan Council on Rehabilitation Services regarding all of the following:

(a) Need to establish an order of selection.

(b) Priority categories of the particular order of selection.

(c) Criteria for determining individuals with the most significant disabilities.

(d) Administration of the order of selection.

R 395.90  Standards for third-party vendors.

Rule 40.  (1) MRS may, at its discretion, require third-party vendors to provide information substantiating their experience, quality, and safety before authorizing vendors to provide services to MRS participants, including both of the following:

(a) Professional license checks.

(b) Criminal background checks that are subject to the following requirements:

(i) MRS may conduct criminal background checks using only Internet Criminal History Access Tool, Michigan Public Sex Offender Registry, and National Sex Offender Registry.

(ii) MRS may deny authorizing a vendor to provide services if criminal background checks discover any of the following:

(A) The individual has been convicted of a relevant crime described under 42 USC 1320a-7(a), including, but not limited to, conviction of program-related crimes, conviction relating to patient abuse, felony conviction relating to health care fraud, and felony conviction related to controlled substance.

(B) The vendor or individual staff member fails to comply with MRS enrollment requirements pursuant to the National Child Protection Act of 1993, Pub. L. 103-209, including but not limited to failure to submit timely and accurate information, failure to cooperate with MRS screening methods, failure to allow access to provider locations for site visits, and inability to verify a provider applicant's identity.

(C) The vendor or individual staff member staff is convicted of violating the medicaid false claims act, MCL 400.601 to 400.615, the False Claims Act, 31 USC 3729 to 3733, or a substantially similar statute by another state or the federal government.

(D) The individual staff member has a federal or state felony conviction within the preceding 10 years after conviction, including any criminal offense related to murder, rape, abuse or neglect, assault, and other similar crimes against individuals, extortion, embezzlement, income tax evasion, insurance fraud, and other similar financial crimes.

(E) The individual staff member has a federal or state misdemeanor conviction within the preceding 5 years after conviction any criminal offense related to any misdemeanor crime listed as a permissive exclusion in 42 USC 1320a-7(b), including rape, abuse or neglect, assault, and other similar crimes against individuals, or extortion, embezzlement, income tax evasion, insurance fraud, and other similar financial crimes.

(c) Debarment check in the system of award management.

(d) Adherence checks to all relevant state and federal laws when acting as an employer of record for an individual receiving MRS services.

(2) MRS shall make available to the public all requirements and processes related to the assessment of vendors.

(3) MRS shall only assess vendors as described in subrule (1)(a) and (b) of this rule who have provided their written consent.

(4) MRS shall not share the specific results of any vendor assessment with anyone other than the vendor or individual being vetted and internal MRS staff on a need-to-know basis.

R 395.91  Requirements for third-party vendors providing customized employment

  services.

Rule 41.  To qualify as a vendor to deliver customized employment services, all individual vendor staff providing customized employment services shall complete the following:

(a) Association of Community Rehabilitation Educators (ACRE) course completion and certification in customized employment subject to the following:

(i) MRS shall accept ACRE courses where the primary focus is customized employment and certifications provided by the following organizations:

(A) Griffin Hammis Associates.

(B) Mark Gold and Associates.

(C) Incompass.

(D) TransCen.

(E) Other organizations that MRS has provided written approval to the vendor as acceptable substitutes.

(ii) Vendors approved to provide customized employment services to MRS participants must retain and make available to MRS on request all staff training documentation, including the name of the ACRE training, organization conducting the training, dates of the training, course syllabus or equivalent, and ACRE certification in vendor staff’s name.

(b) Ten hours of professional development related to customized employment every calendar year subject to the following:

(i) Hours must be prorated based on the date vendor staff began providing customized employment to MRS participants. For example, a vendor staff member who began providing customized employment in June would only be required to obtain 5 hours of professional development for that calendar year.

(ii) Acceptable professional development categories activities include:

(A) Mentoring, including providing one-on-one feedback and guidance on customized employment work performed.

(B) Technical assistance, including providing additional customized employment subject matter expertise.

(C) Attending community of practices or similar events.

(D) Participating in trainings in which customized employment is the primary subject.

(E) Attending events, conferences, or webinars in which customized employment is the primary focus.

(F) Other professional development activities that MRS has provided written approval to the vendor as acceptable substitutes.

(iii) A vendor shall retain and make available to MRS on request staff professional development documentation, including all of the following:

(A) The category of professional development activity.

(B) The individual and associated agency providing the professional development activity.

(C) A short summary of the outcome of the professional development activity.

(D) The length of time vendor staff members engaged in the professional development activity.

(E) The total number of professional development activity hours for the calendar year.