DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY  
MICHIGAN REHABILITATION SERVICES  
VOCATIONAL REHABILITATION  
(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R 395.1 Rescinded.  
History: 1954 AC; 1979 AC; 1998-2000 AACS; 2015 AACS.  
R 395.2 Rescinded.  
History: 1954 AC; Rescinded 1954 ACS 24, Eff. Nov. 12, 1960.  
R 395.3 Rescinded.  
History: 1954 AC; 1979 AC; 2005 AACS; 2015 AACS.  
R 395.4 Rescinded.  
History: 1954 AC; 1979 AC; 2005 AACS; 2015 AACS.  
R 395.5 Rescinded.  
History: 1954 AC; 1979 AC; 2015 AACS.  
R 395.6 Rescinded.  
History: 1954 AC; 1979 AC; 2015 AACS.  
R 395.7 Rescinded.  
History: 1954 AC; 1979 AC; 2015 AACS.  
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R 395.8 Rescinded.  
History: 1954 AC; 1979 AC; 2015 AACS.  
R 395.21 Rescinded.  
History: 1954 AC; 1979 AC; 1998-2000 AACS; 2015 AACS.  
R 395.22 Rescinded.  
History: 1954 AC; 1979 AC; 2015 AACS.  
R 395.23 Rescinded.  
History: 1954 AC; 1979 AC; 2015 AACS.  
R 395.24 Rescinded.  
History: 1979 AC; 2015 AACS.  
R 395.31 Rescinded.  
History: 1954 AC; 1979 AC; 2005 AACS; 2015 AACS.  
R 395.32 Rescinded.  
History: 1954 AC; 1979 AC; 2005 AACS; 2015 AACS.  
R 395.33 Rescinded.  
History: 1954 AC; 1979 AC; 2005 AACS; 2015 AACS.  
R 395.34 Rescinded.  
History: 1954 AC; 1979 AC; 2015 AACS.  
R 395.35 Rescinded.  
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History: 1954 AC; 1979 AC; 2015 AACS.  
R 395.41 Rescinded.  
History: 1979 AC; 2015 AACS.  
R 395.42 Rescinded.  
History: 1979 AC. 2015 AACS.  
PART 1. ELIGIBILITY FOR REHABILITATION SERVICE  
R 395.51 Definitions.  
Rule 1. As used in these rules:  
(a) “Clear and convincing evidence” means 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) “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 796l. On request of  
applicants or eligible individuals, the CAP assists and advocates for the applicants or  
eligible individuals in their relationships with projects, programs, and services provided  
under the rehabilitation act of 1973, 29 USC 701 to 796l, including assistance and advocacy  
in pursuing legal, administrative, or other appropriate remedies to ensure the protection of  
the rights of the individuals under the rehabilitation act of 1973, 29 USC 701 to 796l, and  
to facilitate access to the services funded under the rehabilitation act of 1973, 29 USC 701  
to 796l, 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.  
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(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.  
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(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.  
(h) “Individualized plan for employment” or “IPE” means an individualized plan for  
employment as described in R 395.67 to R 395.71.  
(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 796l.  
(j) “Part-time” means employment that is permanently assigned to an employee that  
is less than 30 hours of work per week.  
(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.”  
(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).  
(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.  
(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.  
(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.  
History: 2015 AACS; 2024 AACS; 2026 MR 10, Eff. May 15, 2026.  
R 395.52 Implementation of processes; policy.  
Rule 2. MRS shall publish and make available to the public procedures for the  
implementation of these rules.  
History: 2015 AACS.  
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.  
Page 5  
(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  
individual consistent with the 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 individual’s employment  
outcome, available, of sufficient quality, and be provided at the least cost to meet the  
individual’s rehabilitation needs consistent with 2 CFR 200.403 to 200.405.  
History: 2015 AACS; 2024 AACS; 2026 MR 10, Eff. May 15, 2026.  
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 and 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 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 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. MRS will issue retroactive authorizations prior to the current a previous fiscal year  
Page 6  
if required to do so by order of an administrative law judge or other legally-mandated  
process.  
(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  
provided, and the entity or entities that 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.  
History: 2015 AACS; 2024 AACS; 2026 MR 10, Eff. May 15, 2026.  
R 395.55 Confidentiality.  
Rule 5. (1) MRS shall keep all personal information concerning individuals,  
including but not limited to, photographs and lists of names, confidential.  
(2) MRS may release personal information only to individuals or entities directly  
connected with the administration of the vocational rehabilitation program and only to the  
extent permitted under federal regulations governing the vocational rehabilitation  
program. Information containing identifiable personal information shall not be shared with  
advisory or other bodies that do not have official responsibility for administration of the  
program.  
(3) MRS shall release personal information only with the informed, written consent  
of the individual. MRS shall release personal information without informed, written  
consent of the individual as needed to protect the applicant from physical harm to self or  
others and in response to any of the following:  
(a) Law enforcement, fraud, or abuse investigations.  
(b) In response to a judicial order.  
(c) When required by federal statute or regulation.  
(d) For audit, research, or evaluation purposes as allowed under the federal  
regulations 34 CFR 361.38(d).  
(e) In a suspected case of abuse, neglect, exploitation, or endangerment of the  
individual.  
(4) Information obtained from another agency or organization shall be released only  
by, or under the conditions established by, the other agency/organization.  
(5) When requested in writing by an individual, MRS shall make the information  
requested accessible to the individual and release the information to the individual or the  
individual’s representative in a timely manner.  
(6) Medical, psychological, and other information that may be potentially harmful to  
the individual shall not be directly released to the individual but shall be released instead  
to a third party chosen by the individual that may include any of the following:  
Page 7  
(a) A qualified medical or mental health professional.  
(b) Advocate.  
(c) Family member.  
(d) Legal guardian.  
(7) MRS may release information to parents or legal guardians of individuals who  
are minors under the same conditions as it may be released directly to individuals.  
(8) Release of information to an individual, agency, or organization other than those  
specified in these rules shall contain a statement precluding its further release.  
(9) MRS counselors shall advise individuals and providers of information of the  
confidentiality and release restrictions in this rule through appropriate means of  
communication.  
History: 2015 AACS.  
R 395.56 Application for MRS services.  
Rule 6. To apply for MRS services, an individual, or his or her representative as  
appropriate, shall do all of the following:  
Complete and sign an MRS application form or otherwise request services and provide  
the equivalent information.  
Provide information necessary to determine eligibility and priority for services.  
Be available to complete the assessment process.  
History: 2015 AACS.  
R 395.57 Eligibility criteria.  
Rule 7. (1) An individual is eligible for MRS services if, after an assessment has  
been conducted, MRS determines that the individual meets both of the following:  
(a) Has a physical or mental impairment which, for the individual, constitutes or  
results in a substantial impediment to employment.  
(b) Requires MRS to prepare for, secure, retain, advance in, or regain employment  
consistent with the individual’s unique strengths, resources, priorities, concerns, abilities,  
capabilities, interests, and informed choice. For purposes of an assessment for determining  
eligibility and vocational rehabilitation needs under the act, an individual shall be presumed  
to have a goal of an employment outcome.  
History: 2015 AACS.  
R 395.58 Presumption of benefit.  
Rule 8. All individuals who apply for services, including individuals who have been  
determined to have a disability under social security disability insurance and supplemental  
security income, are presumed to be able to benefit in terms of an employment outcome  
from VRS unless found to be ineligible for services due to the severity of the disability by  
clear and convincing evidence.  
Page 8  
History: 2015 AACS.  
R 395.59 Eligibility determination.  
Rule 9. The responsibility for making an eligibility determination shall be made by a  
qualified vocational rehabilitation counselor employed by MRS and shall not be delegated  
to any other individual or agency.  
History: 2015 AACS.  
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 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 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 after the date of  
application.  
History: 2015 AACS; 2026 MR 10, Eff. May 15, 2026.  
R 395.61 Extended eligibility determinations 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 trial work experience.  
(2) The presumption of employability continues during trial work experiences 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 trial work experience, MRS shall explore the individual's abilities,  
capabilities, and capacity to perform in work situations in the most integrated settings 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.  
Page 9  
(4) Trial work experiences 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 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 the individual's representative, shall be a full and active  
participant in the development of the individual's 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 eligibility determinations.  
(8) A MRS counselor can make an eligibility determination at any time during a trial  
work experience.  
History: 2015 AACS; 2026 MR 10, Eff. May 15, 2026.  
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 must be considered as intent to achieve  
an employment outcome.  
(2) For an individual desiring to enter the workforce who is entitled to benefits under  
Title II or XVI of the social security act, 42 USC 401 to 434 and 1381 to 1383f, 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 after the date of application unless the  
individual’s ability to benefit is in question and a trial work experience plan is developed.  
History: 2015 AACS; 2026 MR 10, Eff. May 15, 2026.  
R 395.63 Use of existing information.  
Page 10  
Rule 13. (1) To the maximum extent possible, the MRS counselor shall make an  
eligibility determination based on existing and current information, including any of the  
following:  
(a) Information available from other programs and providers.  
(b) Schools.  
(c) Social security administration.  
(d) Information provided by the individual and the family.  
(2) To the maximum extent appropriate, the MRS counselor shall rely on information  
obtained from experiences in integrated employment settings in the community and in  
other integrated community settings.  
History: 2015 AACS.  
R 395.64 Ineligibility.  
Rule 14. (1) In all cases where the counselor determines that an individual does not  
meet the requirements for eligibility, the case record shall include a certification of  
ineligibility.  
(2) The certification shall be signed and dated by the counselor and include  
documentation of the reasons for the ineligibility determination.  
(3) Ineligibility decisions concerning the severity of a disability must be based on  
clear and convincing evidence that the individual is incapable of benefiting in terms of an  
employment outcome due to the severity of the individual’s disability as of the date of the  
determination, and require the counselor to explore the individual’s abilities, capabilities,  
and capacity to perform in work situations through the use of trial work experiences. The  
ineligibility determination shall be both of the following:  
(a) An individualized one, based on the available data, and shall not be based on  
assumptions about broad categories of disabilities.  
(b) Made only after providing an opportunity for full consultation with the individual  
or, as appropriate, the individual’s representative.  
(4) The individual, or as appropriate, the individual’s representative, shall be  
informed in writing, supplemented as necessary by other appropriate modes of  
communication consistent with the informed choice of the individual, of the ineligibility  
determination, including the clear and convincing evidence that forms the basis for the  
determination of ineligibility, including both of the following:  
(a) The reasons for the determination.  
(b) A description of the means by which the individual may express, and seek a  
remedy for, any dissatisfaction with the determination, including the procedures for review  
by an impartial hearing officer.  
History: 2015 AACS.  
R 395.65 Rescinded  
History: 2015 AACS; 2024 AACS.  
Page 11  
R 395.66 Comprehensive assessment of rehabilitation needs.  
Rule 16. (1) A MRS counselor shall conduct a vocational needs assessment to  
determine the goals, nature, and scope of rehabilitation services to be included in the IPE.  
(2) The assessment described in this rule shall begin simultaneously with the  
assessment for eligibility and be carried out in integrated settings to the extent appropriate  
and consistent with the individual's informed choice.  
(3) The emphasis in the assessment shall be on using existing and current information  
to the maximum extent possible, and information provided by the individual and by the  
individual's family, as appropriate.  
(4) When current or existing information is not sufficient to assess vocational  
rehabilitation needs, a comprehensive assessment shall be provided which shall include all  
of the following concerning the individual:  
(a) Strengths.  
(b) Resources.  
(c) Priorities.  
(d) Concerns.  
(e) Abilities.  
(f) Capabilities.  
(g) Rehabilitation needs, including the need for supported employment.  
(5) The individual shall be an active participant in the choice of assessments and  
providers.  
(6) The comprehensive assessment is limited to information that is necessary to  
identify the rehabilitation needs of the individual and to develop an IPE. To the degree  
needed, the comprehensive assessment shall include the following:  
(a) An assessment of the individual’s personality; career interests; interpersonal skills;  
intelligence and related functional capacities; educational achievements; work experience;  
vocational aptitudes; personal and social adjustment; employment opportunities available  
to the individual; medical, psychiatric, psychological, and other pertinent vocational,  
educational, cultural, social, recreational, and environmental factors that affect the  
employment and rehabilitation needs of the individual.  
(b) An appraisal of the individual’s work behavior and services needed to acquire  
occupational skills, and to develop work attitudes, work habits, work tolerance, and social  
and behavioral patterns necessary for successful job performance, including the utilization  
of work in real job situations to assess and develop the capacities of the individual to  
perform adequately in the work environment.  
(c) Where appropriate, the provision of rehabilitation technology services to assess  
and develop the capacities of the individual to perform in an integrated work environment.  
History: 2015 AACS.  
R 395.67 Individualized plan for employment (IPE).  
Rule 17 (1) The MRS counselor shall design the IPE to achieve an employment  
outcome of the individual, consistent with the unique strengths, resources, priorities,  
concerns, abilities, capabilities, career interests, and informed choice of the individual.  
(2) The case record must support the selection of the vocational goal.  
Page 12  
(3) The IPE shall be signed by the individual or, as appropriate, the individual's  
representative and by a qualified MRS rehabilitation counselor. The IPE is not a legal  
contract between MRS and the individual.  
(4) Planning and approval of the IPE shall be conducted within the framework of a  
counseling relationship.  
(5) MRS counselor approval of an IPE verifies that the IPE is consistent with MRS  
policies and guidelines, is complete, and is expected to lead to an employment outcome.  
MRS counselors shall provide a copy of the IPE, and any amendments, to the eligible  
individual.  
(6) Vocational rehabilitation goods and services may only be provided in accordance  
with the IPE.  
(7) MRS shall provide individuals with written notification of appeal rights, including  
the name and address of the person with whom an appeal may be filed, and the availability  
of the CAP during IPE development, and whenever MRS-authorized services are denied,  
reduced, suspended, or terminated.  
(8) The MRS shall notify individuals in writing 10 working days before the  
termination, reduction, or suspension of a MRS authorized service.  
History: 2015 AACS.  
R 395.68 Standards for development; review.  
Rule 18. (1) The IPE shall be completed promptly by both the MRS counselor and  
the individual, but no more than 90 days following eligibility certification, unless the  
individual and MRS counselor require more time to arrive at an agreed upon IPE.  
(2) The IPE will be reviewed at least annually by a qualified vocational rehabilitation  
counselor and the individual or, as appropriate, the individual’s representative, to assess  
the individual’s progress in achieving the identified employment outcome.  
History: 2015 AACS.  
R 395.69 IPE development extension.  
Rule 19. (1) If more than 90 days are required to develop the IPE, an IPE development  
extension shall be requested providing all of the following:  
(a) Reason for extension.  
(b) Activities or services planned to complete the IPE.  
(c) The agreed upon plan extension date.  
(2) For students in the K-12 educational system who are eligible for MRS services,  
the IPE shall be developed and completed before the student leaves the school setting. An  
agreed upon delay in developing an IPE is not an option for eligible transition students if  
the delay in development extends beyond the student’s exit from school.  
History: 2015 AACS.  
R 395.70 Options for developing IPE.  
Page 13  
Rule 20. (1) The MRS counselor shall provide the individual, or the individual’s  
representative, information on the individual’s options for developing an IPE.  
(2) MRS shall not pay for an agency, or a representative, to develop an IPE.  
(3) The options for developing all or part of the IPE include the following:  
(a) With assistance from a MRS vocational rehabilitation counselor, to the extent  
determined to be appropriate by the individual.  
(b) With technical assistance from the MRS program, or other representatives  
selected by the individual.  
(c) The individual alone without assistance.  
History: 2015 AACS.  
R 395.71 Required components of IPE.  
Rule 21. The IPE shall include the following:  
(a) Specific vocational goal, which must be based on the assessment for determining  
vocational rehabilitation needs, including the individual’s career interests, and must be in  
an integrated setting.  
(b) A description of the specific vocational rehabilitation services that meet both of  
the following:  
(i) Needed to achieve the vocational goal, including, as appropriate, the provision of  
assistive technology services and personal assistance services, including training in the  
management of such services.  
(ii) Provided in the most integrated setting that is appropriate for the service involved,  
and is consistent with the informed choice of the individual.  
(c) Timelines for the achievement of the employment outcome, and for the initiation  
of the services.  
(d) A description of the entity chosen by the individual, or as appropriate, the  
individual’s representative that will provide the vocational rehabilitation services and the  
methods used to procure such services.  
(e) Description of the criteria to evaluate the progress towards achievement of the  
employment outcome.  
(f) The terms and conditions of the IPE, including, as appropriate, information  
describing all of the following:  
(i) The responsibilities of MRS.  
(ii) The responsibilities that the individual will assume in relation to the vocational  
goal.  
(iii) The responsibility of the individual with regard to applying for and securing  
comparable benefits.  
(g) For individuals for whom an employment outcome in a supported-employment  
setting has been determined to be appropriate, information identifying both of the  
following:  
(i) The extended services needed by the individual after closure.  
(ii) The source of extended services, or to the extent that the source of extended  
services cannot be identified at the time of the development of the IPE, a description of the  
basis for concluding that there is a reasonable expectation that such source will become  
available.  
Page 14  
(h) As determined to be necessary, a statement of projected need for post-  
employment services.  
(i) An assurance that the individual has been informed of his or her rights and the  
means by which the individual may express and seek remedy for any dissatisfaction,  
including the opportunity for a review of the rehabilitation determination, as described in  
R 395.83 to R 395.87 and assurance that the individual has been provided a detailed  
explanation of the availability of the resources within the CAP.  
History: 2015 AACS.  
R 395.72 Participation; individuals with disabilities; cost of IPE services.  
Rule 22. (1) Individuals shall be encouraged to participate in the cost of the services  
listed in their IPE to the extent they are able to do so.  
(2) Financial participation in the cost of services is not required except in the areas of  
college and vocational training.  
History: 2015 AACS.  
R 395.73 Comparable benefits and services in the IPE.  
Rule 23. (1) If comparable services and benefits are available to the individual, the  
services and benefits must be utilized to meet, in whole or part, the cost of vocational  
rehabilitation services.  
(2) If comparable services or benefits exist under any other program, but are not  
available to the individual at the time needed to satisfy the rehabilitation objectives in the  
individual’s IPE, MRS shall provide vocational rehabilitation services until those  
comparable services and benefits become available.  
(3) The utilization of comparable services and benefits do not apply in the following  
situations:  
(a) If the determination of the availability could delay or interrupt the progress of the  
individual toward achieving the employment outcome identified in the individualized plan  
for employment.  
(b) If the determination of the availability would delay the provision of vocational  
rehabilitation to any individual who is at extreme medical risk, based on medical evidence  
provided by an appropriate qualified medical professional.  
(c) If an immediate job placement would be lost due to a delay in the provision of  
comparable benefits.  
(4) The following categories of service are exempt from a determination of the  
availability of comparable services and benefits:  
(a) Assessment for determining eligibility, priority for services, and vocational  
rehabilitation needs.  
(b) Vocational rehabilitation counseling, guidance, and referral services.  
(c) Vocational and other training services, such as personal and vocational adjustment  
services, books, tools, and other training material not associated with training in an institute  
of higher education, that are defined as colleges and universities, community and junior  
colleges, vocational and technical schools or institutes, and hospital schools of nursing.  
Page 15  
(d) Awards and scholarships based on merit.  
(e) Rehabilitation technology services, including vehicle modifications.  
(f) Placement services.  
History: 2015 AACS.  
R 395.74 Services; general.  
Rule 24. (1) The services MRS counselors may provide, arrange, or purchase for an  
individual with a disability include those services related to an IPE necessary to assist the  
individual in preparing for, securing, retaining, or regaining an employment outcome in an  
integrated setting that is consistent with the individual’s strengths, resources, priorities,  
concerns, abilities, capabilities, interests, and informed choice.  
(2) MRS services provided shall be published in MRS policy and be made available  
to the public.  
History: 2015 AACS.  
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 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 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 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  
Page 16  
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 XVI of  
the social security act, 42 USC 401 to 434 and 1381 to 1383f, shall be exempted from  
financial need test requirements.  
(10) Individuals attending Michigan Career and Technical Institute are exempt from  
financial need test requirements and financial aid limitations for the cost of attendance.  
History: 2015 AACS; 2026 MR 10, Eff. May 15, 2026.  
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.  
(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.  
(4) MRS shall authorize 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.  
(5) MRS shall not place an absolute dollar limit on specific service categories or on  
the total services provided to an individual.  
(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.  
History: 2015 AACS.; 2024 AACS; 2026 MR 10, Eff. May 15, 2026.  
R 395.77 Case closure prior to eligibility.  
Rule 27. The MRS counselor shall close an individual’s case record under any of the  
following conditions:  
(a) It is determined that the individual does not meet MRS eligibility criteria.  
(b) The individual selects an extended sheltered employment outcome after being  
informed of the integrated employment purpose of the program.  
(c) The individual declines to participate in or is unavailable during an extended  
period to complete an eligibility assessment, and MRS has made a reasonable number of  
attempts to contact the individual or, as appropriate, the individual’s representative to  
encourage participation.  
Page 17  
(d) The individual has chosen to assign his or her Ticket to Work to an alternative  
third party vocational rehabilitation service with which MRS does not have an Employment  
Network Agreement.  
(e) The individual refuses services, is deceased, or is institutionalized.  
History: 2015 AACS.  
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 after  
a trial work experience 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.  
History: 2015 AACS; 2026 MR 10, Eff. May 15, 2026.  
R 395.79 Requirements for closing the record of services of an individual who has  
achieved an employment outcome.  
Rule 29. The record of services of an individual who has achieved an employment  
outcome may be closed only if all of the following requirements are met:  
(a) The individual has achieved the employment outcome that is described in the  
individual’s IPE.  
(b) The employment outcome is consistent with the individual's unique strengths,  
resources, priorities, concerns, abilities, capabilities, interests, and informed choice.  
(c) The individual has maintained the employment outcome for an appropriate period  
of time, but not less than 90 days, necessary to ensure the stability of the employment  
outcome, and the individual no longer needs vocational rehabilitation services.  
(d) The individual and MRS counselor consider the employment to be satisfactory  
and agree the individual is performing well on the job.  
(e) The individual is informed through appropriate modes of communication of the  
availability of post-employment services.  
History: 2015 AACS; 2024 AACS.  
R 395.80 Individual not rehabilitated; case closure.  
Page 18  
Rule 30. (1) The MRS counselor may close the case record of an individual as not  
rehabilitated.  
(2) Reasons for closing a case not rehabilitated other than for ineligibility include any  
of the following:  
(a) Inability to locate the individual or the individual has moved out of state.  
(b) Individual working with another employment network.  
(c) Death of the individual.  
(d) Extended services were not available for the individual.  
(e) The individual was placed in a non-integrated setting for a public or nonprofit  
organization under extended employment.  
(f) The individual will be in a facility such as a hospital, nursing home, or treatment  
center for a considerable period of time.  
(g) The individual has been incarcerated in a prison, jail, or other criminal correction  
facility.  
(h) The individual does not require MRS to prepare for, enter into, engage in, or retain  
gainful employment consistent with his or her strengths, resources, priorities, concerns,  
abilities, capabilities, and informed choice.  
(i) The individual is no longer interested in receiving services or further services,  
including an individual whose actions or non-actions make it impossible to begin or  
continue the vocational rehabilitation program.  
(j) The individual has transferred to another agency.  
(k) Transportation is not possible or available.  
(l) The individual has committed an act of violence or threatened violence.  
History: 2015 AACS.  
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.  
(2) The third party identified in the IPE shall confirm extended support services after  
case closure before a case is closed in supported employment.  
History: 2015 AACS; 2026 MR 10, Eff. May 15, 2026.  
R 395.82 Notice of case closure.  
Rule 32. (1) An individual whose case is closed for any reason, except for death or  
no known address, shall be notified in writing of his or her case closure. The case closure  
notice shall include all of the following:  
(a) The effective date of closure.  
(b) A narrative description of the reason or reasons for closure.  
(c) The right to appeal, including mediation, the closure decision.  
Page 19  
(d) The process for seeking appeal and mediation, including the availability of the  
CAP to assist with an appeal.  
(2) An individual shall be provided an opportunity to discuss case closure prior to the  
closure decision.  
History: 2015 AACS.  
R 395.83 Rescinded.  
History: 2015 AACS; 2024 AACS.  
R 395.84 Review; hearing; costs.  
Rule 34. (1) Individuals or, if appropriate, their representatives, have the right to  
appeal any decision made by MRS personnel that affects the provision of VRS with which  
they are dissatisfied by requesting a hearing.  
(2) Written notification of the right to appeal, including the name and address of the  
person with whom an appeal may be filed, and the availability of the CAP, shall be  
provided to individuals at the following stages:  
(a) At application.  
(b) Case closure.  
(c) When assigned an order of selection category.  
(d) When an IPE is developed.  
(e) Whenever an authorized service is reduced, suspended, or terminated.  
(3) MRS shall provide any reasonable accommodations needed by an individual to  
participate in mediation and/or a hearing.  
(4) Mediation and/or a hearing are provided at no cost to the individual.  
(5) MRS is not responsible for any costs associated with the individual’s  
representation at the mediation session or hearing or with any cost associated with the  
appearance of witnesses presented by the individual at the mediation session or hearing.  
History: 2015 AACS.  
R 395.85 Informal review.  
Rule 35. (1) Whenever possible, MRS shall attempt to resolve disagreements  
informally, prior to mediation or a hearing.  
(2) An individual may request a meeting with the MRS counselor, the appropriate  
supervisor, and/or a CAP representative, if desired, to explore options for resolving  
disputes. An individual may request a meeting with the MRS counselor, the appropriate  
supervisor, and/or a CAP or individual’s representative, if desired, to explore options for  
resolving disputes.  
(3) An individual may request mediation or a hearing immediately without  
undergoing the informal review.  
(4) The informal review may not be used to deny or delay the individual’s right to  
pursue mediation or the hearing within the specified time period.  
Page 20  
History: 2015 AACS.  
R 395.86 Continuation of services pending completion of hearing.  
Rule 36. Assessment, plan development, or IPE-related services that have been  
initiated shall not be suspended, reduced, or terminated pending mediation or the hearing  
decision unless the applicant or eligible individual or his or her representative so requests  
or there is evidence that the services have been obtained through misrepresentation, fraud,  
collusion, or criminal conduct on the part of the applicant, eligible individual, or his or her  
representative.  
History: 2015 AACS.  
R 395.87 Mediation.  
Rule 37. (1) Mediation is a voluntary process conducted by a qualified and impartial  
mediator. At any point during the mediation process, either party, or the mediator, may  
elect to terminate the mediation.  
(2) An individual may request mediation after his or her request for a hearing is  
received.  
(3) MRS shall send the request for mediation to the hearings coordinator. The  
hearings coordinator will assign, on a random basis, a qualified impartial mediator. The  
hearings coordinator must schedule mediation in a timely manner.  
(4) Mediation will be held in a location that is convenient to the parties in the dispute.  
(5) An individual appealing MRS decisions has the right to submit evidence or  
relevant information and present witnesses to support his or her position at mediation.  
(6) An agreement reached in the mediation process shall be set forth in a written  
mediation agreement and must be signed by both parties.  
(7) Discussions that occur during the mediation process are confidential and may not  
be used as evidence in any subsequent due process hearing or civil proceeding.  
(8) Either party may enter the written signed mediation agreement as evidence in a  
subsequent hearing or civil proceeding.  
(9) The individual may be represented at the mediation or hearing, including but not  
limited to, representation by the CAP.  
(10) The mediation process may not be used to deny or delay the individual’s right  
to pursue a hearing within the specified time period.  
History: 2015 AACS.  
R 395.88 Hearing.  
Rule 38. (1) An individual who is dissatisfied with any determination made by MRS  
concerning the provision of VRS may seek a redetermination of agency action before an  
impartial hearing officer.  
(2) The individual must submit a written appeal within 30 calendar days of the agency  
notice regarding its determination or decision.  
Page 21  
(3) Agency notice regarding the provision or denial of a service is not required to be  
in writing, unless it is a suspension, reduction, or termination of authorized services in an  
IPE.  
(4) Individuals will be notified in writing 10 working days before the termination,  
reduction, or suspension of authorized services being provided under an IPE.  
(5) If no request for hearing is made within 30 calendar days, the agency decision is  
considered final.  
(6) The request for hearing shall be in writing, and shall describe the decision being  
appealed. MRS shall accommodate an individual’s disability and offer assistance, if  
appropriate, in the appeal process. The request for hearing shall be sent to the director of  
MRS who shall immediately forward the request to the hearings coordinator.  
(7) The hearings coordinator shall forward the request for hearing to the Michigan  
Administrative Hearing System (MAHS) to be scheduled for a hearing with a qualified  
impartial hearing officer.  
(8) The hearing shall be held within 60 calendar days of receipt of the request for  
hearing.  
(9) The individual may waive the 60-day time frame to hold the hearing if both  
parties agree to an extension of time in writing.  
(10) A hearing may be dismissed by MAHS if the individual or his or her  
representative does either of the following:  
(a) Withdraws the hearing request in writing.  
(b) Fails to appear at the hearing without good cause.  
(11) The hearing shall be conducted by MAHS and shall include an opportunity for  
the individual or the individual’s representative to present witnesses and relevant evidence.  
(12) The hearing officer shall issue a full written report of the findings and grounds  
for the decision within 30 days of the completion of the hearing.  
(13) The hearing officer’s decision is final unless either party commences a civil  
action.  
(14) Any party that disagrees with the final decision of the hearing officer has the  
right to file a civil action challenging the decision of the hearing officer. The action may  
be brought in any state court of competent jurisdiction or in a district court of the United  
States of competent jurisdiction without regard to the amount in controversy.  
History: 2015 AACS.  
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  
Page 22  
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:  
Page 23  
(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.  
Page 24  
(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.  
History: 2026 MR 10, Eff. May 15, 2026.  
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 the internet criminal  
history access tool (ICHAT), the state sex offender registry or the 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, 34 USC 40101 to 40104,  
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.  
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(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.  
History: 2026 MR 10, Eff. May 15, 2026.  
R 395.91  
employment  
services.  
Requirements for third-party vendors providing customized  
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.  
Page 26  
(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.  
History: 2026 MR 10, Eff. May 15, 2026.  
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;