Michigan Office of Administrative Hearings and Rules  
Administrative Rules Division (ARD)  
MOAHR-Rules@michigan.gov  
REQUEST FOR RULEMAKING (RFR)  
1. Department:  
Labor and Economic Opportunity  
2. Bureau:  
Michigan Rehabilitative Services  
3. Promulgation type:  
Full Process  
4. Title of proposed rule set:  
Vocational Rehabilitation  
5. Rule numbers or rule set range of numbers:  
R 395.1 - R 395.88  
6. Estimated time frame:  
3 months  
Name of person filling out RFR:  
Christina Rea  
E-mail of person filling out RFR:  
ReaC@michigan.gov  
Phone number of person filling out RFR:  
517-247-9553  
Address of person filling out RFR:  
320 S. Walnut St  
Suite 1N  
7. Describe the general purpose of these rules, including any problems the changes are intended  
to address.  
The Michigan Rehabilitation Services (MRS) rules are being amended to update definitions to  
align with federal regulations and provide clarity, including to modify nondiscrimination  
statement, to update the agency’s process for developing a fee schedule for standardized rates of  
payment, and to bring the rules into conformity with current practice regarding post-employment  
services.  
8. Please cite the specific promulgation authority for the rules (i.e. department director,  
commission, board, etc.).  
By authority conferred upon 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, 395.86;  
Executive Reorganization Order Nos. 1999-1, 2003-1, 2012-5, and 2019-3, MCL 408.40,  
445.2011, 445.2033, 125.1998, and in accord with the Workforce Innovation and Opportunity Act  
of 2014, P.L. 113-128.  
A. Please list all applicable statutory references (MCLs, Executive Orders, etc.).  
MCL 24.239  
RFR-Page 2  
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, 395.86;  
Executive Reorganization Order Nos. 1999-1, 2003-1, 2012-5, and 2019-3, MCL 408.40,  
445.2011, 445.2033, 125.1998, and in accord with the Workforce Innovation and Opportunity Act  
of 2014, P.L. 113-128.  
B. Are the rules mandated by any applicable constitutional or statutory provision? If so, please  
explain.  
No.  
9. Please describe the extent to which the rules conflict with or duplicate similar rules,  
compliance requirements, or other standards adopted at the state, regional, or federal level.  
R 395.53 has some overlap with 34 CFR 361.1 as both define the purpose of the state VR  
program.  
R 395.84 as currently written contradicts 34 CFR 361.5(c)(41) and post-WIOA RSA guidance  
(https://rsa.ed.gov/sites/default/files/subregulatory/RSA-FAQ-22-03_0.pdf) regarding post-  
employment services. MRS no longer provides post-employment services as currently described  
in R 395.84.  
10. Is the subject matter of the rules currently contained in any guideline, handbook, manual,  
instructional bulletin, form with instructions, or operational memoranda?  
The MRS Rehabilitation Services Manual (RSM) is a document that comprehensively lists  
available MRS services, definitions, procedures, documentation methods, and requirements.  
11. Are the rules listed on the department’s annual regulatory plan as rules to be processed  
for the current year?  
Yes for:  
•R 395.51 Definitions  
•R 395.53 Purpose  
•R 395.54 General requirements  
•R 395.76 Rates of payment  
•R 395.83 Post-employment services  
No for:  
•R 395.79 Rehabilitated case closure  
The R 395.79 change was prompted by the change to R 395.83 and was discovered during our  
planning/drafting.  
12. Will the proposed rules be promulgated under Section 44 of the Administrative Procedures  
Act, 1969 PA 306, MCL 24.244, or under the full rulemaking process?  
Full Process  
13. Please describe the extent to which the rules exceed similar regulations, compliance  
requirements, or other standards adopted at the state, regional, or federal level.  
The only rule addressed in this RFR that will, once edited, exceed similar regulations is R 395.76.  
Current laws and regulations do not dictate how MRS establishes rates of payment. MRS has  
adopted a method of contracting a third party consulting entity to establish standardized rates of  
payment for specific VR services.  
14. Do the rules incorporate the recommendations received from the public regarding any  
complaints or comments regarding the rules? If yes, please explain.  
MCL 24.239  
RFR-Page 3  
No  
15. If amending an existing rule set, please provide the date of the last evaluation of the rules  
and the degree, if any, to which technology, economic conditions, or other factors have changed  
the regulatory activity covered by the rules since the last evaluation.  
5/13/2020. Technology, economic conditions, or other factors have not changed the regulatory  
activity covered by the rules since the last evaluation.  
16. Are there any changes or developments since implementation that demonstrate there is no  
continued need for the rules, or any portion of the rules?  
R 395.83, which describes agency activity no longer being conducted due to changes in federal  
regulations and guidance, is no longer needed.  
17. Is there an applicable decision record (as defined in MCL 24.203(6) and required by MCL  
24.239(2))? If so, please attach the decision record.  
No  
Based on the information provided in this RFR, MOAHR concludes that there are sufficient  
policy and legal bases for approving the RFR. The RFR satisfies the requirements of the  
Administrative Procedures Act of 1969, 1969 PA 306, MCL 24.201 to 24.328, and Executive  
Order No. 2019-6.  
MCL 24.239  
;