DEPARTMENT OF PERSONNEL AND ADMINISTRATION
Division of Central Services
DIVISION OF CENTRAL SERVICES RULES
1 CCR 103-1
_________________________________________________________________________

********[indicates unchanged rules prior to 3.00]********

3.00	Commuting Use of State-Owned Motor Vehicles by State Officers and Employees
3.1	Definitions
As used in these rules: 
.01	“Agency” means any department, agency, or institution of higher education participating in the State Fleet.
.02	“Commuting” means the required use of a state-owned motor vehicle by a state employee to drive between the employee’s residence and principal or regular workplace(s).  Exceptions and clarifications include:
a.	There is no commute if the employee works out of their home as their primary work location and does not report each day to one or more state business locations (owned or leased facilities).  The employee must also not have an assigned office in any state business location.
b.	There is no commute if the employee works primarily out of their state vehicle and visits a state business location infrequently (not each day) for the purpose of attending meetings or to pick up or drop off work product.  The employee must also not have an assigned office in any state business location.
c.	It is commuting if an employee is required to use a state vehicle to drive each day to a state business location, even if it is not the same location each day. For example, when an employee has two official work locations with a designated office in one or both.
.03	“Control employee" means:
a.	An elected official, or
b.	An employee whose compensation is at least as much as that paid to a federal government employee holding a position at Executive Level V as specified in IRS regulations at 26 C.F.R. Section 1.61-21.  
.04	“Convenience of the State" means that the commuting is required and that it:
a.	Promotes a legitimate, nonpartisan, governmental interest of the State;
b.	Promotes the efficient operation of the state motor vehicle fleet system; and
c.	Is cost effective to the state agency authorizing commuting.
.05	“De minimis" means the personal use of a State-owned motor vehicle that is of so small a value that accounting for it would be unreasonable or administratively impractical. De minimis includes a stop for lunch between two official business destinations, or occasionally taking a State-owned motor vehicle to the employee’s residence the evening prior to a planned business trip or the evening following an after-business-hours conclusion of a business trip. 
.06	"Executive director" means the head of any principal department, agency, or institution of higher education.
.07	"Qualified non-personal use vehicle" is any vehicle the employee is not likely to use more than minimally for personal purposes because of its design, such as clearly marked police and fire vehicles, unmarked vehicles officially authorized for use by law enforcement officers, vehicles designed to carry cargo with a loaded gross vehicle weight over 14,000 pounds, as well as many other vehicle types and configurations specifically defined in IRS regulations at 26 C.F.R. Section 1.274-5T.
.08	"State employee" means any person defined as a state officer or employee by 24-10-103(4), C.R.S. 
.09	"State-owned motor vehicle" is as defined in section 24-30-1102(6), C.R.S. and including those that are leased to the State.
3.2	Requests
.01	Only the Executive Director may authorize commuting. It is not mandatory that any individual or position in the State be required to commute.  The decision to require commuting is up to the Executive Director.  To authorize commuting, the executive director must determine that it is required for the convenience of the State. The Executive Director will also approve the classification (taxable, exempt or reimbursable) for the required commuter. The executive director shall also determine when an employee starts and ends the authorized use.
.02	An authorization shall be made on the basis of the individual employee, the work function, the type and configuration of the vehicle, and the convenience to the State. Requiring one employee to commute does not necessarily mean that other employees with the same job title, classification, job function or other specifications should also be required to commute.  Authorization is not made on the basis of a specific motor vehicle.  Changes in specific motor vehicle assignment, but remaining with the same type and configuration, do not require reauthorization.
.03	The executive director must document the authorization of commuting by completing a separate State Fleet Management (SFM) Commuting Authorization Form for each state employee required to commute.  If the commuting is taxable or if the commuting requires employee reimbursement, the SFM Commuting Authorization Form must also be signed by the agency’s payroll officer to verify that commuting income will be imputed or that the monthly withdrawal has been scheduled for payroll purposes.  The completed form must be submitted to SFM, Division of Central Services.
.04	Any changes relative to a state employee’s commuter status or the authorization of a new commuter must be reported immediately to SFM, Division of Central Services by the authorizing agency, and if applicable to the agency payroll contact.
.05	SFM will send a verification of active approvals to each agency at least annually, which must be reviewed, approved, and returned by the executive director.
.06	A separate form will be required for each employee with a state vehicle at their home who is designated as a “non-commuter” because they work directly out of their home or vehicle and do not have a permanently assigned office in a state business facility.
3.3	Classifications and Exemptions
.01	Commuting may be classified as exempt, taxable, or reimbursable depending on the vehicle type or configuration (ie. IRS defined as “qualified non-personal use”), the work function of the commuting employee, and other specific requirements.  These three classifications are for tax or reimbursement purposes only and are not definitions of who should or should not be required to commute.  However, once the decision has been made to require commuting for a specific individual, it is important that they be treated for taxation or reimbursement in the same way as any other required commuter in the same circumstances.
.02	Exempt – A commuter may be exempt from reimbursement or taxation if qualified under the provisions of the IRS definition of “non-qualified personal use”.  In the State this would include:
a.	Vehicles that are not likely to be used other than minimally for personal use because of the unique size or unusual configuration of the vehicle. (State Fleet Management can provide additional clarification concerning the specifics of these requirements.) 
b.	Law enforcement vehicles that are outfitted and clearly marked as law enforcement.
c.	Unmarked vehicles used by state law enforcement officers qualified as peace officers under section 16-2.5-101 C.R.S and who are working in a job function that requires this status as a condition of their job.
.03	Taxable – Taxable commuting may be approved for a state employee where it can be clearly demonstrated that the convenience to the State is greater than the benefit to the individual.  This would include job functions where there is a health/safety benefit to the state citizens as a result of the commuter being “on call” to respond to emergency situations where citizens’ well being could be impacted.  Examples would include individuals who are either “first responders” or whose PDQ’s specifically require 24/7 availability to respond to health, life, or safety emergencies. 
.04	Reimbursable – If a commuter is not classified as exempt or taxable based on the above criteria reimbursable commuting may be approved for a state employee who is required to commute for the benefit of the State, and for bona fide non-compensatory business reasons.
.05	The mere fact that an employee performs a job function covered under one of the three categories outlined above does not mean that the employee should be required or approved to commute.
3.4	Limitations 
.01	Use of a State-owned or leased motor vehicle by a state employee for any personal purpose is strictly prohibited, except as otherwise provided in these rules. This includes:
a.	transporting any person unrelated to official business, including family members, friends, or relatives;
b.	any recreational use;
c.	transporting or storing personal property of any kind that is not related to the employee’s official business;
d.	use of a State-owned motor vehicle in support of any private, charitable, or political entity or activity;
e.	any otherwise unlawful use.
.02	State-owned motor vehicles authorized for any type of commuting will be returned to the commuter's agency during all extended periods of foreseeable non-use such as a commuter's use of annual leave of longer than one week or extended sick leave beyond two weeks.
.03	Contract employees shall not be permitted to commute.
3.5	Valuation and Taxation
.01	Exempt commuting is not taxable or subject to reimbursement.
.02	Taxable commuting shall be imputed as income for non-control employees at a rate established under the “commuter valuation rule” pursuant to IRS Regulations 26 C.F.R. Section 1.61-21.  Imputed commuting income shall be for 20 days per calendar month regardless of the actual number of commuting days per month, and shall be imputed on a monthly basis as part of the normal pay process.
.03	Reimbursable commuting will be based on a cost per mile rate established by the Division of Central Services.
a.	The rate will be established once each year with the intent of approximating the cost to the State of operating a typical basic transportation vehicle in the State’s fleet.  The commuting cost per mile will include an operating cost component that approximates the actual operating cost of a typical State transportation vehicle plus a component to account for a portion of the ownershipcost. The commuting cost per mile will be the same for all commuters regardless of the specific type of vehicle used in the commuting since the decision of vehicle assignment is made by the department and not the individual and the value accrued to the individual commuter is not dependent on the type of vehicle driven.
b.	The individual commuter reimbursement will be a fixed monthly fee calculated by multiplying the estimated daily commuting miles (based on daily round trip commute miles provided by the commuter) times the commuting cost per mile times 20 days per month.  The monthly rate will be based on 20 days per month regardless of the number of days the vehicle is actually used in any given month.  This fixed monthly fee will remain in effect for the entire year unless the round trip commute distance changes or the commuting requirement is canceled.
c.	The minimum monthly reimbursement fee will be at a rate established under the “commuter valuation rule” pursuant to IRS Regulations 26 C.F.R. Section 1.61-21.
d.	Reimbursement shall be deducted from the employee’s salary by the state agency authorizing the commuting.
.04	Control employees should contact State Fleet Management, Division of Central Services for specific instructions.
3.6	Enforcement
.01	Each department is responsible for regularly reviewing and monitoring the status of every employee required and authorized for commuting by their department.  The status shall be reviewed for, but not limited to:
a.	Driver compliance with the commuting rules and regulations
b.	Ongoing validity of the justification and cost effectiveness for the requirement to commute. 
d.	Changes relative to any state employee’s commuter status.
e.	Changes in vehicle type or configuration that may affect taxable status.
.02	Each department is responsible for imposing restrictions or could entirely revoke an employee’s authorization if that agency determines that the employee:
a.	Has abused or failed to comply with the commuting rules and regulations.
b.	Fails to notify payroll of changes that would affect the employee’s status as a taxable commuter.
c.	Consistently fails to provide updated documentation that would affect the status or his/her authorization.
.03	The Director of the Division of Central Services, Department of Personnel & Administration may revoke vehicle authorizations or impose restrictions on any department or agency that consistently does not meet criteria or ignores requests from State Fleet Management for information in order to bring the employee(s) authorization records into full compliance with the commuting rules and regulations.  Agencies wishing to appeal the Division Director’s action under this rule may do so in writing within ten (10) working days of the action to the Executive Director of the Department of Personnel & Administration.  The Executive Director will issue a written decision within 20 calendar days, which shall be binding and final.
.04	A state agency may be held financially responsible for any penalties due to the failure to comply with the provisions of these rules. 
.05	Exceptions to these rules may only be made in the event of unusual individual circumstances that are not clearly addressed in these rules.  Any exception to these rules requires the approval of both the department’s Executive Director and the Director of the Division of Central Services.

********[indicates unchanged rules after 3.6.05]********