Definitions. In this regulation, the following terms have the meanings indicated: “Contract” means a personal service agreement between the State and an individual. “Contractual employee” means an individual providing personal services to the State for remuneration if all of the following conditions exist: The services and remuneration are specified in a written agreement; There is an employer-employee relationship; The individual is not employed in a budgeted position, unless approved as secondary employment; and Except as provided by law, fringe benefits are not provided. “Employer-employee relationship” means that all of the following conditions of employment exist: The State has the right to control and direct the performance of services not only as to results but also as to details and means; The State has the right to discharge the employee; and The State furnishes necessary tools and a place to work. Certification. With the exception of exemptions listed under §C of this regulation, all contracts shall be submitted for review and certification by the Secretary under the provisions of State Personnel and Pensions Article, §13-202, Annotated Code of Maryland, before the principal unit authorizes payment. The Secretary may exempt specific types of contracts pursuant to State Personnel and Pensions Article, §13-201, Annotated Code of Maryland, and guidelines published by the Secretary. Payment and Funds. A contractual employee shall be paid through the Special Payments Payroll. Funds shall be identified and available in order for the State agency to authorize the Central Payroll Bureau to make payment through the Special Payments Payroll. The initial contractual employment authorization shall include a statement by the appointing authority certifying availability of funds and identifying the source of those funds in the agency budget. If funds are not identified and available for a particular contract, the State agency shall obtain written approval from the Secretary before execution of the contract. A contract shall be terminated if funds become unavailable. Only one person may be employed under a contract. An appointing authority shall maintain a current contract for each contractual employee. The form of each contract shall be approved by the Office of the Attorney General, or, if authorized by law, independent counsel. Transfer of a contractual employee to a budgeted position is governed by State Personnel and Pensions Article, Title 13, Subtitle 3, Annotated Code of Maryland.