If a contractual position is replaced by a budgeted position, a contractual employee in the contractual position may transfer to the budgeted position, if:
(1) the employee meets the minimum qualifications for the budgeted position and has at least 6 continuous months of satisfactory service as of the date on which the replacement occurs;
(2) there is a continuing need for the function to be performed;
(3) the agency can document a competitive hiring process; and
(4) the budgeted position replacing the contractual position was not available at the time the contractual employee was hired.