State of California

M E M O R A N D U M



To:         PERSONNEL MANAGEMENT LIAISONS              DATE: August 20, 1992
                                             REFERENCE CODE: 92-95


            THIS MEMORANDUM SHOULD BE DISTRIBUTED TO:
            DEPARTMENT DIRECTORS AND AGENCY SECRETARIES,
EMPLOYEE
            RELATIONS OFFICERS;  ACCOUNTING OFFICERS,
ACCOUNTING STAFF
            AND TRAVEL/RELOCATION LIAISONS;  DEPARTMENT
STAFF REDUCTION
            TEAMS

From:       Department of Personnel Administration


Subject:    Relocation Cost

           The purpose of this memo is to provide you with a
summary of the Department of Personnel Administration (DPA)
Rules related to relocation, to show approximate costs
associated with those rules and to explain when the payment
of relocation costs becomes mandatory.  This document is
meant only to be used as a tool in projecting your budget
needs when considering the redirection of staff through
involuntary relocation, or when filling vacancies with
surplus staff from other appointing powers.  This memo does
not contain the full text of the rules or the policies and
procedures applicable to relocations of State employees.

DPA RULES/COST CONSIDERATIONS

DPA rules provide that an employee SHALL receive actual and
necessary moving and relocation expenses incurred before and
after a move that is deemed to be required (by the State)
due to a promotion, a non-promotional transfer for the good
of the state, or a transfer in lieu of layoff to the same or
a different appointing power.  State Restriction of
Appointments (SROA) eligibility alone does NOT constitute
"in lieu of layoff" and carries no obligation to pay
relocation.  "In lieu of layoff" means that prior to a
hiring commitment by the same or a different appointing
power, the employee has received a formal notice of layoff
in accordance Government Code Section 19997.14, DPA Rule
599.845 and the DPA California State Civil Service Layoff
Process Manual.

Appointing powers may find it possible to resolve their
surplus staff and avoid layoff by redirecting staff through
involuntary transfers that require relocation.  In those
instances, the employee must receive a 60 day notice which
includes the date and location of the new position.  The
department still incurs liability for the relocation costs,
but may avoid the extended time frames and additional
expense of going through the layoff process when relocations
are inevitable.  A change of residence is not deemed to be
required (by the State) for any non-promotional transfers
that are primarily for the good of the employee or in
response to general requests which specify that moving and
relocation expenses will not be paid.
When it is determined that the State will be responsible for
the expenses, the cost to the department will typically
average $24,000 for each employee that relocates.  These
costs include relocation expenses of up to $116.00 per day
for up to sixty days while an employee is looking for a new
permanent residence (up to $6,900), movement of household
goods by a commercial carrier (an average of $6,000),
miscellaneous expenses of up to $200, and either the
allowable costs associated with the sale of a residence
(approximately $10,800 on a residence selling for $130,000)
or the cost of relocating a mobile home coach ($7,000 to
$21,000 depending on whether it is a single or double wide
and the number of miles of transport). If the employee's
principle residence is a rental, the State may be
responsible for paying up to twelve months rent in
settlement of a formal written lease.

The DPA rules contain no provisions for departments to offer
less than the full relocation benefits.  However, there have
been exceptions negotiated with unions during layoff impact
bargaining which limit relocation benefits for specific
classes, locations, facilities and/or time periods.  Any
such negotiations require prior delegation authority and
final approval by DPA. Lacking such an agreement and
approval by DPA, any state paid relocation, mandatory or
discretionary, encumbers the full liability of the allowable
relocation expenses.  A private agreement between employee
and employer cannot be supported upon appeal.

Likewise, there are no provisions for departments to expand
either the benefits or maximum timeframes beyond those that
are specifically delegated, such as the weight of household
goods over 11,000 lbs. and up to 18,000 lbs., or
specifically limited, such as the time requirements for
submission of claims for sale of residence.

Employees being reinstated or hired from reemployment lists
are considered "new" employees for relocation purposes.
Departments have delegated authority to reimburse up to
$1,000 in approved moving expenses to persons who change
their place of residence to accept employment with the
State.  Such reimbursement is permissive on the part of
departments.  Reimbursements to new or reinstating employees
in excess of $1,000 must be approved in advance by the
Department of Finance.

More detailed information may be found in DPA Rules 599.715
through 599.724, State Administrative Manual sections 3820
through 3829 and the relocation packages for current and new
employees.  All of the above mentioned material is available
from your department relocation liaison, usually located in
your department headquarters accounting office.




Patricia Pavone, Chief
Benefits and Training Division