State of California 
 
MEMORANDUM 
 
 
			DATE:   December 30, 1994 
TO:     PERSONNEL MANAGEMENT LIAISONS   REFERENCE CODE: 94-76 
			 
	THIS MEMORANDUM SHOULD BE DISTRIBUTED TO: 
 
		Labor Relations Officers 
		Personnel Officers 
 
FROM:   Rick McWilliam, Chief of Labor Relations 
	Department of Personnel Administration 
	 
SUBJECT:        Travel Premiums Arbitration Decision 


The State recently prevailed in an arbitration pertaining to the  
enforcement of the State Administrative Manual (SAM) on travel  
premiums.  This arbitration was precipitated when the Air Resources  
Board (ARB) issued a letter dated August 26, 1992, to all its  
employees stating that any and all points or premiums (such as,  
discounts on future fares) received by employees while on State  
business are the property of the State and are to be turned into  
the Accounting Unit.  The letter is consistent with SAM policy  
(section 0741) on travel premiums which prohibits such usage. 
 
The California State Employees' Association (CSEA) asserted that  
during negotiations of the 1992-95 Bargaining Unit 11 Memorandum of  
Understanding (MOU), the State proposed language prohibiting the  
personal usage of travel premiums that were obtained while on State  
business, and this proposal was subsequently withdrawn.  CSEA  
argued that the State could not implement a proposal that it raised  
and withdrew in bargaining.  The State asserted that withdrawing a  
proposal at the bargaining table has no effect on existing policies  
or practices. 
 
The arbitration decision (93-11-0002) dated December 1, 1994,  
upheld the State's ability to enforce the SAM travel policy.  The  
arbitrator ruled that the ARB's August 1992 letter merely  
reiterated existing extra-contractual policy, and that it was not a  
unilateral action of implementing the bargaining proposal that the  
State withdrew during negotiations of the 1992-95 MOU.  The  
decision to enforce the pre-existing SAM travel policy did not  
constitute a change in the policy nor violate the collective  
bargaining agreement. 
 
Prior to this arbitration decision, the Department of Personnel  
Administration (DPA) advised departments to continue their  
practices in regards to travel premiums which in many situations  
was not to enforce the SAM travel policy.  In light of this  
arbitration decision, departments may wish to reevaluate their  
policies. 
 
If you have any questions regarding this arbitration decision,  
contact either Joan Brainin of the DPA Legal Office at (916) 324- 
0512, CALNET 454-0512, or Dennis Fujii of the DPA Labor Relations  
Division at 324-0429, CALNET 454-0429.