State of California
   
   M E M O R A N D U M
   
   REFERENCE CODE:
   PML 97-024
   
   DATE:
   July 1, 1997
   
   TO:
   ACCOUNTING OFFICERS
   LABOR RELATIONS OFFICERS
   TRAVEL AND RELOCATION LIAISONS
   DEPARTMENT CLAIM AUDITORS
   
   FROM:
   Department of Personnel Administration
   Labor Relations Division
   
   SUBJECT:
   Changes In Travel Reimbursements for Excluded Employees
   and Bargaining Unit 5 Represented Employees Only
   
   CONTACT:
   Terrie Jordan, Statewide Coordinator, 
   Travel and Relocation Programs
   (916) 324-9377, CALNET 454-9377
   Office Vision:  DPA (TJJORDAN)
   INTERNET: TJJORDAN@SMTP.DPA.CA.GOV
   FAX:  (916)322-0765
   
   
   
   The State Controller s Office (SCO) in conjunction with
   the Internal Revenue Service determined that all
   reimbursements for non-receipted lodging are subject to
   income tax withholding.  Departments will be directed by
   SCO to withhold taxes from all non-receipted lodging.  The
   purpose of this memo is to notify you of changes to the
   travel and relocation reimbursement rates and changes to
   the Department of Personnel Administration (DPA) Travel
   Rules Sections 599.619, 599.631, and 599.722 for excluded
   employees.  Revisions include lodging receipt
   requirements, an increase in short-term travel meal rates
   and an increase in the mileage reimbursement rate for
   excluded employees.  Bargaining Unit 5 employees are also
   covered by these changes.
   
   Effective with travel expenses incurred at 12:01 a.m. on
   July 1, 1997, DPA Rules and reimbursements for excluded
   employees are as follows:
   
   SECTION 599.619 REIMBURSEMENT FOR MEALS AND LODGING -
   EXCLUDED EMPLOYEES (Attachment 1)
   
   A. All claims for lodging reimbursement must be
   substantiated with a receipt.  There are no exceptions to
   this requirement.
   
   B. If lodging receipts are not submitted, reimbursement
   will be for meals only at the rates and time frames set
   forth in DPA Rule 599.619 as revised effective 
   July 1, 1997.
   
   C. Maximum reimbursement for meals is as follows:
   
   Breakfast     $ 6.00
   Lunch         $10.00
   Dinner        $18.00
   Incidentals   $ 6.00
   
   D. Noncommercial travel reimbursement is abolished. 
   Employees on short-term travel who stay in commercial
   lodging establishments or commercial campgrounds will be
   reimbursed for actual lodging expenses substantiated by a
   receipt.  Employees who stay with friends or relatives, or
   who do not produce a lodging receipt, will be eligible to
   claim meals only.
   
   E. Long-Term Travelers who maintain a permanent residence
   at their primary headquarters may claim daily long-term
   lodging up to $24.00 with a receipt and long-term meals of
   $24.00 for each period of travel from 12 to 24 hours at
   the long-term location.  For travel of less than 12 hours,
   the traveler may claim either $24.00 in receipted lodging
   OR $24.00 in long-term meals.
   
   F. Long-Term Travelers who do not maintain a permanent
   residence at their primary headquarters may claim daily
   receipted lodging up to $12.00 and long-term meals of
   $12.00 for each period of travel from 12 to 24 hours at
   the long-term location. For travel of less than 12 hours,
   the travelers may claim either $12.00 in receipted lodging
   OR $12.00 in long-term meals.
   
   G. Failure to provide lodging receipts for either out-of-
   state or out-of-country lodging will result in
   reimbursement for meals only in accordance with the
   specifications in Section 599.619 (c) and (d).
   
   Section 599.631 TRANSPORTATION BY PRIVATELY OWNED
   AUTOMOBILE - EXCLUDED EMPLOYEES (Attachment 2)
   
   A. Reimbursement for personal vehicle mileage for excluded
   employees will be at the rate of 31 cents per mile.  
   
   Section 599.722 RELOCATION SUBSISTENCE REIMBURSEMENT AND
   MILEAGE - EXCLUDED EMPLOYEES (Attachment 3)
   
   A. Excluded employees on relocation status who fail to
   submit a lodging receipt are eligible to claim meals only
   in accordance with the conditions and time frames
   established for short-term travel in Section 599.619 (a).
   These changes to reimbursements and rules are being made
   in order to assure that excluded State travelers are
   reimbursed in accordance with the State Travel and
   Relocation Reimbursement Program for excluded employees
   and the Federal Tax Law, and that withholding liability on
   those reimbursements is minimized.  The above changes do
   not apply to represented employees except those in
   Bargaining Unit 5. 
   
   Travel and relocation expenses for represented employees
   other than those in Bargaining Unit 5 will continue to be
   reimbursed in accordance with the provisions of the
   contracts that expired on June 30, 1995.  Departments are
   advised to proceed with withholding from all non-receipted
   lodging in accordance with instructions in the payroll
   letters issued by the SCO.
   
   If Accounting or Labor Relations staff have any questions,
   please call Terrie Jordan at (916) 324-9377, CALNET 454-
   9377.  Employees with questions should be directed to
   their departmental Accounting Office.  In addition, the
   Attachments to this memo will not be included in the
   office vision version of this PML, but will be distributed
   via regular mail.
   
   
   
   
   Rick McWilliam
   Chief of Labor Relations
   
   Attachments will be mailed with the hard copy.