State of California M E M O R A N D U M REFERENCE CODE: 98-061 DATE: November 30, 1998 TO: Personnel Officers Accounting Officers Travel and Relocation Liaisons FROM: Department of Personnel Administration Labor Relations Division SUBJECT: Relocation Reimbursement - New Hires CONTACT: Terrie J. Jordan, Statewide Coordinator (916) 324-9377, CALNET 454-9377 FAX: (916) 322-0765 OFFICE VISION: DPA(TJJORDAN) INTERNET: TERRIEJORDAN@DPA.CA.GOV This memo is to identify and clarify the specific and limited relocation reimbursements that are available to new hires, and to review the provisions of Department of Personnel Administration (DPA) rules related to relocation for new hires to the State. "New hires" include persons who have never had a permanent appointment with the State and prior permanent employees who are reinstating after a permanent separation from State service. In the coming months, it is likely that some positions will be filled with persons from outside State service. Our goal is to avoid situations where a new appointee is misinformed about the specific items or levels of relocation reimbursements that are available, and is then disappointed when such reimbursements cannot be made. It is critical that all persons who are in a position to offer and/or discuss relocation reimbursement for new hires understand the provisions and limitations of the relocation program. Relocation reimbursement for new hires may be justified in cases where the appointing power certifies that such an expenditure is necessary in order to recruit qualified persons into State employment. The reimbursement benefits are limited to those amounts and conditions set forth below. In addition, all items of relocation reimbursements for new hires are subject to specific provisions of the DPA rules and applicable Internal Revenue Service Tax laws. NEW HIRE TO A POSITION THAT IS DESIGNATED AS EXCLUDED Rule 599.723.1 provides that upon certification, the appointing power may: reimburse 9 cents per mile from the old home to the new headquarters location, one way one time, and reimburse up to $1,000 for costs of moving household goods. The movement of household goods is subject to the content and weight limitations of DPA relocation Rules 599.718.1 and 599.719.1. Department's that wish to reimburse more than $1,000 for the movement of household goods must obtain prior written approval from the Department of Finance. In addition, subject to advance approval by the Director, DPA, the appointing power may offer to reimburse up to 30 days of meals and lodging at the new headquarters location while hunting for a new residence, in accordance with the rates and time frames set forth in DPA Rule 599.619(a), and up to $200 in miscellaneous expenses related to establishing a new residence, in accordance with DPA Rule 599.715.1. Authority to offer relocation is limited to those items above, and only with the required approvals. There are no other provisions for reimbursement of relocation expenses for new hires to excluded positions. Other restrictions and a pay-back schedule do apply. Please refer to the specific rules for further detail. NEW HIRE TO A POSITION THAT IS DESIGNATED AS REPRESENTED DPA rule 599.723 provides that upon certification, the appointing power may: reimburse 6 cents per mile from the old home to the new headquarters location, one way one time, and reimburse up to $1,000 for costs of moving household goods. The movement of household goods is subject to the content and weight limitations of DPA Rules 599.718 and 599.719. Departments may exceed the $1,000 limit only with advance written approval from the Department of Finance. Authority to offer relocation is limited to those items listed above, and only with the required approvals. There are no other provisions for reimbursement of relocation expenses for new hires to represented positions. Other restrictions and a pay-back schedule do apply. Please refer to the specific rules for further details. Each department should assure that their accounting administrator and/or relocation coordinator have been trained in the provisions and processing requirements of this reimbursement program. The next Relocation Training, Course #841, will be offered on December 17, 1998. Enrollment requests and questions regarding the class should be directed to the Office of Training and Continuous Improvement at 445-5121. Terrie Jordan Statewide Coordinator Travel and Relocation Programs Attachments PML: 98-061ATTACHMENT A 599.723.1 TRAVEL AND MOVING EXPENSES OF PERSONS WHO ARE REQUIRED TO CHANGE THEIR PLACE OF RESIDENCE IN ORDER TO ACCEPT SEC. EMPLOYMENT WITH THE STATE EXCLUDED EMPLOYEES (THIS RULE APPLIES TO NEW HIRES THAT ARE BEING APPOINTED TO AN EXCLUDED POSITION.) (a) Reimbursement may be allowed for all or part of the travel and moving expenses of professional and technically trained persons who are required to change their place of residence to accept employment with the State under the following conditions: (1) The employee must have been appointed to a position or class for which the appointing power has certified that such expenditure is necessary in order to recruit qualified persons needed by the State. (2) The employee must have changed his/her place of residence for the purpose of accepting employment with the State. (3) The employee is new to State employment or reinstating to State employment after a permanent separation. (4) The established headquarters is more than 75 miles from the employee's primary residence. (b) An employee who meets the criteria established in (a) above may, at the discretion of the appointing power, be reimbursed for relocation expenses as follows: (1) Reimbursement for the expenses for the movement and storage of household goods in accordance with 599.718.1, 599.719 and 599.724.1 to a maximum of $1,000. Approval of the Appointing Power and the Department of Finance is required on any claim under this subsection in excess of $1,000. (2) Reimbursement for travel from the old residence to the new residence at the rate of 9 cents per mile. Reimbursement for travel expenses of members of the employee's family will not be allowed. (c) With advance approval from the Director, Department of Personnel Administration, an employee who meets the criteria in (a) may, at the discretion of the appointing power be reimbursed for relocation expenses, in addition to those in (b)(1) and (2) above, for all or part of the following: (1) Reimbursement for a maximum of 30 days of temporary lodging and meals at the new headquarters location, limited to the conditions, maximums and receipt requirements applicable to state employees travel reimbursements as set forth in 599.619(a) and (b). Up to 14 of the 30 days may be used for pre-move house hunting at the new headquarters location, reimbursable after the report date. (2) As described in 599.715.1, reimbursement for up to $200 of receipted expenses for installation, connection, or assembly of appliances, antennas or utilities that are related to the establishment of the new household. Deposits are not reimbursable. (d) Claims for reimbursement of relocation expenses under this rule must be submitted no later than 6 months from the reporting date. No reimbursement will be issued prior to the employee reporting to the new headquarters. (e) If an employee whose travel and moving expenses have been so paid does not continue his/her employment with that State department for a period of two year (unless the discontinuance of his/her employment was the result of death, prolonged illness, disability, unacceptable assessment of the employee by that state department, or similar eventualities beyond the control of the employee as determined by the appointing power), he/she shall repay the following percentage of the amount received as reimbursement for such travel and moving expenses: 100 percent if employed less than 6 months. 75 percent if employed 6 months but less than 12 months. 50 percent if employed 12 months but less than 18 months. 25 percent if employed 18 months but less than 2 years. HISTORY 1. New section filed 5-3-96; operative 6-1-96. Submitted to OAL for printing only pursuant to Government Code section 3539.5 (Register 96, No. 18). PML 98-061ATTACHMENT B SEC. 599.723. TRAVEL AND MOVING EXPENSES OF PERSONS WHO CHANGE THEIR PLACE OF RESIDENCE TO ACCEPT EMPLOYMENT WITH THE STATE. (THIS RULE APPLIES TO NEW HIRES WHO ARE BEING APPOINTED TO A REPRESENTED POSITION) Reimbursement will be allowed for a part of the travel and moving expenses of professional and technically trained persons who change their place of residence to accept employment with the state under the following conditions: (a) In the case of an applicant for employment by the Trustees of the California State University, the employee must have been appointed to a position or class for which the Trustees have certified that such expenditure is necessary in order to recruit qualified persons needed by the California State University. In the case of any other applicant, the employee must have been appointed to a position or class for which the Department of Personnel Administration and the appointing power have certified that such expenditure is necessary in order to recruit qualified persons needed by the State. (b) The employee must have changed his/her place of residence for the purpose of accepting employment with the state. (c) Reimbursement for travel from the old residence to the new residence shall be at the rate of 6 cents per mile. Reimbursement for travel expenses of members of the employee's family will not be allowed. (d) Reimbursement for moving expenses will be allowed in accordance with Sections 599.718 and 599.724(a). Approval of the Department of Finance is required on any claim under this subsection in excess of $1000. (e) If an employee whose travel and moving expenses have been so paid does not continue his/her employment with that state department for a period of two years (unless the discontinuance of his/her employment was the result of death, prolonged illness, disability, unacceptability of the employee to that state department, or similar eventualities beyond the control of the employee as determined by the appointing power), he/she shall repay the following percentage of the amount received as reimbursement for such travel and moving expenses: 100 percent if employed less than 6 months. 75 percent if employed 6 months but less than 12 months. 50 percent if employed 12 months but less than 18 months. 25 percent if employed 18 months but less than 2 years. NOTE: Authority cited: Sections 19815.4(d), 19816 and 19820, Government Code. Reference: Section 19842, Government Code. Attachments will be distributed via mail.