SENATE BILL REPORT

SB 5300

BYSenators Halsan, Johnson, Kreidler, Zimmerman and Garrett; by request of Office of Financial Management

Regulating payment of state employee moving expenses.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 4, 1987; February 11, 1987

Majority Report:  That Substitute Senate Bill No. 5300 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, McCaslin, Talmadge.

Senate Staff:Barbara Howard (786-7410); Sam Thompson (786-7754)

                  February 12, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 11, 1987

BACKGROUND:

STATUTORY GUIDELINES FOR PAYMENT OF MOVING EXPENSES.  A state agency may pay the costs of moving an employee's goods and effects to a new station if the move is "reasonably necessary to the successful performance" of the agency's responsibilities.  As an alternative to paying such costs outright, an agency may reimburse the employee for such moving expenses.  Certain moving expenses may also be paid for new employees.

ADMINISTRATIVE GUIDELINES FOR PAYMENT OF MOVING EXPENSES.  The Office of Financial Management (OFM) has adopted rules and established guidelines for paying an employee's moving expenses.  These guidelines provide for the following:  a) the agency may pay the cost of a one-way trip for the employee only;  b) the agency may move not more than 10,000 pounds of goods;  c) the move is to be accomplished by the Department of General Administration (GA) which contracts with private carriers, unless the employee can accomplish the move at less cost than GA.  If the latter is the case, the agency may reimburse the employee.  An agency may not pay closing costs for selling a home or for settling a lease on rental property.

OFM reports that the following agencies are most likely to be in a position where they may need to pay employee moving expenses:  the Office of Financial Management, the Washington State Patrol, the Parks and Recreation Commission, and the Departments of Licensing, Natural Resources, Personnel, Transportation, Social and Health Services, Employment Security, General Administration, Game, and Fisheries.

SUMMARY:

ELIGIBILITY FOR RELOCATION ASSISTANCE.  Heads of state agencies, including institutions of higher education, are given discretionary authority to pay specified employee relocation expenses if all of the following criteria have been met:  a) the employee has successfully completed at least six consecutive months of employment with the agency; b) the distance from the old residence to the new work place is at least 35 miles farther than the distance from the old residence to the old work place; and c) the agency head finds that it is in the public interest to assign the employee to the new work place.

NATURE OF RELOCATION ASSISTANCE.  Agency heads may authorize payment of the following expenses:

      a)Excuse From Normal Work Duties.  The employee may be excused from normal work duties for up to five days in order to make a single, round trip to the new location to find a residence and to move the employee and family to the new location.  Employees receive full compensation and benefits and are eligible for mileage and subsistence expenses while excused from normal work duties, but are not covered by industrial insurance.

      b)Moving Goods and Effects.  An agency may move or pay the cost of moving household goods and effects, including reasonable cost of packing, unpacking, insurance and storage.  The amount of allowance for such costs is set by OFM.

      c)Moving Mobile Home.  As an alternative to moving goods and effects as described above, an agency may move a mobile home (including household goods and effects) if the mobile home is the employee's primary residence.  The cost of moving the mobile home may not exceed the OFM allowances for moving household goods and effects.

      d)Settling Lease.  If the employee lives in a rental, the agency may pay the cost of settling the lease.  This payment may not exceed the cost of six months' rent.

      e)Closing Costs.  An agency may pay closing costs on the sale of the employee's old residence if the residence is the employee's primary residence, the employee owned and occupied the residence for at least six months prior to the date the employee began working at the new location, and the employee sold the residence as a result of accepting a position at the new work place.  These payments cannot exceed 3 percent of the sale price of the home.  Employees who receive these payments are not eligible for payments associated with moving a mobile home or settling a lease.

Similar payments may be paid for relocation of new employees.

LIMITATIONS ON RELOCATION ASSISTANCE.  The following limitations are placed upon the payment of relocation assistance:  a) a household which receives payment of relocation expenses may not receive payment associated with another move for a period of two years after the employee begins work at the new work place; b) an employee may not receive payment for relocation expenses more than two years after the employee begins work at the new work place; c) if an employee resigns his or her position within one year after the employee began working at the work place, the agency may require the employee to reimburse the agency for payment of relocation expenses; and d) the total payments for relocation expenses associated with any single move may not exceed $10,000.

Money received under this formula may not be included for computing a retirement allowance, nor are benefits subject to collective bargaining settlements.

OFM REGULATIONS.  Payments for relocation expenses are subject to reasonable regulations promulgated by the director of financial management.

CLAIMS AGAINST STATE.  Claims may not be made against the state for conduct outside the scope of employment which is engaged in while excused from normal work duties for the purposes of house hunting or moving to a new location.

Previous relocation statutes are repealed.

EFFECT OF PROPOSED SUBSTITUTE:

The prohibition against benefits being subject to collective bargaining agreements is removed.  Two technical changes are made:  an employee may be compensated for travel to find a new home, and salary payments during relocation may be counted in calculating retirement benefits.

Fiscal Note:      available

Senate Committee - Testified: Dan Pensula, OFM; Eugene St. John, WPEA; Joe Daniels, Professional and Technical Engineers; Art Morse, DOT; Rick Jensen, WSP; Doug Tanabe, Department of Corrections; Mary Jo Lavin, DNR; Mark Brown, WFSE