HOUSE BILL REPORT

                  HB 1282

             As Reported By House Committee On:

                      State Government

Title:  An act relating to authorizing state employee lump sum relocation assistance.

Brief Description:  Authorizing state agencies to offer incentives to state employees to relocate from one part of the state to another.

Sponsors:  Representatives Romero, Buck, Miloscia, Linville, Dickerson, Regala and Wolfe; by request of Commissioner of Public Lands.

Brief History:

  Committee Activity:

State Government:  2/3/99, 3/2/99 [DPS].

           Brief Summary of Substitute Bill

$Authorizes lump sum relocation compensation to be paid to recruit and retain qualified candidates for state employment whenever it is necessary that a person make a domiciliary move in accepting a transfer or other employment.

HOUSE COMMITTEE ON STATE GOVERNMENT

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 8 members:  Representatives McMorris, Republican Co-Chair; Romero, Democratic Co-Chair; Campbell, Republican Vice Chair; Miloscia, Democratic Vice Chair; Dunshee; Haigh; Lambert and D. Schmidt.

Staff:  Steve Lundin (786-7127).

Background:

State agencies may pay for the costs of moving up to 12,000 pounds of household goods for a newly hired employee or an existing employee who is transferred.  The state is entitled to reimbursement for the costs of moving a new employee's household goods if the new employee terminates or causes termination of his or her employment with the state within one year of the employment.

Summary of Substitute Bill:

The State Personnel Resources Board may adopt a rule authorizing the Department of Natural Resources to offer lump sum relocation compensation of not to exceed $2,500 to a person for a classified position whenever it is necessary that the person make a domiciliary move in accepting a transfer or other employment with the department.

Any agency may, with the approval of the director of the Office of Financial Management (OFM), pay lump sum relocation compensation to recruit and retain qualified candidates for an exempt position whenever it is necessary that a person make a domiciliary move in accepting a transfer or other employment with the agency.

If a person who is paid lump sum relocation compensation terminates or causes termination with the state within one year of the date of the employment, the state shall be reimbursed for the lump sum payment.

Substitute Bill Compared to Original Bill: Lump sum payments for a classified position may not exceed $2,500, and only the Department of Natural Resources may make these payments for classified positions.

Appropriation:  None.

Fiscal Note:  Available.  New fiscal note requested on March 3, 1999.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For: This will help us.  This is easier to administer than paying moving costs.  OFM currently allows moving expenses to be paid for up to 1,500 pounds.  There are problems trying to get people to relocate.  They can incur significant out-of-pocket expenses.  Some concerns exist if an employee must repay the amount due to an involuntary layoff within one year.

Testimony Against:  None.

Testified:  John Daly, Department of Natural Resources; and Lynn McKinnon, Washington Public Employees Association.