HOUSE BILL REPORT

HB 90

BYRepresentatives Belcher, H. Sommers, Hankins, Vekich, Day, Dellwo, Holm, Unsoeld, Meyers, Wang, P. King and Winsley; by request of Office of Financial Management

Regulating payment of state employee moving expenses.

House Committe on State Government

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (8)

     Signed by Representatives H. Sommers, Chair; Peery, Vice Chair; Baugher, Hankins, O'Brien, Sayan, Taylor and Walk.

House Staff:Pam Madson (786-7135)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:     The substitute bill by the Committee on State Government be substituted therefor and the substitute bill do pass.  (16)

     Signed by Representatives Locke, Chair; Belcher, Braddock, Brekke, Bristow, Ebersole, Grant, Grimm, Hine, Holland, Peery, H. Sommers, Spanel, Sprenkle, Wang and B. Williams.

Minority Report:     Do not pass.  (5)

     Signed by Representatives Butterfield, Fuhrman, McLean, Nealey and Silver.

House Staff:    Randy Acker (786-7153)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

FEBRUARY 7, 1988

BACKGROUND:

Current state law authorizes agencies to pay the costs of moving an employee's goods and effects to a new location.  The Office of Financial Management has established guidelines for payment of moving expenses.  They include payment for moving 10,000 pounds of goods, and payment for an employee's one-way trip to the new location.

SUMMARY:

SUBSTITUTE BILL:  Specific criteria are established for the payment of employee moving expenses.

A state agency may pay the moving expenses of an employee who has completed 6 consecutive months of employment with any state agency or who is a new employee and is required to travel a specified distance to the new place of employment.

Moving expenses include:  Travel to the new location to find a residence and for the move itself; cost of moving the employee's goods; and costs of moving a mobile home or settling a lease or closing the sale of the old residence.  The total of all moving expenses can not exceed $10,000.  Existing employees may receive up to five days paid leave to find a residence and move to it.

A household is not eligible for payment of subsequent moving expenses for a period of two years.  An agency may require reimbursement of moving expenses if the employee terminates employment within one year of the start of work at the new location.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  An employee is not restricted to a single round trip to a new location to find a new residence.  Wages paid to an employee on leave to find a new residence and move to it are included in computing a retirement allowance under a public retirement system.  Relocation benefits may be subject to collective bargaining agreements.

CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS:  None.

Fiscal Note:    Requested February 8, 1988.

House Committee ‑ Testified For:     (State Government)  Representative Jennifer Belcher; Dan Pensula, Office of Financial Management; Arthur Morse, Department of Transportation; Rick Jensen, Washington State Patrol; Fred Hellberg, Office of the Governor; Doug Tanabe, Department of Corrections; Mary Jo Lavin, Department of Natural Resources; Mark Brown, Washington Federation of State Employees; and Eugene St. John, Washington Public Employees Association.

(Ways & Means/Appropriations) Eugene St. John, Washington Public Employees Association; Joe Daniels, International Federation of Professional and Technical Engineers.

House Committee - Testified Against: (State Government)  None Presented.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony For:     (State Government)  Currently, state employees turn down promotions because they can't afford to move.  Agencies have difficulty placing the best employees in jobs if it requires a move to a new location.  Being able to pay additional relocation costs is an asset to agency management, particularly where the agency has several field locations and the employees are required to live in the area of their work.  Payment of relocation costs will help recruit new qualified employees.

(Ways & Means/Appropriations)  Frequently employees who are offered promotions turn them down because the cost of moving is too expensive.  This makes it difficult for both the employee and the agency.  Payment of relocation costs will permit qualified employees to accept jobs that they would otherwise be forced to turn down because of costs associated with the move.

House Committee - Testimony Against: (State Government)  None Presented.

(Ways & Means/Appropriations)  None Presented.