When an employee leaves the employment of one state agency and enters the employment of another state agency, without a separation from service within the meaning of Government Code section 19839, the state agency the employee is leaving shall compensate or allow compensating time off for all compensable overtime to the employee's credit prior to transfer. The rate of compensation for compensable overtime in such cases shall be the same as that provided under section 599.706 of these regulations.

When the movement of an employee is the result of the transfer of a function or the administration of a law from one state agency to another state agency, the provisions of this section are not applicable.