MoveLayer (arcpy.mapping)
Summary
Provides the ability to move a layer to a specific location within a data frame or group layer in a map document (.mxd).
Discussion
MoveLayer will move a layer within a data frame and also within group layers in the same data frame. The moved_layer and reference_layer must reside within the same data frame. A layer cannot be moved from one data frame to a different data frame even within the same map document. Add_Layer, Insert_Layer, and RemoveLayer functions can be used to accomplish this requirement.
Syntax
| Parameter | Explanation | Data Type | 
| data_frame | A reference to a DataFrame object within which the layer will be moved. | DataFrame | 
| reference_layer | A reference to a Layer object representing an existing layer that determines the location in relation to where the layer will be moved. | Layer | 
| move_layer | A reference to a Layer object representing the layer to be moved. | Layer | 
| insert_position | A constant that determines the placement of the moved layer relative to the referenced layer. 
 (The default value is BEFORE) | String | 
Code Sample
The following script will move a layer called Rivers above a reference layer called Lakes. Both layers are in a data frame called County Maps.
import arcpy
mxd = arcpy.mapping.MapDocument(r"C:\Project\Project.mxd")
df = arcpy.mapping.ListDataFrames(mxd, "County Maps")[0]
for lyr in arcpy.mapping.ListLayers(mxd, "", df):
    if lyr.name.lower() == "rivers":
        moveLayer = lyr
    if lyr.name.lower() == "lakes":
        refLayer = lyr
arcpy.mapping.MoveLayer(df, refLayer, moveLayer, "BEFORE")
mxd.saveACopy(r"C:\Project\Project2.mxd")
del mxd