Existing law, the State Civil Service Act, regulates employment with the state and vests in the Department of Human Resources all powers, duties, and authority necessary to operate the state civil service system. Existing law establishes standards for the use of personal services contracts by state agencies. Existing law permits personal services contracting to achieve cost savings when specified conditions are met, including that the contract does not cause the displacement of civil service employees.

Existing law establishes the Department of Corrections and Rehabilitation in state government, with jurisdiction over persons committed to the state prison. Existing law also establishes the State Department of State Hospitals within the California Health and Human Services Agency, with jurisdiction over specified facilities for the treatment of persons with mental health disorders.

This bill would require the Department of Corrections and Rehabilitation and the State Department of State Hospitals, before entering into a personal services contract to have a contractor fill a budgeted State Bargaining Unit 16 (BU-16) physician position or a State Bargaining Unit 19 (BU-19) psychologist position, to take specified actions. Among others, these actions would include preparing an analysis comparing the hourly cost of a contractor to a civil service BU-16 physician or BU-19 psychologist. The bill would require these departments to submit an annual report detailing certain information about contractors and civil service physicians and psychologists to BU-16, BU-19, and specified legislative committees.