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Bill Summary · AB 393

Summary of AB 393: Personal Services Contracts for State Employees

Bill Number: AB 393
Introduced: February 03, 2025
Status: Consideration of Governor's veto pending
Author: Connolly
Classification: Bill
Subject: Personal services contracts, physician and psychologist positions, state employees

Purpose and Intent

AB 393 aims to regulate the use of personal services contracts specifically for filling budgeted physician and psychologist positions within the California state government. The bill seeks to ensure that state agencies, particularly the Department of Corrections and Rehabilitation and the State Department of State Hospitals, conduct thorough cost analyses before opting for contractor services over civil service employees.

Key Provisions

The bill introduces a new section to the Government Code (Section 19134.2) with the following requirements:

  1. Cost Analysis Requirement:

    • Before entering into a personal services contract for a State Bargaining Unit 16 (BU-16) physician or a State Bargaining Unit 19 (BU-19) psychologist position, the relevant departments must prepare an analysis comparing the hourly cost of a contractor to that of a civil service employee in the same role.

  2. Utilization of Current Employees:

    • The analysis must utilize current civil service physicians or psychologists as outlined in the collective bargaining agreements to determine the cost of civil service positions.

  3. Preference for Civil Service:

    • If the cost of hiring a contractor exceeds that of a civil service employee, the department must prioritize hiring a civil service physician or psychologist before considering contractors.

  4. Annual Reporting:

    • The Department of Corrections and Rehabilitation and the State Department of State Hospitals are required to submit an annual report by January 15. This report must include:
      • The number of cost analyses completed in the previous fiscal year.
      • The number and cost of contractors employed.
      • The number of civil service physicians and psychologists utilized in extra shifts and their associated costs.
    • Reports must be submitted to the relevant bargaining units (BU-16 and BU-19) and specified legislative committees.

Impact

Who Would Be Affected?

  • State Employees: The bill primarily impacts civil service physicians and psychologists in BU-16 and BU-19 by ensuring their positions are prioritized over contractors.
  • State Agencies: The Department of Corrections and Rehabilitation and the State Department of State Hospitals will need to adapt their contracting processes to comply with the new requirements.

Potential Benefits

  • Cost Efficiency: By requiring cost analyses, the bill aims to promote fiscal responsibility within state agencies, potentially leading to savings by favoring civil service employment.
  • Job Security: The bill seeks to protect civil service positions from displacement by contractors, thereby enhancing job security for state employees.

Procedural Aspects

  • The bill has passed through various legislative committees and was enrolled and presented to the Governor on September 16, 2025.
  • It was vetoed by the Governor on October 3, 2025, and is currently pending consideration of that veto.

Conclusion

AB 393 represents a significant step towards ensuring that California state agencies prioritize civil service employment for physicians and psychologists over the use of contractors. By mandating cost analyses and annual reporting, the bill aims to enhance transparency and accountability in state employment practices.

Compiled from official sources — confirm details with the bill’s official record.

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