AMENDED IN SENATE JUNE 4, 2026

AMENDED IN ASSEMBLY MARCH 19, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

97

Introduced by Assembly Member Lowenthal

February 19, 2026

An act to add Section 5036 to the Penal Code, relating to corrections.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law establishes the Department of Corrections and Rehabilitation (CDCR) to administer the state prison system under the direction of the Secretary of the Department of Corrections and Rehabilitation. Existing law authorizes the secretary to, under certain circumstances, enter into contracts to provide housing, sustenance, supervision, and services, as provided, or to provide health care services.

This bill would require CDCR to disclose, for each new contract or contract renewal entered into by CDCR on or after January 1, 2027, for services that are performed by civil service employees, medical or mental health staffing, specified information, including, but not limited to, a description of the services provided by the contracted party, the total hours expected to be worked by contracted workers, and the total contract value. The bill would require CDCR to provide this disclosure to the exclusive bargaining representative of the affected bargaining unit at the time CDCR enters into or renews a contract as described above. The bill would require CDCR, beginning on March 1, 2028, and on or before March 1 of each year thereafter, to submit an annual report to the Legislature that contains the information required to be disclosed pursuant to these provisions. The bill would make related findings and declarations.

The people of the State of California do enact as follows:

SECTION 1.

The Legislature finds and declares all of the following:

(a) The Department of Corrections and Rehabilitation employs civil service workers who perform critical medical, mental health, custody, and rehabilitative functions.

(b) The department has increasingly relied on contracts for services that are customarily and historically performed by state employees.

(c) Transparency regarding the cost, scope, and duration of these contracts is necessary to ensure fiscal accountability, effective workforce planning, and compliance with civil service principles.

(d) Requiring standardized reporting of contracts that substitute for civil service work will promote transparency and accountability by assisting the Legislature and exclusive bargaining representatives in evaluating the appropriate use of state resources.

SEC. 2.

Section 5036 is added to the Penal Code, immediately following Section 5035, to read:

5036.

(a) For each new contract or contract renewal entered into by the Department of Corrections and Rehabilitation on or after January 1, 2027, for services that are customarily and historically performed by civil service employees, medical and mental health staffing, the department shall disclose the information described in subdivision (b).

(b) The disclosure required by this section shall include, but not be limited to, all of the following:

(1) A description of the services provided, including the job title or function performed by contracted workers.

(2) A statement identifying whether the contractor has been found liable, within the previous five years, for any labor law violations, including, but not limited to, violations of wage and hour laws, workplace safety laws, or unfair labor practice determinations, and a description of those violations.

(3) The job title and classification used by the contractor for the contracted workers.

(4) The minimum qualifications and professional credentials required of contracted workers, including licensure, certification, education, and experience requirements, as applicable.

(5) The corresponding state civil service classification or classifications, if any, that customarily and historically perform the same or substantially similar work.

(6) The bargaining unit or bargaining units that would represent the corresponding state civil service classification.

(7) The number of contracted workers, reported by classification.

(8) The total hours expected to be worked by contracted workers.

(9) The full-time equivalent (FTE) value of the contracted labor.

(10) The hourly rates paid to contracted workers.

(11) The total contract value, including both of the following:

(A) The annual contract amount.

(B) The cumulative contract amount over the life of the contract.

(12) Administrative fees, vendor fees, or overhead charges paid pursuant to the contract.

(13) Any emergency, premium, or expedited rates, including rates paid for last-minute staffing or urgent coverage.

(14) The duration of the contract, including the original term and any renewal or extension options.

(c) The department shall provide the disclosure required by subdivision (b) to the exclusive bargaining representative or representatives of the affected bargaining unit or units at the time the department enters into or renews the contract.

(d) Beginning on March 1, 2028, and on or before March 1 of each year thereafter, the department shall prepare and submit to the Legislature an annual report containing the information required by subdivision (b) for all contracts described in subdivision (a) that were in effect during the prior calendar year. The report shall be submitted in compliance with Section 9795 of the Government Code.