AB 339 Requires Pre-Procurement Notifications for Local Govts.

New legislation going into effect promises to add extra steps before California governments can buy new tech.

The new law in question is Assembly Bill 339, which, among other things, establishes new public employee union notification requirements for local governments “renewing or extending an existing contract, to perform services that are within the scope of work of the job classifications represented by the recognized employee organization.”

Gov. Gavin Newsom signed the bill in October.

Hayward Democrat Liz Ortega, the bill’s author, said during testimony in June that the legislation would “strengthen existing law” around procurement disclosure and the sudden privatization of bargaining unit work by outside contractors.

“AB 339 is a simple measure to ensure that civil service employees who have a contract and that the expertise to perform local government services aren’t undercut by private contractors being paid with taxpayer dollars,” Ortega said in her testimony. “Again, this is about transparency and accountability.”

The law comes into play at a time when recognized employee organizations (REOs) are pushing back more in the contracting space, especially where it relates to looming threats such as AI that could eventually displace members.

One of the recurring mantras of state leaders working in the technology space has been that the technology will be used to “support, not replace,” government workforces. The private sector, meanwhile, has not been so lucky, and if it serves as any indication, it’s only a matter of time before AI tools are doing as much of the light-lift administrative work as their human counterparts.

The law, which takes effect Jan. 1, lays out these requirements for REO notifications: the anticipated duration of the contract, the scope of work, the anticipated cost, the draft solicitation or any information that would normally be included in a solicitation, and the reason the public agency believes the contract is necessary.

The law also provides exceptions to its notification requirements, including that public agencies provide as much notice as possible during an emergency or other exigent circumstance, and exemptions, including certain construction-related contracts.

Local governments, with their limited procurement resources — both in terms of staffing and dollars — were one of the more notable opponents to the legislation, which was signed and chaptered Oct. 13.

Of the 233 recorded positions on the legislation, only 30 were in favor, and included groups and associations such as the American Federation of State, County and Municipal Employees; California Professional Firefighters; and the California Teachers Association. Some 48 cities and 25 counties voiced their opposition to the bill.