A Republican-backed bill to prohibit California lawmakers from signing non-disclosure agreements, also known as NDAs, in the course of creating new laws or deciding how to spend taxpayer dollars has passed a key hurdle in the state Capitol.
If passed, AB 1370 would prohibit members of the Legislature from signing NDAs related to the drafting, negotiation, or discussion of proposed legislation.
NDAs represent legally binding contracts that outline confidential relationships between parties for protecting sensitive or proprietary information from being disclosed to others. However, courts will not enforce NDAs that attempt to conceal illegal activities or are unreasonable or conflict with public interest.
Additionally, the bill would render NDAs regarding the drafting, negotiation, or discussion of proposed legislation entered into after the effective date of the bill be void and unenforceable.
The bill, introduced by Republican Assemblyman Joe Patterson of Rocklin, does include certain exceptions, such as NDAs, or parts thereof, that prevent only the disclosure of trade secrets, financial information, or proprietary information.
AB 1370 amends the California Legislative Code of Ethics to prohibit lawmakers from signing NDAs or asking other people to sign NDAs unless it involves private business information.
Patterson said he proposed the legislation after learning how NDAs were used in the Capitol Annex Project.
NDAs were also used in passing California’s fast food minimum wage legislation.
“There was a component of that legislation that allegedly exempted Panera from that legislation and it turns out that legislators likely signed, or parties to those negotiations, signed a non-disclosure agreement, as well,” Patterson told The Epoch Times on April 25.
Controversy surrounded Panera and California’s $20 minimum wage law, AB1228, which applies to national fast-food chains in the state except establishments that produce bread onsite.
Flynn previously told The Epoch Times he never lobbied for an exemption to the law. Newsom’s office likewise told The Epoch Times that the governor never met with Flynn regarding the bill and that the company is not exempt from the law.
“And then subsequent to that, it also came out that one former legislator admitted to having signed non-disclosure agreements while he was in office,” Patterson said.
AB 1370 is Patterson’s third attempt at passing non-disclosure legislation. Prior attempts were more broad and also included a ban on lobbyists from signing NDAs if it had to do with legislation, which received a fair amount of opposition from some in the business community who were concerned that the legislature would restrict private agreements between parties.
“I don’t think lobbyists should be joining with legislators to sign non-disclosure agreements,” Patterson said. “However, this legislation is a good first step to make sure at least the elected officials aren’t signing them.”
There is no reason to keep secrets about how you’re going to spend billions of taxpayer dollars, says Patterson, referring to the Capitol Annex Project.
If passed, violation of the law would be punishable as a misdemeanor under the Political Reform Act of 1974.
The Political Reform Act of 1974 establishes requirements and conditions for public officials, including Members of the Legislature, with respect to the conduct of election campaigns, conflicts of interest, ethics, and other political activities.
AB 1370 is cosponsored by Republicans Alexandra Macedo of Tulare, David Tangipa of Fresno, and Rosilicie Ochoa Bogh of Yucaipa.
