New Assembly Bill Would Ban NDAs in Legislative Negotiations

New Assembly Bill Would Ban NDAs in Legislative Negotiations By Chris Micheli

            On April 18, 2024, Assemblyman Vince Fong amended his AB 2654 to ban the use of nondisclosure agreements (NDAs) in legislative negotiations. The bill would amend the Political Reform Act of 1974 (adopted by the voters as Proposition 9) by adding Government Code Section 86207.

Because the bill proposes to amend the Political Reform Act, AB 2654 would need a 2/3 vote in each house of the California Legislature, as well as approval by the Governor, in order to be enacted.

            AB 2654 would add language to the Government Code to prohibit specified individuals from entering into or requesting that another party enter into a nondisclosure agreement relating to drafting, negotiating, discussing, or creating legislation. This prohibition would apply to lobbyists, public officials, Members or employees of the Legislature, and employees of the Governor’s Office.

            In addition, AB 2654 would make any nondisclosure agreement relating to legislation void and unenforceable if entered into after this bill becomes law. The bill is currently pending in the Assembly Committee on Governmental Organization.

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