SB 994: Local agencies: nondisclosure agreements.

Existing law, the legislative code of ethics, prohibits Members of the Legislature from entering into, or requesting that another party enter into, a nondisclosure agreement relating to the drafting, negotiation, or discussion of proposed legislation. Existing law also makes any nondisclosure agreement relating to the drafting, negotiation, or discussion of proposed legislation entered into after January 1, 2026, void and unenforceable. Existing law provides an exception for nondisclosure agreements, or portions thereof, that prevent only the disclosure of trade secrets, financial information, or proprietary information, as specified.

This bill would prohibit a local government official agency official, as defined, acting in their official capacity from entering into, or requesting that another individual enter into, a nondisclosure agreement relating to public business that precludes their ability to share information with fellow local government agency officials serving on the same council, board, commission, district, or agency. The bill would require a local government agency official in violation of that provision to, among other things, disclose the existence of the nondisclosure agreement, as specified, and would provide that these requirements imposed on a local government agency official also apply to a local government agency official acting in their official capacity who entered into, or requested that another individual enter into, a nondisclosure agreement described above before January 1, 2027. By imposing additional duties on local government agency officials, the bill would impose a state-mandated local program. The bill would also make any nondisclosure agreement relating to public business that precludes the ability of a local government agency official to share information with fellow local government agency officials serving on the same council, board, commission, district, or agency and that is entered into after January 1, 2027, void and unenforceable.

The bill would prohibit staff of an employee of a local agency or a local government agency official acting in their official capacity from entering into, or requesting that another individual enter into, a nondisclosure agreement relating to public business that precludes their ability to share information with the local government agency official who they serve under. or the governing body of the local agency that employs them. The bill would also make any nondisclosure agreement relating to public business that precludes the ability of any staff of a local government agency official acting in their official capacity to share information with the local government agency official who they serve under or the governing body of the local agency that employs them, and that is entered into after January 1, 2027, void and unenforceable. The bill would require a local agency official in violation of a prescribed provision to, among other things, disclose the existence of the nondisclosure agreement, as specified, and would provide that these requirements imposed on a local agency official also apply to a local agency official acting in their official capacity who entered into, or requested that another individual enter into, a nondisclosure agreement described above before January 1, 2027.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.