CALIFORNIA – The California State Senate unanimously approved Assembly Bill 1370 on September 4 in a 39-0 vote.
The bill prohibits state lawmakers from signing or requesting non-disclosure agreements (NDAs) related to the drafting, negotiation, or discussion of proposed legislation or the allocation of taxpayer funds.
Violations fall under the Legislative Code of Ethics and can be prosecuted as misdemeanors or felonies by local district attorneys.
Authored by assemblyman Joe Patterson, AB 1370 aims to enhance transparency and prevent secrecy in legislative processes.
It follows KCRA’s investigative reporting that revealed NDAs were used in the $1.1 billion Capitol Annex project and during negotiations of California’s fast-food labor law, which raised the sector’s minimum wage to $20 an hour.
Governor Gavin Newsom’s office allowed SEIU California to require NDAs during negotiations with major fast-food corporations.
Not a total ban on NDAs
The bill allows NDAs when their purpose is to protect confidential business information, including:
- Trade secrets
- Financial information
- Proprietary information
Private parties remain free to enter into NDAs independently of lawmakers.
AB 1370 has drawn support from Oakland Privacy, which advocates for greater transparency in government. No groups or individuals have publicly opposed the measure.
A previous attempt to restrict NDAs in legislative negotiations, AB 2654 in 2024, stalled and was not enacted.
The bill now heads to the Assembly for concurrence before moving to the governor’s desk.
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