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California Bans Secret NDAs in State Government—Here's What That Means for You

Andrew JohnsonAuthor
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Reading time2 min
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Governor Newsom just signed Assembly Bill 1652 into law, making it a crime for his administration to use nondisclosure agreements during state negotiations and decisions about taxpayer money. This might sound like inside-the-beltway politics, but it directly affects how California’s government operates and who gets a voice in major policy decisions. The law came about because of investigations that revealed how NDAs were used to keep taxpayers in the dark about everything from the $20 fast-food minimum wage law to a $1 billion Capitol Annex building project.

The most striking example is what happened with the fast-food wage law. During negotiations, SEIU California required every restaurant chain to sign NDAs, silencing what was being discussed. When the final law passed, it included a mysterious exemption for bakeries that bake their own bread. Sources connected this exemption to a billionaire donor who operates Panera franchises, raising serious questions about whose interests were being protected behind those secret agreements. Without transparency, there’s no way to know if lawmakers are negotiating for the public good or for their political allies.

The Capitol Annex project is another eye-opener. About 2,000 people, including five state lawmakers, had to sign agreements keeping quiet about a state building project that’s ballooned to $1 billion with no recent public cost updates. Assemblyman Joe Patterson, who authored the bill, points out that the governor’s administration is involved in negotiating virtually every major piece of legislation in California. If those negotiations stay secret, how can voters really hold their government accountable? What state or local decisions do you wish had more transparency?

About the Author

Andrew Johnson

Andrew Johnson is a contributor to LocalBeat, covering local news and community stories.

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