Rep. Steve Carra on Feb. 24, 2024 | Anna Liz Nichols
A bipartisan effort to prohibit legislators from entering into non-disclosure agreements (NDAs) was unveiled on Thursday by state Reps. Steve Carra (R-Three Rivers) and Dylan Wegela (D-Garden City).
HB 4052 and HB 4053 would prevent lawmakers from entering into NDAs based on information they obtained in their official capacity, an issue that has become a political football over the past several years.
“Elected officials have a duty to be as open and transparent as possible,” said Carra. “Lawmakers should not trade their silence for information or proximity, using this underhanded tool for the practice of developing corporate welfare schemes. Corruption like this has a proven track record of failure, but the real insidiousness comes from the practice being set up to, primarily and directly, benefit the politically connected.”
Updated: Legislature passes sweeping business incentive bills, some lawmakers sign NDAs
Although the bills are bipartisan, it’s unclear what their fate will be in this legislative term with a GOP-controlled House and a Democratic-led Senate. The legislation has been referred to the House Government Operations Committee, where bills historically have gone to die, although House Speaker Matt Hall (R-Richland Twp.) said Thursday that legislation will move from that committee this term.
In late 2021, lawmakers seeking to create incentives for businesses to move to Michigan signed non-disclosure agreements, which followed GOP criticism amid reports earlier that year that the Democratic Gov. Gretchen Whitmer administration used confidentiality agreements in severance agreements with top officials like former Department of Health and Human Services (DHHS) Director Robert Gordon.
More recently, the issue became a campaign talking point last year concerning the proposed electric vehicle battery plant in Mecosta County owned by Gotion Inc., the U.S.-owned subsidiary of Chinese battery manufacturer Gotion, which received more than $700 million in state tax incentives.
Both then-U.S. Rep. Elissa Slotkin (D-Holly) and former U.S. Rep. Curtis Hertel (D-East Lansing) were accused of signing NDAs with Gotion, although reporting by The Detroit News found both had actually signed those agreements with the Michigan Economic Development Corp. (MEDC), a quasi-governmental institution.
Reporting also indicated that among state lawmakers who signed NDAs regarding economic development were several prominent Republicans, including Hall, former House Speaker Jason Wentworth (R-Farwell) and former Senate Majority Leader Mike Shirkey (R-Clarklake), as well as top Democrats, including former House Speaker Joe Tate (D-Detroit) and former Senate Minority Leader Jim Ananich (D-Flint).
HB 4052, sponsored by Carra, would ban legislators from agreeing not to publicly disclose information pertaining to their duties as legislators. HB 4053, sponsored by Wegela, would establish the definition of an NDA for that purpose.
“Members of both parties, in both chambers, have signed these agreements to keep the development of these projects secret,” said Wegela. “The signing of these NDAs has led to the transfer of billions of taxpayer dollars to corporations. Lawmakers learn about these agreements and regardless of whether or not they support the projects, it prevents them from speaking out against these deals. Legislators shouldn’t be handcuffed by NDAs preventing them from speaking out against deals that are bad for Michigan.”
While the bills wouldn’t cover legislative staffers, Wegela said he was willing to expand the proposals’ reach.
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