HOUSE BILL NO. 5866

March 01, 2022, Introduced by Reps. Steven Johnson, Aiyash, Paquette, Cynthia Johnson, Rabhi, Howell, Pohutsky, Outman, Thanedar, Camilleri, LaGrand, Puri and Yancey and referred to the Committee on Government Operations.

A bill to prohibit a local unit of government or a person negotiating on behalf of a local unit of government from entering into certain confidentiality or nondisclosure agreements.

the people of the state of michigan enact:

Sec. 1. As used in this act:

(a) "Economic development project" means any project in this state that is subject to tax incentives, payment in lieu of taxes, tax abatements, bonds, notes, loans, grants, rebates, or any other financial or economic assistance from this state or a political subdivision of this state.

(b) "Local unit of government" means a political subdivision of this state, including school districts, community college districts, intermediate school districts, cities, villages, townships, counties, and authorities, if the political subdivision has as its primary purpose the providing of local governmental service for citizens in a geographically limited area of the state and has the power to act primarily on behalf of that area.

(c) "Nondisclosure agreement" means an agreement or contract that includes a provision or clause that provides that the agreement or contract or any of its terms are confidential or that the parties to the agreement or contract are prohibited from disclosing, discussing, describing, or commenting upon the terms of the agreement or contract.

Sec. 3. Notwithstanding any provision of law to the contrary, beginning on and after the effective date of this act, neither a local unit of government nor a person negotiating on behalf of a local unit of government shall enter into a contract or agreement for an economic development project that is subject to a nondisclosure agreement or that includes a provision or clause within that contract or agreement that provides that the agreement or contract or any of its terms are confidential or that the parties to the agreement or contract are prohibited from disclosing, discussing, describing, or commenting upon the terms of the agreement or contract.

Sec. 5. This act applies to any contract that is entered into, amended, extended, or renewed on or after the effective date of this act.