Bill Text: MI SB0525 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Public employees and officers: other; elected officials signing nondisclosure agreements; restrict. Creates new act.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced) 2023-09-26 - Referred To Committee On Economic And Community Development [SB0525 Detail]
Download: Michigan-2023-SB0525-Introduced.html
SENATE BILL NO. 525
A bill to prohibit a public officer of this state or a political subdivision of this state from entering into certain nondisclosure agreements regarding economic development projects; and to provide remedies.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "economic development transparency act".
(a) "Economic development incentive" means a tax incentive, payment in lieu of taxes, tax abatement, bond, note, loan, grant, rebate, tax increment financing, or any other financial or economic assistance from this state or a political subdivision of this state.
(b) "Economic development project" means any project in this state that is subject to an economic development incentive.
(c) "Michigan economic development corporation" means that term as defined in section 4 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2004.
(d) "Nondisclosure agreement" means an agreement or contract that includes a provision or clause that provides that 1 or more of the following is confidential or that a party to the agreement or contract is prohibited from disclosing, discussing, describing, or commenting on 1 or more of the following:
(i) Information related to an economic development project or potential economic development project, including, but not limited to, all of the following:
(A) The number of potential jobs to be created or other benefits to be conferred on this state by the project.
(B) The amount of the investment.
(C) The site location.
(D) Site selection criteria.
(E) The identity of the person proposing or conducting the project.
(F) Project operation plans or timelines.
(ii) Any information received in connection with the consideration or award of an economic development incentive, including, but not limited to, information provided by the Michigan economic development corporation.
(iii) The terms of an economic development incentive or potential economic development incentive.
(e) "Political subdivision" means a county, city, village, township, or other political subdivision, public corporation, authority, or district in this state.
(f) "Public officer" means an individual who holds an elective office of this state or a political subdivision of this state or an individual who is appointed to fill a vacancy in an elective office of this state or a political subdivision of this state.
Sec. 5. Notwithstanding any provision of law to the contrary, beginning on and after the effective date of this act, a public officer shall not enter into a nondisclosure agreement related to a potential economic development incentive that directly or indirectly utilizes public funds.
Sec. 7. (1) This act applies to an agreement or contract that is entered into, amended, extended, or renewed on or after the effective date of this act.
(2) An agreement or contract, or a provision of an agreement or contract, that violates this act is against public policy and void and unenforceable.
