20250AB__137095CHP INTRODUCED 2025-02-21 AMENDED_ASSEMBLY 2025-04-10 AMENDED_SENATE 2025-06-23 PASSED_ASSEMBLY 2025-09-10 PASSED_SENATE 2025-09-04 ENROLLED 2025-09-12 CHAPTERED 2025-10-01 APPROVED 2025-10-01 FILED 2025-10-01 2025 AB CHP CHP 0 Introduced by Assembly Member Patterson (Coauthors: Assembly Members Davies, DeMaio, Dixon, Hoover, Macedo, Sanchez, Tangipa, and Wallis) (Coauthor: Senator Ochoa Bogh) LEAD_AUTHOR ASSEMBLY Patterson COAUTHOR ASSEMBLY Davies COAUTHOR ASSEMBLY DeMaio COAUTHOR ASSEMBLY Dixon COAUTHOR ASSEMBLY Hoover COAUTHOR ASSEMBLY Macedo COAUTHOR ASSEMBLY Sanchez COAUTHOR ASSEMBLY Tangipa COAUTHOR ASSEMBLY Wallis COAUTHOR SENATE Ochoa Bogh

An act to add

Section to the Government Code, relating to state government. state government State Legislature: nondisclosure agreements. Existing law, the legislative code of ethics, prohibits Members of the Legislature and legislative employees from having financial conflicts of interest and engaging in activities that are in substantial conflict with their official duties. This bill would prohibit Members of the Legislature from entering into, or requesting that another party enter into, a nondisclosure agreement relating to the drafting, negotiation, or discussion of proposed legislation.

The bill would also make any nondisclosure agreement relating to the drafting, negotiation, or discussion of proposed legislation entered into after the effective date of this bill void and unenforceable. The bill would provide an exception for nondisclosure agreements, or portions thereof, that prevent only the disclosure of trade secrets, financial information, or proprietary information, as specified. A violation of the legislative code of ethics is punishable as a crime, as specified. By creating a new crime under the act, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. MAJORITY NO YES YES NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares all of the following: (

a) Nondisclosure agreements serve an important role, especially in litigation involving two or more private parties. However, their use during negotiations for proposed legislation in the State of California prevents Members of the Legislature from providing adequate transparency when conducting the people’s business. (

b) Nondisclosure agreements are appropriate to use when attempting to protect trade secrets or the financial or proprietary information of a private party. However, this information is rarely required for discussions regarding proposed legislation. (

c) Existing law prohibits including certain provisions within settlement agreements or agreements related to an employee’s separation from employment that prevent the disclosure of information related to workplace misconduct, sexual harassment, or sexual assault, and thus the conduct of perpetrators in these instances is not shielded from disclosure.

SEC. 2.

Section is added to the Government Code , to read: 8923. (

a) Except as provided in paragraph (1) of subdivision (c), a Member of the Legislature acting in their official capacity shall not enter into, or request that another individual enter into, a nondisclosure agreement relating to the drafting, negotiation, or discussion of proposed legislation. (

b) Except as provided in paragraph (2) of subdivision (c), any nondisclosure agreement relating to the drafting, negotiation, or discussion of proposed legislation entered into or requested by a Member of the Legislature after the effective date of this

section shall be void and unenforceable. (c)

(1) This

section does not prohibit a Member of the Legislature from entering into or requesting a nondisclosure agreement that prevents only the disclosure of trade secrets, financial information, or proprietary information.

(2) This

section does not make void and unenforceable a nondisclosure agreement, or portion of a nondisclosure agreement, that prevents only the disclosure of trade secrets, financial information, or proprietary information.

(3) Notwithstanding

Section 8924, this

section applies only to a Member of the Legislature acting in their official capacity. (

d) For purposes of this section, the following terms have the following meanings: (1) “Discussion” means direct or indirect communications engaged in by individuals for the purpose of reaching a decision regarding proposed legislation. (2) “Drafting” means developing language for proposed legislation to be considered by the Legislature. (3) “Negotiation” means any form of direct or indirect communication whereby individuals who have opposing interests discuss the form of any proposed legislation that may resolve a dispute involving those interests.

SEC. 3. No reimbursement is required by this act pursuant to

Section of

Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of

Section of the Government Code, or changes the definition of a crime within the meaning of

Section of

Article XIII B of the California Constitution.