Following years of political tension over severance packages and economic development agreements, the Michigan House of Representatives advanced a set of bills on Tuesday to prevent state lawmakers and their staff from signing nondisclosure agreements based on information they obtained in their official capacity.
State Representatives Steve Carra (R-Three Rivers) and Dylan Wegela (D-Garden City) introduced House Bills 4052 and 4053. These bills would not affect any agreements signed prior to their implementation, but they would render any future agreements as well as any agreements that are modified, extended, or renewed void if the policies are passed into law.
Republicans fully supported both policies, with members of the House voting 80-28 in favor of House Bill 4052 and 91-17 in favor of House Bill 4053. The bills will now be discussed further on the Senate floor.
I believe that this legislation should be passed all the way to the end. After the measures passed, Carra told the Michigan Advance, “This is common sense, bipartisan, broad support, from me being the chair of the [Michigan] Freedom Caucus to Representative Wegela being a Democratic socialist and in between.”
Concerns about nondisclosure agreements have existed in Lansing for many years. In 2021, Republicans criticized Democratic Governor Gretchen Whitmer over severance agreements with officials, notably former Director Robert Gordon of the Department of Health and Human Services, that contained secrecy terms.
Though some politicians are working on a package of laws intended at luring out-of-state companies to Michigan by signing nondisclosure agreements in late 2021, the most of these concerns have been centered on transparency surrounding economic incentives.
When Republicans accused former state senator Curtis Hertel and U.S. Sen. Elissa Slotkin (D-Holly) of signing nondisclosure agreements related to the Mecosta County electric vehicle battery plant, similar worries turned into campaign issues during the 2024 election. Gotion Inc., a U.S.-owned subsidiary of Chinese battery maker Gotion, is the owner of the contentious website. State tax incentives for the project were over $700 million.
According to the Detroit News,These agreements were made by Slotkin and Hertel with the Michigan Economic Development Corporation, a public-private partnership that acts as the state’s primary economic agency and marketing arm. Former House Speaker Jason Wentworth (R-Farwell), former Senate Majority Leader Mike Shirkey (R-Clarklake), former House Speaker Joe Tate (D-Detroit), former Senate Minority Leader Jim Ananich (D-Flint), and Michigan House Speaker Matt Hall are among the other lawmakers who have reportedly signed nondisclosure agreements, according to the Detroit News. Hall contends, however, that the agreement no longer applies to him.
Wegela told reporters that House Bills 4052 and 4053 level the playing field for lawmakers who choose not to sign nondisclosure agreements to receive the same amount of information from the state Economic Development Corporation as those who do, arguing on the House floor that they are essential to the role of a lawmaker.
The usage of NDAs for projects that award millions of public tax funds to multimillion and multibillion dollar firms has grown over the past few years. According to Wegela, it is critical that we keep in mind that these are public funds, that we are public authorities, and that the public has a right to know how their money is being used.
Legislators are currently required to sign an NDA in order to learn about the full extent of a project, which traps them in a circle of silence surrounding the project. These nondisclosure agreements must hinder us representatives from speaking with our constituents in a complete and open manner.
A request for comment before publication was not answered by the Michigan Economic Development Corporation.
As part of his agenda for ethics and openness, Hall has supported numerous initiatives, including the laws proposed by Carra and Wegela. Additional recommendations include attempts to prohibit state lawmakers from lobbying outside of their state while in office and from starting lobbying as soon as they leave office, as well as stricter guidelines for legislative spending initiative requests.
Additionally, it contains a proposed constitutional change that would allow legislation to pass during the lame duck period, which starts in November of the even-numbered years after legislative elections, only with a two-thirds majority. Because a lawmaker has either been elected again or an opponent or replacement has been chosen, it is referred to as a “lame duck” period.
Additionally, Hall has increased the authority of the House Oversight Committee, which is chaired by Representative Jay DeBoyer (R-Clay Twp.). The committee now has the ability to subpoena documents and has six subcommittees that focus on topics such as the child welfare system, homeland security and foreign influence, corporate subsidies and state investments, public health and food security, the weaponization of the government, and state and local public assistance programs.
The Senate’s attempt to extend the state’s Freedom of Information Act to the governor, lieutenant governor, and legislature was unsuccessful, despite the efforts of Representatives Jason Morgan (D-Ann Arbor) and Denise Mentzer (D-Mt. Clemens) to tie House Bills 4052 and 4053 to Senate Bills 1 and 2. Hall (R-Richland Twp.) had already proclaimed Senate Bills 1 and 2 dead and of extremely low importance, despite the fact that they had passed the Senate in January.
We have an obvious option. We have two options: we either support an honest and open government or we can defend a system that shields people who are afraid of it. True transparency necessitates that we go further, Morgan said, even though [House Bill 4052] takes a significant step in banning nondisclosure agreements for lawmakers and their staff.
Michigan is still one of the few states that exempts the governor’s office and the legislature from demands for public records. According to him, FOIA is the instrument that ensures taxpayers have access to the information they need about how their government functions.
Senate Majority Leader Winnie Brinks (D-Grand Rapids) spokesperson Rosie Jones responded that they would look into the future of the nondisclosure agreement prohibition.
But according to Jones, the House has been delaying those crucial, bipartisan bills for nearly a month, and FOIA is the gold standard for government transparency.
Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.