Bills introduced Thursday in the Michigan House would bar the state from requiring legislators to sign non-disclosure agreements to get details of economic development deals.
The Michigan Economic Development Corporation (MEDC) often requires lawmakers to sign NDAs to get details on economic development projects seeking state incentives.
The HB 4052 and HB 4053 are sponsored by a pair of lawmakers on opposite ends of the political spectrum who both oppose state business subsidies. Representative Steve Carra (R-Three Rivers) and Representative Dylan Wegela (D-Garden City) said the state should not expect lawmakers to approve incentives without being able to explain why to constituents.
“This is just a common-sense solution that we should work on this term to bring forward transparency and to make sure that we aren’t doing these behind-closed-doors deals and then subjecting ourselves to silence, not being able to be open with the people from our communities,” said Carra at a press conference to roll out the legislation.
“It is fundamental to our democracy that lawmakers are free to communicate with their constituents,” said Wegela. “NDAs and the signing of them prevent that from happening in terms of these deals.”
Wegela said the MEDC’s non-disclosure rules can make it impossible for lawmakers to carry out their responsibilities.
“If you were to refuse to sign the NDA, then you’re being expected to vote on the legislation without having the full scope of the details of a project,” he said.
But MEDC officials say they cannot do their jobs if corporate leaders considering Michigan as a possible location will back out if details are prematurely revealed.
MEDC Media and Communications Manager Otis McKinley MEDC said in an email that “we look to reviewing the legislation and working with our bipartisan partners in the legislature,” adding “it is important to note that those seeking to make a significant investment will increasingly require NDAs, given the financial and proprietary information being shared.”
McKinley also said incentives are voted on by the Michigan Strategic Fund board at public meetings.
House Speake Matt Hall (R-Richland Twp.) said Thursday that he is naming Carra and Wegela to lead a new corporate subsidies subcommittee. He also said their bills may not be necessary.
“I happen to agree with them on the non-disclosure agreements and basically the way we’re going to run things from here on out is they can share with me the details of these economic development deals or the deals won’t happen,” said Hall. “If they want to hide behind their NDAs and never tell us what the details are, they just won’t get their projects funded.”
MPRN’s Colin Jackson contributed to this report.
