Michigan House votes to ban secrecy agreements. Will it become law?

• In bipartisan vote, Michigan House approves plan to bar lawmakers and staff from signing nondisclosure agreements
• Dozens of Michigan lawmakers have signed NDAs to learn about economic development projects seeking corporate subsidies
• Gov. Gretchen Whitmer has defended the deals in the past, saying they shield ‘proprietary information’ for companies the state is luring

LANSING — Michigan is one step closer to banning secrecy agreements between lawmakers and corporations under legislation that passed the Republican-led state House on Tuesday with broad and bipartisan support.

The lead portion of a two-bill package barring lawmakers and their staff from entering into nondisclosure agreements “regarding any work done in that member’s legislative capacity” passed the chamber in a 80-28 vote. A companion bill to define nondisclosure agreements was approved 91-17.

Supporters say the legislation is part of a push to increase government transparency and accountability in Michigan, where at least 44 lawmakers have signed confidentiality agreements since 2021 to learn about potential economic development projects under consideration for corporate subsidies. 

“This legislation is fundamental to our role as lawmakers,” said state Rep. Dylan Wegela, D-Garden City, who co-sponsored the bills with Rep. Steve Carra, R-Three Rivers. 

“It’s important to us to remember that these are public dollars and that we are public officials … that the public has a right to know how their money is being spent.” 

Some officials — including Democratic Gov. Gretchen Whitmer — have previously argued nondisclosure agreements help keep Michigan competitive as it seeks to land economic development deals. 

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It’s not clear if Whitmer would sign the bills, which must also pass the state Senate first before reaching her desk. Stacey LaRouche, the governor’s press secretary, deferred a request for comment to the Michigan Economic Development Corporation, which oversees state incentive programs. 

The legislation defines a nondisclosure agreement as a deal or contract that stops someone from disclosing, discussing, describing or commenting on the agreement “or any of the contract’s terms.” 

The proposal would not stop current and active agreements unless they were extended, amended or renewed after the law takes effect.

"As public servants, we have a duty to be public and transparent about the work that we do with the hardworking dollars of the taxpayers," Carra said in a floor speech ahead of Tuesday’s vote, noting that the package was not about “condemning those who have signed NDAs in the past.”

Roughly 1 out of 5 lawmakers serving last term had reported signing an agreement at some point during their time in office, according to records Bridge Michigan obtained through a Freedom of Information Act request. 

The secrecy deals also emerged as a campaign issue in the 2024 race between now-US Sen. Elissa Slotkin, D-Lansing, and Republican opponent Mike Rogers. 

Whitmer and her office have been subject to a nondisclosure agreement signed in 2019, which has since been amended to cover more than 20 potential economic development projects — including an EV battery plant just outside of Lansing.

The governor has defended the agreements, previously telling reporters "there is a lot of proprietary information that is shared as states are vying" for major projects that could bring “massive investment” and jobs. 

The House-passed bills now move over to the Democratic-led Senate, where a spokesperson did not immediately respond to a request for comment on whether senators will take up the package.

Prior to passage, state Rep. Jason Morgan, D-Ann Arbor, and Rep. Denise Mentzer, D-Mount Clemens, attempted to tie the package to Senate legislation that would open both the Legislature and governor’s office to public records requests, but their proposed amendments were not adopted. 

Bills to expand Michigan’s Freedom of Information Act passed the Senate earlier this year — after failing to reach Whitmer’s desk under last year’s Democratic trifecta — but look likely to stall out in the House, where Speaker Matt Hall has said he’ll pursue other transparency reforms instead.