Business groups clash over bill banning NDAs in California lawmaking process
NEWS AT FOUR. LATER THIS WEEK, CALIFORNIA LAWMAKERS WILL DEBATE A PROPOSAL THAT WOULD PROHIBIT THE USE OF NONDISCLOSURE AGREEMENTS. NDAS DURING LEGISLATIVE NEGOTIATIONS. SO THIS PROPOSAL IS THE DIRECT RESULT OF OUR REPORTING ON CALIFORNIA’S FAST FOOD, LABOR LAW, WHICH STILL HAS MANY UNANSWERED QUESTIONS. NDAS WERE USED IN THAT FINAL NEGOTIATION OF THE LAW AND KCRA THREE CAPITOL CORRESPONDENT ASHLEY ZAVALA WAS THE FIRST TO BREAK THIS STORY. SHE’S GOT THE VERY LATEST ON WHERE WE ARE RIGHT NOW. YEAH, A LOT OF MOVING PARTS HERE, BUT WE’RE FOLLOWING UP WITH LEGAL EXPERTS. AND THE ONLY GROUP SO FAR TO PUBLICLY OPPOSE THIS MEASURE, THE CALIFORNIA CHAMBER OF COMMERCE. NOW, THIS BILL, AB 2654, IS SET FOR A HEARING IN THE ASSEMBLY ELECTIONS COMMITTEE ON THURSDAY MORNING. NOW, THE CALIFORNIA CHAMBER OF COMMERCE THIS AFTERNOON SENT THAT COMMITTEE A BRAND NEW LETTER EXPLAINING WHY IT IS OPPOSED TO IT. A LOBBYIST FOR THE GROUP SAID IN PART, QUOTE, IT BROADLY LIMITS THE USE OF NONDISCLOSURE AGREEMENTS BETWEEN PRIVATE PARTIES, WHICH WILL LIMIT THE OPPORTUNITY FOR ANALYSIS, NEGOTIATION AND COPY LIES ON CONTROVERSIAL POLICY ISSUES. HE ALSO WENT ON TO SAY THAT STATE LAW ALREADY ENSURES TRANSPARENCY. JUST TO RECAP WHY REPUBLICAN ASSEMBLYMAN VINCE FONG IS PROPOSING THIS THIS LAW IN MARCH, WE REPORTED THE POWERFUL LABOR GROUP, THE SERVICE EMPLOYEES INTERNATIONAL UNION, REQUIRED MEMBERS OF THE FAST FOOD INDUSTRY TO SIGN NDAS IN THE FINAL NEGOTIATION ON OF THE STATE’S NEW FAST FOOD LABOR LAW. NOW, THOSE NDAS LEFT OTHER KEY STAKEHOLDERS BOTH ON THE LABOR SIDE AND THE BUSINESS SIDE, OUT OF THE LOOP ON THIS LAW. AND TO THIS DAY, THEY HAVE LEFT US WITH MANY QUESTIONS. ONE OF THOSE QUESTIONS IS WHY ARE MAJOR FAST FOOD CHAINS THAT SELL AND BAKE THEIR OWN BREAD EXEMPTED FROM THIS LAW? WE REPORTED GOVERNOR GAVIN NEWSOM’S OFFICE PUSHED FOR THIS WITH THE INFLUENCE OF ONE OF THE GOVERNOR’S BILLIONAIRE DONORS, WHO WAS ALSO A PANERA FRANCHISEE. NEWSOM’S OFFICE DENIES THE EXEMPTION IS FOR PANERA, BUT HAS NOT SAID WHO EXACTLY THAT CARVE OUT IS FOR NOW, A GROUP OF REPUBLICAN LAWMAKERS ACTUALLY FILED A PUBLIC RECORDS REQUEST TO UNDERSTAND MORE IN RESPONSE, THEY GOT NOTHING. THE GOVERNOR’S OFFICE NOTED. STATE LAW DOES NOT REQUIRE THE OFFICE TO DISCLOSE MOST OF THE RECORDS THAT WOULD HAVE BEEN RESPONSIVE TO THEIR REQUEST. I CAUGHT UP WITH THE LEGAL DIRECTOR FOR THE FIRST AMENDMENT COALITION ON ALL OF THIS. THE PROBLEM HERE MAY NOT BE SO MUCH THAT PRIVATE PARTIES ENTERED INTO AN NDA OVER THEIR NEGOTIATIONS. THE PROBLEM IS THAT THIS ISSUE WAS NEVER REALLY AIRED OUT IN THE LEGISLATURE. IF PEOPLE DON’T KNOW WHY THE BILL CONTAINS CERTAIN PROVISIONS, YOU KNOW, I WOULD LOOK TO THE RELEVANT COMMITTEE OF THE LEGISLATURE OR THE RELEVANT STAFF REPORTS BECAUSE IT’S REALLY THE PUBLIC SECTOR’S JOB TO LOOK OUT FOR THE PUBLIC INTEREST. AND PART OF THE PROBLEM HERE IS THAT THE, UM, LEGISLATIVE OPEN RECORDS ACT CONTAINS A BROAD CARVE OUT FOR CORRESPONDENCE WITH LEGISLATORS AND THEIR STAFFS. AND SO IF WE WANT TO LOOK TO IMPROVE TRANSPARENCY, IT MIGHT BE WORTH LOOKING AT OPENING UP SOME OF THE SOME OF THOSE EXEMPTIONS. SO ASIDE FROM THAT, WE HAVE ALSO REPEATEDLY ASKED THE CALIFORNIA CHAMBER OF COMMERCE TO DO AN INTERVIEW WITH US SINCE FRIDAY. WE HAVE MANY QUESTIONS, INCLUDING IS THE CHAMBER AWARE OF NDAS BEING USED IN LEGISLATIVE NEGOTIATIONS OUTSIDE OF OUR REPORTING, AND HAS IT EVER USED NDAS IN ITS OWN NEGOTIATIONS AROUND STATE LAW? A SPOKESPERSON SAID SOMEONE WOULD NOT BE ABLE TO DO AN INTERVIEW WITH US AHEAD OF THURSDAY’S HEARING, AND SENT US THE LETTER THAT I MENTIONED EARLIER INSTEAD. WOW. IT’S LIKE THE LONGER THIS STORY GOES ON, THE MORE YOU KEEP PUSHING, THE MORE QUESTIONS WE HAVE. IT JUST GETS MORE AND MORE COMPLICATED. WHAT’S THE THE GOVERNOR’S OFFICE RESPONDING TO ALL OF THIS ABOUT? YEAH, WE STILL AFTER SEVERAL MONTHS CANNOT GET A STRAIGHT ANSWER ON WHETHER OR NOT HE APPROVES OF THE USE OF NDAS IN THESE HIGH STAKES NEGOTIATIONS. NOW, A SPOKESMAN FOR HIS OFFICE SAYS THIS LEGISLATION WOULD HAVE NO IMPACT ON THE OFFICE BECAUSE IT MAINTAINS THAT IT DOES NOT USE OR DIRECT ANYONE TO USE NDAS. BUT THE RESPONSE OR LACK OF RESPONSE IN THE COMBINATION OF BOTH JUST BEGS SO MANY QUESTIONS. SO YEAH, AND IT SEEMS LIKE IT’S A YES OR NO ANSWER TO THE QUESTION, RIGHT? YOU STILL HAVEN’T GOT YET. I STILL HAVEN’T GOTTEN YES OR NO, BUT THURSDAY’S HEARING WILL
Business groups are split on a California proposal that would prohibit lobbyists and government officials from using non-disclosure agreements in the negotiations of proposed state laws. The bill is the result of KCRA 3’s reporting on the use of NDAs in the final negotiations of California’s fast-food labor law.Ahead of the bill’s first hearing, The California Business Roundtable, California Business Properties Association and National Federation of Independent Business sent a joint letter on Wednesday to Assemblyman Vince Fong in support of the measure. “This commonsense legislation is an important step to ensure basic transparency in our public policy decision-making process so that all Californians are able to access information about how laws are made,” the letter says. The groups noted no other Legislature or Governor in California relied on NDAs to execute high-stakes negotiations. “In fact, in order to do our due diligence, we reached out to four previous gubernatorial administrations to determine if NDAs were ever used, or even considered. The answer was a resounding “no.” The letter comes as a different business organization, the California Chamber of Commerce, as of Wednesday, was the only group to publicly oppose the measure. The organization’s lobbyist sent two letters within the last five days explaining its opposition to the bill. The Cal Chamber said the bill is broad, unfairly targets lobbyists and claimed state law already ensures transparency. See the full letter here
Business groups are split on a California proposal that would prohibit lobbyists and government officials from using non-disclosure agreements in the negotiations of proposed state laws.
The bill is the result of KCRA 3’s reporting on the use of NDAs in the final negotiations of California’s fast-food labor law.
Ahead of the bill’s first hearing, The California Business Roundtable, California Business Properties Association and National Federation of Independent Business sent a joint letter on Wednesday to Assemblyman Vince Fong in support of the measure.
“This commonsense legislation is an important step to ensure basic transparency in our public policy decision-making process so that all Californians are able to access information about how laws are made,” the letter says.
The groups noted no other Legislature or Governor in California relied on NDAs to execute high-stakes negotiations.
“In fact, in order to do our due diligence, we reached out to four previous gubernatorial administrations to determine if NDAs were ever used, or even considered. The answer was a resounding “no.”
The letter comes as a different business organization, the California Chamber of Commerce, as of Wednesday, was the only group to publicly oppose the measure. The organization’s lobbyist sent two letters within the last five days explaining its opposition to the bill. The Cal Chamber said the bill is broad, unfairly targets lobbyists and claimed state law already ensures transparency.
See the full letter here
