Bill to ban NDAs in legislative talks fails. Why its author calls the vote ‘inconsistent’
A bill to restrict the use of nondisclosure agreements in negotiations over legislation failed to advance from a committee on Thursday without support from Democrats.
Asm. Vince Fong, R-Bakersfield, introduced the bill following reports that NDAs were used in talks that led to a 2023 deal to provide fast food workers a $20 an hour minimum wage.
Asm. Gail Pellerin, D-Santa Cruz, who chairs the Assembly Elections Committee, said it is “a complicated issue” and discussions were “hampered by the fact that the author waited to amend this bill” until a week before a key legislative deadline.
“This rushed process ... prevented this bill from receiving the level of scrutiny and analysis that bills normally receive before being heard,” Pellerin said before casting a vote against the bill.
Fong often criticizes Democrats for passing bills – especially hefty budget legislation – with little time for review and debate. He acknowledged his bill came late but said he had requested the amendments in early March, after the issue became public.
Other Democrats on the committee abstained from voting on the measure, leaving it without sufficient support to pass to the floor.
After the hearing, Fong called the use of NDAs in legislative negotiations “unfortunate and disturbing.” He questioned the argument that his bill was rushed, pointing out that hours before, Democrats had amended on the floor and passed legislation requested by Gov. Gavin Newsom to allow Arizona abortion providers to practice in California.
“Every single member of the ruling party in the Legislature voted for that bill,” Fong said, though the amendments were not publicly available. “But when it comes to a transparency bill, they’ll use that argument [that it was rushed] against it.”
“We need some political courage to make the right decisions and unfortunately that did not happen today,” he said.
The Bakersfield Republican is favored to win a special election to fill former Rep. Kevin McCarthy’s congressional seat. While he might not be around much longer to push for similar legislation, he said other GOP colleagues are interested in taking it up.
Pellerin did not respond to reporters’ questions after the hearing.
The hearing also saw divisions in the business community over the bill.
The California Chamber of Commerce spoke against Fong’s bill, arguing that NDAs are necessary to ensure lobbyists can protect client information and interests.
Other groups including the California Business Roundtable, National Federation of Independent Business and California Business Properties Association lent support.
