HF4659

Purpose

The bill would limit secrecy around certain government deals. It would prevent the state from signing nondisclosure agreements (NDAs) with private parties that would stop the state from sharing information with the public about land development, economic development projects, or projects financed with state tax dollars or debt.

Main Provisions

• Definition of "state": The term means the State of Minnesota or an agency or official of the state acting in an official capacity.
• Restricted NDAs: The state must not enter into a nondisclosure agreement or other contract with a private person that would prevent the state from disclosing information to the public about:
  • development of land,
  • an economic development project or program, or
  • a project or program financed in whole or in part with the state’s tax revenues, financial obligations, or taxing powers.
  • This includes projects like tax increment financing districts, economic development abatements, and state bonds or other debt obligations.
  • The restriction does not apply if disclosure is required by state or federal law.
• Void and unenforceable: Any contract or contract term that violates the restriction is void and unenforceable.
• Severability: If part of a contract is void, that void part must be severed, and the rest of the contract remains valid.
• Public disclosure: The state must publicly disclose any contract or agreement that violates the restriction.

Significant Changes to Existing Law

• Creation of a new rule in Minnesota law that explicitly prohibits the state from entering into NDAs with private entities that would block public disclosure about land development, economic development efforts, or financing tied to public funds or debt.
• Adds a requirement that any violating contract be disclosed publicly.
• Adds severability rules for void provisions, ensuring other parts of the contract can still operate.

Practical Implications

• Increased transparency: Public and media access to information about state-financed development deals is expanded.
• Tighter limits on private secrecy: Private parties cannot compel the state to keep certain project details secret via NDAs in many common development scenarios.
• Administrative and legal need: State agencies would need to review contracts to ensure they comply and publicly disclose any that do not.

How It Works in Practice (Summary)

• If the state signs a contract with a private party about a land or economic development project, that contract cannot legally hide information from the public about the project or any financing tied to it.
• If a contract does hide information, that portion is void, the rest of the contract may still stand, and the state must disclose the offending contract publicly.

Relevant Terms nondisclosure agreements (NDAs); state; private person; disclose information; development of land; economic development project; economic development program; project financed; tax revenues; financial obligations; taxing powers; tax increment financing districts (TIF); economic development abatements; state bonds; debt obligations; required by law; void; unenforceable; severed; publicly disclose; contract.