SF4824

Purpose

• The bill aims to increase government transparency by restricting the use of nondisclosure agreements (NDAs) by the state of Minnesota and its municipalities. It focuses on disclosures to the public about land development, economic development projects or programs, and financing that uses public funds or public debt.

Main Provisions

• Prohibition on NDAs: The state must not enter into a nondisclosure agreement or other contract with a private person that would restrict the state from disclosing information to the public about:
  • the development of land
  • an economic development project or program
  • a project or program financed in whole or in part with the state’s tax revenues, financial obligations, or taxing powers
  • includes proposed tax increment financing (TIF) districts, economic development abatements, state bonds, or other debt obligations
• Void and unenforceable: Any agreement or contract, or term within an agreement or contract, that violates the prohibition is void and unenforceable.
• Severability: If a contract contains a void provision, that provision must be severed from the rest of the contract to the extent it is void and unenforceable.
• Public disclosure: The state must publicly disclose any contract or agreement that violates the prohibition.
• Exceptions: The prohibition does not apply to requirements imposed by state or federal law.

Definitions and Scope

• State: Defined to include the state of Minnesota or an agency or official acting in an official capacity.
• Applies to: The state and municipalities when engaging in contracts related to land development, economic development projects or programs, and financing involving tax revenues or public debt.

Enforcement and Transparency

• Emphasizes that contracts violating the NDA prohibition must be disclosed publicly.
• Promotes transparency in dealings tied to land development and publicly funded economic activities.

Significance and Changes to Law

• Introduces a new standard that blocks confidentiality around certain government-funded development and financing activities.
• Replaces or restricts the ability to keep information about these activities confidential through NDAs.
• Requires severability to ensure remaining contract terms can stand if an NDA term is void.

Relevant Terms - nondisclosure agreements (NDAs) - public disclosure - development of land - economic development project - economic development program - tax revenues - financial obligations - taxing powers - tax increment financing (TIF) districts - economic development abatements - state bonds - debt obligations - void and unenforceable - severability - state (Minnesota, agencies, officials) - municipalities - contract - private person - official capacity - Minnesota Statutes (chapters 15 and 471)