By Steve Puterski
A political scandal and heated debate over non-disclosure agreements have resulted in Gov. Gavin Newsom signing a new law making it a misdemeanor for state legislators to sign or require NDAs when negotiating state laws.
Newsom signed Assembly Bill 1370, authored by Assemblyman Joe Patterson (R-Rocklin), to amend the Political Reform Act of 1974 to prohibit signing or requiring others to sign NDAs. The bill was prompted by two major revelations — the use of NDAs in the planning of the $1.2 billion Capitol Annex building project, which has nearly tripled in cost over the past two years, and the state’s fast-food minimum wage law.
The story broke in March 2024 when KCRA in Sacramento reported several lawmakers had signed NDAs regarding the Capitol project. In total, more than 2,000 people signed NDAs for the Capitol project, the outlet reported.
Newsom did not issue a statement regarding the new law. (The memo outlining the NDA and damages is here on page 22, while the list of others who signed the Capitol NDA is through this link.)
KCRA 3’s investigation revealed the agreements, established in 2018 under then-Democrat Assemblyman Ken Cooley and Gov. Jerry Brown’s administration, barred signees from disclosing documents, designs, and other project details.
Critics, including legal experts and transparency advocates, said the NDAs concealed ballooning costs and questionable spending, such as millions spent on granite. The issue exploded into the spotlight when KCRA reported $5.2 million worth of granite was mined from a California quarry, then shipped to Italy, where it was fabricated into bricks and returned to the state for installation on the first level of the building.
