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SB 994 – Restricts Certain Nondisclosure Agreements Involving Local Agency Officials

CATEGORY: Client Update for Public Agencies
CLIENT TYPE: Public Employers
DATE: Nov 05, 2026

Existing law known as the Legislative Code of Ethics prohibits members of the California Legislature from entering into or requesting nondisclosure agreements (NDA) concerning the drafting, negotiation, or discussion of proposed legislation. NDAs within the scope of the law entered into after January 1, 2026 are void and unenforceable. The law provides an exemption for trade secrets and proprietary information.

SB 994 extends a similar rule to local agency officials. A local agency official acting in an official capacity may not enter into or request an NDA concerning public business, if the agreement would prevent the official from sharing information with fellow officials serving on the same council, board, commission, district, or agency. SB 994 also requires an official who violates the provision to disclose the existence of the NDA in specified circumstances.

Local agency officials who entered or requested another to enter into a covered NDA before January 1, 2027 must adhere to the disclosure requirements, while NDAs within the scope of the law entered into after January 1, 2027 are void and unenforceable.

SB 994 adds Article 2.4.4, beginning with Section 53235.5, to Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code.

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