SF 4379

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/06/2026 01:38 p.m.

A bill for an act
relating to local government; prohibiting municipalities from entering into
nondisclosure agreements; proposing coding for new law in Minnesota Statutes,
chapter 471.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [471.3435] NONDISCLOSURE AGREEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "municipality" means a county,
home rule charter or statutory city, town, school district, housing and redevelopment
authority, economic development authority, port authority, or any other political subdivision
of the state with authority to enter into a contract for the use of real property, and includes
any person acting in their capacity as an employee, elected official, appointed official, or
other representative of a municipality.
new text end

new text begin Subd. 2. new text end

new text begin Nondisclosure agreements restricted. new text end

new text begin (a) A municipality must not enter into
a nondisclosure agreement or other contract with a private person restricting the municipality
from disclosing information to members of the public about the development of land, an
economic development project or program, or a project or program financed in whole or in
part with the municipality's tax revenues, financial obligations, or taxing powers, including
proposed tax increment financing districts, economic development abatements, and municipal
bonds or other debt obligations, except as required by state or federal law.
new text end

new text begin (b) Any agreement or contract, or term of an agreement or contract, that violates paragraph
(a) is void and unenforceable.
new text end

new text begin (c) If a contract contains a provision that is void and unenforceable under paragraph (b),
the provision must be severed from the other provisions of the contract to the extent that
the provision is void and unenforceable. The fact that the provision is void and unenforceable
does not affect the other provisions of the contract.
new text end

new text begin (d) A municipality must publicly disclose any contract or agreement that the municipality
has entered into that violates paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to agreements entered into, renewed, or extended on or after that date.
new text end