On March 5, Associate Policy Director Karrington Anderson submitted written testimony to the Education, Energy, and the Environment Committee in opposition to SB 853 – Economic Development Activity – Nondisclosure Agreements.
This bill would prohibit an individual, governing body, legislator, or employee from entering into a nondisclosure agreement (NDA) with a person involved in an economic development activity.
Economic development projects often begin long before any public announcement, as businesses quietly evaluate potential locations and negotiate with state and local partners. During these early stages, confidentiality agreements are commonly used to protect proprietary information and allow discussions to proceed without disrupting business operations or competitive positioning.
Counties raise concerns that such a restriction could place Maryland at a competitive disadvantage when attracting or retaining businesses, limiting a tool that local governments may rely on during preliminary negotiations.
By broadly prohibiting the use of NDAs in economic development activity, SB853 would materially undermine local business attraction and retention efforts. Businesses considering relocation or expansion often evaluate multiple states simultaneously. If Maryland is unable to offer the same confidentiality protections as competing states, companies may simply choose not to engage here. The result could be fewer opportunities for job creation, capital investment, and local tax base growth.
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