Following the General Assembly’s “crossover” deadline, SB 853, which restricts the use of nondisclosure agreements in economic development negotiations, faces increasingly long odds of advancing without committee approval.
With the “crossover” deadline now passed, legislation not approved by its originating committee is increasingly unlikely to advance this session.
MACo opposed SB 853 which would broadly prohibit an individual, governing body, legislator, or employee from entering into a nondisclosure agreement (NDA) with a person involved in an economic development activity, including data centers. 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.
Counties share the State’s commitment to transparency and accountability. However, economic development negotiations frequently require confidentiality at preliminary stages to protect both the business and the public interest. Once projects are finalized, many aspects appropriately become public through existing disclosure and procurement requirements. A blanket prohibition on NDAs removes a practical tool without regard to context or competitive realities. Economic development strategies vary by region, industry, and local market conditions. Decisions about when and how to use confidentiality agreements should remain a local operational choice.
SB 853 remains in the Senate Education, Energy, and the Environment Committee without a final vote.
