Bill Text: MI HB4588 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Public employees and officers: other; nondisclosure agreements for department directors and agency directors; prohibit. Creates new act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-25 - Bill Electronically Reproduced 03/24/2021 [HB4588 Detail]
Download: Michigan-2021-HB4588-Introduced.html
HOUSE BILL NO. 4588
A bill to regulate certain terms in certain state employment contracts; and to provide for civil fines.
the people of the state of michigan enact:
(a) "State officer" means either of the following:
(i) A head of a principal department of the executive branch of state government.
(ii) A head of an agency within a principal department of the executive branch of state government.
(b) "Trade secret" means that term as defined in section 2 of the uniform trade secrets act, 1998 PA 448, MCL 445.1902.
Sec. 3. This state shall not enter into an employment contract with a state officer if the employment contract includes a provision that prohibits the state officer from disclosing information regarding the performance of the state officer's official duties unless 1 of the following conditions is met:
(a) The provision is required by law.
(b) The provision is included in 1 of the following:
(i) An agreement or covenant that is in compliance with section 4a of the Michigan antitrust reform act, 1984 PA 274, MCL 445.774a.
(ii) An agreement or covenant regarding a trade secret.
Sec. 5. A state employee or state officer who authorizes a contract provision in violation of this act is responsible for a civil fine of not more $2,500.00 if the state employee or state officer knew, at the time of the authorization, that the provision violated this act. The attorney general may bring an action in the circuit court of Ingham County for a violation of this act. A civil fine collected under this section shall be submitted to the state treasurer for deposit in the general fund of this state.
Sec. 7. This act applies to an employment contract that is entered into, amended, extended, or renewed on or after the effective date of this act.
