HF4915

Purpose

This bill aims to prevent local governments from using nondisclosure agreements (NDAs) or similar contracts to hide information about potential data center development. It promotes transparency by ensuring public disclosure of such information and contracts.

Main Provisions

• Prohibition on NDAs: A local government must not enter into any previous nondisclosure agreement or contract that restricts public disclosure of information about potential data center development within its boundaries.
• Void and unenforceable: Any contract provision that violates this prohibition is void and unenforceable.
• Severability: If a contract contains a void provision, that portion must be severed, and the remaining parts of the contract stay in effect as much as possible.
• Public disclosure requirement: If a local government enters into a contract that violates the prohibition, the government must publicly disclose the contract or agreement.

Key Definitions (as used in the bill)

• Data center: The term has the meaning given in Minnesota Statutes section 216B.02, subdivision 11.
• Local government: Includes a member of a city council, mayor, county commissioner, town supervisor, and any other elected official established by a home rule charter, as well as any employee of a city, county, or town.
• Previous nondisclosure agreements: Nondisclosure agreements or other contracts that restrict public disclosure about potential data center development within the local government’s boundaries.

Significant Changes to Existing Law

• Adds a new requirement that local governments cannot use NDAs to hide information about potential data center development.
• Establishes that such agreements or contract provisions are void and unenforceable.
• Introduces a mandatory public disclosure obligation for any violated contract.
• Clarifies severability so that only the void portion is removed, leaving the rest of the contract intact.

Relevant Terms data center data center development nondisclosure agreement (NDA) public disclosure local government elected official home rule charter severability void and unenforceable contract