SF5062

Purpose

• To increase transparency around potential data center development by preventing local elected officials and local government employees from using confidentiality restrictions to hide information.
• To ensure that information about potential data center projects is publicly disclosed, rather than kept secret through previous nondisclosure agreements.

Key Definitions

• Data center: A facility defined as such under Minnesota Law (reference to the existing data center definition in section 216B.02, subdivision 11).
• Local government: Includes members such as city councilors, mayors, county commissioners, town supervisors, and any other elected official or employee within a city, county, or town.

Main Provisions

1) Prohibition on previous nondisclosure agreements (NDAs - A local government must not enter into any previous nondisclosure agreement or other contract that restricts public disclosure of information about a potential data center development within its boundaries. 2) Unenforceability of violating agreements - Any agreement or contract, or any term of an agreement or contract, that violates the above prohibition is void and unenforceable. 3) Severability - If a contract contains a provision that is void and unenforceable, that provision must be severed from the rest of the contract to the extent it is void. 4) Public disclosure requirement - If a local government enters into a contract that violates the prohibition, the government must publicly disclose the contract or agreement.

Significant Changes to Existing Law

• Establishes a new statutory requirement (Section 471.372) within Minnesota Statutes to prevent local governments from using NDAs to restrict disclosure about potential data center projects.
• Creates a mandate for transparency by requiring public disclosure of contracts that violate the provision.
• Introduces a severability rule for void provisions, ensuring remaining contract terms stay in effect.
• Broadens the scope of what local governments can and cannot sign with respect to information about data center development within their jurisdiction.

Summary of Impact

• Local governments must avoid entering NDAs or confidentiality clauses related to potential data center developments.
• Any existing or future agreements that restrict public disclosure on this topic are invalid, with offending parts severed from the contract.
• Public officials must be more open about information related to data center projects, potentially increasing public access to such information.

Relevant Terms data center; local government; previous nondisclosure agreement; NDA; nondisclosure agreement; public disclosure; void and unenforceable; severed; contract; agreement; data center development; within the boundaries of the political subdivision; confidentiality; transparency.