González Bill Puts A Two-Year Limit On Data Center Secrecy Deals

The text as introduced · 732 words

90R1772 CXP-D

By: González of El Paso
H.B. No. 374

A BILL TO BE ENTITLED

AN ACT

relating to certain requirements applicable to governmental

entities with respect to an agreement prohibiting the release of

information regarding a data center project; providing a civil

penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle Z, Title 10, Government Code, is

amended by adding Chapter 3003 to read as follows:

CHAPTER 3003. NONDISCLOSURE AGREEMENT REGARDING DATA CENTERS

Sec. 3003.001. DEFINITIONS. In this chapter:

(1) "Data center" means a single site at which

information technology equipment, including equipment used for

artificial intelligence and virtual currency mining operations, is

located that has or is expected to have an aggregate minimum

electric power demand of at least 25 megawatts.

(2) "Governmental entity" means a local government or

state agency.

(3) "Local government" means a municipality, county,

special-purpose district or authority, or other political

subdivision of this state.

(4) "State agency" means a board, commission, council,

committee, department, office, agency, or other governmental

entity in the executive branch of state government. The term

includes an institution of higher education as defined by Section

61.003, Education Code.

Sec. 3003.002. REQUIREMENTS FOR NONDISCLOSURE AGREEMENT.

Notwithstanding any other law, a governmental entity may enter into

an agreement with a private entity that prohibits the governmental

entity from disclosing information regarding the financing,

construction, operation, management, maintenance, acquisition, or

sale of a data center project only if the governmental entity and

agreement comply with this chapter.

Sec. 3003.003. DURATION OF NONDISCLOSURE AGREEMENT. An

agreement described by Section 3003.002 must expire not later than

the second anniversary of the date the agreement is executed.

Sec. 3003.004. PUBLIC MEETING REQUIRED. An agreement

described by Section 3003.002 is not effective until the agreement

is approved by a majority vote of the governing body of the

governmental entity at a public meeting that includes an

opportunity for public testimony.

Sec. 3003.005. NOTICE OF MEETING. (a) Not later than the

10th day before the date of the public meeting required by Section

3003.004, the governmental entity must publish notice of the

meeting:

(1) in:

(A) the Texas Register, if the governmental

entity is a state agency; or

(B) a newspaper of general circulation published

in each county in which the local government is located, if the

governmental entity is a local government;

(2) at the location where the meeting will be held; and

(3) on the governmental entity's publicly accessible

Internet website and, if applicable, each of the entity's official

Internet social media pages.

(b) The notice required by this section must include a

written summary, in plain language, of the subject matter of the

proposed agreement and the specific reasons why the governmental

entity believes the proposed agreement is necessary.

Sec. 3003.006. COMPLAINT. (a) A person may file a written

complaint with the attorney general alleging that a governmental

entity has violated this chapter.

(b) The complaint must include a sworn statement by the

person filing the complaint stating that, to the best of the

person's knowledge, the facts alleged in the complaint are true.

Sec. 3003.007. ENFORCEMENT BY ATTORNEY GENERAL. (a) If the

attorney general determines that a complaint filed under Section

3003.006 is valid, the attorney general shall file an action to:

(1) invalidate the agreement;

(2) compel compliance with this chapter; and

(3) recover a civil penalty under Section 3003.008.

(b) The attorney general may bring an action under this

section in a district court in:

(1) Travis County; or

(2) a county in which the suspected violation of this

chapter is alleged to have occurred.

Sec. 3003.008. CIVIL PENALTY. (a) A governmental entity

that is found by a court to have intentionally violated this chapter

is subject to a civil penalty in an action brought under Section

3003.007 in an amount not to exceed $1,000 for each violation.

(b) Each day a violation occurs constitutes a separate

violation for purposes of the civil penalty imposed under this

section.

(c) The attorney general shall deposit a civil penalty

collected under this section to the credit of the general revenue

fund.

SECTION 2. Chapter 3003, Government Code, as added by this

Act, applies only to an agreement entered into by a governmental

entity with respect to a data center project described by that

chapter on or after September 1, 2027.

SECTION 3. This Act takes effect September 1, 2027.