bill banning gag deals on data center projects

The text as introduced · 355 words

By: Ochoa
H.B. No. 696

A BILL TO BE ENTITLED

AN ACT

relating to prohibiting certain governmental entities from

entering into an agreement prohibiting the entity from releasing

certain information regarding a data center project.

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 building or portion

of a single building that:

(A) is located in this state;

(B) is specifically constructed or refurbished

and actually used primarily to house servers and related equipment

and support staff for the processing, storage, and distribution of

data;

(C) is used for the processing, storage, and

distribution of data;

(D) is not used primarily by a telecommunications

provider to place tangible personal property that is used to

deliver telecommunications services; and

(E) has an uninterruptible power source,

generator backup power, a sophisticated fire suppression and

prevention system, and enhanced physical security that includes

restricted access, video surveillance, and electronic systems.

(2) "Governmental entity" has the meaning assigned by

Section 2007.002.

Sec. 3003.002. NONDISCLOSURE AGREEMENT PROHIBITED.

Notwithstanding any other law, a governmental entity may not 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.

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

Act, applies only to an agreement entered into on or after the

effective date of this Act. An agreement entered into before the

effective date of this Act is governed by the law in effect on the

date the agreement was entered into, and the former law is continued

in effect for that purpose.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2027.