Ochoa Data Center Bill Requires Five Hearings And A Vote

The text as introduced · 727 words

By: Ochoa
H.B. No. 706

A BILL TO BE ENTITLED

AN ACT

relating to election and public hearing requirements before a

municipality may enter into a data center development agreement

under certain economic development programs.

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

SECTION 1. Chapter 380, Local Government Code, is amended

by adding Section 380.005 to read as follows:

Sec. 380.005. DEVELOPMENT AGREEMENTS FOR DATA CENTERS;

ELECTION; PUBLIC HEARING. (a) In this section, "data center" means

at least 100,000 square feet of space in a building or portion of a

building located in this state, in which the space:

(1) 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;

(2) is used by one or more occupants for the

processing, storage, and distribution of data;

(3) is not used primarily by a telecommunications

provider to deliver telecommunications services, as defined by

Section 151.0103, Tax Code; and

(4) has an uninterruptible power source, generator

backup power, and a fire suppression and prevention system.

(b) This section applies only to an area that:

(1) is located in a municipality;

(2) has been annexed by a municipality for limited

purposes; or

(3) is located in the extraterritorial jurisdiction of

a municipality.

(c) Notwithstanding any other provision of this chapter,

the governing body of a municipality, or an entity with which the

governing body may contract to administer a program under this

chapter, may not enter into a development agreement under an

economic development program established by this chapter if the

subject of the agreement is the construction or operation of a data

center in an area to which this section applies unless:

(1) the governing body of the municipality holds not

less than five public hearings on the subject of the development

agreement; and

(2) the voters of an area to which this section applies

support entering into the development agreement at an election held

for that purpose.

(d) The governing body of a municipality, in relation to a

public hearing held under this section, must:

(1) provide public notice for each hearing that:

(A) is provided not earlier than the seventh day

before the date of each public hearing;

(B) is provided in a newspaper or other

publication regularly circulated in the municipality; and

(C) is posted on:

(i) the municipality's Internet website;

(ii) any social media account managed by

the municipality; and

(iii) each polling place where the

municipality intends to hold an election under Subsection (c);

(2) provide interested parties an opportunity to be

heard on the development agreement at the hearing; and

(3) invite the following persons to the hearing:

(A) residents of an area to which this section

applies;

(B) the person entering into the development

agreement with the municipality;

(C) any department of the municipality that would

be impacted by the development, including departments related to

electricity and water use, municipal infrastructure, and housing;

and

(D) any business located in an area to which this

section applies that would be impacted by the development

agreement, including retail electricity providers if applicable.

(e) The governing body of a municipality may only order an

election under Subsection (c):

(1) on a uniform election date; and

(2) after:

(A) the governing body holds the public hearings

as provided by this section; and

(B) providing notice of the election not earlier

than the 90th day before the date of the election:

(i) in a newspaper or other publication

regularly circulated in the municipality;

(ii) on the municipality's Internet

website;

(iii) on any social media account managed

by the municipality; and

(iv) at each polling place where the

municipality intends to hold the election.

(f) A ballot for an election ordered under Subsection (c)

must be printed to provide for voting for or against the

proposition: "Granting authority to the municipality or

municipality's contracting entity to enter into a development

agreement for the purposes of constructing or operating a data

center." Each qualified voter of an area to which this section

applies is entitled to vote in the election.

SECTION 2. Section 380.005, Local Government Code, as added

by this Act, applies only to a contract or agreement entered into on

or after the effective date of this Act.

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