Relating to the public disclosure of local economic development agreements involving data centers.

The text as introduced · 610 words

By: Perez of El Paso
H.B. No. 734

A BILL TO BE ENTITLED

AN ACT

relating to the public disclosure of local economic development

agreements involving data centers.

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

SECTION 1. Section 403.0246, Government Code, is amended by

adding Subsections (c-1) and (c-2) to read as follows:

(c-1) In this subsection and Subsection (c-2):

(1) "Data center" means any facility that primarily

contains electronic equipment used to process, store, or transmit

digital information, including a facility used primarily for

cryptocurrency mining or other distributed ledger or blockchain

computation and a facility used primarily for the training or

operation of an artificial intelligence model. The term does not

include:

(A) a facility owned and operated by this state,

a political subdivision of this state, or an institution of higher

education as defined by Section 61.003, Education Code;

(B) electronic equipment, or the space

containing electronic equipment, that supports a manufacturing,

health care, financial, retail, or other business operation

conducted by the owner or operator of the equipment at the same

site, if housing that equipment is not the primary use of the site;

or

(C) a facility used primarily by a

telecommunications provider to place tangible personal property

that is used to deliver telecommunications services.

(2) "Data center agreement" means a local development

agreement under which a tax abatement, loan, grant, rebate, refund,

or other payment or benefit is made, computed, or conditioned

wholly or partly on the construction, expansion, operation, or

location of a data center, or on the amount of taxes or fees paid by

or attributable to a data center or the owner or operator of a data

center.

(c-2) Notwithstanding Chapter 552 or any other law, the

electronic copy of a data center agreement required by Subsection

(c)(8) must be a complete copy of the agreement, including each

schedule, exhibit, and amendment, without redaction, except for

information that the attorney general has determined under

Subchapter G, Chapter 552, to be excepted from required public

disclosure under Section 552.110. The local government shall

submit with the agreement a copy of each attorney general decision

on which a redaction relies.

SECTION 2. Section 403.0247, Government Code, is amended by

amending Subsection (e) and adding Subsection (f) to read as

follows:

(e) It is a defense to an action brought under this section

that the local government provided the required information or

documents to the extent the information or documents are not exempt

from disclosure or confidential under Chapter 552 , except that for

a data center agreement, as defined by Section 403.0246(c-1), it is

a defense only that the local government provided the information

and documents required by Section 403.0246(c-2) .

(f) A local government that has not complied with Section

403.0246(c-2) with respect to a data center agreement may not make a

payment or provide an abatement or other benefit under the

agreement until the local government complies. A payment or

benefit that would have accrued under the agreement during the

period of noncompliance is forfeited.

SECTION 3. The changes in law made by this Act apply only to

a local development agreement entered into on or after the

effective date of this Act. For purposes of this section, the

renewal or extension of an agreement on or after the effective date

of this Act, or an amendment of an agreement on or after that date

that increases the amount or extends the duration of a benefit

provided under the agreement, is considered the entering into of a

new agreement on the date of the renewal, extension, or amendment.

SECTION 4. This Act takes effect September 1, 2027.