HF4814

Purpose

• The bill would prohibit local elected officials from entering nondisclosure agreements (NDAs) or other contracts that restrict public disclosure of information about potential data center development in the official’s political subdivision. It aims to increase transparency around data center projects.

Definitions

• Data center: as defined in Minnesota Statutes section 216B.02 subdivision 11.
• Local elected official: includes members of city councils, mayors, county commissioners, watershed district managers, town supervisors, and any other elected official created by a home rule charter.

Main Provisions

• Prohibition on NDAs: A local elected official must not enter into a nondisclosure agreement or any contract that restricts public disclosure of information about a potential data center development within the subdivision the official represents.
• Void and unenforceable: Any contract or term that violates this prohibition is void and unenforceable.
• Severability: If a contract contains a void provision, that provision must be severed, and the remainder of the contract stays in effect.
• Disclosure requirement: If a local elected official enters into a contract or agreement that violates the prohibition, the official must publicly disclose the contract or agreement.

Scope and Application

• Adds a new provision to Minnesota Statutes chapter 471, creating a new section (471.372) to address nondisclosure agreements related to data center development.

Enforcement and Practical Effect

• Ensures transparency by invalidating confidentiality provisions that would hide information about data center projects and by requiring disclosure when violations occur.
• Keeps contracts functional by preserving enforceable provisions through severability if only some parts are void.

Significance and Policy Impact

• Establishes a clear rule limiting confidentiality in government-related contracts about data center development.
• Promotes public access to information and decision-making around major local economic development projects.

---

Relevant Terms - nondisclosure agreement (NDA) - NDAs - local elected official - data center - data center development - political subdivision - public disclosure - void and unenforceable - severability - contract - confidentiality agreement - home rule charter - Minnesota Statutes chapter 471 - 471.372 - transparency