Bill > HB5399

This bill prohibits elected local officials from signing nondisclosure agreements (NDAs) related to the construction of data centers, which are defined as enterprise data centers under existing state tax law. The legislation specifically targets agreements that require confidentiality about data center construction or prevent parties from discussing, describing, or commenting on such projects. Under the bill, any elected official from a political subdivision (such as a county, city, village, or township) who enters into such an NDA would be subject to a civil fine of up to $1,000, which can be pursued by the county prosecutor or state attorney general. The bill applies to any NDA entered into, amended, extended, or renewed after the law's effective date, and declares that any agreements violating these provisions are void and unenforceable. The legislation aims to increase transparency around data center construction by preventing local officials from being bound by confidentiality agreements that could limit public discourse about these significant infrastructure projects.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5399