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HB 6140

Public employees and officers: other; nondisclosure agreements related to the construction of data centers; prohibit. TIE BAR WITH: HB 6135'26, HB 6141'26, HB 6137'26, HB 6138'26, HB 6142'26, HB 6139'26

2025-2026 Regular Session Introduced by Joey Andrews and 26 co-sponsors

The act bars NDAs by data center owners and officials on incentive-backed construction, requires public review of redacted terms, and voids such NDAs once in effect.

bill electronically reproduced 06/25/2026
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Bill Summary · HB 6140

Overview

HB 6140 (2025-2026, Michigan) is titled the “data center transparency act.” It targets nondisclosure agreements (NDAs) related to the construction of data centers that receive tax incentives from a political subdivision. The bill prohibits certain elected officials and data center owners from entering into NDAs about such construction and provides enforcement, redaction allowances, and procedural conditions. It includes a requirement that the act take effect only if a set of related bills are enacted.

Purpose and Intent

  • Increase transparency around the construction of data centers that receive tax incentives from local governments.
  • Prohibit NDAs that would conceal information about the construction of data centers, thereby enabling public scrutiny of potentially incentive-related activities.
  • Preserve limited redactions for specific information (e.g., intellectual property) while allowing public review by designated state actors.

Key Provisions

  • Definition of terms:
    • Data center: a facility (one or more buildings) designed to house data center equipment for centralized storage/processing.
    • Nondisclosure agreement: any contract that makes the data center’s construction confidential or prohibits disclosure, discussion, description, or commentary about the construction.
    • Political subdivision: counties, cities, villages, townships, and other local government entities or districts within Michigan.
  • Prohibition on NDAs:
    • If a political subdivision contracts with a data center owner to construct a data center in exchange for a tax incentive, the owner and any elected official of that subdivision may not enter into an NDA regarding the construction.
  • Redaction and review:
    • The act does not bar redaction of information in such contracts if related to data center IP.
    • The Attorney General, the Governor’s office, or the Public Service Commission may review any redacted information in these contracts.
  • Effective date and enforceability:
    • NDAs entered into, amended, extended, or renewed on or after the act’s effective date are subject to the act.
    • Any NDA violation is void, unenforceable, and against public policy.
  • Contingent effectiveness:
    • The act does not take effect unless all specified related bills from the 103rd Legislature are enacted into law. The text lists six related bills (HB6140 references tie-ins with HB6135, HB6141, HB6137, HB6138, HB6142, HB6139).

Who Would Be Affected

  • Data center owners that contract with Michigan political subdivisions to build facilities in exchange for tax incentives.
  • Elected officials of those political subdivisions.
  • State and local government offices authorized to review redacted contract information (Attorney General, Governor’s Office, Public Service Commission) if redactions are present.
  • Public and media/users seeking transparency around the construction of incentivized data centers.

Procedural and Timeline Aspects

  • The act becomes effective only if six other related bills are enacted into law, creating a bundled enactment condition.
  • Applies to NDAs entered into, amended, extended, or renewed on or after the act’s effective date.
  • If enacted, the bill would be implemented alongside the related transparency measures in the tied bills.

Summary of Impact

  • Public transparency: Increases visibility into how data center projects are incentivized and constructed locally, reducing secrecy around potentially significant taxpayer-backed developments.
  • Legal enforceability: NDAs related to such construction would be void and unenforceable, with limited allowed redactions for IP-related information.
  • Oversight: Provides a pathway for higher-level review of redacted contract information by state offices.
  • Compliance burden: Requires political subdivisions and data center owners to avoid NDAs for incentivized projects and align with the new transparency framework, potentially affecting contractual strategies.

If you’d like, I can compare HB 6140 to the linked bills to highlight consistent provisions or notable differences.

Compiled from official sources — confirm details with the bill’s official record.

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