Bill Text: TX HB696 | 2027-2028 | 90th Legislature Regular Session | Introduced

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Bill Title: Relating to prohibiting certain governmental entities from entering into an agreement prohibiting the entity from releasing certain information regarding a data center project.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced) 2026-11-09 - Filed [HB696 Detail]

Download: Texas-2027-HB696-Introduced.html

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By: Ochoa H.B. No. 696

A BILL TO BE ENTITLED
AN ACT
relating to prohibiting certain governmental entities from
entering into an agreement prohibiting the entity from releasing
certain information regarding a data center project.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle Z, Title 10, Government Code, is
amended by adding Chapter 3003 to read as follows:
CHAPTER 3003. NONDISCLOSURE AGREEMENT REGARDING DATA CENTERS
Sec. 3003.001. DEFINITIONS. In this chapter:
(1) "Data center" means a single building or portion
of a single building that:
(A) is located in this state;
(B) 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;
(C) is used for the processing, storage, and
distribution of data;
(D) is not used primarily by a telecommunications
provider to place tangible personal property that is used to
deliver telecommunications services; and
(E) has an uninterruptible power source,
generator backup power, a sophisticated fire suppression and
prevention system, and enhanced physical security that includes
restricted access, video surveillance, and electronic systems.
(2) "Governmental entity" has the meaning assigned by
Section 2007.002.
Sec. 3003.002. NONDISCLOSURE AGREEMENT PROHIBITED.
Notwithstanding any other law, a governmental entity may not enter
into an agreement with a private entity that prohibits the
governmental entity from disclosing information regarding the
financing, construction, operation, management, maintenance,
acquisition, or sale of a data center project.
SECTION 2. Chapter 3003, Government Code, as added by this
Act, applies only to an agreement entered into on or after the
effective date of this Act. An agreement entered into before the
effective date of this Act is governed by the law in effect on the
date the agreement was entered into, and the former law is continued
in effect for that purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2027.