The bill aims to establish definitions related to nondisclosure agreements within the state of Michigan. It introduces the term "nondisclosure agreement" as an agreement or contract that includes a clause prohibiting one party from disclosing, discussing, describing, or commenting on the agreement or its terms. This clarification is intended to provide a clearer understanding of what constitutes a nondisclosure agreement under Michigan law.

Additionally, the bill specifies that it may be cited as the "nondisclosure agreement definitions act." It also includes a provision stating that the act will not take effect unless certain other legislative bills are enacted into law, indicating a conditional implementation based on the passage of related legislation.