The proposed bill, known as the "data center nondisclosure agreement prohibition act," aims to prohibit public employees and public officers in Michigan from entering into nondisclosure agreements related to data center projects. A data center is defined as a facility with a maximum aggregate demand of 20 megawatts or more, used for data management and processing. The bill outlines the definitions of key terms, including "nondisclosure agreement," "public employee," "public entity," and "public officer," to clarify who is affected by this legislation.

Under the bill, any public employee or officer who violates the prohibition on nondisclosure agreements may face a civil fine of up to $1,000, enforceable by the county prosecutor or the attorney general. The act applies to agreements entered into, amended, extended, or renewed after its effective date. However, it does not require the disclosure of information that is legally privileged, prohibited from disclosure, or part of a settlement agreement related to litigation.