Environment
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
StateNorth DakotaSecond Reading
SB 2406: A BILL for an Act to create and enact chapter 44-04.1 of the North Dakota Century Code, relating to prohibiting agencies from entering nondisclosure agreements concerning data centers and industrial projects; to provide a penalty; to provide an effective date; and to provide an expiration date.
Tim Mathern
SB 2406 status: Second Reading — Second reading, failed to pass, yeas 15 nays 32 (updated Sep 3, 2026).
Source
OpenStates
Confidence
Low
Analysis basis
OpenStates summary
01
What this bill does
Official summary alongside an AI-generated read on where it stands and why.
Overall Score
57OUT OF 100
Score:57/100 civic fit
Risk:Moderate Risk
Impact:Moderate Impact 40/100
Constitutionality85%
Bipartisan50%
Public opinion70%
Bill summary
What changes
The bill would have prohibited state agencies from entering into nondisclosure agreements (NDAs) specifically related to data centers and industrial projects.
Who is affected
State agencies, data center operators, and entities involved in industrial development projects in North Dakota.
Requirements and enforcement
Agencies would be legally barred from using NDAs, and the bill would have introduced a penalty for violating this prohibition.
Costs and funding
Not stated, though the bill potentially impacts costs associated with recruiting and negotiating business contracts.
When it takes effect
Proposed an effective date and expiration date; however, the bill failed to pass.
Potential benefits
Increases government transparency and public scrutiny of business-government agreements.
Risks and tradeoffs
Potential loss of business interest from companies that require confidentiality for proprietary technological or site-security information.
What is still unknown
The exact nature and magnitude of the penalties for agencies that enter into prohibited NDAs are not detailed.
02
Impact analysis
✦ AI analysisModeled effects across six domains, estimated from bill text and comparable legislation.
Economy
Mixed / Neutral
45%
Benefits
- Increases transparency for large industrial projects
- Prevents agencies from concealing economic costs
- Ensures taxpayers are aware of development terms
Risks
- May discourage private sector investment
- Risks public exposure of sensitive trade secrets
- Increases friction for agency economic recruiters
Society
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Technology Industry
Critical outlook
40%
Benefits
- Standardizes public record requirements
- Prevents secret infrastructure and site-selection deals
- Ensures tech firms aren't receiving undisclosed subsidies
Risks
- Exposure of proprietary facility design information
- Risks revealing sensitive infrastructure strategies
- Complicates entry for companies requiring confidentiality
Civic Accountability
Positive outlook
85%
Benefits
- Prohibits use of NDAs by public agencies
- Mandates transparency in industrial contracting
- Enhances oversight of government decision-making
Risks
- Possible legal challenges from private partners
- Could reduce information access if firms refuse to engage
- Requires administrative change to current workflows
Public Health & Safety
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
03
How trustworthy & consequential it is
Sourcing already shown above, this is what the analysis found worth flagging.
Source
OpenStates
Official bill text or data from OpenStates.
Confidence
Low
Information is limited or incomplete.
Analysis basis
OpenStates summary
Source used for this bill's analysis.
Source note
The inability to use NDAs may cause companies to seek development sites in other states with stronger confidentiality protections.
Analysis scope
Source provided is a summary; full legal text is not available for review.
04
Where it stands
Official record- IntroducedComplete
- CommitteeComplete
- Chamber votesCurrent
- Final agreementUpcoming
- GovernorUpcoming
- EnactedUpcoming
05
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06
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