Special Session Recap: SB 2406 “The No NDAs Bill”

A proposal introduced during the Special Session would have broadly restricted the use of nondisclosure agreements between businesses and public entities - SB 2406. See our previous coverage and breakdown. Although much of the discussion focused on data centers, the bill reached far beyond them—affecting industrial, infrastructure, utility, and other business development projects.
 
WHY IT MATTERED
Businesses need to protect sensitive information when considering investments, locations, financing, utility needs and expansion plans. Broad restrictions on confidentiality could have made North Dakota less competitive for projects and created new uncertainty for businesses looking to invest here.

WHAT WE DID
After assessing the bill's impact on our members, large and small, and legally evaluating the conflicts SB 2406 creates with North Dakota’s already strong sunshine laws, our advocacy team sprang into action and shared our members' collective concerns. Our work with lawmakers included numerous one-on-one conversations and formal testimony twice during the special session. Formal testimony included presenting our opposition to the legislative policy committee immediately following Governor Armstrong's remarks during the first hearing. After lawmakers amended the bill, we returned to testify again, making sure the business community's concerns remained part of the conversation as the proposal changed.

THE OUTCOME
The bill was defeated in its first chamber. The proposed restrictions did not become law.
 
THE BIGGER PICTURE
The debate may have started with data centers, but the consequences would not have stopped there. Major projects often begin with confidential conversations long before a shovel hits the ground—whether it is a data center, manufacturing facility, energy project, infrastructure investment, or business expansion. North Dakota can address questions surrounding emerging industries without creating broad policies that make it harder to compete for investment of any kind.
 
Stay engaged with GNDC as we work to ensure the policies written for one project or industry don't create unintended consequences for businesses across North Dakota.