Bill Text: NY S10708 | 2025-2026 | General Assembly | Introduced

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Bill Title: Prohibits municipal corporations from entering into a contract or other agreement that has the purpose or effect of concealing the details of the development of a data center from the public or preventing public review of a data center; prohibits data centers from entering into a contract or other agreement having such purpose; exempts agreements solely intended to protect trade secrets.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2026-09-30 - REFERRED TO RULES [S10708 Detail]

Download: New_York-2025-S10708-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10708

                    IN SENATE

                                   September 30, 2026
                                       ___________

        Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the general municipal law and the general business  law,
          in  relation  to  prohibiting  nondisclosure  agreements  intended  to
          conceal information about the development of a data  center  from  the
          public or intended to prevent public review thereof

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The general municipal  law  is  amended  by  adding  a  new
     2  section 103-i to read as follows:
     3    § 103-i. Prohibition  on  certain  data  center agreements. 1. For the
     4  purposes of this section, the term "data center" shall mean  a  facility
     5  or proposed facility where:
     6    (a)  such  facility's  primary  services  are storage, management, and
     7  processing of digital data; and
     8    (b) such facility is used  to  house  computer  and  network  systems,
     9  including  but  not limited to associated components such as servers and
    10  network equipment and appliances; telecommunications systems; data stor-
    11  age systems; systems for monitoring and managing infrastructure perform-
    12  ance, internet-related equipment and  services,  data  connections,  and
    13  environmental  controls;  fire  protection systems; and security systems
    14  and services.
    15    2. (a) No municipal corporation shall enter into a contract  or  other
    16  agreement,  including a nondisclosure agreement, that has the purpose or
    17  effect of concealing the details of the development  of  a  data  center
    18  from the public or preventing public review of a data center.
    19    (b)  The  provisions  of  paragraph  (a) of this subdivision shall not
    20  apply to a contract or other agreement that  has  the  sole  purpose  of
    21  preventing public disclosure of a trade secret.
    22    3.  No municipal corporation shall permit or approve a project for the
    23  creation of a data center if such data center or an  agent  thereof  has
    24  violated  the  provisions of section eighteen hundred one of the general
    25  business  law,  or  if  such  municipal  corporation  has  violated  the
    26  provisions of subdivision two of this section.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16407-01-6
        S. 10708                            2

     1    § 2. The general business law is amended by adding a new article 48 to
     2  read as follows:

     3                                 ARTICLE 48
     4                                DATA CENTERS

     5  Section 1800. Definitions.
     6          1801. Prohibited agreements.
     7    § 1800. Definitions.  For  the purposes of this article, the following
     8  terms shall have the following meanings:
     9    1. "Data center" shall mean a facility or proposed facility where:
    10    (a) such facility's primary  services  are  storage,  management,  and
    11  processing of digital data; and
    12    (b)  such  facility  is  used  to  house computer and network systems,
    13  including but not limited to associated components such as  servers  and
    14  network equipment and appliances; telecommunications systems; data stor-
    15  age systems; systems for monitoring and managing infrastructure perform-
    16  ance,  internet-related  equipment  and  services, data connections, and
    17  environmental controls; fire protection systems;  and  security  systems
    18  and services.
    19    2. "Municipal corporation" means a county, city, town, or village.
    20    § 1801. Prohibited  agreements. 1. No data center, or any agent there-
    21  of, shall enter into  any  contract  or  other  agreement,  including  a
    22  nondisclosure  agreement,  that  has the purpose or effect of concealing
    23  the details of the development of such data center from  the  public  or
    24  preventing public review of such data center.
    25    2.  This section shall not apply to a contract or other agreement that
    26  has the sole purpose of preventing public disclosure of a trade secret.
    27    § 3. This act shall take effect immediately.