S T A T E O F N E W Y O R K
________________________________________________________________________
9456
I N A S S E M B L Y
January 6, 2026
___________
Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the state finance law and the general municipal law, in
relation to prohibiting procurement of certain technology that poses
security threats; and to amend a chapter of the laws of 2025 amending
the state finance law and the general municipal law relating to
prohibiting procurement of certain technology that poses security
threats, as proposed in legislative bills numbers S. 3259 and A. 2237,
in relation to the authority of the office of information technology
services to issue certain guidance relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 163-e of the state finance law, as added by a chap-
ter of the laws of 2025 amending the state finance law and the general
municipal law relating to prohibiting procurement of certain technology
that poses security threats, as proposed in legislative bills numbers S.
3259 and A. 2237, is amended to read as follows:
§ 163-e. Restriction on purchasing certain technology which poses a
security threat. 1. (a) Notwithstanding any inconsistent provision of
law, the state and any department, bureau, board, commission, authority,
and any other agency or instrumentality of the state shall not enter
into or renew any contract or agreement to procure [information and
communications] technology, including hardware, systems, devices, soft-
ware, or services that include embedded or incidental information tech-
nology, which are prohibited from federal procurement pursuant to
section 889 of Public Law 115-232 of 2018.
(b) The term ["information and communications technology" means:
(i) information technology, as defined in section 11101 of title 40;
(ii) information systems, as defined in 44 U.S.C. 3502; and
(iii) telecommunications equipment and telecommunications services, as
those terms are defined in section 3 of the Communications Act of 1934
(47 U.S.C. 153).
(c) The term "information and communications technology" shall not
include automated-decision making systems] "TECHNOLOGY" SHALL HAVE THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01015-02-6
A. 9456 2
SAME MEANING AS SUCH TERM IS DEFINED IN SUBDIVISION TEN OF SECTION ONE
HUNDRED SIXTY OF THIS ARTICLE.
2. The [chief information officer] OFFICE OF INFORMATION TECHNOLOGY
SERVICES shall, in consultation with the division of homeland security
and emergency services and the office of general services, establish and
update regularly a list of restricted [information and communications]
technology. Technology on this list shall not be procured by any state
agency, state or local authority, or political subdivision unless a
waiver is issued pursuant to subdivision three of this section or the
[chief information officer] OFFICE OF INFORMATION TECHNOLOGY SERVICES
determines that the technology shall only be restricted in limited
circumstances.
The list shall:
(a) contain [information and communications] technologies that pose a
security risk to the state of New York or its political subdivisions. In
determining whether [information and communications] technology poses
such a risk, the [chief information officer] OFFICE OF INFORMATION TECH-
NOLOGY SERVICES shall consult relevant federal sources, including the
department of defense inspector general report no. DODIG-2019-106, as
well as any other source that shall be determined to be relevant; AND
(b) [describe the scope of each restriction, such as whether it is
generally prohibited or prohibited in certain circumstances or from
certain entities;
(c) include an explanation as to why items were included on the list;
and
(d)] be published online and communicated to all relevant procurement
officers in all state agencies, state authorities, and political subdi-
visions.
3. The [commissioner] OFFICE OF INFORMATION TECHNOLOGY SERVICES, IN
COLLABORATION WITH THE DIVISION of homeland security and emergency
services, the [commissioner of the] office of general services, the
[adjutant general, the chief information officer] DIVISION OF MILITARY
AND NAVAL AFFAIRS, AND the chief cyber officer, [the chief technology
officer of the city of New York and any federal agency authorized under
section 889 of Public Law 115-232 of 2018,] may provide a waiver from
this section if:
(a) any such entity determines the waiver is in the interests of the
state or political subdivision;
(b) no compliant product or service is available to be procured as,
and when, needed at United States market prices or a price that is not
considered prohibitively expensive; and
(c) such waiver could not reasonably be expected to compromise the
security or integrity of a computer network operated by an instrumental-
ity of the state.
(D) ANY STATE AGENCY, STATE OR LOCAL AUTHORITY, OR POLITICAL SUBDIVI-
SION SEEKING A WAIVER FROM ANY FEDERAL AGENCY AUTHORIZED UNDER SECTION
889 OF PUBLIC LAW 115-232 OF 2018 MUST PROVIDE NOTICE OF ANY SUCH WAIVER
GRANTED TO THE OFFICE OF INFORMATION TECHNOLOGY SERVICES WITHIN THIRTY
DAYS OF WAIVER APPROVAL.
4. AN UNMANNED AERIAL VEHICLE OR OTHER EQUIPMENT OR SERVICE RELATING
TO THE OPERATION OF AN UNMANNED AERIAL VEHICLE FROM A BUSINESS OR ENTITY
THAT WOULD OTHERWISE BE SUBJECT TO RESTRICTION UNDER SUBDIVISION ONE OR
TWO OF THIS SECTION MUST BE EXEMPT FROM SUCH RESTRICTION IF:
(A) ANY PHOTOGRAPH, IMAGE, RECORDING OR OTHER INFORMATION COLLECTED BY
THE STATE AGENCY, STATE OR LOCAL AUTHORITY, OR POLITICAL SUBDIVISION
A. 9456 3
FROM THE OPERATION OF THE UNMANNED AERIAL VEHICLE OR OTHER EQUIPMENT OR
SERVICE RELATING TO THE OPERATION OF THE UNMANNED AERIAL VEHICLE:
(I) IS STORED AND MAINTAINED EXCLUSIVELY WITHIN THE UNITED STATES; AND
(II) IS NOT ACCESSIBLE TO THE BUSINESS OR ENTITY THAT WOULD OTHERWISE
BE SUBJECT TO RESTRICTION; OR
(III) IS OPERATED USING SOFTWARE DEVELOPED AND MAINTAINED IN THE
UNITED STATES.
(B) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT BE CONSTRUED TO
DISCOURAGE THE PURCHASE OR ACQUISITION OF ANY UNMANNED AERIAL VEHICLE OR
OTHER EQUIPMENT OR SERVICE RELATING TO THE OPERATION OF AN UNMANNED
AERIAL VEHICLE THAT IS MANUFACTURED IN THE UNITED STATES.
5. Nothing in this section shall be construed:
(a) to require any [information and communications] technology resi-
dent in equipment, systems, or services as of the day before the effec-
tive date of this section to be removed or replaced;
(b) to prohibit or limit the utilization of such [information and
communications] technology throughout the lifecycle of such existing
equipment; or
(c) to require the recipient of a state contract, grant, loan, or loan
guarantee to replace [information and communications] technology resi-
dent in equipment, systems, or services before the effective date of
this section.
§ 2. Section 103-h of the general municipal law, as added by a chapter
of the laws of 2025 amending the state finance law and the general
municipal law relating to prohibiting procurement of certain technology
that poses security threats, as proposed in legislative bills numbers S.
3259 and A. 2237, is amended to read as follows:
§ 103-h. Restriction on purchasing certain technology which poses a
security threat. 1. (a) Notwithstanding any inconsistent provision of
law a political subdivision shall not enter into or renew any contract
or agreement to procure [information and communications] technology,
including hardware, systems, devices, software, or services that include
embedded or incidental information technology, which are prohibited from
federal procurement pursuant to section 889 of Public Law 115-232 of
2018, or which are included on the list created pursuant to subdivision
two of section one hundred sixty-three-e of the state finance law.
(b) The term ["information and communications technology" means:
(i) information technology, as defined in 40 U.S.C. 11101;
(ii) information systems, as defined in 44 U.S.C. 3502; and
(iii) telecommunications equipment and telecommunications services, as
those terms are defined in section 3 of the Communications Act of 1934
(47 U.S.C. 153)] "TECHNOLOGY" SHALL HAVE THE SAME MEANING AS SUCH TERM
IS DEFINED IN SUBDIVISION TEN OF SECTION ONE HUNDRED SIXTY OF THE STATE
FINANCE LAW.
2. The [commissioner] OFFICE OF INFORMATION TECHNOLOGY SERVICES, IN
COLLABORATION WITH THE DIVISION of homeland security and emergency
services, the [commissioner of the] office of general services, the
[adjutant general, the chief information officer] DIVISION OF MILITARY
AND NAVAL AFFAIRS, AND the chief cyber officer, [the chief technology
officer of the city of New York and any federal agency authorized under
section 889 of Public Law 115-232 of 2018,] may provide a waiver from
this section if:
(a) any such entity determines the waiver is in the interest of the
political subdivision;
A. 9456 4
(b) no compliant product or service is available to be procured as,
and when, needed at United States market prices or a price that is not
considered prohibitively expensive; and
(c) such waiver could not reasonably be expected to compromise the
security or integrity of a computer network operated by an instrumental-
ity of the state.
[4.] (D) ANY POLITICAL SUBDIVISION SEEKING A WAIVER FROM ANY FEDERAL
AGENCY AUTHORIZED UNDER SECTION 889 OF PUBLIC LAW 115-232 OF 2018 MUST
PROVIDE NOTICE OF ANY SUCH WAIVER GRANTED TO THE OFFICE OF INFORMATION
TECHNOLOGY SERVICES WITHIN THIRTY DAYS OF WAIVER APPROVAL.
3. Nothing in this section shall be construed:
(a) to require any [information and communications] technology resi-
dent in equipment, systems, or services as of the day before the effec-
tive date of this section to be removed or replaced;
(b) to prohibit or limit the utilization of such [information and
communications] technology throughout the lifecycle of such existing
equipment; or
(c) to require the recipient of a state contract, grant, loan, or loan
guarantee to replace [information and communications] technology resi-
dent in equipment, systems, or services before the effective date of
this section.
§ 3. Section 3 of a chapter of the laws of 2025 amending the state
finance law and the general municipal law relating to prohibiting
procurement of certain technology that poses security threats, as
proposed in legislative bills numbers S. 3259 and A. 2237, is amended to
read as follows:
§ 3. No later than the effective date of this act, the office of
[general services] INFORMATION TECHNOLOGY SERVICES shall [promulgate
rules and regulations and] issue guidance to all state agencies and
local procurement authorities necessary, including providing updates
on prohibited or excluded entities for procurement contracts in
conformity with federal law, rules and regulations, no later than sixty
days after any entity is prohibited or excluded.
§ 4. Section 4 of a chapter of the laws of 2025 amending the state
finance law and the general municipal law relating to prohibiting
procurement of certain technology that poses security threats, as
proposed in legislative bills numbers S. 3259 and A. 2237, is amended to
read as follows:
§ 4. This act shall take effect two years after it shall have become a
law. Effective immediately, the office of [general services] INFORMATION
TECHNOLOGY SERVICES is authorized to [promulgate rules and regulations
and] issue guidance to all state agencies and local procurement authori-
ties necessary for the implementation of this act on its effective date,
including providing updates on prohibited or excluded entities for
procurement contracts in conformity with federal law, rules and regu-
lations.
§ 5. This act shall take effect immediately; provided, however, that
sections one, two and three of this act shall take effect on the same
date and in the same manner as a chapter of the laws of 2025 amending
the state finance law and the general municipal law relating to prohib-
iting procurement of certain technology that poses security threats, as
proposed in legislative bills numbers S. 3259 and A. 2237, takes effect.