Senate Bill S10708

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10708
 
                             I N  S E N A T E
 
                            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:
 
   Section 1. The general municipal  law  is  amended  by  adding  a  new
 section 103-i to read as follows:
   § 103-I. PROHIBITION  ON  CERTAIN  DATA  CENTER AGREEMENTS. 1. FOR THE
 PURPOSES OF THIS SECTION, THE TERM "DATA CENTER" SHALL MEAN  A  FACILITY
 OR PROPOSED FACILITY WHERE:
   (A)  SUCH  FACILITY'S  PRIMARY  SERVICES  ARE STORAGE, MANAGEMENT, AND
 PROCESSING OF DIGITAL DATA; AND
   (B) SUCH FACILITY IS USED  TO  HOUSE  COMPUTER  AND  NETWORK  SYSTEMS,
 INCLUDING  BUT  NOT LIMITED TO ASSOCIATED COMPONENTS SUCH AS SERVERS AND
 NETWORK EQUIPMENT AND APPLIANCES; TELECOMMUNICATIONS SYSTEMS; DATA STOR-
 AGE SYSTEMS; SYSTEMS FOR MONITORING AND MANAGING INFRASTRUCTURE PERFORM-
 ANCE, INTERNET-RELATED EQUIPMENT AND  SERVICES,  DATA  CONNECTIONS,  AND
 ENVIRONMENTAL  CONTROLS;  FIRE  PROTECTION SYSTEMS; AND SECURITY SYSTEMS
 AND SERVICES.
   2. (A) NO MUNICIPAL CORPORATION SHALL ENTER INTO A CONTRACT  OR  OTHER
 AGREEMENT,  INCLUDING A NONDISCLOSURE 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.
   (B)  THE  PROVISIONS  OF  PARAGRAPH  (A) OF THIS SUBDIVISION SHALL NOT
 APPLY TO A CONTRACT OR OTHER AGREEMENT THAT  HAS  THE  SOLE  PURPOSE  OF
 PREVENTING PUBLIC DISCLOSURE OF A TRADE SECRET.
   3.  NO MUNICIPAL CORPORATION SHALL PERMIT OR APPROVE A PROJECT FOR THE
 CREATION OF A DATA CENTER IF SUCH DATA CENTER OR AN  AGENT  THEREOF  HAS
 VIOLATED  THE  PROVISIONS OF SECTION EIGHTEEN HUNDRED ONE OF THE GENERAL
 BUSINESS  LAW,  OR  IF  SUCH  MUNICIPAL  CORPORATION  HAS  VIOLATED  THE
 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
 
   § 2. The general business law is amended by adding a new article 48 to
 read as follows:
 
                                ARTICLE 48
                               DATA CENTERS
 
 SECTION 1800. DEFINITIONS.
         1801. PROHIBITED AGREEMENTS.
   § 1800. DEFINITIONS.  FOR  THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "DATA CENTER" SHALL MEAN A FACILITY OR PROPOSED FACILITY WHERE:
   (A) SUCH FACILITY'S PRIMARY  SERVICES  ARE  STORAGE,  MANAGEMENT,  AND
 PROCESSING OF DIGITAL DATA; AND
   (B)  SUCH  FACILITY  IS  USED  TO  HOUSE COMPUTER AND NETWORK SYSTEMS,
 INCLUDING BUT NOT LIMITED TO ASSOCIATED COMPONENTS SUCH AS  SERVERS  AND
 NETWORK EQUIPMENT AND APPLIANCES; TELECOMMUNICATIONS SYSTEMS; DATA STOR-
 AGE SYSTEMS; SYSTEMS FOR MONITORING AND MANAGING INFRASTRUCTURE PERFORM-
 ANCE,  INTERNET-RELATED  EQUIPMENT  AND  SERVICES, DATA CONNECTIONS, AND
 ENVIRONMENTAL CONTROLS; FIRE PROTECTION SYSTEMS;  AND  SECURITY  SYSTEMS
 AND SERVICES.
   2. "MUNICIPAL CORPORATION" MEANS A COUNTY, CITY, TOWN, OR VILLAGE.
   § 1801. PROHIBITED  AGREEMENTS. 1. NO DATA CENTER, OR ANY AGENT THERE-
 OF, SHALL ENTER INTO  ANY  CONTRACT  OR  OTHER  AGREEMENT,  INCLUDING  A
 NONDISCLOSURE  AGREEMENT,  THAT  HAS THE PURPOSE OR EFFECT OF CONCEALING
 THE DETAILS OF THE DEVELOPMENT OF SUCH DATA CENTER FROM  THE  PUBLIC  OR
 PREVENTING PUBLIC REVIEW OF SUCH DATA CENTER.
   2.  THIS SECTION SHALL NOT APPLY TO A CONTRACT OR OTHER AGREEMENT THAT
 HAS THE SOLE PURPOSE OF PREVENTING PUBLIC DISCLOSURE OF A TRADE SECRET.
   § 3. This act shall take effect immediately.