Gallagher, Kelles, Kim, Epstein, Lunsford, Raga, Hevesi, Burroughs, DeStefano
MLTSPNSR
Add §11-a, UDC Act; add §149, St Fin L; add §99-aa, Gen Muni L; add §107, Ec Dev L
Prohibits confidentiality and non-disclosure provisions from inclusion in contracts pertaining to economic development, entered into by the state or a municipality or any party negotiating on behalf of such governmental entity.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A409
SPONSOR: Solages TITLE OF BILL:
An act to amend the urban development corporation act, the state finance
law, the general municipal law and the economic development law, in
relation to prohibiting confidentiality and non-disclosure provisions
from inclusion in certain contracts entered into by the state or a muni-
cipality
PURPOSE:
To ensure that private parties do not bind state officials with nondis-
closure provisions in a contract, ensuring proper public review.
SUMMARY OF PROVISIONS:
Section 1. Amends Section 1 of chapter 174 of the laws of 1968, consti-
tuting the urban development corporation act, is amended by adding a new
section 11-a.
Section 2. Amends the state finance law by adding a new section 149.
Section 3. Amends the general municipal law is amended by adding a new
section 99-aa.
Section 4. Amends the economic development law by adding section 107.
Section 5. Sets the effective date.
JUSTIFICATION:
Government entities negotiating to spend billions in taxpayer dollars in
secret is an affront to democracy and cannot be allowed. Taxpayers
deserve transparency when their state and local governments are spending
money on economic development deals. This legislation prohibits secrecy
around those deals, prohibiting the state and local agencies and public
authorities from entering into non-disclosure agreements around compet-
itive bids.
SOCIAL JUSTICE IMPACT:
TBD.
LEGISLATIVE HISTORY:
2023-24: A211; referred to governmental operations.
2021-22: A9092; referred to governmental operations,
FISCAL IMELICAIIDNS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
409
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. SOLAGES, GALLAGHER, KELLES, KIM, EPSTEIN, LUNS-
FORD, RAGA, HEVESI -- read once and referred to the Committee on
Governmental Operations
AN ACT to amend the urban development corporation act, the state finance
law, the general municipal law and the economic development law, in
relation to prohibiting confidentiality and non-disclosure provisions
from inclusion in certain contracts entered into by the state or a
municipality
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1 of chapter 174 of the laws of 1968, constituting
2 the urban development corporation act, is amended by adding a new
3 section 11-a to read as follows:
4 § 11-a. Non-disclosure agreements; prohibitions. Notwithstanding any
5 other provision of law to the contrary, no agreement or contract entered
6 into by the state or any instrumentality thereof, any party negotiating
7 on behalf of such governmental entity, any municipality or public corpo-
8 ration for projects, including but not limited to tax incentives,
9 payments in lieu of taxes, tax abatements, bonds, notes, loans, grants
10 or rebates, shall contain any provision, clause or language that
11 provides that the contract or agreement or any of its terms are confi-
12 dential or that the parties to the agreement or contract are prohibited
13 from disclosing, discussing, describing or commenting upon the terms of
14 the agreement or contract.
15 § 2. The state finance law is amended by adding a new section 149 to
16 read as follows:
17 § 149. Non-disclosure agreements; prohibitions. Notwithstanding any
18 other provision of law to the contrary, no agreement or contract entered
19 into by the state or any state agency or public authority for economic
20 development, or any party negotiating on behalf of such governmental
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00825-01-5
A. 409 2
1 entity, including but not limited to tax incentives, payments in lieu of
2 taxes, tax abatements, bonds, notes, loans, grants or rebates, shall
3 contain any provision, clause or language that provides that the
4 contract or agreement or any of its terms are confidential or that the
5 parties to the agreement or contract are prohibited from disclosing,
6 discussing, describing or commenting upon the terms of the agreement or
7 contract.
8 § 3. The general municipal law is amended by adding a new section
9 99-aa to read as follows:
10 § 99-aa. Non-disclosure agreements; prohibitions. Notwithstanding any
11 other provision of law to the contrary, no agreement or contract entered
12 into by a municipal corporation, political subdivision, any party nego-
13 tiating on behalf of such governmental entity, public authority or local
14 authority for economic development, including but not limited to tax
15 incentives, payments in lieu of taxes, tax abatements, bonds, notes,
16 loans, grants or rebates, shall contain any provision, clause or
17 language that provides that the contract or agreement or any of its
18 terms are confidential or that the parties to the agreement or contract
19 are prohibited from disclosing, discussing, describing or commenting
20 upon the terms of the agreement or contract.
21 § 4. The economic development law is amended by adding a new section
22 107 to read as follows:
23 § 107. Non-disclosure agreements; prohibitions. Notwithstanding any
24 other provision of law to the contrary, no agreement or contract entered
25 into by the state or any instrumentality thereof, any party negotiating
26 on behalf of such governmental entity, any municipality or public corpo-
27 ration for economic development, including but not limited to tax incen-
28 tives, payments in lieu of taxes, tax abatements, bonds, notes, loans,
29 grants or rebates, shall contain any provision, clause or language that
30 provides that the contract or agreement or any of its terms are confi-
31 dential or that the parties to the agreement or contract are prohibited
32 from disclosing, discussing, describing or commenting upon the terms of
33 the agreement or contract.
34 § 5. This act shall take effect immediately.
