What's happening
This bill prohibits confidentiality and non-disclosure clauses in state or municipal economic development contracts in New York.
Why it matters
Increases public transparency. By banning confidentiality and non-disclosure clauses in economic development contracts, the bill ensures that the public and media can access and scrutinize the terms of deals involving taxpayer funds, such as tax breaks or grants to private companies.
Limits secrecy in government-business agreements. The prohibition applies not just to the state, but to all municipalities, public corporations, and local authorities, preventing companies from negotiating secret terms when seeking public subsidies or incentives.
Empowers local stakeholders. Communities affected by economic development projects—such as new factories or headquarters—will have the right to know the details of agreements made in their name, potentially influencing local support, opposition, or oversight.
Addresses accountability and fair competition. By making contract terms public, the bill aims to prevent backroom deals and ensure a more level playing field where all businesses and taxpayers are aware of the incentives and requirements involved.
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Who cares
State economic development agencies and public authorities
The bill would bar confidentiality and nondisclosure clauses in their economic development contracts, including agreements for tax incentives, loans and grants.
Municipalities and local authorities
The bill would prohibit them from keeping economic development agreements or their terms confidential through contract provisions.
Businesses receiving economic development incentives
Their agreements with covered government entities could not prohibit parties from disclosing, discussing or commenting on the terms.
Reporters and government transparency advocates
The bill would remove contractual restrictions on parties discussing covered project and economic development agreements.
Headline styles
Ban Contract Secrecy Clauses
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3402
2019-2020 Regular Sessions
IN SENATE
February 6, 2019
Introduced by Sen. GIANARIS -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions
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 Assembly, do enact as follows:
Section 1. Section 1 of chapter 174 of the laws of 1968, constituting the urban development corporation act, is amended by adding a new section 11-a to read as follows:
§ 11-a. Non-disclosure agreements; prohibitions. Notwithstanding any other provision of law to the contrary, no agreement or contract entered into by the state or any instrumentality thereof, any municipality or public corporation for projects, including but not limited to tax incentives, payments in lieu of taxes, tax abatements, bonds, notes, loans, grants or rebates, shall contain any provision, clause or language that provides that the contract or agreement or any of its terms are confidential or that the parties to the agreement or contract are prohibited from disclosing, discussing, describing or commenting upon the terms of the agreement or contract.
§ 2. The state finance law is amended by adding a new section 148 to read as follows:
§ 148. Non-disclosure agreements; prohibitions. Notwithstanding any other provision of law to the contrary, no agreement or contract entered into by the state or any state agency or public authority for economic development, including but not limited to tax incentives, payments in lieu of taxes, tax abatements, bonds, notes, loans, grants or rebates, shall contain any provision, clause or language that provides that the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06777-01-9
S. 3402 2
contract or agreement or any of its terms are confidential or that the parties to the agreement or contract are prohibited from disclosing, discussing, describing or commenting upon the terms of the agreement or contract.
§ 3. The general municipal law is amended by adding a new section 99-x to read as follows:
§ 99-x. Non-disclosure agreements; prohibitions. Notwithstanding any other provision of law to the contrary, no agreement or contract entered into by a municipal corporation, political subdivision, public authority or local authority for economic development, including but not limited to tax incentives, payments in lieu of taxes, tax abatements, bonds, notes, loans, grants or rebates, shall contain any provision, clause or language that provides that the contract or agreement or any of its terms are confidential or that the parties to the agreement or contract are prohibited from disclosing, discussing, describing or commenting upon the terms of the agreement or contract.
§ 4. The economic development law is amended by adding a new section 107 to read as follows:
§ 107. Non-disclosure agreements; prohibitions. Notwithstanding any other provision of law to the contrary, no agreement or contract entered into by the state or any instrumentality thereof, any municipality or public corporation for economic development, including but not limited to tax incentives, payments in lieu of taxes, tax abatements, bonds, notes, loans, grants or rebates, shall contain any provision, clause or language that provides that the contract or agreement or any of its terms are confidential or that the parties to the agreement or contract are prohibited from disclosing, discussing, describing or commenting upon the terms of the agreement or contract.
§ 5. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the urban development corporation act, the state finance law, the general municipal law and the economic devel- opment law, in relation to prohibiting confidentiality and non-disclo- sure provisions from inclusion in certain contracts entered into by the state or a municipality
Purpose
To ensure that private parties do not bind state officials with nondis- closure provisions in contract, ensuring proper public review.
Summary of provisions
Section 1 amends chapter 174 of the laws of 1968, constituting the urban development corporation act, adding a new section 11-a prohibiting nondisclosure agreements in any such contracts
Section 2 amends the state finance law, adding a new section 148 to prohibit non-disclosure provisions in contracts between the state, state agencies, and public authorities and outside entities.
Section 3 amends the general municipal law, adding a new section 99-x, prohibiting non-disclosure provisions in contracts between munici- palities and outside entities
Section 4 amends the economic development law, adding a new section 107, prohibiting non-disclosure agreements in any such contracts.
Justification
Government entities negotiating away billions of 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, municipalities, state and local agencies and public authorities from entering in to non-disclosure agreements around competitive bids.
Prior legislative history
New Bill
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.