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HB 2359

An Act amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in computer data center equipment incentive program, further providing for definitions, for application for certification, for eligibility requirements relating to sales and use tax refund program, for notification, for eligibility requirements relating to sales and use tax exemption program and for notification and records.

2025-2026 Regular Session Introduced by Scott Barger and 52 co-sponsors

Prohibits confidentiality in data center agreements with state agencies, requiring public disclosure of related information and voiding any post-enactment NDA provisions.

Third consideration and final passage
0
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Bill Summary · HB 2359

Summary of Pennsylvania HB 2359 (2025-2026)

Purpose of the Bill

HB 2359 adds a new section to the Pennsylvania Right-to-Know Law (RTKL) to prohibit nondisclosure agreements (NDAs) related to the construction, development, or location of data centers. The bill aims to ensure public access to information about data center projects by banning confidentiality provisions that would restrict disclosure to the public. It clarifies that any agreement or contract entered after the effective date that violates this prohibition is void and unenforceable.

Key Provisions

  • New Section 508 – Nondisclosure Agreements

    • Prohibition (a)(1): An agency may not enter into an agreement with a person regarding a data center that requires confidentiality, nondisclosure, or otherwise restricts the agency from disclosing information to the public.
    • Enforceability (a)(2): Any agreement, contract, or contract provision entered after the effective date that violates the prohibition is deemed contrary to public policy and is void and unenforceable.
    • Definition (b): Defines “data center” as a facility, campus, or array of interconnected facilities used by a business entity or other enterprise to operate, manage, or maintain computers or hardware/software for the primary purpose of processing, storing, retrieving, or transmitting data.

  • Effective Date (Section 2): The act takes effect immediately upon enactment.

Who and What is Affected

  • Affected Parties: Commonwealth agencies (and potentially local, judicial, or legislative agencies covered by RTKL) that engage with individuals or entities in the context of data center construction, development, or location.
  • Impacted Information: Public access to information about data center projects that would otherwise be restricted by confidentiality agreements. The bill seeks to prevent NDAs from blocking disclosure of such information to the public.

Procedural and Timeline Aspects

  • Referral and Status: The bill was introduced on April 6, 2026, and referred to the House Committee on Energy.
  • Ambiguities/Considerations:
    • The text specifies immediate effect, meaning the prohibition would apply as soon as the bill becomes law.
    • The definition of “data center” is broad, covering facilities and interconnected facilities used for processing, storage, retrieval, or transmission of data.
    • The bill does not specify carve-outs for sensitive security, proprietary methods, or trade secrets beyond the general public-disclosure mandate; it centers on preventing confidentiality that would shield data center-related information from public access.

Potential Impacts

  • Transparency and Oversight: Increased public transparency for data center projects within the Commonwealth, enabling greater public scrutiny of siting, cost, contracts, environmental impact, incentives, and related arrangements.
  • Contracting Practices: Agencies would need to vet NDAs or confidentiality clauses in data center-related agreements to ensure they do not impede public disclosure.
  • Business and Economic Impacts: Possible changes to how data center developers negotiate terms with state or local agencies; potential effect on incentives, permitting processes, and disclosure of project details.

Notes for Readers

  • This summary reflects the bill’s text as filed (HB 2359, 2025-2026) and focuses on the new Section 508 of the RTKL. If enacted, the act would modify public-record access related to data center projects by prohibiting confidentiality provisions that bar disclosure.

Compiled from official sources — confirm details with the bill’s official record.

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