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Bill > A2774


NJ A2774

NJ A2774
Prohibits agreements intended to conceal certain information concerning development of data centers under MLUL.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill expressly prohibits applicants, including any agent of an applicant, for the development of a data center, as defined in the bill, from entering into agreements, commonly known as non-disclosure agreements, with approving authorities, municipal agencies, and property sellers. The bill provides that these agreements are against public policy and unenforceable. The bill also provides that an applicant is to attest that at no time did the buyer, or any agent of the buyer, of the real property proposed for development, the developer, or any other party involved in the real estate transaction, enter into any agreement, including a non-disclosure agreement, with the seller that had the purpose or effect of concealing the details, or preventing public review, of the development plans for the property if the applicant is developing a data center. An approving authority or municipal agency is not to approve a minor site plan, minor subdivision, site plan, or subdivision, or grant any other approval required by an approving authority, municipal agency, or enforcing agency, if the applicant violates a provision of this bill. Nothing in this bill is to construed to implicitly permit an applicant from entering into any agreement, including a non-disclosure agreement, that has the purpose or effect of concealing the details, or preventing public review, for the development of any structure other than a data center, to the extent that the "Senator Byron M. Baer Open Public Meetings Act," P.L.1975, c.231 (C.10:4-6 et seq.), or any other law, prohibits these practices.

AI Summary

This bill bans developers building data centers—which are large facilities used to house computer servers, data storage systems, and networking equipment—from using non-disclosure agreements (NDAs) or any other contracts intended to hide development details or block public review of the project. Under this legislation, such secrecy agreements involving local municipal agencies, approving boards, or property sellers are declared legally unenforceable and against public policy. To ensure compliance, developers applying to build a data center must formally attest that no one involved in the real estate transaction ever signed a secrecy agreement with the property seller. If a developer breaks this rule, local planning and zoning boards are strictly prohibited from granting any necessary project approvals, such as site plans or subdivisions. Finally, the legislation clarifies that this ban on data center secrecy does not somehow make NDAs permissible for other types of construction projects, which remain governed by existing transparency laws like New Jersey's Open Public Meetings Act.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Introduced, Referred to Assembly Science, Innovation and Technology Committee (on 01/13/2026)

Bill Topics

Community Development and Housing Issues
  • ‐ Community and Regional Development
Government Operations
  • ‐ Government Transparency and Open Records

bill text


bill summary

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bill summary

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bill summary

Document Type Source Location Created
State Bill Page https://www.njleg.state.nj.us/bill-search/2026/A2774 01/28/2026
BillText https://pub.njleg.gov/Bills/2026/A3000/2774_I2.HTM 09/11/2026
BillText https://pub.njleg.gov/Bills/2026/A3000/2774_I1.HTM 01/28/2026
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