Bill
H 502
If a recipient of Massachusetts EDIP credits relocates its project outside the state within 20 years, it must forfeit or refund the EDIP credits or grants (with a bankruptcy except
Note: The document provided appears to be a Massachusetts bill (House Docket No. 2984, H. 502) rather than a Vermont bill titled “An act relating to charging for actual cost under Vermont’s Public Records Act.” The summary below reflects the content and provisions of the MA bill as supplied. If you intended a Vermont bill, please share the correct text and I will prepare a Vermont-focused summary.
Draft Summary of Massachusetts Bill H.502 (Relative to business relocation after receiving state grant funding)
Overview
- Purpose: To strengthen the terms of Economic Development Incentive Program (EDIP) contracts by requiring repayment or forfeiture of EDIP credits/grants if the recipient relocates outside the Commonwealth within 20 years, with enforcement regulations to be issued by the Attorney General.
- Context: Applies to contracts awarded under MA’s EDIP, aiming to deter relocation and protect public investment in economic development.
Key Provisions
- New Subsection (f) added to Section 3D of Chapter 23A (General Laws):
- Eligibility/Applicability: Applies to EDIP contracts awarded by the Economic Assistance Coordinating Council (EACC) to corporations, sole proprietorships, limited liability companies, or partnerships for a certified project (as defined in Section 3A).
- Forfeiture/Refund Obligation: If the entity relocates outside the Commonwealth within 20 years (and does not declare bankruptcy under 11 U.S.C.), it must forfeit or refund any EDIP credits or grants received.
- Bankruptcy Exception: Bankruptcy status as defined by U.S.C. 11 is referenced; entities that declare bankruptcy are exempt from the forfeiture/refund trigger.
- Enforcement: The Office of the Attorney General is authorized to promulgate regulations to enforce this subsection.
Scope and Affected Parties
- Affected Entities: Any corporation, sole proprietorship, LLC, or partnership that has an EDIP contract with the MA EACC for a certified project.
- Government Actor: Office of the Attorney General tasked with implementing and enforcing the provision through regulations.
Implementation and Enforcement
- Regulatory Action: AG to promulgate regulations to enforce the subsection.
- Enforcement Mechanism: Forfeiture or refund of EDIP credits/grants if relocation occurs within 20 years, subject to bankruptcy exception.
Legislative History (as provided)
- Sponsors: Multiple, including Rep. Vaughn (primary) and several cosponsors.
- Actions:
- Referred to the Committee on Economic Development and Emerging Technologies (2025-02-27)
- Senate concurred
- Read first time and referred to the Committee on Government Operations and Military Affairs (2025-04-09)
- Related Bill: HD 2984 (replaces)
Potential Impacts
- Public policy: Adds a clawback tool to protect incentives and discourage relocation that would undermine public investment.
- Business considerations: May influence corporate decisions on project location, relocation risk, and compliance with EDIP terms.
- Fiscal effects: Potential refunds/recapture of EDIP funds if relocation occurs; regulatory framework to govern enforcement.
If you intended a Vermont Public Records Act bill, please provide the VT text or confirm, and I’ll produce a Vermont-focused summary.
Compiled from official sources — confirm details with the bill’s official record.
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