An act relating to fiscal year 2025 budget adjustments

2025-2026 Regular Session

Creates a permanent Massachusetts student investment fund to award prototype grants for student startups, managed by an investment board with rules and annual reporting.

Rep. Scheu of Middlebury moved that the bill be committed to the Committee on Appropriations, which was agreed to

Summary — H.489: Student Entrepreneurial Development and Economic Investment Fund

Status: Introduced Jan 17, 2025. Passed both chambers; delivered to the Governor Apr 3, 2025; vetoed by the Governor Apr 4, 2025. Post‑veto, the bill was committed to the House Committee on Appropriations (motion agreed Apr 9, 2025). A hearing is scheduled for Jun 5, 2025 (11:00 AM–1:00 PM, A‑2).

Purpose / Intent

Create a permanent, separately held state fund—the "student entrepreneurial development and economic investment fund" (student investment fund)—to provide prototype/early‑stage grant funding to Massachusetts students pursuing business ideas. The aim is to give students entrepreneurial experience, strengthen ties between public higher education and the Massachusetts business community, and help attract/retain students in the Commonwealth.

Key provisions

Establishes a new fund in Chapter 23A (inserted as Section 10C) to receive appropriations, bond proceeds, pension funds, federal grants/loans, private donations, or other monies specifically designated for it.

Requires the Secretary of Economic Development to hold the fund in a separate account.

Authorizes an investment board to administer a student grant program for prototype funding; funded projects must be developed within Massachusetts.

Caps the total grant disbursements in any fiscal year at no more than 20% of the fund’s first‑year balance.

Directs the Secretary to promulgate rules, including enforcement and penalties for recipients who relocate outside the Commonwealth.

Requires the board to hold periodic hearings where student applicants present comprehensive business plans (content enumerated in the bill); consultation with the UMass Massachusetts Technology Transfer Center is allowed.

Annual reporting: the board must submit, by January 1 each year, a report on activities and a complete financial statement to the Governor, the Joint Committee on Economic Development and Emerging Technologies, and legislative clerks; reports may include requests for additional appropriations.

Governance / Board composition

Chair: Secretary of Economic Development (or designee).

Vice‑chair: Chair of the Board of Higher Education (or designee).

Other members: president of the Massachusetts Technology Development Corporation (or designee); executive director of commercial ventures and intellectual property (or designee); two private Massachusetts‑based investors (appointed by chair in consultation with MTDC); three student representatives (one each selected via the University, State College, and Community College representatives to the Board of Higher Education).

Quorum/approval: Five members constitute a quorum and five affirmative votes required for action.

Who is affected

Students at Massachusetts public higher‑education institutions (universities, state colleges, community colleges).

The Executive Office of Economic Development, Board of Higher Education, MTDC, and institutional technology transfer offices.

Potentially state fiscal planning if appropriations, pension assets, or other state funds are directed into the new fund.

Notable procedural/timeline points

Passed both chambers and sent to the Governor (Apr 3, 2025); vetoed Apr 4, 2025.

After the veto, the bill was recommitted to the House Committee on Appropriations (Apr 9, 2025).

A committee hearing is scheduled Jun 5, 2025. The bill contains no specific dollar appropriation; actual funding would depend on future appropriations or designated deposits.