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Bill

H 502

An Act relative to business relocation after receiving state grant funding

194th Legislature (2025-2026) Introduced by Marcus Vaughn

Prohibits state-grant-funded businesses from relocating outside Massachusetts for a set period, protecting taxpayer investment and preserving local jobs created through state economic development funding.

Accompanied a study order, see H5178
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Bill Summary · H 502

Legislative bill overview

H 502 establishes restrictions on businesses that receive state grant funding, preventing them from relocating operations outside Massachusetts within a specified timeframe after receiving such funds. The bill aims to ensure that state economic development investments benefit the local economy and workforce by keeping funded businesses anchored in the state.

Why is this important

State grant programs represent taxpayer investment intended to stimulate economic growth and job creation. Without relocation restrictions, businesses could receive public funding and then move operations elsewhere, diminishing the intended public benefit. This bill seeks to protect the state's return on investment in economic development initiatives.

Potential points of contention

  • Business flexibility concerns: Companies may argue that restricting relocation limits their ability to respond to market conditions, operational needs, or competitive pressures, potentially making Massachusetts less attractive for business investment
  • Duration and enforcement: The specific timeframe for the restriction and enforcement mechanisms are critical—overly long periods could be deemed punitive, while short periods may offer insufficient protection of public investment
  • Definition scope: Ambiguity about what constitutes "relocation," which entities qualify, and what grant amounts trigger these restrictions could create implementation challenges and potential loopholes

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

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