Bill
HD 4147
Creates a dedicated, governed fund to seed early-stage Massachusetts student ventures, with strict within-state use and annual reporting.
Status: Senate concurred; Introduced February 27, 2025
Purpose and core idea
- Establishes a dedicated “Student Entrepreneurial Development and Economic Investment Fund” (referred to as the student investment fund) within the Commonwealth’s budget, to support early-stage student ideas that aim to develop prototypes and contribute to Massachusetts’ economic growth.
- Aims to create hands-on entrepreneurial experience for students, strengthen ties between public higher education and Massachusetts’ business community, and attract students to remain or relocate to the Commonwealth for economic opportunities.
Key provisions and mechanics
- Creation of the fund: A separate fund in Chapter 23A (new Section 10C) to hold appropriations, bond proceeds, pension funds, federal grants/loans, and private donations designated for the fund. Monies are to be kept separate from other funds.
- Governance: An Investment Board oversees the fund with the following members
- Secretary of Economic Development (Chair)
- Chair of the Board of Higher Education (Vice-Chair)
- President of the Massachusetts Technology Development Corporation (MTDC) or designee
- Executive Director of Commercial Ventures and Intellectual Property or designee
- Two private Massachusetts-based investors (selected by the Chair in consultation with MTDC President)
- Three student representatives (one selected by the UMass representative to the Board of Higher Education; one by the state college representative; one by the community college representative)
- The Board of Higher Education chair will establish a student application program to assist in selecting student members
- Decision-making: Five members constitute a quorum; affirmative vote of five members required for any action. Vacancies do not impair the right of a quorum to act.
- Fund purpose and use: Grants for prototype funding of Massachusetts student ideas in early development stages, with development activities required to occur within the Commonwealth. Separation of funds and explicit prohibition on relocating outside Massachusetts (enforcement rules to be promulgated by the Secretary of Economic Development).
- Annual grant cap and flexibility: There is no fixed cap on the number of grants per year; however, the total amount of all grants distributed in a fiscal year cannot exceed 20% of the fund’s first-year balance.
- Application and review process: The board will hold periodic hearings where students (with statements of interest and initial business plans) can present comprehensive business plans detailing product/service characteristics, markets, development/funding strategies, requested capital (amount and timing), and projected employment/economic impact. Comprehensive plans may be developed with input from the Massachusetts Technology Transfer Center at the University of Massachusetts.
- Reporting: By January 1 each year, the board must report its activities for the prior fiscal year to the Governor, the Joint Committee on Economic Development and Emerging Technologies, and the clerks of the House and Senate. Reports must include a full financial statement and any requests for additional appropriations.
Who is affected
- Students across Massachusetts looking to commercialize ideas in higher education settings.
- Public higher education institutions (UMass system, state colleges, and community colleges) through representation on the Investment Board and potential collaboration via the planning process.
- The Commonwealth’s economic development ecosystem, including the MTDC and entities involved in commercialization and intellectual property, as well as private Massachusetts-based investors.
Timeline and procedural notes
- Filed: January 17, 2025 (House Docket No. 4147)
- Referred to: Economic Development and Emerging Technologies
- Senate concurrence achieved as part of the 2025-2026 session actions
- Annual reporting requirement begins after the fund’s first full fiscal year of operation
Overall impact
- Creates a formal, student-focused venture fund with governance and reporting structures intended to seed early-stage student ventures within Massachusetts.
- Establishes safeguards to keep funds within the Commonwealth and aligns educational and private sector participation to drive regional economic growth.
Compiled from official sources — confirm details with the bill’s official record.
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