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H 2761

An Act to relative to the revolving door between regulatory agencies and regulated industry

194th Legislature (2025-2026) Introduced by Nick Boldyga

Imposes a 5-year cooling-off for former Massachusetts regulators before joining any regulated entity, with ethics commission enforcement and annual reporting to curb conflicts.

Accompanied a study order, see H5312 (under House Rule 27)
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Bill Summary · H 2761

Summary: H 2761 — An Act relative to the revolving door between regulatory agencies and regulated industry

Purpose and scope

  • Establishes a mandatory “cooling-off” period for former Massachusetts regulatory agency employees before they may work for entities within the regulated industries they oversaw.
  • Aims to reduce potential conflicts of interest, undue influence, or appearances of impropriety arising from the transition between public regulatory work and private sector employment.

Key provisions

Section 1 — Definitions

  • Regulatory Agency: Any MA department, commission, board, council, authority, or similar entity with regulatory, licensing, or oversight responsibilities.
  • Regulated Industry: Any business or entity regulated or licensed by a MA regulatory agency.
  • Cooling-Off Period: The prohibition window after state employment ends, during which former regulators are barred from certain activities with regulated entities.

Section 2 — Cooling-Off Period

  • A former regulator cannot:
    • Accept employment with,
    • Become a consultant for,
    • Provide services to, or
    • Enter into any contractual agreement with any entity within a regulated industry that was under the oversight of the agency where they previously worked.
  • Duration: 5 years after termination of state employment.
  • Applies to subsidiaries, parent companies, and affiliates of the regulated entity if influence over regulatory matters could be perceived.

Section 3 — Exceptions

  • Exceptions may be granted by the State Ethics Commission.
  • Conditions for exception:
    • Employment/contract does not involve matters directly related to duties of the prior agency.
    • Applicant demonstrates no conflict of interest, undue influence, or appearance of impropriety.
  • Requires a written application and Commission approval.

Section 4 — Enforcement

  • State Ethics Commission authorized to:
    • Investigate violations,
    • Impose civil penalties up to $50,000 per violation,
    • Seek injunctions to prevent prohibited employment/contracts,
    • Order divestiture of financial benefits gained in violation.
  • Any contract or employment entered in violation may be voidable by the Commonwealth.

Section 5 — Reporting Requirement

  • All regulatory agencies must annually report to the State Ethics Commission:
    • Names and positions of employees who left the agency in the past year.
    • Names of regulated entities where these former employees sought or accepted employment or contracts within the five-year cooling-off period.

Definitions (recap)

  • Clear definitions for “Regulatory Agency,” “Regulated Industry,” and “Cooling-Off Period” to guide scope and enforcement.

Legislative status and timeline

  • Introduced: February 27, 2025.
  • Referred to the Committee on Public Service.
  • Senate concurred on the same date.
  • Current action: Hearing rescheduled to September 22, 2025 (from 1:00 PM–3:10 PM) in A-2 with a virtual option; updated to a later end time (new end time reported as 5:00 PM).
  • Related bill: HD 3476 (replaces).

Potential impact

  • Affects former state regulatory employees and the regulated entities they might join.
  • Increases transparency via annual ethics reporting.
  • Creates potential delays or barriers for regulatory insiders seeking private-sector roles with regulated industries.
  • Provides a framework for exceptions but places a high bar on potential conflicts.

Stakeholders

  • State Ethics Commission, regulatory agencies, and regulated industries.
  • Former regulators seeking private-sector roles; watchdog groups focusing on ethics and government accountability.

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

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