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Bill

H 3356

Constitutional amendment, sales restrictions

2025-2026 Regular Session Introduced by Todd Rutherford

H.3356 would require nonprofits applying for state grants to disclose financials, foreign donors, existing Commonwealth contracts, and board-connected contracts to state agencies.

Referred to Committee on Judiciary
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Bill Summary · H 3356

Summary: H.3356 An Act relative to transparency for grant applications

Purpose and intent

H.3356 would increase transparency for nonprofit organizations seeking state grant funding in Massachusetts. The bill requires certain disclosures to be provided to relevant state agencies at the time an applicant nonprofit submits an application for a state grant. The overarching goal is to provide the Commonwealth with a clearer view of a nonprofit’s financial and governance relationships, potential conflicts of interest, and connections to the Commonwealth.

Key provisions

  • Scope

    • Applies to nonprofit organizations applying for state grant funding.

  • Disclosures required at application submission

    1. A financial statement containing a full accounting of any existing endowment owned by the nonprofit.
    2. A comprehensive listing of all foreign donors and the amount of money, goods, and/or services donated to the organization within the last five years.
    3. A statement disclosing contracts the nonprofit has with the Commonwealth for goods and/or services rendered.
    4. A statement disclosing existing business contracts between the Commonwealth and members of the nonprofit’s board of directors.

  • Rulemaking and implementation

    • The office of the state Treasurer is charged with promulgating rules, regulations, and related documentation needed to implement the act.

  • Legal framework

    • The provisions include a “Notwithstanding” clause, indicating they would prevail over any conflicting general or special laws to the extent of inconsistency.

Who is affected

  • Primary affected entity: nonprofit organizations seeking state grant funding.
  • State agencies: receiving the disclosed information as part of grant applications.
  • Governance: nonprofit boards, particularly disclosures related to contracts between the Commonwealth and board members.

Procedural and timeline aspects

  • Introduction and sponsors

    • Introduced: February 27, 2025.
    • Presented by Rep. Steven S. Howitt (Seekonk), with accompanying House petition No. 3356.

  • Legislative actions and status

    • Referred to the Joint Committee on State Administration and Regulatory Oversight on February 27, 2025.
    • Similar matter referenced in prior session (HD 3053 of 2023-2024).
    • Hearing scheduled: September 9, 2025, from 10:00 AM to 1:00 PM, in Room A-1 and via virtual option.

  • Related bill

    • Related matter indicated as HD 1164 (replaces), suggesting alignment or replacement with prior or parallel proposals.

Potential impact and considerations

  • Transparency and accountability: The bill would provide the state with more information about nonprofit funding, governance, and relationships with the Commonwealth, potentially reducing conflicts of interest and enhancing oversight.
  • Administrative burden: Nonprofits would incur additional reporting requirements and data gathering, including sensitive financial and donor information.
  • Privacy and policy considerations: The Foreign donors and endowment disclosures could raise privacy concerns for donors and board members; agencies would need to handle sensitive data in accordance with privacy and public records laws.
  • Implementation: A Treasurers’ Office rulemaking process would be required, outlining data formats, submission procedures, timelines, and enforcement expectations.

This summary captures the essential provisions and likely practical effects of H.3356 as introduced.

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

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