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| 2 | 2 | | HOUSE DOCKET, NO. 3476 FILED ON: 1/17/2025 |
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| 3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 2761 |
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| 4 | 4 | | The Commonwealth of Massachusetts |
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| 5 | 5 | | _________________ |
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| 6 | 6 | | PRESENTED BY: |
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| 7 | 7 | | Nicholas A. Boldyga |
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| 8 | 8 | | _________________ |
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| 9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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| 10 | 10 | | Court assembled: |
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| 11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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| 12 | 12 | | An Act to relative to the revolving door between regulatory agencies and regulated industry. |
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| 13 | 13 | | _______________ |
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| 14 | 14 | | PETITION OF: |
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| 15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Nicholas A. Boldyga3rd Hampden1/17/2025 1 of 3 |
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| 16 | 16 | | HOUSE DOCKET, NO. 3476 FILED ON: 1/17/2025 |
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| 17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 2761 |
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| 18 | 18 | | By Representative Boldyga of Southwick, a petition (accompanied by bill, House, No. 2761) of |
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| 19 | 19 | | Nicholas A. Boldyga for legislation to regulate the employment of former employees of certain |
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| 20 | 20 | | regulatory agencies. Public Service. |
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| 21 | 21 | | The Commonwealth of Massachusetts |
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| 22 | 22 | | _______________ |
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| 23 | 23 | | In the One Hundred and Ninety-Fourth General Court |
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| 24 | 24 | | (2025-2026) |
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| 25 | 25 | | _______________ |
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| 26 | 26 | | An Act to relative to the revolving door between regulatory agencies and regulated industry. |
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| 27 | 27 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 28 | 28 | | of the same, as follows: |
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| 29 | 29 | | 1 Section 1. Definitions |
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| 30 | 30 | | 2 As used in this act, the following words shall have the following meanings unless the |
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| 31 | 31 | | 3context clearly requires otherwise: |
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| 32 | 32 | | 4 (a) "Regulatory Agency" means any department, commission, board, council, authority, |
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| 33 | 33 | | 5or other agency of the Commonwealth of Massachusetts that has regulatory, licensing, or |
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| 34 | 34 | | 6oversight responsibilities over any industry, business, or profession. |
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| 35 | 35 | | 7 (b) "Regulated Industry" means any business, corporation, or entity subject to regulation, |
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| 36 | 36 | | 8oversight, or licensing by a regulatory agency of the Commonwealth. |
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| 37 | 37 | | 9 (c) "Cooling-Off Period" means the period during which a former employee of a |
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| 38 | 38 | | 10regulatory agency is prohibited from employment, consulting, or engaging in any contractual |
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| 39 | 39 | | 11relationship with a regulated industry or any of its affiliates. 2 of 3 |
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| 40 | 40 | | 12 Section 2. Cooling-Off Period |
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| 41 | 41 | | 13 (a) A former employee of any regulatory agency in the Commonwealth of Massachusetts |
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| 42 | 42 | | 14shall be prohibited from: |
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| 43 | 43 | | 15 (1) Accepting employment with, |
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| 44 | 44 | | 16 (2) Becoming a consultant for, |
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| 45 | 45 | | 17 (3) Providing services to, or |
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| 46 | 46 | | 18 (4) Entering into any contractual agreement with |
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| 47 | 47 | | 19 any entity within a regulated industry that was under the oversight, regulation, or |
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| 48 | 48 | | 20licensing of the agency where the individual was employed for a period of five (5) years after the |
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| 49 | 49 | | 21termination of their state employment. |
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| 50 | 50 | | 22 (b) This prohibition extends to any subsidiary, parent company, or affiliate of the |
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| 51 | 51 | | 23regulated entity where a direct or indirect influence over regulatory matters could be perceived. |
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| 52 | 52 | | 24 Section 3. Exceptions |
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| 53 | 53 | | 25 Exceptions to the cooling-off period may be granted by the State Ethics Commission only |
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| 54 | 54 | | 26under the following conditions: |
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| 55 | 55 | | 27 (a) The employment or contract does not involve matters directly related to the duties or |
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| 56 | 56 | | 28responsibilities of the regulatory agency the individual previously served in. |
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| 57 | 57 | | 29 (b) The individual can demonstrate that the proposed employment or contract would not |
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| 58 | 58 | | 30result in any conflict of interest, undue influence, or appearance of impropriety. 3 of 3 |
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| 59 | 59 | | 31 Such exceptions shall require a written application and approval by the State Ethics |
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| 60 | 60 | | 32Commission. |
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| 61 | 61 | | 33 Section 4. Enforcement |
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| 62 | 62 | | 34 (a) The State Ethics Commission shall have the authority to investigate violations of this |
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| 63 | 63 | | 35act, impose fines, and seek remedies including but not limited to: |
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| 64 | 64 | | 36 (1) Civil penalties not to exceed $50,000 for each violation. |
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| 65 | 65 | | 37 (2) Injunctions to prevent employment or contracts in violation of this act. |
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| 66 | 66 | | 38 (3) Mandatory divestiture of any financial benefit gained through violation of this act. |
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| 67 | 67 | | 39 (b) Any employment or contract entered into in violation of this act shall be voidable at |
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| 68 | 68 | | 40the option of the Commonwealth. |
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| 69 | 69 | | 41 Section 5. Reporting Requirement |
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| 70 | 70 | | 42 All regulatory agencies must submit an annual report to the State Ethics Commission |
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| 71 | 71 | | 43detailing: |
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| 72 | 72 | | 44 (a) The names and positions of employees who have left the agency within the last year. |
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| 73 | 73 | | 45 (b) The names of any regulated entities where these former employees have sought or |
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| 74 | 74 | | 46accepted employment or contracts within the five-year cooling-off period. |
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