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Advocacy in Action

August 2026

President's Bulletin August 2024

MHTC Policy & Advocacy Updates from Elizabeth Mahoney

2025-2026 Legislative Session Wrap-Up: Key Outcomes & What Comes Next

Dear Massachusetts High Technology Council Members,

On July 31, the Legislature wrapped up most of the formal work for its 2025-2026 session. A number of bills were finalized and sent to the Governor’s desk. Roughly a dozen more were placed into a “conference committee,” where House and Senate negotiators will iron out differences between the two branches.

Under new legislative rules, the Legislature has until the end of the year to consider any bills that were placed into a conference committee by July 31. Those eleven bills cover a range of significant topics, including economic development, data privacy, election reforms, energy affordability, and health care.

Engagement in the legislative process is one way in which the Council advances policy priorities that will help improve the state’s business climate, strengthen our innovation economy, and make Massachusetts a better place to live, work, invest, and build and grow a business. The Council has been actively engaging with the Legislature on key Council priorities and will continue to do so as the session continues.

Economic Development

The House and Senate both passed extensive economic development bills in July, building on the bill filed by Governor Healey in April, and these bills are now in a conference committee. These bills advance several Council priorities aimed at strengthening the Commonwealth’s innovation economy.

The Council submitted testimony on the Governor’s proposal in May and recently sent a letter to legislative leadership outlining our priorities for what should (and shouldn’t) emerge in the final compromise legislation.

Highlights

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    Funding for Key Sectors: Both the House and Senate versions include funding for the state’s defense ecosystem, AI and emerging technologies, robotics, and “bridge funding” for higher ed institutions impacted by the loss of federal research funding.

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    Lowering the Cost of Doing Business: Both bills would reduce the initial LLC filing fee from $500 to $100 and establish a more proportionate annual fee structure. This is a practical step toward making Massachusetts more welcoming to entrepreneurs and small businesses.

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    Stimulating Housing Production: Both bills seek to address the state’s affordability challenges by making it easier to build housing, including a Council-backed initiative allowing multifamily housing on qualifying religious-institution property (House), supporting commercial-to-residential conversions (both), and allowing two-family housing by right on residential lots (Senate).

Areas of Concern

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    Frontier AI Regulation: The Senate’s bill would establish state-specific rules governing frontier AI development. While Massachusetts should lead in responsible AI development, deployment, and governance, the Council urges caution in imposing a state-specific regime that could make the Commonwealth less attractive for advanced research, model development, computing infrastructure, or commercialization.

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    Altering the Revenue Growth Limit: The Senate also included language that would weaken the state’s revenue growth limit, an important taxpayer protection. A Council-backed ballot question to strengthen the growth limit will appear on the November ballot. The Council urges the Legislature to reject any attempt to weaken the law.

The Council will continue to advocate for an economic development bill that will strengthen and not weaken Massachusetts’ innovation economy.

Ballot Initiative Reforms

Another conference committee is considering reforms to the ballot initiative process. These bills would impose new restrictions on the gathering of signatures for initiative petitions, revise campaign finance reporting requirements for ballot question committees, and set up a commission to consider additional reforms.

The initiative petition process remains one of the Commonwealth’s most important constitutional safeguards, providing citizens with a meaningful avenue to advance policy proposals when issues of broad public concern are not receiving timely legislative consideration. As an indication of the voter frustration that has led to a proliferation of ballot questions, citizens have already filed eighteen proposals for the 2028 ballot, a year in advance of the deadline for such proposals.

At the same time, recent election cycles have revealed several deficiencies with the current system that warrant reform. Notably, a widely popular income tax cut proposal was removed from this year’s ballot by the Supreme Judicial Court because of deficiencies in the summary of the question written by the Attorney General.

The Council sent a letter to this conference committee expressing our support for reforms that will improve transparency and accountability without making the process unnecessarily burdensome or favoring one constituency over another.

Data Privacy

House and Senate negotiators are also working to reconcile differences between House and Senate bills establishing a consumer data privacy framework.

The Council supports reasonable protections for consumers while encouraging lawmakers to adopt a balanced approach that safeguards innovation and avoids unnecessary compliance burdens, particularly for smaller and growing businesses. The Council joined a coalition of business organizations urging the Legislature to enact a practical, balanced data privacy framework.

Other Session Highlights

In June, the Legislature and Governor approved Council-backed early literacy legislation that expands evidence-based reading instruction and will help more students build the foundational skills needed for lifelong success.

Additionally, now that the July 31 deadline for most legislative action has passed, any controversial legislation that wasn’t finalized or placed into a conference committee is unlikely to advance this legislative session. That includes a bill, opposed by the Council, that would have increased corporate taxes for certain multinational companies. We are glad to see the Legislature disregard this misguided proposal.

As conference committees continue their work on several major bills, the Council will remain actively engaged to advance policies that strengthen Massachusetts’ innovation economy, improve competitiveness, and expand opportunity across the Commonwealth. We will continue to keep members informed as these issues move forward in the months ahead. As always, please contact me at elizabeth@mhtc.org to learn more about these priorities or share your organization’s perspective.