Amendment #467 to H3400

Economic Empowerment Trust Fund

Representatives Bradley of Hingham and Murphy of Weymouth move to amend the bill by adding the following sections:-

SECTION X.  Section 35EE of chapter 10 of the General Laws, as appearing in the 2012 Official Edition, is hereby repealed.

SECTION X.  Chapter 10 of the General Laws, as so appearing, is hereby amended by striking section 35QQ and inserting in place thereof the following:-

Section 35QQ.  (a) There shall be established and set up on the books of the commonwealth an Economic Empowerment Trust Fund to encourage and facilitate economic empowerment throughout the commonwealth, including, but not limited to, financial literacy programs, support the creation of college savings accounts, in cooperation with the Massachusetts educational financing authority, college and career readiness, particularly in the areas of science, technology, engineering, and math, and programming to support and promote wage equality.  The fund shall be administered by the state treasurer, in consultation with the board of trustees established under subsection (b).  The fund shall accept private contributions, publicly or privately-funded grants and funds appropriated by the state or federal government.  No expenditure from the fund shall cause the fund to be in deficiency at the close of the fiscal year.  Monies deposited in the fund that are unexpended at the end of the fiscal year shall not revert to the General Fund and shall be available for expenditure in the subsequent fiscal year.  The fund shall be an expendable trust fund and shall not be subject to appropriation or allotment.

(b) There shall be a board of trustees to consist of 20 members.  There shall be 6 non-voting members, 2 of whom shall be appointed by the president of the senate and 1 of whom shall be appointed by the minority leader of the senate; 2 of whom shall be appointed by the speaker of the house of representatives and 1 of whom shall be appointed by the minority leader of the house of representatives.  The 14 voting members shall consist of the state treasurer or a designee, who shall serve as chair; the attorney general or a designee; the undersecretary of consumer affairs and business regulation or a designee; the commissioner of elementary and secondary education or a designee; the secretary of education or a designee; the secretary of housing and economic development or a designee; and 8 persons to be appointed by the state treasurer who shall have experience in, but not be limited to: (i) education;  (ii) financial services; (iii) biotechnology; (iv) health care; (v) computers and mathematics; (vi) life, physical or social sciences, or; (vii) architecture and engineering.  All non-elected members shall serve for terms of 3 years, but they may be reappointed.  The trust may expend funds to administer the fund, which may include the hiring of professional staff or an annual independent audit of the financial activities of the fund.  The trust may also enter into contracts with private corporations to manage and implement the programmatic fiduciary or administrative goals of the trust, subject to approval of the board of trustees.  The trust may also, to the extent necessary, create a 501(c)(3) corporation to fulfill the purposes of the trust.  The trust may also support and facilitate the establishment of college savings plans, consistent with section 529 of the Internal Revenue Code, in cooperation with the Massachusetts educational financing authority, for students throughout the Commonwealth.  The board of trustees shall develop by-laws and may develop regulations for the implementation of the trust, including guidelines for the establishment of college savings plans.  The state treasurer shall annually report to the clerks of the house and senate all programmatic and financial activities and balances of the fund not later than the last Wednesday in December.

(c) Notwithstanding any general or special law or rule or regulation to the contrary, the state treasurer, members of the board of trustees or their designees shall maximize the balance of the trust by soliciting private donations, gifts, grants and bequests of the trust, including direct and indirect fundraising.

SECTION X.  Notwithstanding any general or special law or rule or regulation to the contrary, the comptroller shall transfer any assets in the custody of the commonwealth covenant fund established pursuant to section 35EE of chapter 10 of the General Laws to the Economic Empowerment Fund established pursuant to section 35QQ of said chapter 10 of the General Laws.

SECTION X.  Section 25 of chapter 118E of the General Laws, as so appearing, is hereby amended by inserting, after subsection (5), the following subsection:-

(6) A college savings plan established and maintained pursuant to, or consistent with, section 529 of the Internal Revenue Code

SECTION X.  Subsection (b) of section 110 of chapter of the acts of 1995, as amended by section 22 of chapter 158 of the acts of 2014, is hereby further amended by inserting at the end thereof the following:- “; provided further, that an assistance unit shall be allowed the value and balance of a college savings plan established and maintained pursuant to, or consistent with, section 529 of the Internal Revenue Code.

Additional co-sponsor(s) added to Amendment #467 to H3400

Economic Empowerment Trust Fund