Session Laws

Be it enacted by the People, and by their authority, as follows:

SECTION ONE. Section 18A of Chapter 58 of the General Laws is hereby repealed.

SECTION TWO. Section 18C of Chapter 58 of the General Laws is hereby repealed and replaced with the following new section:

Section 18C. For fiscal year 1992, the State Treasurer shall, subject to appropriation and upon certification of the Commissioner, distribute the entirety of the Local Aid Fund established pursuant to M.G.L. c.29 Sec.2D, including but not limited to forty (40%) percent of the sales tax, forty (40%) percent of the income tax, and forty (40%) percent of the corporate income tax as well as the balance of the State Lottery Fund, in accordance with the provisions of this section. The distribution will be made in four equal payments. Said payments shall be made on or before September thirtieth, December thirty-first, March thirty-first and June thirtieth.

1. The amount distributed under this section to any city or town shall not be less than one hundred percent of the total actually received by said city or town under M.G.L. c.58, Sec.18A, and M.G.L. c.58, Sec.18C, and M.G.L. c.10, Sec.35 for fiscal year 1989.

2. In the event that the amount credited to the Local Aid Fund and appropriated to cities and towns for fiscal year 1992 is greater than the amount credited to the Local Aid Fund and appropriated to cities and towns for fiscal year 1989, then, fifty (50%) percent of the excess shall be distributed to the cities and towns, with each city and town receiving an amount equal to fifty (50%) percent of such excess multiplied by a fraction, the numerator of which shall be the number of persons who reside in such city of town, the denominator of which shall be the number of persons who reside in the Commonwealth. Fifty (50%) percent of such excess shall be distributed to the cities and towns with each city and town receiving an amount determined in accordance with the same formula used in determining the distribution to cities and towns for fiscal year 1989 updated to reflect the current demographics, fiscal conditions and population of each locality.

For purposes of this section, the following words shall have the following meanings:

(a) "Persons who reside in the Commonwealth", the total population of the Commonwealth as enumerated in the most recent official state census conducted by the state secretary or in the most recent official federal census, adjusted by the commissioner to conform as nearly as possible to the same definitions as used in such state census.

(b) "Persons who reside in such city or town", the population of the city or town as enumerated in the most recent official state census conducted by the state secretary or in the most recent official federal census, adjusted by the commissioner to conform as nearly as possible to the same definitions as used in such state census.

This section shall take effect upon passage.

SECTION THREE. Chapter 58 of the General Laws is hereby amended by adding the following section:

Section 18C. Commencing with fiscal year 1993, and continuing thereafter, the State Treasurer shall, subject to appropriation and upon certification of the Commissioner, annually distribute the Local Aid Fund established pursuant to M.G.L. c.29 Sec.2D, including but not limited to forty (40%) percent of the sales tax, forty (40%) percent of the income tax and forty (40%) percent of the corporate income tax as well as the balance of the State Lottery Fund, in accordance with the provisions of this section. The distribution will be made in four equal payments. Said payments shall be made annually, in each fiscal year, on or before September thirtieth, December thirty-first, March thirty-first and June thirtieth.

(1) The amount distributed under this section to any city or town shall not be less than one hundred percent of the sum of the total amounts actually received by said city or town under M.G.L. c.58, Sec.18A and M.G.L. c.58, Sec.18C and M.G.L. c.10, Sec.35, for the preceding fiscal year, unless the amount credited to the Local Aid Fund in the current fiscal year is less than the amount credited to the Local Aid Fund, as certified by the Commissioner in the preceding fiscal year.

(2) In the event that the amount credited to the Local Aid Fund and appropriated to cities and towns in any fiscal year is greater than the amount credited to the Local Aid Fund and appropriated to cities and towns in the preceding fiscal year, the excess shall be distributed to each city and town as determined by the Secretary of Administration and Finance with the advice and consent of the Local Government Advisory Committee operating pursuant to G.L. c.3, Sec.62.

The distribution shall be made such that each city and town in the Commonwealth shall receive some portion of these excess funds and such that no city or town shall receive less than such city or town received in the previous fiscal year.

(3) In the event that the amount credited to the Local Aid Fund and appropriated in any fiscal year to cities and towns is less than the amount credited to the Local Aid Fund and appropriated to cities and towns in the preceding fiscal year, then such deficiency shall be applied against each city and town, such that the distribution to each city and town in the current fiscal year shall equal the distribution in the previous fiscal year, multiplied by a fraction the numerator of which is the total amount available for distribution in the current year and the denominator of which is the total amount distributed in the previous fiscal year.

This section shall take effect as of January 1, 1991.

SECTION FOUR. The Treasurer shall publish by July 15 of each year a statement indicating: (1) the total amount of revenue credited to the Local Aid Fund; (2) the amount of revenue from the Local Aid Fund appropriated to the cities and towns; and, (3) the amount of revenue from the Local Aid Fund to be distributed to each city and town from that Fund and the dates that the quarterly payments will be made.

SECTION FIVE. In fiscal year 1991 and in each succeeding fiscal year, the Auditor of the Commonwealth shall publish an audit of the Local Aid Fund, showing: (1) the total amount of revenue derived from the income tax, sales tax, and corporate income tax as well as the balance of the state lottery fund after the payment of prizes and expenses of operation; (2) the amount of revenue that was actually credited to the Local Aid Fund; (3) the amount of revenue from the Local Aid Fund that was appropriated to the cities and towns; and, (4) the amount of revenue that was actually distributed from the Local Aid Fund to each city and town. The audit shall include the actual disposition of all revenue credited to the Local Aid Fund.

SECTION SIX. If any quarterly distribution as is required by this statute is not made, any city or town, singly or collectively, may bring an action in the nature of mandamus in the Superior Court against the Commonwealth to require the distribution to be made in accordance with this statute. The court may advance such action to the top of its docket for speedy resolution of these claims. Any city or town not receiving a timely distribution of funds and required by this statute shall be entitled to a late payment fee to be paid by the Commonwealth equal to twenty-five (25%) percent of the city's or towns' quarterly distribution entitlement as determined by the statement published by the Treasurer and Receiver-General pursuant to Section 4 of this statute.

SECTION SEVEN. No later than March 1 of fiscal year 1991 and no later than March 1 in each succeeding year, the Secretary of Administration and Finance shall issue to each city and town a report of estimated receipts to be received from the Local Aid Fund to be used by each city and town in preparing its budget and calculating its tax rate. `t+99