SECTION 1.  Chapter 15A of the General Laws, as appearing in the 2012 Official Edition, is hereby amended by inserting after section 42 the following section:

Section 43.  Notwithstanding any general or special law to the contrary, all tuition received by the board of trustees of the University of Massachusetts paid by students who reside in the state shall be retained by the board of trustees in a revolving trust fund or funds and shall be expended as the administration of the campus the student attends directs in accordance with regulations established by the board.  All tuition received by the boards of trustees of the state universities and community colleges paid by students who reside in the state shall be retained by the respective board of trustees in a revolving trust fund or funds and shall be expended as the administration of the institution directs.  Any balance in the trust funds at the close of the fiscal years shall be available for expenditures in subsequent fiscal years and shall not revert to the General Fund.  For any employees of the University of Massachusetts, the state universities, and the community colleges who are paid from tuition retained pursuant to this section, fringe benefits shall be funded as if those employees’ salaries were supported by state appropriations.  This section shall apply only to fringe benefits associated with salaries paid from tuition retained by the boards of trustees of the University of Massachusetts, the state universities, and the community colleges as a direct result of the implementation of this section.