SECTION 1. Chapter 29 of the General Laws is hereby amended by inserting after section 2VVVV the following:-

Section 2WWWW. There shall be established and set upon the books of the commonwealth a separate fund to be known as the Prison Mitigation Fund, which shall be used exclusively for cities and towns hosting department of correction facilities.  Amounts credited to the fund shall be administered by the department of correction.

There shall be credited to the fund, revenue from appropriations or other monies authorized by the general court and specifically designated to be credited to the fund and investment income earned on the fund’s assets, and all other sources. Money remaining in the fund at the end of the fiscal year shall not revert to the General Fund.

One hundred per cent of the monies deposited in the fund, but not less than $2,000,000 in the aggregate, in each fiscal year shall be distributed to each said city and town in accordance with the following formula: the aggregate amount in the fund divided by the average daily prisoner population at all department of correction facilities, multiplied by the average daily prisoner population located within said city or town.