Section 4. Notwithstanding the provisions of clause forty-one of section seven of chapter four of the General Laws, or any other general or special law to the contrary, the commissioner of revenue or any other official responsible for a local reimbursement or assistance program reported by said commissioner pursuant to the provisions of section twenty-five A of chapter fifty-eight of the General Laws shall use the nineteen hundred and ninety-four city and town population estimates of the United States Bureau of the Census in calculating distributions or assessments under said local reimbursement or assistance programs. Such distribution programs shall include, but not be limited to, the chapter seventy school aid program, so-called, and aid to regional public libraries. Such assessments shall include, but not be limited to, air pollution control districts, the metropolitan area planning council, the old colony planning council, the Massachusetts Bay Transportation Authority, and any other entity for which said commissioner is required to give notice pursuant to said section twenty-five A.

Section 5. The state treasurer shall make advance payments for some or all of periodic local reimbursement or assistance programs to any city, town, or regional school district that demonstrates an emergency cash shortfall, as certified by the commissioner of revenue and approved by the secretary of administration and finance, pursuant to guidelines established by said secretary.

Section 6. Notwithstanding the provisions of section thirty-one of chapter eighty-one of the General Laws or any other general or special law to the contrary, the portion of the Highway Fund allocated for reimbursements to cities and towns for costs actually incurred in constructing, maintaining, and policing city or town streets or roads, as appropriated in item 6005-0017 of section two of this act, shall be distributed in fiscal year nineteen hundred and ninety-eight in the same proportion as the fiscal year nineteen hundred and ninety-seven distribution of said Highway Fund reimbursements.

Section 7. Notwithstanding the provisions of any general or special law to the contrary, funds in the Commonwealth Sewer Rate Relief Fund, established by section two Z of chapter twenty-nine of the General Laws, shall be available to mitigate sewer rate increases due to debt service obligations created by issuing eligible indebtedness. For the purposes of this section, eligible indebtedness shall be defined as debt issued on or after January first, nineteen hundred and ninety, which has a final date of maturity greater than five years after the date of issuance and which is incurred, wholly or in substantial part, to finance or refinance the costs of planning, design, or construction of any water pollution abatement project, or part thereof, required to be constructed to meet the provisions of the Federal Water Pollution Control Act, 33 USC Sec. 1251 et seq., and sections twenty-six through fifty-three of chapter twenty-one of the General Laws, or any wastewater collection or transportation project related thereto; provided, however, that eligible indebtedness shall not include any indebtedness for which the issuer has received assistance provided from state grants; provided further, that eligible indebtedness shall include indebtedness incurred pursuant to loan agreements under the provisions of chapter two hundred seventy-five of the acts of nineteen hundred and eighty-nine, as most recently amended by chapter two hundred three of the acts of nineteen hundred and ninety-two, which exceeded fifty million dollars by June thirtieth, nineteen hundred and ninety-five, and the debt service attributable thereto for any year for purposes of this section shall be the net obligation borne by the issuer after application of any credits, subsidies, or assistance, however characterized, provided under the provisions of the aforementioned statutes; provided further, that no issuer, which shall be defined as any city, town, district, commission, agency, authority, board, or other instrumentality of the commonwealth or any of its political subdivisions, which is responsible for the ownership or operation of wastewater treatment projects, and is authorized to finance all or any part of the cost thereof through the issuance of eligible indebtedness, shall receive relief authorized herein in excess of twenty percent of its annual debt service obligations due to eligible indebtedness. The division of municipal services of the department of revenue, in consultation with the department of environmental protection, shall develop guidelines to certify an issuer's eligible indebtedness and shall create a process to equitably distribute funds to eligible issuers, in order to mitigate extraordinary increases in sewer costs. The board, office or commission responsible for setting sewer charges in every city, town, district, or commission that either receives aid itself or is a member of a regional entity that receives aid pursuant to the provisions of this section shall certify to said division of municipal services that is has reduced sewer charges to reflect its share of any such aid.

Section 8. All sums appropriated under the provisions of this act shall be expended in a manner reflecting and encouraging a policy of nondiscrimination and equal opportunity for members of minority groups, women, and handicapped persons. All officials and employees of any department, board, commission or institution of the commonwealth receiving monies under this act shall take affirmative steps to ensure equality of opportunity in the internal affairs of state government, as well as in their relations with the public, including those persons and organizations doing business with the commonwealth. Each department, board, commission or institution, in spending appropriated sums and discharging its statutory responsibilities, shall adopt measures to ensure equal opportunity in the areas of hiring, promotion, demotion or transfer, recruitment, layoff or termination, rates of compensation, in-service or apprenticeship training programs, and all terms and conditions of employment. Such affirmative action program shall include efforts required to remedy the effects of present and past discriminatory patterns and practices and any action necessary to guarantee equal opportunity for members of minority groups, women, and handicapped persons. The secretary of administration and finance shall conduct an ongoing review of affirmative action steps taken by various departments, boards, commissions or institutions, to determine whether such entities are complying with the intent of this section. Whenever such noncompliance is determined by the secretary, he shall hold a public hearing on the matter and report his resulting recommendations to the head of the particular department, board, commission or institution, to the governor, and to the Massachusetts commission against discrimination.

Section 9. Notwithstanding the provisions of any general or special law to the contrary, the state treasurer is hereby authorized to pay for items authorized under section thirty-eight C of chapter twenty-nine of the General Laws from items 0699-0015 and 0699-9100 in section two of this act; provided, that such payments pertain to the bonds, notes, or other obligations authorized to be paid from each said item.

Section 10. Notwithstanding the provisions of any general or special law to the contrary, the state comptroller is hereby authorized to transfer from the following items in section two of this act such amounts as would otherwise be unexpended on June thirtieth, nineteen hundred and ninety-eight, to those of the following said items which would otherwise have insufficient amounts to meet debt service payments for the fiscal year ending June thirtieth, nineteen hundred and ninety-eight; provided, however, that each amount transferred shall be charged to such funds as specified in the item to which said amount is so transferred: 0699-0015, 0699-0090, 0699-0100 and 0699-9100.

Section 11. There is hereby established on the books of the commonwealth a separate fund to be known as the asbestos cost recovery fund. Notwithstanding the provisions of any general or special law to the contrary, all sums awarded or received by the commonwealth, after the payment of fees and expenses, as a result of settlement, trial or judgment from Suffolk Superior Court No. 90-3791-A, Commonwealth of Massachusetts v. Owens Corning Fiberglass, et al., and other actions brought to recover damages relating to asbestos containing materials in buildings owned or operated by the commonwealth, or received as dividend payments by the commonwealth on account of the bankruptcy of any manufacturer, seller or distributor of asbestos-containing materials in buildings owned or operated by the commonwealth, shall be segregated and deemed to be held in such fund. The division of capital planning and operations shall develop a plan for the orderly expenditure of such sums as are received by the asbestos cost recovery fund for the purposes of operations and maintenance, encapsulation and removal of asbestos. The plan shall contain provisions for emergencies, the short term and long term control of asbestos in buildings owned or operated by the commonwealth, and the removal and disposition of asbestos containing materials located in such buildings. Any funds deposited in said fund shall not revert to the General Fund, but shall remain available for the purposes provided herein. Any funds deposited as described above may be expended by the division of capital planning and operations, subject to appropriation, consistent with the purposes of this section.

Section 12. The commissioner of the division of capital planning and operations is hereby authorized and directed to develop a project accounting system for all pool accounts including, but not limited to, asbestos, handicapped access, demolition, fire protection improvement, environmental hazards, air pollution, energy, preventive maintenance, waste water treatment and toxic waste clean up. Said project accounting system shall be utilized to assess charges for all project-related costs including, but not limited to, administrative overhead. The commissioner may, in accordance with schedules approved by the secretary of administration and finance, employ or reassign employees of the division to said project as may be required; provided, that the salaries and administrative expenses shall be charged to the accounts funding the project. Said charges shall not exceed seven percent of the following appropriation accounts: 1102-7881, 1102-7882, 1102-7885, 1102-7886, 1102-7887, 1102-7890, 1102-7893, 1102-7894, 1102-7895, 1102-7896, 1102-7897, 1102-8801, 1102-8819, 1102-8847, 1102-8869, 1102-8880, 1102-8890, 1102-8891, 1102-8892, 1102-8893, 1102-8895, 1102-8897, 1102-8899 and 1102-9802.

Section 13. Notwithstanding the provisions of any general or special law to the contrary, the secretary of administration and finance is hereby authorized and directed to charge agencies as hereinafter provided for workers' compensation costs, including administrative costs, incurred on behalf of the employees of said agencies. The personnel administrator or his designee shall notify agencies within ten days of the enactment of this act as to the change in calculation of workers' compensation chargebacks from fiscal year nineteen hundred and ninety-seven. The personnel administrator shall notify agencies not later than fourteen days after the enactment of this act as to the amount of their estimated workers' compensation costs for the fiscal year beginning July first, nineteen hundred and ninety-seven, and shall require all agencies to encumber funds in an amount sufficient to meet the estimated annual charges. The estimated workers' compensation costs for each agency shall be not less than the amount of the actual workers' compensation costs incurred by said agency during the fiscal year ending June thirtieth, nineteen hundred and ninety-seven, and may include such additional sums as are deemed necessary by regulations promulgated pursuant to this section. Said personnel administrator shall revise the estimated workers' compensation costs for each agency on the first day of each quarter of the fiscal year commencing July first, nineteen hundred and ninety-seven. Within thirty days after the effective date of this act, for any agency that fails to encumber funds sufficient to meet the annual estimated charges, the comptroller is hereby authorized and directed to encumber funds in an amount sufficient to meet the annual estimated charges on behalf of such agency. Costs to agencies for benefits paid on behalf of their employees shall be allocated as actual expenditures are made. Administrative expenses shall be allocated to agencies based on each agency's percent of total benefits paid in the prior fiscal year. The comptroller shall charge each agency's workers' compensation costs to the agency's appropriation amount and shall transfer said amount to item 1750-0105 in section two of this act for the purposes of workers' compensation paid with respect to public employees for any costs, including administrative costs, incurred during the fiscal year. The human resources division may expend an amount collected for all agencies under this section not to exceed forty-five million dollars for hospital, physician, benefits, and other costs, including administrative costs, without further appropriation. Not later than fourteen days after the effective date of this act, and on the first day of each succeeding quarter during the fiscal year, the division shall bill agencies for twenty-five percent of said agency's annual estimated workers' compensation costs. Each agency shall be credited or billed for any differences between the previous quarter's estimated costs and actual costs incurred by said agency. The personnel administrator is authorized to establish regulations and procedures to implement the provisions of this section.

Section 14. There shall be established and set up on the books of the commonwealth a separate fund to be known as the Natural Resource Damages Trust Fund to be expended by the executive office of environmental affairs. Said fund shall be expendable without further appropriation for the purpose of funding natural resource restoration, replacement or acquisition of equivalent natural resources, and other actions related thereto including but not limited to natural resource damage assessment, natural resource damage recovery, and, if necessary, the costs of personnel and administration of studies or related activities, conducted pursuant to the secretary's authority as trustee for natural resources of the commonwealth pursuant to section five of chapter twenty-one E of the General Laws, sections twenty-three through twenty-seven of chapter one hundred thirty of the General Laws, section forty-two of chapter one hundred thirty-one of the General Laws, 42 U.S.C. § 1907(f), 33 U.S.C. § 1321, 33 U.S.C. § 2706, or any other relevant and appropriate authority.

Section 15. Notwithstanding the provisions of any general or special law to the contrary, the comptroller is hereby authorized and directed to transfer, without further appropriation, as of June thirtieth, nineteen hundred and ninety-eight, thirty-eight million five hundred seventeen thousand dollars from the General Fund to the Children's and Seniors' Health Care Assistance Fund, established in section two of chapter two hundred three of the acts of nineteen hundred and ninety-six.

Section 16. Notwithstanding the provisions of any general or special law to the contrary, the comptroller is hereby authorized and directed to transfer, without further appropriation, as of June thirtieth, nineteen hundred and ninety-eight, one hundred two million two hundred forty-five thousand fifty-two dollars from the Transitional Aid to Needy Families Fund to the Child Care Fund, both as established in section fifty-one of this act.

Section 17. Notwithstanding the provisions of any general or special law to the contrary, the comptroller is hereby authorized and directed to transfer, without further appropriation, as of June thirtieth, nineteen hundred and ninety-eight, thirty one million five hundred twenty-five thousand seven hundred ninety-three dollars from the Transitional Aid to Needy Families Fund to the Social Services Program Fund, both as established in section fifty-one of this act.

Section 18. There shall be established on the books of the Commonwealth a separate fund to be known as the maintenance of effort trust fund to support of county correctional facilities. Said trust fund shall consist of deductions specified herein, as well as any interest of investment earnings on such monies. Notwithstanding the provisions of section three of this act or any general or special law to the contrary, the state treasurer shall deduct from the amounts specified in said section three paid to each city and town an amount of funding equal to each city's and town's share of the fiscal year nineteen hundred and ninety-seven payments made pursuant to the provisions of item 8910-0000 of chapter one hundred and fifty-one of the acts of nineteen hundred and ninety-six. Said deductions shall be deposited in the maintenance of effort trust fund and shall be expended for the purposes of supporting county correctional facilities pursuant to the provisions of item 8910-0000 of section two of this act.

Section 19. For fiscal year nineteen hundred and ninety-eight, the colonel of the state police is hereby authorized to enter into agreements with the commanding officer or other person in charge of a military reservation of the United States located in the commonwealth, a federal law enforcement agency, or the Land Bank, as established in chapter two hundred and twelve of the acts of nineteen hundred and seventy-five, as amended by chapter four hundred and ninety-seven of the acts of nineteen hundred and ninety-three, to provide certain police services. Such agreements shall fix the responsibilities pertaining to the operation and maintenance of such police services, including but not limited to: (1) provisions governing payment to the department for the cost of regular salaries, overtime, retirement and other employee benefits, and (2) provisions governing payment to the department for the cost of furnishings and equipment necessary to provide such police services; provided, however, that the department is authorized to charge any the recipients of police services for the services, as authorized by this section; provided further, that the department is authorized to retain the revenue so received and expend such revenue as necessary pursuant to item 81000-0011 in section two of this act to provide the agreed level of services.

Section 20. Notwithstanding the provisions of any general or special law to the contrary, the comptroller is hereby authorized to enter into contracts with private vendors to identify and pursue cost avoidance opportunities for programs of the commonwealth and to enter into interdepartmental service agreements with state agencies, as applicable, for said purpose; provided, however, that payments to private vendors on account of said projects shall be made from actual cost savings as certified in writing to the house and senate committees on ways and means by the comptroller and the state budget director that are attributable to such cost avoidance projects; provided further, that the comptroller may establish procedures in consultation with the state budget director and the affected departments as he deems appropriate and necessary to accomplish the purposes of this section; and provided further, that nothing herein shall be construed so as to allow the comptroller or the state budget director to establish any accounts without prior statutory approval. The state budget director shall report on a quarterly basis to the house and senate committees on ways and means the status of all cost avoidance opportunities which are undertaken pursuant to the provisions of this section. The comptroller shall report on said projects as a part of his annual report under section twelve of chapter seven A of the General Laws.

Section 21. Notwithstanding the provisions of any general or special law to the contrary, except for sections fifty-two to fifty-five inclusive of chapter seven of the General Laws, the secretary of administration and finance is authorized to identify and pursue projects to optimize revenue management and collections by the commonwealth, and every officer having charge of any state agency that receives an appropriation from the commonwealth shall provide access, support and cooperation to said secretary or his designees in identifying and implementing revenue optimization projects. The secretary or his designee is further authorized to enter into contracts with private vendors, and to enter into interagency service agreements with departments to identify and pursue revenue optimization projects. Private vendors may be compensated from revenues collected by such projects in excess of the revenues established by said contracts as the minimum to be collected by each such project.

          The comptroller shall transfer, after providing for payments to private vendors, and for the appropriation in item 1000-0001 in section two of this act, seventy-five percent of such additional revenue to the General Fund and twenty-five percent of such additional revenue to the account established in item 1599-0033 in section two of this act. The secretary shall establish the revenue base that shall be used for determining the amount of additional revenue attributable to any revenue optimization project. Upon direction of the secretary, the comptroller is authorized to allocate monies from the account established in said item 1599-0033 to agencies that participate in revenue optimization projects authorized by this section. Agencies may expend monies in said accounts on one-time expenditures without appropriation after obtaining the prior written consent of said secretary or his designee and after giving ten days notice to the house and senate committees on ways and means. Any balance in said accounts at the close of the fiscal year shall be available for expenditure in the subsequent fiscal year, subject to the same conditions, and shall not revert to the General Fund. The provisions of this section shall remain in effect until June thirtieth, nineteen hundred and ninety-nine.

Section 22. The suggestion awards board, established pursuant to section thirty-one A of chapter seven of the General Laws, may make cash awards, pursuant to the provisions of said section thirty-one A and according to the board's published rules and regulations governing the selection process and criteria, to employees of the commonwealth who are instrumental in identifying or implementing ideas which reduce costs or increase revenues for the commonwealth. Such awards may be paid in a manner to be approved by the secretary of administration and finance, from the operating appropriations of the agencies which realize reduced costs or, from monies allocated from the maximization fund to agencies which realize increased revenues, as a result of the employees' suggestions or efforts. The amount of any such award shall equal ten percent of the reduced costs or increased revenues generated by the employee's suggestion, up to a maximum of five thousand dollars to any one individual over the term of this section, unless a larger award is approved by the general court, and all such awards shall be reported quarterly to the house and senate committees on ways and means detailing the recipient of such award, the recipient's department and title, the amount of the award, the reason for the award and the amount of money saved or realized by the commonwealth. No person shall be eligible to receive said award who is in a position classified as M-V or above, as provided in section forty-six C of chapter thirty of the General Laws, or is not a state employee. The provisions of this section shall remain in effect until June thirtieth, nineteen hundred and ninety-nine.

Section 23. Notwithstanding any general or special law to the contrary, the secretary of administration and finance is hereby authorized to enter into agreements with private parties for the placement of communications antennas on commonwealth communications towers and other suitable facilities upon such terms and conditions as said commissioner may prescribe, provided that any such agreements shall result from an open and competitive selection process. Said agreements may include, without limitation, provisions for access to communications towers and other facilities and for placement and use of ancillary equipment, facilities, and fixtures. Said agreements shall have a maximum duration, including extensions, of twelve years. Revenue derived from such agreements shall be eligible for inclusion in the revenue optimization initiative authorized by this act.

Section 24. In fiscal year nineteen hundred and ninety-eight the minimum aid distributed to each city and town pursuant to the provisions of chapter seventy of the General Laws shall be seventy-five dollars per student.

Section 25. For the purpose of calculating the minimum required local contribution for fiscal year nineteen hundred and ninety-eight, as defined in section two of chapter seventy of the General Laws, the department of education shall consider health care costs for retired teachers to be part of net school spending for any town in which health care costs for retired teachers were considered to be part of net school spending in fiscal year nineteen hundred and ninety-four. The department shall not consider health care costs for retired teachers to be part of net school spending for any district in which such costs were not considered part of net school spending in fiscal year nineteen hundred and ninety-four.

Section 26. (a) Upon the request of the selectmen in a town, the city council in a plan E city or the mayor in any other city, the department of revenue may recalculate the minimum required local contributions, as defined in section two of chapter seventy of the General Laws, in the fiscal year ending on June thirtieth, nineteen hundred and ninety-eight. Based on the criteria outlined in this section, the department shall recalculate the minimum required local contributions for a municipality's local and regional schools and certify the amounts calculated to the department of education. (b) Any city or town that used qualifying revenue amounts in a fiscal year which will not be available for use in the next year, or that will be required to use revenues for extraordinary non-school related expenses for which it did not have to use revenues in the preceding fiscal year, or that has an excessive certified municipal revenue growth factor which is also greater than or equal to one and one-half times the state average municipal revenue growth factor, may appeal to the department of revenue no later than October first, nineteen hundred and ninety-seven for an adjustment of its minimum required local contribution and net school spending. (c) If the claim is determined to be valid, the department of revenue may reduce proportionately the minimum required local contribution amount based on the amount of shortfall in revenue or based on the amount of increase in extraordinary expenditures in the current fiscal year, but no adjustment to the minimum required local contribution on account of an extraordinary expense raised in the budget of the fiscal year ending on June thirtieth, nineteen hundred and ninety-eight, shall affect the calculation of the minimum required local contribution in subsequent fiscal years. Qualifying revenue amounts shall include but not be limited to extraordinary amounts of free cash, overlay surplus, and other available funds. (d) If, upon submission of adequate documentation, the department of revenue determines that the municipality's claim regarding an excessive municipal revenue growth factor is valid, said department shall recalculate said municipal revenue growth factor and the department of education shall use this revised growth factor to calculate preliminary local contribution, minimum required local contribution and any other factor that directly or indirectly uses the municipal revenue growth factor. Any relief granted as a result of an excessive municipal-revenue growth factor shall be a permanent reduction in minimum required local contribution. (e) Upon the request of the selectmen in a town, the city council in a plan E city, or the mayor in any other city, in a majority of the member municipalities, any regional school district which used qualifying revenue amounts in a fiscal year that will not be available for use in the next fiscal year shall appeal to the department of revenue not later than October first, nineteen hundred and ninety-seven, for an adjustment to its net school spending requirement. If the claim is determined to be valid, the department of revenue shall reduce the net spending requirement based on the amount of the shortfall in revenue and reduce the minimum required local contribution of member municipalities accordingly. Qualifying revenue amounts shall include but not be limited to extraordinary amounts of excess and deficiency, surplus, and uncommitted reserves. (f) Any regional school district which received regional school incentive aid in fiscal year nineteen hundred and ninety-seven shall, upon the request of the selectmen in a town, the city council in a plan E city, or the mayor in any other city, in a majority of the member municipalities, appeal to the department of education for an adjustment in the minimum required local contribution of its member municipalities. The department of education may reduce the increased assessment of the member municipalities as a result of the reorganization of the regional school district by using a portion of the regional incentive aid to reduce the prior year local contribution. (g) If the regional school budget has already been adopted by two-thirds of the member municipalities, then upon a majority vote of the member municipalities the regional school committee shall adjust the assessments of the member municipalities in accordance with the reduction in minimum required local contributions approved by the department of revenue or the department of education in accordance with the provisions of this section. (h) Notwithstanding the provisions of clause (14) of section three of chapter two hundred fourteen of the General Laws or any other general or special law to the contrary, the amounts so determined shall be deemed to be the minimum required local contribution described in said chapter seventy; provided, however, that the house and senate committees on ways and means and the joint committee on education, arts and humanities shall be notified by the department of revenue and the department of education of the amount of any reduction in the minimum required local contribution amount. (i) In the event that a city or town has an approved budget that exceeds the recalculated minimum required local contribution and net school spending amounts for its local school system or its recalculated minimum required local contribution to its regional school districts as provided by this section, the local appropriating authority shall determine the extent to which the community avails itself of any relief authorized under this section. (j) The amount of financial assistance due from the commonwealth in fiscal year nineteen hundred and ninety-eight under said chapter seventy or any other provision of law shall not be changed on account of any redetermination of the required minimum local contribution under this section. The department of revenue and the department of education shall issue guidelines for their respective duties under this section.