Section 17C. A Forest Products Trust Fund shall be established on the books of the commonwealth. This fund shall be used to disburse payments to cities and towns within whose boundaries exist state owned forest land. The commissioner of the department of environmental management with the approval of the secretary of environmental affairs shall develop forest management plans for all forest land owned by the commonwealth, its agencies, commissions or authorities, with the exception of land owned by the Massachusetts Water Resources Authority.

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(a) Fifty percent of all revenue received by the removal of forest products on land acquired by the commonwealth on or after June 1, 1987 shall be deposited in the Forest Products Trust Fund. Such funds shall be dispersed to those municipalities within whose boundaries the removal of forest products occurs in an amount equal to fifty percent of the revenue received by the commonwealth.

(b) Eight percent of all revenue received by the removal of forest products on land acquired by the commonwealth before June 1, 1987 shall be deposited in the Forest Products Trust Fund. Such funds shall be dispersed to those municipalities within whose boundaries the removal of forest products occurs in an amount equal to eight percent of the revenue received by the commonwealth.